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woody with a view
PITA Nomad
Posts: 15939
Registered: 11-8-2004
Location: Looking at the Coronado Islands
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Mood: Everchangin'
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the price of your favorite Mexican beer just went up!
By Philip Blenkinsop
BRUSSELS (Reuters) - Anheuser-Busch InBev, the world's biggest brewer, will swallow the half of Grupo Modelo it does not already own for $20.1 billion
in the latest in a string of deals by big brewers looking for growth in emerging markets.
The owner of Budweiser and Stella Artois beers said on Friday that it had reached agreement with Modelo's controlling families for it to secure a
leading position in a growing domestic beer market and capture the best-selling Mexican beer Corona Extra.
Modelo, founded in 1925, is Mexico's biggest brewer with a 50 percent-plus market share in a virtual duopoly with Heineken's FEMSA Cerveza in the
world's fourth-most-profitable beer market. Corona is the biggest imported beer in the lucrative United States market.
AB InBev is attracted to Modelo by a Mexican beer market that is growing at about 3 percent and cost savings that the company said would be at least
$600 million a year.
AB InBev said it had added $14 billion of new bank loans to fund the all-cash transaction, adding that it would reduce its net debt/core profit
(EBITDA) ratio to 2.0 times during 2014.
Some analysts believe AB InBev could then line up world number two SABMiller as its next acquisition target. Others say that the drinks operations of
PepsiCo would make more sense.
AB InBev shares were 0.5 percent higher at 4:05 a.m. EDT (0805 GMT), underperforming in sharply firmer European stock markets and against a 0.9
percent gain on the STOXX European food and beverage index.
"I think the ($20 billion) price is the thing that is putting people off, but I think AB InBev will squeeze out much more in synergy savings than
their guidance, so it makes sense," said a London-based beverage analyst who declined to be named.
Two Modelo board members have committed to invest $1.5 billion of their proceeds in AB InBev shares, to be delivered within five years. The pair will
also join AB InBev's board.
AB InBev and Modelo confirmed they were in talks on June 25, following a series of deals by big brewers looking to expand in growing beer markets and
find ways to cut costs [nL6E8HP9G6].
In April AB InBev agreed to buy the Dominican Republic's Cerveceria Nacional Dominicana for more than $1.2 billion, while in the same month Molson
Coors bought East European brewer StarBev for 2.65 billion euros ($3.3 billion). Last year SABMiller purchased Foster's for $11.8 billion.
AB InBev inherited a 50.4 percent stake in Modelo when InBev bought Anheuser-Busch for $52 billion in 2008. The enlarged group had hoped to mop up the
rest of the Mexican brewer, but the controlling Fernandez family launched arbitration proceedings, claiming that the deal broke an agreement that
Modelo should be consulted over any change in control of the stake.
The arbitration panel ruled in favor of AB InBev in 2010, but since then AB InBev executives have joined the Modelo board and pressure emerged from
some family member and other investors to look for a sale.
The new expanded AB InBev would produce about 400 million hectoliters of beer a year, with estimated revenues of $47 billion.
In a related but separate transaction, Modelo would sell its 50 percent stake in joint venture Crown Imports to partner Constellation Brands Inc for
$1.85 billion. Crown Imports distributes Modelo beers in the U.S. in a deal that runs to the end of 2016.
If AB InBev had wanted to buy out Constellation and distribute the beer itself, it would have pushed its market share in the United States above 50
percent, leading to anti-trust concerns.
(Additional reporting by David Jones; Editing by David Goodman)
http://finance.yahoo.com/news/ab-inbev-buys-corona-maker-063...
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bajario
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Especial is my preferred pop. I'd hate to pay a peso more.
But I will.
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Howard
Super Nomad
Posts: 2353
Registered: 11-13-2007
Location: Loreto/Manhattan Beach/Kona
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Mood: I'd rather regret the things I've done than regret the things I haven't done.
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Woody, nice news to wake up to! You could of at least waited till mid day or until Monday morning to spring this news on us.
