Anheuser Busch might be selling out.

It's a good deal for A-B and InBev both, the only people hurt by this are the ones who want to "drink American" as this will leave them without any mega-breweries to adhere to.

Or maybe this will help them to step outside the niche and try some beers that aren't light lagers? Everybody wins!

This was announced around the time of the Molson/Coors merger. There is a petition online to sign to keep it an "American" beer. It was posted a few days ago, but I don't feel like looking for it.

All in all, it's just because the dollar is low right now, and InBev can afford it. It is probably not going to make much of a difference on the store shelves, but the shareholders will sure appretiate it. Bud Light is the No.1 beer in the world, and InBev has the capital right now because of an increase in the import beer market, Modelo still has to accept the proposal though.

As far as changing the way people drink though, I don't think that this will make a difference. Bud will still be "Made in America", and the general public will probably never even know anything changed.

I hate the global economy. A-B should stay American.

RodfatherX said:

I hate the global economy. A-B should stay American.

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I hate nationalism and economic protectionism. A-B shareholders should do whatever A-B shareholders want because A-B shareholders own A-B.

ilikestuff said:

As far as changing the way people drink though, I don't think that this will make a difference. Bud will still be "Made in America", and the general public will probably never even know anything changed.

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It probably won't make a huge difference, not at first, but it can easily give local brewers a leg up on A-B. There are a lot of people in this country who "buy American," even if it's of inferior (or perceived inferior) quality. This acquisition takes some of the wind out of those sails, but not all.

I at least hope it does - I don't have any problem with A-B or their products, but I am a big fan of supporting your local economy in what you eat and drink. If I don't have a particular beer in mind to pick up at the store, something local has a lot of weight. When I want cheap beer, I tend to pick up Natural Bohemian just because it's produced in Baltimore. I hope this starts to break the stranglehold on a lot of markets and allows local brewers to get a foot in the door.

Evan! said:

I hate nationalism and economic protectionism. A-B shareholders should do whatever A-B shareholders want because A-B shareholders own A-B.

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Evan I think you might just be my "Arch Nemesis"

RodfatherX said:

Evan I think you might just be my "Arch Nemesis"

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Perhaps. Capitalism > Socialism, IMHO.

The thing is, the breweries won't be moving, the bosses will. I'm sure that every Budweiser bottle sold where I am will still bear the image of the state of Texas atop every label, and the breweries that are employing people in our local economies will still be pumping out pee water. So for all intents and purposes, the Bud we buy here will still be an American product, made by Americans using American ingredients in America, just being told what to do by Belgian shareholders instead of American shareholders. Moreso, I don't see the beer swilling public even ever knowing that this has happened, and if they do, forgetting soon after.

I do tend to buy local brews whenever I am at the bar, and try to go by the local brewery when I get a chance (Rahr & Sons). I am all about buying local and supporting the local economy. I don't buy AB products anyway, so I say what's good for their shareholders, is good for our economy by getting millions of Belgian monies pumped into the US economy.

But who knows, maybe people will care, and start drinking local. More good beer on the market is good for everyone.

RodfatherX said:

Evan I think you might just be my "Arch Nemesis"

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Well, then I'm his evil henchman.... Capitalism >> Socialism.

ilikestuff said:

The thing is, the breweries won't be moving, the bosses will. I'm sure that every Budweiser bottle sold where I am will still bear the image of the state of Texas atop every label, and the breweries that are employing people in our local economies will still be pumping out pee water.

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Maybe, but InBev tried to move Hoegaarden already (and admittedly backed down over the backlash this caused).

ilikestuff said:

Moreso, I don't see the beer swilling public even ever knowing that this has happened, and if they do, forgetting soon after.

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I dunno about this, I've heard about this story from lots of people, but maybe I just travel in different circles. If it actually goes through, I could see it becoming a real story on a slow news day. Maybe it's good for A-B that we're moving into the culmination of the election cycle.

pldoolittle said:

Well, then I'm his evil henchman.... Capitalism >> Socialism.

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Well then call me his free-lance hitman......Capitalism>>>Socialism.

So for all intents and purposes, the Bud we buy here will still be an American product, made by Americans using American ingredients in America, just being told what to do by Belgian shareholders instead of American shareholders.

