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June 16th, 2008

Back off InBev, or the Clydesdale gets it

Posted by: Adam Pasick

Broadcaster Al Hrabosky raises a stuffed Clydesdale during remarks at the “Save AB” rally (St Louis Post-Dispatch)InBev's $46 billion bid for Anheuser-Busch is stirring up some Budweiser pride in the brewer's home tome of St Louis, Missouri. The St. Louis Post-Dispatch reported that a crowd of about 100 demonstrators marched this weekend, chanting "Hell no, Bud won't go."

Some wore "This Bud's for U.S.A." T-shirts, perhaps not surprising since Anheuser-Busch spends about $475 million each year on ads that often tout Budweiser as "America's Beer." Rally attendee Dave White promised that he would never let a drop of Bud pass his lips if InBev, the Belgian brewing giant, was successful in its takeover bid.

"I'm not a Miller guy, so I'll have to go with micro beers or brew my own," he told the Post-Dispatch.

It was unclear if the people at the Budweiser rally, aimed at keeping the hometown brewery from "falling into foreign hands," were aware of the brand's tangled roots. "Budweiser" originally designated a resident of the Bohemian town of Budweis, part of the Czech Republic. The trademark has been in dispute since the early 20th century, due to the existence of a Bohemian brewery called Budweiser-Budvar.

As a result, Anheuser-Busch sells its flagship beer as "Bud" in France and other countries, and as "Anheuser-Busch B" in Germany. The Czech beer is sold as "Czechvar" in the United States and Canada.

Back to the protesters -- they've set up a website, saveab.com, with an online petition where concerned citizens including Missouri Gov. Matt Blunt have committed to "joining the effort to keep Anheuser-Busch owned and operated right here in America." Also featured is a parody Budweiser ad from a local radio station:

"It's a condiment to the American life: A beer and a hot dog, a beer and peanuts. You Belgian guys? What do you have to offer: Beer and a waffle -- won't that taste great?"

(Photo: Teresa Prince, St Louis Post-Dispatch)

April 28th, 2008

With the approval of the Lollypop Guild

Posted by: Adam Pasick

wonka1.jpgThe convoluted history of attempted deals in the candy industry are enough to make an Oompa-Loompa's head spin, but Mars' $23 billion takeover of Wrigley may force rivals to reassess their options for consolidation, Bill Wrigley Jr said on Monday.

(The deal also proved that Warren Buffett "chews gum and identifies value at the same time," as the FT's Alphaville blog noted.)

"There have been lots of rumors in the confectionary space over the past few years, and very recently, and no one can say exactly what's going to happen ... but I think it's likely that we'll see more consolidation," Wrigley said on a conference call. "The folks at Hershey, the folks at Cadbury, the folks maybe at Nestle have to think about what they want to do in this space and will evaluate their opportunities."

The deal between Mars, the world's biggest chocolate maker, and Wrigley, the biggest gum maker, will push Cadbury off the world's top spot in confectionery just as the London-based group is planning a demerger of its soft drinks business. Analysts predicted that the Mars-Wrigley deal will prompt Cadbury to re-start talks with the U.S.'s biggest chocolate maker Hershey Co.

Previously in the candy wars, Nestle -- which, by the way, owns the Willy Wonka candy brand -- combined with Cadbury for a bid for Hershey. Wrigley also made a run. The controlling Hershey Trust pushed for a sale, only to pull back later after pressure from community groups at its headquarters in Pennsylvania.

And finally, if Cadbury cannot hammer out a Hershey deal, it might face a bid itself from the likes of Kraft Foods Inc as North America's biggest food group could be interested in expanding its European Suchard chocolate unit.

Representatives of the Lollypop Guild were not immediately available for comment.

Further reading:

Mars and Buffett to buy Wrigley for $23 billion

Cadbury eyes Hershey as Mars chews up Wrigley

Photo: Yahoo Movies/Warner Home Video

February 6th, 2008

Frozen dumpling intrigue scuttles merger

Posted by: Adam Pasick

rtr1whzm_comp.jpgA deal to combine the frozen food businesses of Japan Tobacco and Nissin Food Products has been done in by tainted dumplings.

Ten people in Japan fell ill after eating the pesticide-laced dumplings, called gyoza, which were imported from China by a unit of Japan Tobacco. Nissin, known as a pioneer of instant noodles, then scrapped the merger, citing "differences on the issue of safety."

Japan Tobacco, the world's third-biggest cigarette maker, had planned to combine its frozen business with that of Nissin after buying a third frozen food firm, Katokichi, for $1 billion and selling a 49 percent stake in Katokichi to Nissin.

A Chinese food safety official said that the dumplings may have been deliberately contaminated by "a small group who do not wish development of Sino-Japanese friendship." The Japanese health minister has also raised the possibility of intentional dumpling poisoning, and Japanese police are investigating the case on suspicion of attempted murder.

Japanese media have also reported Japan Tobacco faces an insider trading probe after its shares tumbled 8 percent on January 28, two days before it announced it was recalling the dumplings.