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 Jeff Holt 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 Jeff Holt 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 Jeff Holt 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 Jeff Holt 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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