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Are We in Danger of a Beer Monopoly?
New York Times ^ | February 26, 2013 | Adam Davidson

Posted on 02/26/2013 7:32:44 AM PST by 1rudeboy

Every day, the Web site BeerPulse tries to list every single new beer available in the United States. And that’s harder than you might imagine. Recently, the site posted Cigar City’s Jamonera Belgian-style Porter, Odell Tree Shaker Imperial Peach IPA, as well as a rye lager, a cherry blossom lager and a barley wine. And the list goes on, and on. In 1978, there were 89 breweries in the United States; at the beginning of this year, there were 2,336, with an average of one new brewery per day. Most of them are tiny, but a handful, like Sam Adams and Sierra Nevada, have become large national brands. At the same time, sales of Budweiser in the United States have dropped for 25 consecutive years.

So I was surprised to learn that the Justice Department is worried that Anheuser-Busch InBev, the conglomerate that owns Bud, is on the cusp of becoming an abusive monopoly. In January, the department sued AB InBev to prevent it from buying the rest of Mexico’s Grupo Modelo, a company in which it already carries a 50 percent stake. The case is not built on any leaked documents about some secret plan to abuse market power and raise prices. Instead, it’s based on the work of Justice Department economists who, using game theory and complex forecasting models, are able to predict what an even bigger AB InBev will do. Their analysis suggests that the firm, regardless of who is running it, will inevitably break the law.

For decades, they argue, Anheuser-Busch has been employing what game theorists call a “trigger strategy,” something like the beer equivalent of the Mutually Assured Destruction Doctrine. Anheuser-Busch signals to its competitors that if they lower their prices, it will start a vicious retail war.

(Excerpt) Read more at nytimes.com ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS:
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1 posted on 02/26/2013 7:32:49 AM PST by 1rudeboy
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To: 1rudeboy

Hardly. Brew pubs are pooping up all over town.


2 posted on 02/26/2013 7:36:00 AM PST by DManA
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To: 1rudeboy

They’d have to start making beer first.


3 posted on 02/26/2013 7:37:18 AM PST by B Knotts (Just another Tenther)
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To: 1rudeboy

As long as there is another beer, I will not drink Bud.


4 posted on 02/26/2013 7:37:26 AM PST by aomagrat (Gun owners who vote for democrats are too stupid to own guns.)
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To: 1rudeboy
Instead, it’s based on the work of Justice Department economists who, using game theory and complex forecasting models, are able to predict what an even bigger AB InBev will do. Their analysis suggests that the firm, regardless of who is running it, will inevitably break the law.

So you're saying that some nerds at DOJ now think they are Tom Cruise in Minority Report and they are going to save us from future thought crimes?

5 posted on 02/26/2013 7:39:03 AM PST by Pan_Yan
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To: Pan_Yan

Actually given the way the beer market already works it’s a pretty safe assumption that if one of them became a monopoly they’d break the law. Watch the documentary Beer Wars, it’s a brutal market filled with crazy backroom deals and questionable legality to when the companies aren’t monopolies.


6 posted on 02/26/2013 7:43:09 AM PST by discostu (Not just another moon faced assassin of joy.)
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To: 1rudeboy

DOJ is to “justice” as Yugo is to cars.

Holder = the Obamadork = Slime.


7 posted on 02/26/2013 7:45:08 AM PST by Da Coyote
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To: aomagrat

Buttwiper tastes like goat pee. Strike one. It gives me some nasty day-after side effects. Strike two. It’s also associated with the St. Louis Cardinals. Strike three.


8 posted on 02/26/2013 7:48:07 AM PST by henkster (I have one more cow than my neighbor. I am a kulak.)
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To: 1rudeboy

Not likely.
We have five micro breweries in town, micros will never end.


9 posted on 02/26/2013 7:50:39 AM PST by svcw (Why is one cell on another planet considered life, and in the womb it is not.)
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To: 1rudeboy

I drink Yuengling

America’s oldest brewery

Made by Americans for Americans.......


10 posted on 02/26/2013 7:55:57 AM PST by njslim (St)
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To: B Knotts
They’d have to start making beer first.

