Beer Remains Bullish Says Wall Street

Anheuser-Busch InBev the owner of Budweiser and Molson Coors each hit all time highs early this past week in the market.

Investors are betting that the AB InBev megadeal to acquire SABMiller its rival now has more of a chance of receiving regulator’s approval.

The King of Beers joining forces with the Pilsner Urquell owner depends on both companies selling off a number of brands to help satisfy the antitrust regulators across the globe.

The deals to off load brands are beginning to take shape. Asahi the Japanese brewer announced earlier this week that AB InBev agreed to its offer to buy Peroni, Meantime and Grolsch beer brands from SABMiller.

In March, the China Resources Beer Company bought the rest of CR Snow, its joint venture with SABMiller, which is the most popular beer in the world.

This is good news as well for Molson Coors because it is planning to acquire the stake of 58% it does not yet own in MillerCoors, a joint venture in the United States between Molson Coors and SABMiller.

That deal will give global control to Molson Coors of all Miller brands. It is contingent on the merger of AB InBev-SAB Miller receiving a green light from regulators.

AB InBev in the deal will be getting a large number of brands that are very successful in the emerging markets of Latin America and Africa.

The new combined business could become even larger in the microbrewery market. Even though SABMiller is eliminating Meantime the craft brew based in the UK the combined AB-SAB company will still be a big player in the microbrewery craft beer world.

AB InBev is the owner of Goose Island the leading craft beer brewer. It purchased Blue Point back in 2014 and then went on a binge in 2015 scooping up another five microbrews that included three during December.

Earlier in April, it announced its plans to acquire Devil’s Backbone another craft brewer. The company is also the owner of close to 32% of Craft Brew Alliance a publicly traded brewer, which is the parent company of three brewing companies.

 

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