ABInbev to Swallow SABMiller

Posted on September 17, 2015

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How big is big? or how much beer is being sold globally ? Well according to Bloomberg this

In short so you don’t have to read anything else, here is a simple version of what this means for the global beer market.

“The acquisition of SABMiller would be the biggest in the industry’s

history and cap more than a decade of consolidation across brewing companies. 

A potential combination of the beer-makers had been seen as likely for years as they have limited

geographical overlap and are not controlled by a family

foundation like their main competitors, Heineken NV and Carlsberg A/S.”

What does this mean for Craft Beer?

Well I think the term ‘Craft” will be outdated soon enough as we are starting to get a blurry line on what is “Craft” vs “Good Beer”. I recently tasted Leffe again and this is owned by ABinBev and MillerCoors is responsible for the hottest beer in the US right now ‘Not your Fathers RootBeer‘ that hits at 10%.

Not your Fathers Root Beer

Craft beer is now in the stage of struggling to attain taphandles without agreements with bars or establishments on buying beeers. The ability of ABInbev to work with SAB in establishing a supply chain globally will likely take 5-10 years of rebranding established brands that are struggling in certain markets. Combined marketing powers, reduced costs of production and creating brands in new countries will allow for this Trillion Dollar deal to be successful in the long run. 

Bars already have established agreements with one or both of these two established brewers. Combining the agreement will allow consumers with more choice, and ultimately grow their premium product ranges that some countries are yet to see. Though the thought is the deal allows ABinbev to reach new markets like Africa, but I think the growth of brands in Asia and new region is going to be the winner in this agreement.

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