Beer Prices on the Rise; Budweiser Goes Global

YumSugar — Fri, 28 Aug 2009 03:30:45 -0700

In the mood for a brew? Be forewarned, a cold one could cost you. Anheuser-Busch InBev and MillerCoors have both announced plans to hike beer prices. Falling sales and higher costs of commodities like barley and hops have forced them to compensate by raising prices. In a statement Tuesday, US-Belgian company Anheuser-Busch InBev said it will raise stickers "across different price tiers" in "a majority of markets this Fall" to cover "input costs." Likewise, InBev's biggest competitor, MillerCoors, intends to increase prices this season. Higher prices from the two conglomerates - which together comprise more than 80 percent of the market - will impact the beer industry during a time when beer drinkers are reaching for the cheapest selections.

In a New York Times commentary, "Rising Beer Prices Hint at Oligopoly," the op-ed's writers lament that the two companies' abilities to raise prices while customers are hurting "highlights the pricing power that has accompanied industry consolidation" and "begs for an antitrust review."

Anheuser-Busch isn't stopping there. The beer overlord has aggressive plans to transform Budweiser into a global player, using Coca-Cola as a marketing model. The corporation hopes to introduce the "King of Beers" into dozens of new markets, including parts of Africa. Have you noticed rising beer prices? Could Budweiser eventually become an international symbol like Coke? Should Anheuser-Busch and MillerCoors face antitrust allegations?

Will You be Upset If Belgian Company Buys Budweiser?

partysugar — Wed, 18 Jun 2008 07:45:36 -0700

There is no other beer as quintessentially American as Budweiser. With its red, white, and blue label, the beer is known around the world as the American brew. But, how would you feel if the "great American lager" was no longer owned by an American company?

Big time Belgian brewer InBev, which makes Stella, Becks, and many other brews, has offered to buy Anheuser-Busch's beer. Both Americans and Belgians are outraged by the possible takeover. Americans - who are putting up a fight at savebudweiser.com - don't want to lose the national symbol, and the Belgians don't want to be associated with it.

Considering that I prefer Stella to Bud, I'm not affected by the possible merger. How about you? Will you be upset if a Belgian company buys America's favorite beer?

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