A Massive Beer Merger Is Brewing

Photo (cc) by davidgsteadman

A potential mega-merger is the works that would create one colossal brewing giant.

The world’s largest brewer, Anheuser-Busch InBev, “intends to make a proposal to acquire” SABMiller, according to a press release by SABMiller in response to speculation.

If the merger is successful, it would create a company with annual sales that top $55 billion, CNN Money reports. Not only would it be the biggest merger in beer-making history, it could potentially rank among the top 10 company takeovers of all time, CNN Money noted.

Mainstream beers like Bud Light and Miller aren’t selling like they used to. A growing number of beer lovers are gravitating to craft beers.

Although the mega-merger could help the big brewers protect their market, it’s doubtful that it will reverse the impact of the craft beer explosion.

“[It] can perhaps provide some last drops of stock market intoxication but will remain largely irrelevant to the scores of millennials seeking alternatives to big beer’s offerings,” Spiros Malandrakis, senior analyst at Euromonitor International, said in an interview with CNN Money.

United Kingdom takeover rules dictate that AB InBev must make a formal bid to SABMiller by Oct. 14 or abandon its proposal, CNN Money reports.

A successful union of AB InBev and SABMiller would mean one company would own nearly half of 40 most popular beers by volume. The impressive list of brewskis includes:

  • Bud Light
  • Budweiser
  • Skol
  • Harbin
  • Brahma
  • Corona Extra
  • Miller Lite
  • Antarctica
  • Busch
  • Sedrin
  • Castle
  • Chibuku
  • Victoria
  • Natural
  • Stella Artois
  • Cass
  • Carling Black Label
  • Aguila

What do you think of the proposed mega beer-maker merger? Share your comments below or on our Facebook page.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

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