SABMiller, AB InBev Shareholders Approve $100 Billion-Plus Merger

[mahatmakanejeeves]

Source: The Wall Street Journal.

SABMiller, AB InBev Shareholders Approve $100 Billion-Plus Merger

Deal turns AB InBev into a brewing powerhouse with an estimated 46% of global beer profits

By Tripp Mickle

[e-mail]
http://twitter.com/trippmickle

Updated Sept. 28, 2016 9:31 a.m. ET

Anheuser-Busch InBev NV on Wednesday won approval for its $100 billion takeover of rival SABMiller PLC, ushering in a new world order for the beer industry. ... Shareholders voted overwhelmingly in favor of the $100 billion-plus acquisition, one of the largest in corporate history. AB InBev will drop the SABMiller name and begin trading as a combined company Oct. 11.

The deal turns AB InBev into a brewing powerhouse with an estimated 46% of global beer profits and 27% of global volume, lessens its dependence on the U.S. and gives it sprawling operations across 17 African countries.

It also strengthens rival brewers who were able to scoop up discarded pieces of SABMiller. AB InBev sold off dozens of brands to gain regulatory approval for the deal, including Miller Lite, Peroni and Snow, the world’s top-selling beer.

The takeover is just the latest in a string of acquisitions for the Budweiser brewer. Built through the 2004 combination of Brazil’s AmBev and Belgium’s Interbrew, the company has now bought four major brewers since 2008, including Anheuser-Busch Cos., Mexico’s Grupo Modelo and Korea’s Oriental Brewing.

Read more: http://www.wsj.com/articles/sabmiller-ab-inbev-shareholders-approve-100-billion-plus-merger-1475059015

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A new world order for beer?

Also, something called Snow is the best-selling beer in the world?

Full disclosure: I lugged home a case of Miller Genuine Draft on the back of my bicycle Monday afternoon. With the debate on tap* for Monday night, I wanted to be prepared.

* See what I did there?

[LynneSin]

1. This is why I only drink Craft Beer

Craft Brewery is a wonderful thing for the US Economy. I know here in Delaware it has created many great paying jobs, especially our juggernaut of craft brewing - Dogfish Head Brewery.

[mahatmakanejeeves]

3. Dogfish Head: I never had the suds, but I do have one of their t-shirts.

Where are they, Rehoboth? (Yeah, I know, I know; I can look that up.)

I'm certain it's sold as far south as northern Virginia. It probably makes it down into North Carolina.

[iandhr]

5. I am a big fan of Dogfish.

[Initech]

6. I love craft beer as well.

Mega breweries like Coors and Miller suck. But the bad thing is here in California - the two largest craft breweries - Lagunitas and Ballast Point - both sold to giant beer conglomerates. Lagunitas sold to Heineken for an insane amount of money and Ballast Point sold to Constellation Beverages for something like $2 billion dollars.

[alarimer]

7. It's getting harder to tell these days what is craft beer and what isn't.

Big Beer has recently been on a buying spree for craft beers makers willing to sell. This includes Goose Island, Elysian and Blue Point, among others. Heineken has a 50% stake in Lagunitas. Dogfish Head sold a minority stake to a private equity firm. I guess the issue for me is whether these smaller beers can maintain integrity of the product despite "selling out".

http://fortune.com/2015/10/10/craft-beer-sell-out/

[LynneSin]

8. The DFH sale was to help bring capital into investment

However they did not sell out to one of the big Beverage groups but a private equity firm and even then just a minority of stocks. The Brewery Major stockholder is still DFH founder Sam Caglione. He has the intention is to buy back those shares in a few years

http://www.delawareonline.com/story/money/business/2015/09/30/dogfish-head-sells-ownership-stake-lnk-partners/73102616/

[alarimer]

10. Yes, I agree it's not in the same category as some of the others.

Still one of my favorites.

[LynneSin]

12. Many of us first read about it here in Delaware and panick'd

In fact I had a group tour of DFH the weekend after the News Journal article and at the factory we did ask about it.

I know DFH gets lumped in with breweries like Lagunitas and Goose Island but those latter 2 are sell-outs. In Craft Brewing industry technically they are no longer considered craft breweries. The sell-out by Lagunitas and Goose Island does help widen their distrubtion and makes it harder for DFH to compete in the market against them. But the outside capital that DFH was able to bring in will help widen our market with extra capital but still keeps DFH a Craft Brewery.

I think the smart thing that DFH could do to help broaden it's market is similar to what Sierra Nevada has done which is open another brewery but on the West Coast. Selling out to the big brewing companies making cross-country shipping more cost effective. Sierra Nevada opened a brewery in North Carolina which is where most of our SN beer comes from here on the east coast.

[OriginalGeek]

15. I have a couple SN Oktoberfests in the fridge now

I had more but, well, you know...

We get DFH down here too.

I sure hope our Cigar City stays awesome. I don't think they've sold out but I have seen them do limited release, special brews in cooperation with other brewers - but I think all the involved are craft brewers so it's all good. I loooooooove when I find a new-to-me CC brew on tap at a local venue.

[onehandle]

2. At least it makes it easier to know which beers not to drink.

Hey Siri: Is beer x owned by InBev?

Siri: Yes. It is shit. Do not drink, especially since you live in the craft beer paradise of the Philadelphia region. Additionally, fuck InBev!

[OriginalGeek]

16. That Siri is getting saucy!

but she ain't wrong.

[dembotoz]

4. as a lifelong milwaukee resident i have preferred the local brews my entire life

the fact that i have boycotted all bud products since the cardinals beat my brewers back in 92 does not count....


I have expanded to drink wisconsin beer altho i have discovered a personal favorite Point beer is owned by some folks who are into some right wing groups....

well anyway...i am currently out of beer and was planning to get more on my next shopping trip...the packers have a bye week so i can put off my decision til next week i guess
decisions decisions

[SwankyXomb]

9. "Now all beers are Taco Bell"

[rurallib]

11. just more of the consolidation that gives us one or 2 choices in most industries

competition is mostly long gone in most everything.

[OxQQme]

13. The "Drinking Game" brew?

Imagine chugging one of those horsepiss InBev cans whenever drumph says 'believe me'.
You'd have to down a whole sixer of tall boys to feel anything. Be all bloated up.

I have such a wide variety of true craft beers here here in Beervana/Portland that it would take months to sample all of them.

Keep Portland Beered

[mahatmakanejeeves]

14. Henry Weinhard's Woodland Pass IPA

I know it's not a craft beer.

About two years ago, a local (northern Virginia) grocery store (Harris Teeter) filled a cart with cases of beer that it was discontinuing. The prices were cranked down to quite an attractive level. Among the lot were two cases of Henry Weinhard's Woodland Pass IPA, in bottles, of course. I grabbed both of them, for $5.99 each. They fit with no room to spare in a banker's box. I carried them home on the commuter bus.

I'm not sure who brews that now. Back in 1994, when I lived out that way, I took a tour of the Henry Weinhard brewery in Portland.

Henry Weinhard’s Woodland Pass Review

The review says it's from Hood River now.

Thanks for writing.