EU regulators clear $100 billion-plus AB InBev, SABMiller deal (Beer!)

Source: Reuters

The world's largest brewer Anheuser-Busch InBev (ABI.BR) gained EU antitrust approval on Tuesday for its $100 billion-plus acquisition of SABMiller (SAB.L) on condition it sell almost the whole of SABMiller's beer business in Europe.

Reuters was the first to report that AB InBev's concessions to sell substantial assets would secure the EU green light for one of the largest corporate takeovers ever. [nL5N18H3QO]

AB InBev has already agreed to sell SABMiller's Peroni, Grolsch and Meantime beer brands to Japan's Asahi Group Holdings Ltd (2502.T) and to divest eastern European assets, three people familiar with the matter said on Friday.

The takeover will give it a third of the global beer market, selling twice as much beer as its nearest rival Heineken (HEIN.AS).

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The Belgium-based maker of Budweiser, Corona and Stella Artois wants to strengthen its presence in Latin America and Africa to offset weaker markets such as the United States where craft brews and cocktails are gaining popularity at the expense of beers.





Read more: http://www.reuters.com/article/us-sabmiller-m-a-abinbev-eu-idUSKCN0YF27L

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Interesting that on the one hand we have the biggest takeover ever in beer manufacturing
while on the other hand there is an explosion of small independent craft breweries.
Less is more.


Small and Independent Brewers Continue to Grow Double Digits

Boulder, CO • March 22, 2016—The Brewers Association (BA), the trade association representing small and independent (1) American craft brewers, today released 2015 data on U.S. craft brewing (2) growth. With more breweries than even before, small and independent craft brewers now represent 12 percent market share of the overall beer industry.

In 2015, craft brewers produced 24.5 million barrels, and saw a 13 percent rise in volume (3) and a 16 percent increase in retail dollar value. Retail dollar value was estimated at $22.3 billion, representing 21 percent market share.

“For the past decade, craft brewers have charged into the market, seeing double digit growth for eight of those years,” said Bart Watson, chief economist, Brewers Association. “There are still a lot of opportunities and areas for additional growth. An important focus will remain on quality as small and independent brewers continue to lead the local, full-flavored beer movement.”

cont'd
http://www.beeradvocate.com/community/threads/small-and-independent-brewers-continue-to-grow-double-digits.398622/