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.
Business Insider Emails & Alerts
Site highlights each day to your inbox.