Life After Anheuser-Busch (BUD): Shareholders Win, Consumers Lose

Now that the drama is over and Anheuser-Busch InBev is a reality, the US beer industry landscape looks vastly different than it did a year ago. Foreign behemoths like A-B/InBev and MillerCoors (the joint venture between SABMiller and Molson Coors) now rule the land and control over 80% of the US market.

What does this consolidation mean for employees and consumers? Nothing good:

  • a leaner industry with fewer employees
  • more cost-cutting
  • fewer price wars consumers have enjoyed in the past
  • more price increases, in part to cover higher commodities costs
  • the beer companies are expected to stop selling certain packages or versions of their beers to trim costs

The bottom line: when there is no more market share to gain, cost-cutting is the best way to improve profits. Let’s just hope InBev keeps Budweiser’s Super Bowl commercials intact.

See Also:
Full BUD-InBev Coverage and Analysis
Anheuser-Busch (BUD) Agrees to $70/Share Deal and Terrible Name

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