. . .

good for our economy by getting millions of Belgian monies pumped into the US economy.

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I can agree with the first to a large extent, but as to the second the money pumped into the American economy comes from US salaries along with any expansion/upgrade using American labor and American vendors. Primarily the change means some of the salaries will likely move overseas, if anything slightly decreasing the money being pumped into the American economy by the manufacturing and marketing of AB products; it won't be an influx of foreign money. It's much better, though, than having the production operation move overseas like many American companies have done. I'd rather buy a foreign manufacturer's brand made in the US than a US manufacturer's brand made overseas.

Rick

AB may be a successful American company, but they are hardly a shining example of a "great" American company with their beer-flavored sodas. InBev at least makes some decent beers.

they are hardly a shining example of a "great" American company with their beer-flavored sodas.

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Based on your statement if, tomorrow, they replaced Bud & Bud Light with a duplicate of the best homebrew you have ever tasted they would move toward being a great company; from a business perspective it'd be stupid. Besides, taste is subjective; to most beer drinkers, what you and I prefer is considered bad tasting beer.

Rick

Rick_R said:

Based on your statement if, tomorrow, they replaced Bud & Bud Light with a duplicate of the best homebrew you have ever tasted they would move toward being a great company; from a business perspective it'd be stupid. Besides, taste is subjective; to most beer drinkers, what you and I prefer is considered bad tasting beer.

Rick

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I don't think anyone is asking them to change their flagship beers - they are extremely popular and even many craft/homebrew enthusiast agree that there us a proper place and time for them where they are quite enjoyable. There is nothing wrong with catering to the masses. I just don't think that they qualify as this cultural icon they are made out to be. For me, the element of progress, innovation and pushing the envelope is missing. But that's just my opinion, and I respect those who differ.

I think it would be up to AB to decide what to do with the company. There are a great many products that change owners over the years and nobody ever knows about it (did anyone hear that Arby's is buying, or has bought Wendy's?).

Bud will still be Bud (it's not like they can make any cutbacks in quality), and it may also make it easier to get some of InBevs other beers in regular stores over here.

Homercidal said:

Bud will still be Bud (it's not like they can make any cutbacks in quality), and it may also make it easier to get some of InBevs other beers in regular stores over here.

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There's a ton of quality that goes into making Budweiser, it's just aimed at minimizing flavor. I can't even imagine the difficulty of trying to brew a Budweiser clone at home.

And they already distribute quite a bit of InBev's stock, I think InBev just wants to take advantage of the weak dollar situation to gain control of the distribution themselves.

Anheuser-Busch says no to $46B InBev offer
The move may still not keep the iconic U.S. brewer from being sold

ST. LOUIS - Anheuser-Busch Cos. rejected an unsolicited $46 billion purchase offer from InBev Thursday, just hours after the Belgian brewer appeared to set the stage for a hostile takeover bid.

Anheuser-Busch Chief Executive August Busch IV sent a letter to InBev Chief Executive Carlos Brito saying the offer greatly undervalued the largest U.S. brewer, calling the $65-a-share price "financially inadequate" and not in the best interests of its shareholders.

"From your standpoint, we see that now could be opportunistic timing for you to make this acquisition, given the weak U.S. dollar and sluggish U.S. stock market," Busch said in the letter. "From the standpoint of the Anheuser-Busch shareholder, however, a transaction with InBev at this time would mean forgoing the greater value obtainable from Anheuser-Busch's strategic growth plan."

more... http://www.msnbc.msn.com/id/25399293/

August Busch can say "no" all he wants, but a lot of the other stockholders are liking the deal, I know Warren Buffet thinks it's a good deal, and he's gotta be pretty persuasive on that board.

For me, the element of progress, innovation and pushing the envelope is missing.

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To me, the sign of a great company is wrapped around its return on investment; progress, innovation, and pushing the envelope are only useful as part of the overall goal of maximizing ROI. I've never looked at AB with an intent to invest, so don't really know their performance in any detail at all -- but that's pretty much beside my earlier point anyway; my original response to your post had to do with what I quoted previously, which I took to be your determination that they aren't a great company because you don't like their product. As to your follow-up, we're on the same side of the fence (with the caveat that I would change "qualify" to "deserve" as a cultural icon).