Indeed. Their products can best be described only as 'malt beverages'.

11 posted on 02/26/2013 8:00:53 AM PST by Bloody Sam Roberts (Here once the embattled farmers stood... And fired the shot heard round the world.)
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To: 1rudeboy

Go Shiner.


12 posted on 02/26/2013 8:02:03 AM PST by showme_the_Glory (ILLEGAL: prohibited by law. ALIEN: Owing political allegiance to another country or government)
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To: njslim

I am sorry to say that my favorite beer is made in Mexico.

Dos Equis Amber.

“stay thirsty my friends”

Almost all the major beer companies are now owned by multi national conglomerates. Inbev, Molson/Coors, etc.


13 posted on 02/26/2013 8:02:10 AM PST by woodbutcher1963
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To: henkster

I’m genuinely surprised to find there is someone who knows what goat pee tastes like.


14 posted on 02/26/2013 8:04:24 AM PST by 1raider1
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To: 1rudeboy

Maybe DOJ is worried they’ll corner the market on American-style pseudo-Pilsner.


15 posted on 02/26/2013 8:05:08 AM PST by The_Reader_David (And when they behead your own people in the wars which are to come, then you will know...)
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To: 1rudeboy

“At the same time, sales of Budweiser in the United States have dropped for 25 consecutive years.”

Little wonder, Buttwasher is a nasty beer. Too sweet, watered down, and overpriced.


16 posted on 02/26/2013 8:07:24 AM PST by Beagle8U (Free Republic -- One stop shopping ....... It's the Conservative Super WalMart for news .)
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To: 1rudeboy

Beer monopoly? I thought Budweiser was what comes out of the Clydesdales after they drink water.


17 posted on 02/26/2013 8:07:36 AM PST by Darren McCarty (If most people were more than keyboard warriors, we might have won the election)
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To: Darren McCarty
I drink Old Milwaukee and piss Budweiser.
18 posted on 02/26/2013 8:12:34 AM PST by Beagle8U (Free Republic -- One stop shopping ....... It's the Conservative Super WalMart for news .)
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To: 1rudeboy
Not if Dick Yuengling and his family have anything to say about it!


19 posted on 02/26/2013 8:22:53 AM PST by FlJoePa ("Success without honor is an unseasoned dish; it will satisfy your hunger, but it won't taste good")
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To: 1rudeboy
".... Beer Monopoly."

.... Heck .... I was rather disillusioned to find out the article wasn't about a new drinking game!!!

.... But seriously folks ... I hope we all realize that the era of cheap booze here in America will soon become a thing of the past!!! The price of Liquor and Alcohol is about to double to the prices that are currently paid by our neighbors to the north. There are reasons that the cost of booze is so expensive in Canada ... and this country just adopted those same reasons as new entitlements to go along with it's new system of government.

20 posted on 02/26/2013 8:25:25 AM PST by R_Kangel ( "A Nation of Sheep ..... Will Beget ..... a Nation Ruled by Wolves.")
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To: 1rudeboy

I read an article last Fall in Bloomberg magazine discussing this topic. They highlighted that InBev’s CEO is all about margins and treats beer as a commodity. Their approach includes cheapening the product and is moving production closer to the client base. For example, those of you who drink Bass, take a look at where it’s made — most likely New York. And they are coming after the regionals too. Goose Island was bought and a lot of the production moved from Chicago. While I don’t like Budweiser, they mentioned that the old A-B used really good hops sourced from the same small farmers for decades. InBev has cut them off.


21 posted on 02/26/2013 8:25:35 AM PST by DonnDe
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To: 1rudeboy

For those who have never tasted it I would recommend Sierra. I have never liked beer until I tasted it. It just may be one of the finest beers in the world. I hope their success does not spoil the beer


22 posted on 02/26/2013 8:32:43 AM PST by AEMILIUS PAULUS (It is a shame that when these people give a riot)
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To: Beagle8U
"I drink Old Milwaukee Fat Tire and piss Budweiser."

Fixed to reflect my tastes.

