Stop the Madness!!!
Just got an e-mail news alert from the UK: Carlsberg and Heineken are in talks to form a consortium to buy the UK's largest brewer, Scottish & Newcastle.
The companies said that it was "currently intended that Carlsberg will ultimately acquire Scottish & Newcastle's interest in Baltic Beverage Holdings, France and Greece, and that Heineken will ultimately assume control of Scottish & Newcastle's business in the UK and other European markets".
Which actually isn't all bad, seeing that it would mean S&N beers would be all under the Heineken wing, and their non-Brit acquisitions would go to the Great Dane. Good God, did I actually just say that another round of megabrewer consolidation "isn't all bad"? Ye gods, it's contagious!
Okay, deep breath. It may not even happen, it's just a discussion:
The statement added that "to date no formal approach has been made to Scottish & Newcastle and there can be no certainty that an offer for Scottish & Newcastle will ultimately be forthcoming".Maybe not. (Ha!) Although the stock price of S&N, which is up 18%, shows which way the market thinks things will fall out.
Seriously, does this really matter to any of us? Yes, it does. These massive consolidations mean even more deracination (look it up) of beer and beer culture. They cost jobs in the beer industry, and the benefit is what -- a slight increase in profits that is lost in the cost of the consolidation and increased costs of advertising. Some smaller brands will inevitably disappear.
Worst of all, perhaps, is that like InBev, Diageo, Pernod Ricard, Bacardi, Constellation, these giant conglomeration companies will find it impossible to stop acquiring. They are scooping up European regional breweries like blue whales seining krill, and they'd suck up Boston Beer and other publicly held crafts without even a post-prandial burp.
And then what? A race to make the cheapest light beer they can sell for the most profit? Maybe. For sure, you'll see a lot less options, and many of the options you will get will be meaningless. God, I'm feeling bleak this morning.
Addition to the story: Bloomberg is now reporting that S&N is an unwilling target, and that InBev and A-B are possible competitive bidders. An article chockful of stuff.