If you drink beer, you’ve probably had a Budweiser or a Miller before. Millions of people around the world enjoy these adult beverages, go to festivals with their branding everywhere, and walk past bright neon signs with their logos on a daily basis. They’re as well-known as Coca-Cola, Pepsi, and McDonald’s. They also make their respective companies billions of dollars every year.
In recent years, however, “big beer” hasn’t been doing so hot. In America, the rise of craft beer — small-batch, bespoke beverages made by much smaller breweries — took a sizable chunk out of Bud and Miller’s market share. Anyone who ever had a craft beer before will tell you that they often taste better, different, and less watered-down than mainstream products. Plus, there are thousands of small, distinct breweries around the country, all pumping out far less beer than the gazillion barrels of Budweiser and Miller saturating the market.
To combat the growing craft beer trend, the now-uncool corporations behind Budweiser and Miller are trying a few new things. First, they’re buying well-known craft breweries for large sums of money and increasing their output. They’re also developing their own pseudo-craft brands to appeal to craft beer drinkers, and they’re doing this without showing that they’re made by the same people who make mainstream beer.
If all else fails, Budweiser and Miller’s parent companies have something to fall back on: they’re about to join forces and create the single-largest beer company in the world.
Anheuser-Busch InBev is the world’s largest brewer. They own Budweiser, Bud Light, Corona, Stella Artois, and many other brands.
Budweiser and its variants used to be owned by an American company, but that’s not the case anymore. They’re a Belgian with offices all around the world.
AB InBev also owns “craft” brands like Blue Point, Goose Island, Shock Top, Elysian, and Four Peaks.
Some of these were acquired by AB InBev, while others were created to look like they were made by local craft breweries.
SABMiller is the world’s second-largest brewer. They own Miller, Fosters, and Pilsner Urquell, to name a few.
They also bottle Coca-Cola products around the world.
They own Meantime and many other international craft breweries. They also make Blue Moon.
And you thought Blue Moon was a Craft Beer!
Late last year, AB InBev announced they were going to acquire SABMiller for $104 billion.
After several months of planning, this deal recently earned the support of investors.
Since these two companies are the biggest in their field, the deal has to get the approval of several U.S. and international agencies.
To speed up the process, AB InBev will sell SABMiller’s stake in MillerCoors, an American Partnership. They’ll also sell their claim to Snow, the best-selling beer worldwide. They’ll even sell off several other breweries to make the acquisition happen faster.
The approval of AB InBev’s acquisition could happen relatively soon.
It could also take some time to convince the world’s governments that one giant beer company is a good idea.
In the meantime, AB InBev’s stock has increased at the prospect of being the world’s largest beer company…again.
$BUD trades on the New York Stock Exchange.
SABMiller is no slouch either. Their investors are excited by being part of the world’s largest beer company.
Barring any interruptions from regulating committees and the like, these two companies might become one unstoppable giant by the end of the year. This will give them the opportunity to consolidate similar departments or businesses, save on costs, and hopefully make more money.
It won’t, however, result in either company brewing better beer. No acquisition in the world could change that.
Share this story with your friends who like beer, then silently judge them for their simple taste.