Merger of beer giants all comes down to Rochester

Posted Nov 14th 2008 6:30PM by Sarah Gilbert
Filed under: Deals, Law, Anheuser-Busch InBev (BUD)

Who knew that the fate of world beer would one day be in the hands of the beer faithful in Rochester, New York? The tastes of this blue-collar town, along with neighbors Syracuse and Buffalo, are key in the pending acquisition of Anheuser-Busch (NYSE: BUD) by Belgian giant InBev, SA. The three cities make up half of the U.S. consumption of Labatt Blue and Labatt Blue Light. Due to the popularity of Labatt brews and Budweiser brands in upstate New York, the U.S. Justice Department worries that beer prices might rise in Rochester.

So, if the acquisition is to be approved, giving Europeans control over America's iconic beer brands, InBev is being asked to sell the Labatt USA subsidiary. Other major InBev brands, including Stella Artois, Becks, and Bass, are not considered competitive enough in any markets to reduce competition between beers and provide upward pressure on prices.

Nope, it all comes down to Rochester and its surprisingly European tastes. Who would have thought?

Tags: anheuser-busch, beer, bud, budweiser, inbev, inthenews, labatt, merger, new york, NewYork, rochester

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Reader Comments (Page 1 of 1)

11-14-2008 @ 8:54PM

Steve said...

Actually it's Buffalo where Labatt USA is based, not Rochester. InBev simply has to sell off Labatt USA.

11-15-2008 @ 8:34AM

Jerry said...

It is a good time for a new brewery start up to get as close as they can the the AB taste and then expaned to supply all of America with a TRUE American Owned and Brewed Beer. When they take over AB we the people, the ture Americans suould BOYCOT the company. Come on guys. Are you true Americans or NOT ! ! !

11-15-2008 @ 11:11AM

Preston said...

We have a great "TRUE American Owned and Brewed Beer." it's called Samuel Adams. try some, it is the last of the big brewerys that sells all across the U.S. and is owend, opreated, and based in the USA.