Toll Free Orders:
1 (866) 291-5756
A-B and InBev: First Comes Distribution, Then Comes Merger, Then Comes the Baby …
The powers that be have been very busy lately, and it seems an alliance may take place between the two biggest players in the global beer market. Although nothing has been finalized, rumors of a merger between A-B and InBev are flying all over the information super highway. Stocks for both corporations are soaring, analysts everywhere are chiming in on the pros and cons, Europeans are preparing themselves for Budweisers and American are getting ready for a big splash of Stella. A merger could be just what the doctor ordered for the beer giants by breaking down barriers that have been in place for the better part of a century. Dominant in their own backyards, an A-B/InBev merger would give each company a home field on foreign soil.
A-B and InBev have already been to bed together; in November the two struck a deal that allowed A-B to distribute InBev’s beer throughout the United States. A-B’s distribution network is one of the most sought after vehicles in the entire beverage industry. Get into it and you can pretty much put the down payment on that $5 million house you’ve been dreaming of, swing by your local Ferrari dealership for a new 360 Modena and put your kids, their kids and their kids kids through private school. In other words, you’re coast to coast instantly. Striking the deal was the first step towards a merger that would give A-B the same treatment in European markets.
A-B is the world’s largest beer company based on revenue, InBev is the world’s largest beer company based on volume. By joining forces, the two businesses would own a fourth of the world’s beer market. A-B desperately needs new territories as the popularity of wine and spirits in the United States continues to grow at a geometric rate. InBev needs a stronger foothold on the US market. The merger would solve everyone’s problems.
The question remains, will it happen? This beer writer isn’t too certain. Let’s look at the facts: if the merger would happen to occur the Busch family would have to relinquish their family’s control over Anheuser and their famous Budweiser, a move their not too keen on making. Why? Pride, power, tradition? It’s possible, but more than likely the age old factor - money. Today, the family owns a small percentage of the company, but they’ve just placed the next generation into the CEO’s office, August A. Busch IV. The board of directors will give him the time he needs to turn things around stateside, but if he fails the merger with InBev will probably still be on the table. Busch IV’s father is a prominent and powerful board member and he’s been pulling for his son since he assumed the Chief Executive role. His sway with the other members will be tested as InBev dangles the keys to European cities in front of them.
Stay tuned!
