Showing posts with label mergers. Show all posts
Showing posts with label mergers. Show all posts

Wednesday, July 20, 2016

For the record: The Brewers Association addresses the AB-InBev acquisition of SAB Miller.



Death to chains and multi-nationals.


BREWERS ASSOCIATION STATEMENT ON AB INBEV ACQUISITION OF SABMILLER

Brewers Association
Boulder, CO • July 20, 2016—

Bob Pease, president and CEO of the Brewers Association (BA)—the not-for-profit trade association dedicated to small and independent American brewers—released the following statement regarding the approval of Anheuser-Busch InBev (ABI) to acquire SABMiller:

Today’s decision by the Department of Justice (DOJ) to approve the acquisition of SABMiller by ABI stipulates many of the safeguards the Brewers Association requested to preserve fair competition and access to market for America’s small and independent craft brewers.

While we continue to believe that the merger of the world’s two largest brewers is bad for both the beer industry and consumers, the DOJ’s significant requirements, including the termination of incentive programs such as the Voluntary Anheuser-Busch Incentive for Performance Program (VAIP), a cap on ABI’s self-distribution volume and other measures to protect distributor independence, appear to address some of our major apprehensions with the merger. With effective enforcement of these provisions, small brewers can rely on their independent distributor partners to access the market. This will help ensure that beer enthusiasts can continue to enjoy a vast variety of options from the more than 4,600 breweries in the U.S.

The Brewers Association will closely examine the consent decree and compliance with its provisions, as well as monitor ABI’s actions, specifically with regard to the acquisition of independent craft brewers. We remain concerned about how past, pending and future acquisitions may shift the dynamics of the current beer market. We will continue to encourage the DOJ to monitor and, where necessary, take action to remedy any anti-competitive effects of ABI’s behavior in the U.S.

__

Thursday, January 14, 2016

"Anatomy of an Oligopoly: the Beer Industry."

It's a commentary that sounds like I should have written it, and I'm slightly annoyed I didn't.


Anatomy of an Oligopoly: the Beer Industry
, by Jeff Nielson (Sprott Money)

Why has the standard of living across most of the Western world fallen by more than half over the past 40+ years? Why is Western unemployment at an all-time high, with more than 100 million permanently unemployed people who are not allowed to work? Why does most brand-name beer taste like swill?

Most readers will see no connection between these questions. Some will see a connection between the first and second, and very few will see a common link between all three. In fact, we can answer all of these questions (at least in part) the same way, and the answer is spelled O-L-I-G-O-P-O-L-Y.

_

Wednesday, October 14, 2015

The Pour Fool: "AB/InBev Buys SABMiller: Corporate Cluelessness as Fine Art."

AB/InBev Buys SABMiller: Corporate Cluelessness as Fine Art, by Steve Foolbody (The Pour Fool)

There are times when I stare into the sky with humble earnestness and ask the biggest, most important question of all.

The Pour Fool and I -- were we separated at birth?

I went to the "Bluegrass Beer Geek" page at Facebook and posted the link to this amazing essay, prefacing it with this:

"The Pour Fool is a living, breathing deity."

Alas, only one reply was offered amid the hundreds of "see my latest big haul" photos.

"By 'living, breathing deity', do you mean 'child with too much free time and a keyboard, but poor Google skills'?"

No. I mean this.

