Feb 7, 2011

AB InBev, MillerCoors to Merge?

I was scouring the internet for my news today, when I happened to get a link to a very interesting news story. I had heard rumors of this news story for about a week or two, but today is the first time I've actually seen in writing that AB Inbev and MillerCoors may actually merge. The story if from the Dayton Business Journal and they are reporting that analysts have stated that this would be a very lucrative move for Anheuser Busch and Miller Coors, but what about the Craft Beer Industry? Here's the link to the article: A-B InBev, SABMiller merger likely

In my estimation, this can only be bad news for the craft beer industry. These giants already control an impressive amount of market share and this will not help a small operation to break through any barriers. Think about it: These 2 giants already spend a ton of money in an effort to make sure that their product is placed in the perfect spot in your local grocery store. They spend millions and millions of dollars on ads telling you to buy their beer. They do everything they can to ensure that they will be the beer you choose when having a party and if they merge, the amount of money they can spend on that will be astronomical! 

Now, more than ever, Craft Brewers need to work together. It will be tough to enter a market with such a strong force, but by helping each other, craft brewers can keep moving forward. I recently linked to another blog from the FullSteam Brewery down in North Carolina (http://www.fullsteam.ag/blog/2011/02/that-brewery-sucks/) where they talk about how local breweries support each other by doing things such as ordering grain together, or suggesting other North Carolina beers to add to taps at bars in the state. I am not sure if other states breweries do this as well, but I believe that if they are not, now is the time to start! 

A merger of these two giants may increase their profits dramatically, but I am afraid of the affect it will have on the craft brewer. I look forward to a day where most of the market is held by small, local craft breweries and not 1 or 2 mega breweries.

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