Bud-SAB tie-up hinges on a scramble for Africa

September 24, 2015

Cost-cutting will help brewer AB InBev justify a $110 billion strike at SABMiller. But a convincing top-line growth story is required if existing equity investors are to roll into the new entity. There are several levers. Africa is the most important.

Bud-SABMiller investors punch drunk on synergies

September 18, 2015

Markets have added $30 billion to the two brewers’ value in response to a mooted merger. A simple analysis suggests that’s akin to saving at least 15 percent of SABMiller’s revenue – close to what AB InBev got from its last big deal. It’s not impossible, but it’s a tall order.

Beer megadeal could fuel a round of M&A in China

September 17, 2015

Combining AB InBev with SABMiller would make waves in the world’s biggest beer market. The merged group might try to keep SAB’s stake in market leader Snow. That would force smaller rivals into defensive deals. Or local partner CRE could buy out SAB and lead consolidation itself.

Bud’s mega-beer deal will brew global reset

September 16, 2015

After years of speculation, AB InBev has approached SABMiller about a takeover that could value the combined entity at around $280 bln. The giant would complete global consolidation of the brewing industry and lead a new round of regional disposals, spins and amalgamations.

Heineken crafts telling move away from global beer

September 9, 2015

The Dutch beer giant has bought into a Californian brewer of pale ale. The undisclosed financials will be small in the context of this 40 bln euro company. But strategically it is a big deal. Heineken is accepting it needs more than fizzy beer in green bottles.

Heady Topper points to beer business peak

November 13, 2014

The craze for this small-batch double IPA illustrates the potential for craft brewers to snaffle up both market and dollar share from Big Beer. That’s why AB InBev and others are on the prowl to buy indie brands. It’s great for drinkers, but makes for a very competitive dynamic.

Foster’s gets full measure from SABMiller

September 21, 2011

Like two quarrelsome drunks who are suddenly best of friends, SABMiller and Foster’s Group have quickly patched things up after earlier hostilities.

Frackers ignore German beer angst at their peril

May 24, 2013

Germany’s brewers want to make fracking verboten. In the U.S., the gas drilling technique’s economic benefits trump environmental concerns. Whether it’s the British countryside or German lager, threats to cultural touchstones will hold back a similar boom in Europe.

Pepsi & Anheuser’s cost-saving cocktail

October 14, 2009

The spoils are obvious. Estimates vary, but in the retail sector some half to two-thirds of planned synergies from a merger generally come from purchasing savings. If Pepsi and Anheuser can keep the administrative costs down, then the savings they can make in non-core areas should give them both a competitive advantage.