Rick

Thought I'd add my 2 cents.

First to the point that certain folks made that things won't change. I believe that things will change, drastically. There will be layoffs big time at A-B. InBev has made layoffs a big part of their takeover modis oerandi previously, why would that change at A-B?

As to why A.A.Busch IV rejected the $65 / share bid he's hoping for $70 or $75. Regardless the stock holders will have a say but I do expect InBev to increase the offer.

As to the reason for the takeover from what I've read, the main reason aside from the weak $ is InBev wants A-B's distribution network.

As to whether it should be done or not. A few years ago americans were buying compaines overseas. If we truely what capital to flow freely we can't restrict the inflow of capital unless we want our ablitiy to invest overseas also restricted.

If congress wants to do something constructive (which I seriouly doubt) rather than demagogue the issue, they could make distribution easier to create more competion. Or at least make the playing field more level for smaller brewers.

abracadabra said:

As to why A.A.Busch IV rejected the $65 / share bid he's hoping for $70 or $75. Regardless the stock holders will have a say but I do expect InBev to increase the offer.

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Most people thought this, too, until InBev filed a lawsuit against A-B upon the refusal of the offer, basically trying to allow stockholders to dismiss the board. Those are serious fighting words.

I was hoping the purchase would go through. I would love inBev to have the A-B distribution network.

Not sure if it will do any good but here it is.



Online petition to save A-B

The Blow Leprechaun said:

Most people thought this, too, until InBev filed a lawsuit against A-B upon the refusal of the offer, basically trying to allow stockholders to dismiss the board. Those are serious fighting words.

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Filing a lawsuit doesn't preclude InBev from upping the offer. Althought it might be cheaper if they could get the courts to side with them. However any court decision will take years if not decades especially if it's appealed, which I sure it would be. So I don't really see a court challenge as a viable remedy if they truely want to do the deal.

Time will tell.

abracadabra said:

Filing a lawsuit doesn't preclude InBev from upping the offer. Althought it might be cheaper if they could get the courts to side with them. However any court decision will take years if not decades especially if it's appealed, which I sure it would be. So I don't really see a court challenge as a viable remedy if they truely want to do the deal.

Time will tell.

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I'm not a lawyer, and I don't pretend to be, but the article I read about it said that this indicated they had no intention of upping their offer because it's playing hardball and by doing it, they're going to make the A-B board really mad and unlikely to accept any offer.

The lawsuit wouldn't dismiss the board, as I understand it, merely empower the stockholders to do so. I imagine a case like that would actually move fairly quickly, the slow part will be if the stockholders actually decide to do that and what options the board then has.

abracadabra said:

As to why A.A.Busch IV rejected the $65 / share bid he's hoping for $70 or $75. Regardless the stock holders will have a say but I do expect InBev to increase the offer.

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Looks like you nailed it, abracadabra:

http://news.yahoo.com/s/nm/20080711/bs_nm/inbev_anhueser_dc;_ylt=AnGqOEeLgI2hlP4609rOJ6.s0NUE

After weeks of mounting tensions, The Wall Street Journal reported on its website on Friday that InBev, maker of Stella Artois and Beck's beer, had raised its bid to $70 a share from $65 in an effort to seal a friendly deal.

Anheuser's board is likely to accept the sweetened offer this weekend, the paper said, citing a person familiar with the matter.

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Bike N Brew said:

Looks like you nailed it, abracadabra:

http://news.yahoo.com/s/nm/20080711/bs_nm/inbev_anhueser_dc;_ylt=AnGqOEeLgI2hlP4609rOJ6.s0NUE

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Thanks! I had just read that article myself.

Now if I had only taken my own advise and bought some of the stock.

abracadabra said:

Now if I had only taken my own advise and bought some of the stock.

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Heh. That idea didn't even occur to me.

Deal.
$70 per share

link

So, now that American Budweiser has now become the new Belgian Bud, we need a new derogitory term for Stella.?

Another story:

http://www.ajc.com/news/content/bus...InBev_F0016.html?cxntlid=homepage_tab_newstab