AB InBev Hungry!
Sep. 25, 2015
Hoppy Lawyers have had a chance to digest news of the proposed AB InBev purchase of SABMiller, but the impact on craft beer is still unpredictable. In fact, craft brewers themselves do not necessarily agree on what a future with a larger AB InBev will look like.
Some craft brewers believe the proposed merger will not have much impact on the U.S. craft brewing industry at all. These brewers tend to believe that the merger is more about AB InBev’s prospects in the international market. Even if this is true, however, it may still impact U.S. craft brewers. For example, as breweriess like Stone expand internationally, will AB InBev be able to use its larger status to make it difficult for smaller craft brewers to compete abroad?
Additionally, some craft brewers are not necessarily concerned with an increase in AB InBev’s product portfolio should the deal go through, but are instead concerned about potential distribution difficulties. A larger AB InBev could potentially make it more difficult for smaller brewers to find distributors able to effectively take on their brands. A larger AB InBev may also be able to command more shelf space that otherwise would go to craft brewers.
While the terms of the deal are likely going to change in order to avoid antitrust concerns, and while the impact of the deal may not be immediately clear, craft brewers may want to discuss possible impacts and solutions with their distributors. For those craft brewers out there who are not yet selling to distributors, the proposed merger may make it more important than ever to ensure your distribution contract provides you with meaningful protections.