It’s been quite the relationship. Years of playing hard to get, four bad dates, a little will-they-or-won’t-they action, but the two beer giants have finally fallen hopelessly in love. ABInBev is planning for a takeover, and that means a whole heck of a lot.
First things first, the SABMiller–ABInBev merger will cause 1 in 3 beers imbibed across the planet to be made by one company. I say the planet because this consolidation is indicative of a global shift in an industry that represents USD $101.5 billion annually.
A Short History Lesson
SABMiller started in 1895 in South Africa by Charles Glass, a British Ex-Pat seeking his fortune in Johannesburg during the gold rush. He established Castle Brewery, which still brews Castle Lager, South Africa’s most influential beer brand.
On the other hand, ABInBev was established in 2008 after InBev, the Belgium-Brazilian brewer acquired Anheuser-Busch. A-B was established in 1860 in St. Louis, Missouri, when Eberhard Anheuser gave up soap manufacturing to run a local Bavarian brewery. His son-in-law, Adolphus Busch, joined him after serving in the Civil War, and their family fully controlled the company until the sale to InBev, a composite of Artois (1366), Piedboeuf, Antarctica (1882), and Brahma (1888).
The global market share of just these two companies is 30.5%. Right now, the market breakdown is consolidated pretty heavily by the top five beer producers: ABInBev (20.8%), SABMiller (9.7%), Heineken (9.1%), Carlsberg (6.1%), and China Resources Enterprise (6%). This is poised to change.
Continue reading “Can you feel the love? What the SABMiller-ABInBev Merger Means to You”