This final point is the one I want everyone to remember: it is very possible, even likely, that we current American beer lovers - those who honor the ideals of "Drink Local", independent ownership, small business growth, individual achievement, choices, and better beer - can and should(!) be the generation of drinkers who drive AB/InBev into its eventual niche as a quaint remnant of the infancy of American brewing and a small curiosity section at the end of your supermarket beer aisle. Beers like Bud, Bud Light, Miller, Coors, Pabst, etc., will never disappear entirely because there will always be people who prefer them and that's as it should be. But the relative quality and economic consequences of those beers do not merit their being perennial Top Dog in the American beer marketplace. I'm asking, flat out, that people who truly love and care about craft brewing NOT, ever again, create a stylistic exception which says that a cold Bud Light on a hot afternoon or on your beach weekend in Cabo is allowable. I'm requesting, plainly, that you not reward those brands which sell out to AB with your dollars and your implied approval of their puppet status. I'm asking that you actively seek out locally or domestically-made substitutes for those "summer beers", those insipid Pilsners that are the mega-brewers' only working offering, from the rosters of your local brewers...and they're out there. The majority of American brewers, these days, offer at least a couple of hot-weather beers and many of those actually are Pilsners, but Pilsners done right, with flavor and body and hops and craftsmanship showing with every sip. I'm asking you to simply remove all the corporate beers, the mass-produced, cynical, watery pablum beers from foreign conglomerates, from your worldview. Ignore the entire end of your grocery store cooler that's devoted to the idea that we're all the same and that we value repetition and sameness over Choices and variety.

Wednesday, October 07, 2015

"Just please don’t insult my intelligence by telling me it’s all for my own good."


A couple weeks back, I drove over to Cumberland Brewery for a morning chat with Mark Allgeier. We both remarked about the difficulty in espousing the virtues of localism in brewing, particularly as it pertains to wholesale distribution.

Lagunitas came up, and I observed that I couldn't even remember the last time I'd had one. No offense, but it means next to nothing to me. It's just another beer from somewhere else, and my beery libido is more regional these days.

I was walking back to my car, and there was the Lagunitas truck in front of Old Town Liquors. The Heineken deal was announced the following day, I believe.

The point is that Stephen Beaumont hits the center of the target. Maybe you'll take HIS word for it.

Dear Brewery with the ‘SOLD’ Sign: Cut the Crap!, by Stephen Beaumont

 ... Look, I get it that when you build a small business into a larger one you have a corresponding rise in responsibilities. I understand that there are employees to consider, investors to pay out, maybe bank loans to finance. I know personally about the sacrifice and strife involved in being an entrepreneur for 25 or more years, grinding away and hoping that others will share your vision sufficiently that your business might turn into a success. And I appreciate that many long-time brewery owners may not have a succession plan in place.

Hell, I even understand pure avarice of the “they backed up a dump truck full of money” variety.

But when your company’s entire marketing strategy has for years been based upon the premise of “small is good, big is evil,” do you honestly think it reasonable to suddenly turn on a dime and tell us otherwise? After imploring us to “buy local” for decades, does it really make sense to expect us to abruptly opt for “international” instead? Do you really believe that the joining of a small brewery – and let’s face it, everything in craft brewing is tiny relative to the big international brewers! – with a multi-billion dollar company can ever be anything even approaching a “meeting of equals”? Do you truly think that the massive corporate structure to which you have just made your sale really “shares the passion” that led you into craft brewing in the first place?

Thursday, September 10, 2015

Lagunitas and Heineken: The bigger the price tag, the greater the irrelevance.


The Lagunitas/Heineken deal struck me no differently than when picking up a Wall Street Journal or Financial Times and reading the breathless report of a Chinese plumbing supplies manufacturer agreeing to pay 4.5 gazillion whatevers for a 50% stake in a French PVC pipe flange fabricator.

It's just money now. True, some day I might board a plane somewhere and have the choice of canned Lagunitas, as brewed by a Heineken subsidiary in Kenya, and then maybe I'll drink one. Then again, I might shoot a 50 ml of Seagram's Gin instead -- or just have straight apple juice.

Now more than ever, what matters to me is supporting brewers who function as independent local business persons. I know from a quarter-century of experience that these are the folks keeping the ethos real, and the money local, where it recirculates and helps other local businesses. It's just a matter of personal taste. Multinationals like Heineken have enough money. I'd rather have more control over where mine is spent.

