Several sources have reported yesterday that Heineken is purchasing/has purchased Mexican brewery FEMSA (Fomento Económico Mexicano, S.A.B. de C.V.) for approximately $7.34B (as in Billion). This deal closely mimics similar deals such as Miller Brewing’s sale to South African Breweries for $3.6B and, more recently, last year’s sale of Anheuser-Busch to Belgian brewing company InBev for $52B.
This deal was less about acquiring “highly coveted” Mexican beer brands than it was about profitability and distribution. Latin America is one of the fastest growing regions in the world and this merger gives Heineken inroads to that market. Not to be given the short end of the stick FEMSA has acquired a 20% ownership stake in Heineken, instantly become one of their biggest shareholders.
If you want further details, you can check out this article from the N.Y. Times or straight from the horse’s mouth with this press release from FEMSA.
So the big question is: Does anyone care?
I have never been the biggest fan of Heineken. Their insistence to continue using green bottles has effectively ruined any chance that I’ll get to try any of their beers sans skunk. I’ve had a few canned versions that weren’t half bad but that’s about it.
FEMSA brands aren’t much better. Carta Blanca, Tecate, Dos Equis, Bohemia, Sol… the beers these breweries make are almost interchangeable.
It’s business as usual for the macro breweries. Increased profitability continues to underscore much of the publicized news of the macros. Is that so bad, really? At the end of the day, the business of brewing beer is still a business. Their employees are just like you and me with families to feed and mortgages to pay. Should we demonize the brewery that spills more beer in a week than our favorite craft breweries make all year?
It seems that macro breweries are merging on a yearly basis. At this rate, how much longer before “competition” is extinguished by the suffocating size of one, giant brewing zaibatsu? Will our favorite craft breweries be bought out of existence or priced out of the game as Macrosoft Brewing Company produces beer so cheaply craft breweries can’t compete? Even though many of our households are 100% craft beer, I keep forgetting that craft beer sales only make up 4% by volume (as of 12/08).
If you’re on this site, it’s because you’re a fan of craft beer. We enjoy beer with flavor, character and variety. It would not be a stretch to say that our promiscuous drinking habits encourage diversity in the craft beer industry.
That being said, help the “little guys” out. Buy beer from your local breweries or brew pubs. Buy craft beer. Click here for the SAB Miller portfolio of brands, or here for the Anheuser- Busch InBev portfolio. Some names may surprise you.
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“It seems that macro breweries are merging on a yearly basis. At this rate, how much longer before “competition” is extinguished by the suffocating size of one, giant brewing zaibatsu? Will our favorite craft breweries be bought out of existence or priced out of the game as Macrosoft Brewing Company produces beer so cheaply craft breweries can’t compete?”
If you have confidence in American Anti-Trust laws, than this really isn’t a concern. European Anti-Trust laws tend to be even tighter. Craft beer is growing from its 4-5%, so I’m not really worried about the future of our beer choices.