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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
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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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