It's time to put the genuinely local and "micro" back into this thing we all love. They're my bold italics in the wonderful passage below. Thanks, Jeff Alworth. It's where my head has been for a very long while.

WE NEED TO DIAL IT BACK A NOTCH, by Jeff Alworth (All About Beer Magazine)

... The world of American brewing is so hot right now that it’s hard to announce anything without lapsing into hyperbole. Everything’s the best thing ever, always. And, when a brewery sells itself to a larger brewery, it is the worst thing ever. Magee’s announcement is a spectacular Trump-like masterpiece of overstatement, and for me it was the moment Craft jumped the shark into over-seriousness. Going forward, I’m planning to focus less on the specific products and breweries of the commercial sphere—they will come and go, inevitably—and more on the act of sharing a beer with someone I enjoy. And I definitely won’t be thinking of any brewery as so important that it can change the trajectory of history. It’s time to dial everything back a notch.

Friday, July 17, 2015

If you care about whatever "craft" remains in beer, then Firestone Walker's "deal" with Duvel Moortgat means absolutely nothing.


Rolls eyes, yawns.

The unspeakable tedium.

Then inevitably, someone must "reach out."

Acquired, invested in; semantics, gymnastics and pyrotechnics. Human being are incrably predisposed to speak in terms of euphemism. We slept together, had sex or had conjugal relations, though never just plain "fucked," when the latter describes it far more elegantly.

Yes, the article is updated.

[Update] Firestone Walker Brewing Makes Investment Deal With Duvel Moortgat, by Dan at the Full Pint

7/17 Update — 17 hours after we posted this, David Walker of Firestone Walker reached out to me regarding the headline “Firestone Walker Brewing Has Been Acquired by Duvel Moortgat.” He said the headline was causing trouble and if I had any questions, to send them his way.

After asking both David Walker and Simon Thorpe of Duvel flat out if this was an acquisition or sale, I was not given an admittance or denial.

When I pressed Mr. Walker harder, I was given the quote “It’s more an investment than an acquisition.”

So with that said, as a trusted platform for all craft breweries, we have altered the headline to accurately represent the public information available. Stay tuned as I share my thoughts on these current events.

(Paso Robles,CA) – Firestone Walker Brewing Company has just announced that they have been acquired “invested in” by Duvel Moortgat. This will be the third American based craft brewery that Duvel has acquired, joining Brewery Ommegang and Boulevard Brewing. We hope to have more questions answered in the near future, here is the official press release sent out by Firestone Walker.

I was asked about this on Facebook.

Was I aware that Firestone Walker and Duvel-Moortgat were fucking?

Yes. I can't even muster a strong opinion, apart from this: Now that this wonderful thing we built is about money, and money alone, it actually interests me very little. During the remaining years of my beer drinking life, insofar as possible, I'll seek to spend my money with brewers who still exemplify the foundational ideals. Life's just too short to care about Firestone Walker. The end.

An interesting exchange followed.

JM: Firestone rubber and tire is a 2 billion dollar company. You think Duvel buying the brewery is only about money?

Me: You think my comment was about this transaction alone?

Monday, July 14, 2008

InBev to absorb A-B -- and it doesn't matter a single bit.

News from Reuters: InBev agrees to buy Anheuser for $50 billion.

Go ahead. Read this and other stories about the creation of the world’s largest beer maker, and if you find any bits of text that have the remotest thing to do with beer (as opposed to shares of stock), please let me know.

As the hypocrites clamor about the “American icon” Budweiser falling into the hostile hands of a Belgo-Brazilian consortium, I’ll do my best to suppress a yawn as big as distance between Budweiser and anything truly worth drinking, and remind readers that precious few people gave a damn during A-B’s march to the top, when its carnivorous tactics chewed up and spit out countless small, local competitors.

Swill-loving, America-first advocates please take note: Very soon none of the “big three” – Coors, Miller or A-B – will be independent.

The perfect time to switch to locally-brewed beer, don’t you think?