Anything else you want to share with us to brighten our day? 
We don't stop playing because we grow old;
we grow old because we stop playing
George Bernard Shaw
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SFandH
Elite Nomad
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Registered: 8-5-2011
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Beer? A worthy topic of interest to most.
| Quote: | Originally posted by woody with a view
By Philip Blenkinsop
BRUSSELS (Reuters) - Anheuser-Busch InBev, the world's biggest brewer.......
Some analysts believe AB InBev could then line up world number two SABMiller as its next acquisition target.
http://finance.yahoo.com/news/ab-inbev-buys-corona-maker-063... |
Bud buying Miller??? Where are the anti-monopolists? Beer is not a mere commodity, it's not potash, not oil, not pork bellies, competition must be
maintained to ensure the quality of this staple of life.
It's time for the Supreme Court to do something important!
But then again, Bud, Miller, Corona, they are all very similar, pedestrian brews.
I noticed the last time I bought a 12 pack of water, er, I mean Tecate Light, no flavor is better than bad, at OXXO, that the price has recently
increased 4 pesos.
Does anybody on this message board, besides wine drinkers who run out and are trembling, actually drink Corona?
[Edited on 6-29-2012 by SFandH]
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thebajarunner
Ultra Nomad
Posts: 3718
Registered: 9-8-2003
Location: Arizona....."Free at last from crumbling Cali
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Mood: muy amable
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Do I drink Corona?
Not unless it is the last bottle in the cooler,
neither do I drink Bud, Miller, Coors, etc.
and since AB gathered up Stella it is not longer on my list,
and likely this acquisition will start the demise of Negras, etc.
I have nothing against the brands, just the poor quality of yellow water that they put in their containers.
How the majors brewers have talked our California Hispanics into embracing BudLite, etc. has to be one of the all time marketing coups in history....
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Taco de Baja
Super Nomad
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Location: Behind the Orange Curtain, CA
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Mood: Dreamin' of Baja
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| Quote: | Originally posted by SFandH
Does anybody on this message board, besides wine drinkers who run out and are trembling, actually drink Corona?
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Heck no! not even if it was $2/6 pack. Lots better, quality, craft beer at the $1/bottle price they charge for Corona, and no skunky swill flavor!
One of my favorite Mexican beers is Negra Modelo. I'm just bummed it only comes in glass bottles. On remote trips we try to limit the amount of
glass we bring, so we have to go with the next best thing for canned Mexican beer: Modelo Especial, or Tecate.
Truth generally lies in the coordination of antagonistic opinions
-Herbert Spencer
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David K
Honored Nomad
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Registered: 8-30-2002
Location: San Diego County
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Mood: Have Baja Fever
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Corona? Might be the worst tasting beer in Mexico... then again, I can't stand Budweiser either....
PACIFICO
DOS EQUIS LAGER ESPECIAL
and most other Mexican beers I do enjoy!
The last time I drank a Corona was when someone handing me one, as a gift...
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Bob H
Elite Nomad
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Location: San Diego
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Maybe the time has come to just make your own beer!
http://www.professorshouse.com/food-beverage/beer/articles/h...
The SAME boiling water that softens the potato hardens the egg. It's about what you are made of NOT the circumstance.
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TMW
Select Nomad
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Location: Bakersfield, CA
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Take your choice 4th of July special at Smart and Final.
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Ateo
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When I was in Guadajara recently, I noticed my wife's family pretty much only drank Corona. I was shocked!
I'm a Pacifico, Negra Modelo, Tecate guy. Or if I'm really feeling it I'll go with some local SD brewery pale ale.
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bkbend
Senior Nomad
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Registered: 11-27-2003
Location: central OR or central baja
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I've always tried hard to dislike anything in the AB brand list, so I guess I'll be looking for a replacement for Pacifico now. Not that I've tasted
a lot of AB stuff, I just assume any beer that needs to rely on massive advertising for market share doesn't have the product to stand on its own.
