THE DRINK NATION IS A FREE RESOURCE FOR FINDING EVERYTHING AWESOME ABOUT DRINKING IN YOUR LOCATION

AB-InBev Finalizes SABMiller Buyout

by Ryan Hudak on Nov 16, 2015 in Beer
AB-InBev Finalizes SABMiller Buyout

AB-InBev, which was already the largest brewery in the world, has doubled down on its macro status and finally purchased SABMiller, a merger that has been in talks for months. The final sale price was for $106 billion, and will make AB-InBev the fifth largest producer of general consumer goods by revenue in the world. They are tied now with Unilever at $64 billion and surpassed only by PepsiCo, P&G, and Nestle.

To make the purchase, however, and avoid antitrust lawsuits, SABMiller had to first drop it’s 50% voting interest and 58% ownership interest in MillerCoors, which means AB-InBev didn’t even get the biggest piece of the deal in the Miller brand of beers. And while it does help them avoid any kind of antitrust lawsuits, it may turn out to be another bad idea—as when AB-InBev purchased Grupo Model in 2013 and had to divest itself of Corona and Modelo, whose brands now make up three of the top four selling imports in America.

Molson Coors will gain complete control of the MillerCoors brands, which will place them firmly in the #2 spot of largest breweries in the world. Of the SABMiller portfolio, then, AB-InBev will pick up what amounts to a handful of regional lagers and pretend-craft beers. So the Cusquena you drink the next time you’re in Peru will be in the firm grasp of InBev. Uh oh.

For those of us living in America, we won’t have to worry much about what this means. With the craft beer segment continually growing, InBev is looking to expand its stronghold on overseas distribution, specifically in growing beer markets like China and Africa, which have the potential to grow exponentially. And while they did give up a nearly 25% US market share of beer with the Miller brand, AB-InBev is now selling an estimated 29% of the world’s beer.

And while this is a potentially scary percentage that will surely be on the rise in coming years, it shouldn’t be much to worry about. InBev has been trying to strengthen itself for quite a while—buying up smaller conglomerates and purchasing craft breweries to make its own—but the craft beer culture in the US keeps on growing. All you have to do is keep buying your favorite craft beer and keep enjoying your local brewpubs and breweries, and everything will be just fine. Let Budweiser go to Africa. I’ll go and buy a case of real beer.

Photo via Flickr user Sean Davis


Tags: Beer
Recent Articles

Feedback

How are we doing? Tell us what you like or don't like and how we can improve. We would love to hear your thoughts!

*Name:
*E-mail:
*Suggestions:
 
Inside Look: Campari's Stylish North American Headquarters in New York

Inside Look: Campari's Stylish North American Headquarters in New York

If you're a frequent Negroni drinker, always order Wild Turkey Bourbon in your old fashioneds, or prefer your ...read more ›

by The Drink Nation Jan 9, 2020
Behind the Bar: Liana Oster of Dante

Behind the Bar: Liana Oster of Dante

For this exciting installment of Behind the Bar, we had the incredible opportunity to sit down with Liana Oster, the head bartender at Dante in New Yo...read more ›

by The Drink Nation Jan 7, 2020
Pabst Blue Ribbon Launches Blue Ribbon Whiskey in Select US Markets

Pabst Blue Ribbon Launches Blue Ribbon Whiskey in Select US Markets

PBR has launched their own whiskey. Let's keep an open mind and see what is inside this bottle....read more ›

by Carrie Dow Sep 24, 2019
SPONSORED
Drink Nation Store Rectangle
The Master Sommelier Scandal is Now the Subject of a New Investigative Series

The Master Sommelier Scandal is Now the Subject of a New Investigative Series

There's a new investigative series about one of the biggest scandals to ever hit the wine world....read more ›

by The Drink Nation Sep 13, 2019
Using Peas to Make Gin Might Lead to More Environmentally Friendly Spirits, Studies Show

Using Peas to Make Gin Might Lead to More Environmentally Friendly Spirits, Studies Show

Scientists may have discovered a more environmentally friendly way to make one of the world's most popular spi...read more ›

by The Drink Nation Jul 23, 2019
Drink a Classic Cocktail for a Good Cause During Negroni Week, June 24-30

Drink a Classic Cocktail for a Good Cause During Negroni Week, June 24-30

Negroni Week 2019 is June 24-30, so drink this classic cocktail for a good cause....read more ›

by The Drink Nation Jun 19, 2019
What to Do if Your Uber, Lyft, or Cab Driver Ever Strays From Your Destination or Makes You Feel in Danger

What to Do if Your Uber, Lyft, or Cab Driver Ever Strays From Your Destination or Makes You Feel in Danger

If you're taking an Uber, Lyft, or cab and feel unsafe, there are steps you can take to protect yourself....read more ›

by Nina Starner Jun 19, 2019
Behind the Bar: Kat Corbo of The Study & Winner of Speed Rack 2019

Behind the Bar: Kat Corbo of The Study & Winner of Speed Rack 2019

This time on Behind the Bar, we spoke to Kat Corbo of The Study, who recently won Speed Rack 2019....read more ›

by The Drink Nation May 15, 2019
Boston Beer & Dogfish Head Have Merged in a $300 Million Deal

Boston Beer & Dogfish Head Have Merged in a $300 Million Deal

In a huge move for the American craft beer community, Boston Beer and Dogfish Head have agreed to a merger valued at $300 million dollars. ...read more ›

by The Drink Nation May 10, 2019
A New, High-End Blend of Jack Daniel's Whiskey is Now Available in the United States

A New, High-End Blend of Jack Daniel's Whiskey is Now Available in the United States

A new, high-end blend of Jack Daniel's whiskey, known as Jack Daniel's No. 27 Gold, which was previously only ...read more ›

by The Drink Nation Apr 15, 2019
SPONSORED
Drink Nation Home Bar Project Bottom Rectangle 2
View all Articles

Sign up to get weekly drinking news, bar reviews, events and more sent directly to your inbox!

Close