InBev Inevitability?

The likelihood that Belgian brewing giant InBev will eventually assimilate St. Louis’ own Anheuser-Busch is getting greater with each passing day, it seems. The rhetoric surrounding the story on the web is taking on more and more of a tone of inevitability of late. If you’re not inclined to believe everything you read online, you can take it straight from the horse’s (or perhaps more appropriately Clydesdale’s) mouth. In a rare quote from a Busch family member on the matter, Adolphus Busch IV, who is the uncle of A-B chief executive August A. Busch, said today that he believes “there could be a slightly greater than 50-50 chance” that a deal will happen. If it does, the impact that such a monumental deal will have on A-B operations, specifically, and the St. Louis culture and economy writ-large will only be ascertained in time. As most everyone knows, the Busch family has been a fixture in St. Louis for decades and “The Brewery’s” (to use the moniker commonly adopted by St. Louis citizenry when speaking of A-B)impact and influence on the city is both deep and long.

Unfortunately, the decision that will be made will ultimately be based on what is deemed best for the A-B stockholders, not necessarily what is best for the city or the citizens of St. Louis. This isn't the Busch family's fault - they're truly between a proverbial 'rock and a hard place' on this one, in my estimation. What comes out of the impending Board meeting will be quite interesting, and likely telling for the future of the company. In an interesting development today, Grupo Modelo CEO Carlos Fernandez resigned from the A-B Board. Anheuser-Busch owns a 50% stake in Grupo Modelo currently and it had been reported that A-B had considered purchasing the Mexico-based brewer outright in an attempt to thwart the InBev buy-out by making A-B's worth outstretch the offer on the table by InBev. What significance Mr. Fernandez's resignation from the board has on this strategy, if any, is unclear at this point.

Some may be wondering why I am dedicating so much space to the InBev deal on beerphilosopher.com. Two reasons, really. One, this is big beer industry news regardless of whether you’re a staunch craft beer fan or a Natty Light drinker. The possible implications to the domestic and international distribution networks these two companies command alone warrant the attention of every beer-lover on the planet. Like it or not, this merger, should it become a reality, will effect everyone who drinks beer to some degree. Two, this is news that impacts the region of the country from which beerphilosopher.com originates – this website comes to you from out of the shadow cast by “the Brewery” some 100 miles northwest. While the purchase might not have a major impact on the economy down here in Carbondale, save for any changes that will come to the various A-B affiliated distribution centers in the immediate area, it will impact our friends and families in St. Louis proper and the Metro-East area in general.

All of this is to say that I think this subject is more than appropriate for a website dedicated to craft beer. Ours might not be an ideal structure, but the three-tier distribution system we live with in the country and the specific beer laws we have in the state of Illinois, assure that what happens to the “big guys” will always have an impact on our access to the products produced by the small craft brewers we respect and enjoy. Who knows, maybe an expanded brand portfolio and a more comprehensive worldwide network will result in more access to craft beers in the long run, but only time will tell us that. In the meantime, I believe that we who love good beer would be well served by keeping a close eye on what goes on at One Busch Place in the next several weeks.

---> Check out this interactive timeline from the St. Louis Post-Dispatch about A-B and their relationship with InBev ... so far.

---> Chech out InBev CEO Carlos Brito's new video presentation on the impact of an InBev buy-out on the people, cuture and beer of St. Louis.