23 posted on 02/26/2013 8:33:39 AM PST by ZirconEncrustedTweezers (I'll stop being a cynic when the world stops giving me reasons to be cynical.)
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To: B Knotts

What’s in the water by the time it arrives in St. Louis ?


24 posted on 02/26/2013 8:35:14 AM PST by Eric in the Ozarks (NRA Life Member)
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To: 1rudeboy

Check how much they give annually in terms of campaign contributions to the ‘rats. My guess would be this is like when they went after Microsoft. “Nice business you’s got here, wouldn’t want anything to happen to it now, would you?”


25 posted on 02/26/2013 8:41:32 AM PST by Armando Guerra
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To: 1rudeboy

With hundreds (maybe thousands) of micro-brews in this country, I don’t think we’ve got a problem with competition.


26 posted on 02/26/2013 8:58:22 AM PST by ReleaseTheHounds ("The problem with Socialism is that eventually you run out of other people's money." M. Thatcher)
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To: ZirconEncrustedTweezers
People think Old Milwaukee is a cheap beer, but most have never tried it, or they confuse the name with Milwaukee's Best which is truly nasty.

If you go to northern Canada it is the premium American beer of choice and costs 50% more than any other American beer.

27 posted on 02/26/2013 8:59:12 AM PST by Beagle8U (Free Republic -- One stop shopping ....... It's the Conservative Super WalMart for news .)
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To: 1rudeboy
A beer monopoly??

Nope... some people are brewing beer at home, and brewpubs are popping up...

28 posted on 02/26/2013 9:04:05 AM PST by ExCTCitizen (More Republicans stayed home then the margin of victory of O's Win...)
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To: 1rudeboy

They’d better not buy out Shiner Bock....that’s an act of war.


29 posted on 02/26/2013 9:05:38 AM PST by dfwgator
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To: 1rudeboy
Perhaps the beer industry is actually two market types: a highly concentrated oligopoly between the big three brewers and a monopolistic competition market for the craft beer segment.

The game theory basis of DOJ suit is novel to say the least, but if the DOJ is suddenly so concerned about near monopolies in the beer industry why didn't they act earlier? For example why wasn't the joint venture between Molson-Coors and SA Miller in 2009 a concern?

30 posted on 02/26/2013 9:07:19 AM PST by The Great RJ
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To: dfwgator

Modelo will be owned by Bud? Oh great, there’s goes my fav. beer


31 posted on 02/26/2013 9:12:31 AM PST by jag.drafting
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To: DManA
Hardly. Brew pubs are pooping up all over town.

Ick! Maybe you meant "popping" up. Which is not to be confused with the alternative of Joseph Ratzinger's German Brewery opening in the suburbs of Rome at the end of the week, which could be said to be poping up. :-)

32 posted on 02/26/2013 9:15:46 AM PST by KarlInOhio (Choose one: the yellow and black flag of the Tea Party or the white flag of the Republican Party.)
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To: DonnDe

I drink Foster’s, mostly (yes, I know it’s the Australian version of Bud). It is brewed in the U.S.


33 posted on 02/26/2013 9:24:13 AM PST by 1rudeboy
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To: KarlInOhio

LOL. Thanks for the correcton.


34 posted on 02/26/2013 9:30:02 AM PST by DManA
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To: jag.drafting

I just found out Dos Equis is owned by Heineken.

The idea of the article is that there are only about 6 companies that control most of the beer production in the world. I think they are technically an oligopoly not a monopoly.

Inbev and Coors/Miller/Molson control most of North and Central America. Throw in Heineken and Carlesburg you have Europe covered too.


35 posted on 02/26/2013 9:37:59 AM PST by woodbutcher1963
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To: 1rudeboy

I run my own beer monopoly. I drink only what I make in my (or my fellow homebrewers)own kitchen.


36 posted on 02/26/2013 9:43:36 AM PST by SteelCurtain_SSN720 (If you pass the rabid child, say "hammer down" for me)
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To: 1rudeboy

Yuengling, Iron City, Genesee, Lionshead, Straub. Still plenty of independent breweries around.


37 posted on 02/26/2013 10:02:49 AM PST by Buckeye McFrog
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To: FlJoePa

Yuengling is also a Family owned private company. Not for sale unless you are a family member. Threw the Teamsters out a few years back too.


