AB InBev may be getting stronger
Tom Dougherty, CEO – Stealing Share
25 June 2012
Better focus would make AB InBev stronger
This is kind of an interesting turn of events. The Wall Street Journal is reporting that AB InBev, which owns Budweiser, is in talks to purchase Modelo, which brews, among other brands, Corona.
If it happens – and there are still a lot of ifs – it would make the world’s largest brewer even stronger. Not larger, but stronger. Here’s why:
If the deal goes through, regulators may be wary of InBev’s huge market share, which would only grow by adding Modelo. Therefore, in order for a deal to be approved, AB InBev would have to divest itself of some of its current brands, to be replaced by Corona and the like.
“If that happens, this proposed deal would streamline AB InBev, which, like many brewers, has far too many brands in an attempt to fight in every beer discipline.”
If that happens, this proposed deal would streamline AB InBev, which, like many brewers, has far too many brands in an attempt to fight in every beer discipline. This way, the most underperforming ones can be replaced by better performing ones and the brands themselves become even stronger.
The news of this pending deal demonstrates just how dominant InBev is. There are thousands upon thousands of beer brands in this country, and grocery store shelves are stocked with so many variety of beers you’d think beer would be a scattered market.
But it’s not. As Stealing Share noted in a recent study on beers, only a few have mastered the art of beer branding. Now, it seems, one company will own most of them.
Macy's B8ta Tom Dougherty, CEO - Stealing Share 18 June 2018 Macy’s B8ta partnership demonstrates head firmly in sand I know I sound like a screaming banshee, but when are retailers going to wake the hell up? Take Macy’s, a retailer floundering so much it’s closing...
AT&T Time Warner merger Tom Dougherty, CEO - Stealing Share 14 June 2018 Could the AT&T Time Warner merger actually be good? The potential of an AT&T Time Warner merger fascinates me. Because, in light of a district court judge’s decision to allow it, the...
Fortnite and gaming Tom Dougherty, CEO - Stealing Share 13 June 2018 2018 E3, Fortnite shows gaming is alive and well In early 2017, Barron’s headline “Video Game Sales Are Fading and It’s Crushing Game Stop” suggests that there was something wrong with video game...