08 July 2012

ABI to Purchase Grupo Modelo and Become a Monopoly

Currently, ABInBev holds 47.7% of the US market. Grupo Modelo, makers of Corona, Pacifico, Negra Modelo and nine other brands, has 6% of the market. Now that ABI is buying the part of Grupo Modelo it doesn't own, add the two together and ABI would control 53.7% of the US beer market, and draw the attention of US regulators who don't like it when a company gets more than 50% market share.  That's why Grupo Modelo is selling its 50% share of Crown Imports, which makes and sells Corona to the US, and hopefully get below that magic 50%.

Some are concerned that once ABI gets control of the beer market, prices will go up.  I don't see why they should worry. According to the Tea Party and Mitt Romney, if it's good for a corporation, it's good for us.

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posted by hiikeeba at 09:32

5 Comments:

Anonymous Scot said...

And according to Democrats like your beloved Schumer, we are too stupid to choose which products we want to consume.

9:41 AM  
Blogger hiikeeba said...

Except in Texas, the House and Senate are controlled by the Republicans, and they think we're too stupid to choose which products we want to consume.

10:38 AM  
Blogger hiikeeba said...

And for the record, I am not a Democrat. I am also not a Republican. I believe all politicians are crooks and liars and should be changed as often as diapers for the exact same reason. That's why I hold my nose when I vote.

10:48 AM  
Anonymous scot said...

Another take on the issue...

http://beervana.blogspot.com/2012/07/with-modelo-will-ab-inbev-have-monopoly.html

12:51 PM  
Blogger hiikeeba said...

I did say I didn't think prices would go up, and that I didn't know why anyone was worried about it. Business as usual will continue to go on.

The only thing I would argue is that ABI has been trying to crack down on distributors and get them to focus on the core brands, for all the good it will do.

http://homebrewer2005.blogspot.com/2011/11/ab-inbev-pushes-distributors-to-focus.html

1:07 PM  

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