Currently, the four top players control about 50% of the global market. And in his remarks, Heineken CEO Francois van Boxmeer said it is likely they will soon gobble up another 25% between them.
It's out there, waiting to be had. FEMSA's Mexican compadre, Grupo Modelo, is already half-owned by ABIB, and there's a good-sized chunk right there.
There are bumps in the road. The remaining breweries are often owned (or partially-owned) by families or foundations, which will present challenges to a quick acquisition...but it's hardly a dealbreaker; A-B was partly family-owned, after all, as is FEMSA (and Heineken, far as that goes).
Will we see 75% of the world's beer market controlled by two to five companies? What effect will that have on beer prices, on brewing commodities? Why isn't this an anti-monopoly issue?
2 comments:
Even if two companies control 100% of the market...two is not a monopoly. I know it is more complicated than that but there is still enough competition that it won't raise any eyebrows.
Well, duopoly, oligopoly... it does raise eyebrows, and a consolidation like that will come under scrutiny.
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