ONE BREW TO RULE THEM ALL

Concerning the A-B InBev SABMiller merger, let me say that although the subject involves the production of beer, this is not about beer. It is all about money. Which is par for the course whenever speculative Wall street and entities such as JP Morgan Chase and Goldman Sachs become involved. Carlos Brito, CEO of Anheuser-Busch InBev summed it all up with: “We believe this combination will generate significant growth opportunities and create enhanced value to the benefit of all stakeholders.” Envisioning this merger as a way to create “one of the world’s leading consumer products companies.”

The go-ahead for giving birth to this behemoth was made possible when the two largest shareholders of SABMiller , Altria the tobacco giant that once owned Miller Brewing when it was called Phillip Morris, and the Santa Domingo family of Colombia agreed to the merger, with a discount of the stock’s cash price, which was done, the New York Times observed, “in order to avoid a huge tax bill from the sale of their holdings.”

In order to pass through U.S. regulatory hoops, the Miller brand in North America will be bought by MolsonCoors. Making Miller Lite and Coors LIght under their control. As the Wall Street Journal pointed out: “taking complete control of MillerCoors would still benefit Molson, which could cut as much as $500 million in costs from the joint venture by eliminating breweries along the US-Canada border, reducing staff and improving procurement, according to analysts.”
The WSJ should know. Just ask the staff at National Geographic, when Rupert Murdoch bought their company.

Why the merger? The two main reasons cited are that A-B InBev wants to have greater presence in the continent of Africa and that they want to get a presence in China, with that holiest crown jewel of beer sales, the number one in volume, SNOW.

The purchase of the SABMiller portfolio involves an accumulation of a huge chunk of world beer culture, something that the money driven mainstream media tend to ignore. What will become of Dogbolter dark lager, the Australian beer dry hopped with cascade hops? What are the plans for Rhino Lager, Zambia’s “the pride of the copperbelt“, or St. Louis from Botswana. Will Impala the cassava based beer in Mozambique, undergo a reformulation? What about Trophy in Nigeria? Or Sheaf Stout in Australia, will they still use Nelson Sauvin hops in Fat Yak Ale?

Breweries from Romania, Slovakia, Peru, Columbia, Honduras, El Salvador, Italy, India, Hungary, Canary Islands, Uganda, Netherlands, Poland and the Czech Republic, are involved. If you do not believe that there will many people who will lose their jobs, then obviously you are puffing on a Neoliberal pipe dream.

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