38 posted on 02/26/2013 10:06:48 AM PST by PJammers (Quis custodiet ipsos custodes?)
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To: njslim

Go to the head of the class.


39 posted on 02/26/2013 10:13:53 AM PST by nd76
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To: Red_Devil 232

I am shocked, shocked that no one pinged you!


40 posted on 02/26/2013 10:34:59 AM PST by Twotone (Marte Et Clypeo)
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To: ZirconEncrustedTweezers
I saw ‘fat tire’ on sale the other day at the store. I'll have to try a case and see how it tastes.
41 posted on 02/26/2013 10:39:29 AM PST by Beagle8U (Free Republic -- One stop shopping ....... It's the Conservative Super WalMart for news .)
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To: 1rudeboy

Actually, the story I’ve heard is that the Foster’s sold in the US is imported. From Canada.


42 posted on 02/26/2013 10:53:39 AM PST by ZirconEncrustedTweezers (I'll stop being a cynic when the world stops giving me reasons to be cynical.)
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To: Beagle8U

It’s one of my fave craft beers.


43 posted on 02/26/2013 10:55:52 AM PST by ZirconEncrustedTweezers (I'll stop being a cynic when the world stops giving me reasons to be cynical.)
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To: 1raider1
I’m genuinely surprised to find there is someone who knows what goat pee tastes like.

ROFLMAO!!!

44 posted on 02/26/2013 11:15:45 AM PST by houeto (https://secure.freerepublic.com/donate/)
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To: ZirconEncrustedTweezers

Yes, until a couple of years ago. But you will note that Foster’s labels no longer contain the word, “imported.”


45 posted on 02/26/2013 11:53:13 AM PST by 1rudeboy
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To: 1raider1

“I’m genuinely surprised to find there is someone who knows what goat pee tastes like.”

You shouldn’t be surprised. Millions of people know what goat pee tastes like. It tastes a lot like Buttweiper.


46 posted on 02/26/2013 1:13:07 PM PST by henkster (I have one more cow than my neighbor. I am a kulak.)
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To: ZirconEncrustedTweezers

Quite a few international beers are made in Canada. Sapporo for example.


47 posted on 02/26/2013 1:19:52 PM PST by AppyPappy (If you aren't part of the solution, there is good money to be made prolonging the problem.)
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To: 1rudeboy

Well, I guess that tells you how long it’s been since I’ve had Foster’s!


48 posted on 02/26/2013 1:55:38 PM PST by ZirconEncrustedTweezers (I'll stop being a cynic when the world stops giving me reasons to be cynical.)
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To: FlJoePa

Where is Yuengling produced ?

I have never heard of it until today. I grew up in western NY drinking Genesee, Ol’ Vienna, Labatts, Molson and a few other mostly Canadian beers. Labatts was what most people drank because the importer was in Buffalo. Gennesee was the cheap beer made in Rochester. Very few people drank the national brands in the area.

I still miss OV splits. Ol’ Vienna was a Canadian brewery that in addition to regular 12oz bottles they also bottled beer in a 7oz botttles. They called them OV Splits. Rolling Rock also did this a one point. There was a bar in Buffalo called Mulligan’s Brick Bar that on Monday nights they would sell you a case of splits opened with ice poured across it. It was a very popular place with the SUNY Buffalo and Buff State crowd. By the end of the night there was broken glass and spilled beer all over the floor. The place was called the brick bar because the walls and floor were made of brick. They had empty milk crates around the place to put your emties in. At the end of the night(4am) they would sweep up the broken glass and hose the place down.


49 posted on 02/27/2013 6:25:03 AM PST by woodbutcher1963
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To: woodbutcher1963
The home brewery is in Pottsville, PA. They also own a brewery in Tampa. I believe they are producing more product in FL than in PA at this point.

More here: wiki Yuengling

Here is a distribution map (Ohio has since been added):


50 posted on 02/27/2013 7:01:51 AM PST by FlJoePa ("Success without honor is an unseasoned dish; it will satisfy your hunger, but it won't taste good")
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