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capt. mike
Elite Nomad
Posts: 8085
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Location: Bat Cave
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Mood: Sling time!
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24 oz tecate cans $1.79 ea Safeway today.....till wed.
formerly Ordained in Rev. Ewing\'s Church by Mail - busted on tax fraud.......
Now joined L. Ron Hoover\'s church of Appliantology
\"Remember there is a big difference between kneeling down and bending over....\"
www.facebook.com/michael.l.goering |
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thebajarunner
Ultra Nomad
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Location: Arizona....."Free at last from crumbling Cali
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Negra on draft
Found my Negra on draft several times lately,
Great stuff, on draft even better.
And, beer in cans>>>NOT!!
Good to great beer only comes in glass or on tap,
But, I surely agree that the convenience of the cans makes them appealing, just not much help for the taste, sad to say.
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Bajaboy
Ultra Nomad
Posts: 4375
Registered: 10-9-2003
Location: Bahia Asuncion, BCS, Mexico
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for the most part I drink local beers out of San Diego....sitting on a few cases here...(Stone, Ballast Point, Green Flash, Pizza Port) in Bahia
Asuncion. When at home, I fill up my growler from Stone as often as possible. Nothing beats fresh brewed beer....
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redhilltown
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Location: Long Beach, CA
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| Quote: | Originally posted by thebajarunner
Found my Negra on draft several times lately,
Great stuff, on draft even better.
And, beer in cans>>>NOT!!
Good to great beer only comes in glass or on tap,
But, I surely agree that the convenience of the cans makes them appealing, just not much help for the taste, sad to say. |
Granted...beer in a bottle is better but cans do have their place. Off road...washboard...ice in cooler melts a bit...bottles start to bang
around...caps open...disaster!!!!!!!
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willardguy
Elite Nomad
Posts: 6451
Registered: 9-19-2009
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| Quote: | Originally posted by the bajarunner
Found my Negra on draft several times lately,
Great stuff, on draft even better.
And, beer in cans>>>NOT!!
Good to great beer only comes in glass or on tap,
But, I surely agree that the convenience of the cans makes them appealing, just not much help for the taste, sad to say. |
well there's a pile of uninformed crap! the aluminum can is superior in blocking flavor destroying UV light, you love it in kegs, why, just a big can!
but it comes to you in a nice frosty glass mug. hey I totally
get the nostalgic feel of the glass bottle we all grew up with and who doesn't love the look of the long neck? craft breweries are embracing not only
the environmental and economic benefits of cans but also enjoy the flavor saving aspects.
but then again, its just a beer!
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capt. mike
Elite Nomad
Posts: 8085
Registered: 11-26-2002
Location: Bat Cave
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Mood: Sling time!
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keg metal.....can metal.....mash pot metal.....what's the diff except size?
formerly Ordained in Rev. Ewing\'s Church by Mail - busted on tax fraud.......
Now joined L. Ron Hoover\'s church of Appliantology
\"Remember there is a big difference between kneeling down and bending over....\"
www.facebook.com/michael.l.goering |
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Russ
Elite Nomad
Posts: 6742
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Location: Punta Chivato
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What ever happened to Bohimia? None in this neck of the dessert.
Bahia Concepcion where life starts...given a chance!
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surfdoc
Nomad
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Registered: 8-18-2009
Location: Bahia Asuncion BCS
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Now this is a post worth reading completely...
Second the Negra on draft... as soon as I get a second refridge have a deal with the Pacifico guys to supplty a quarter keg for poco pesos !!!
I'll drink water over bud....and corona as said if free.
BA is a Tecate town.... so no real threat here!
Zach you have beer with flavor hiding at your casa ???
Damn ..........
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Bajaboy
Ultra Nomad
Posts: 4375
Registered: 10-9-2003
Location: Bahia Asuncion, BCS, Mexico
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| Quote: | Originally posted by surfdoc
Now this is a post worth reading completely...
Second the Negra on draft... as soon as I get a second refridge have a deal with the Pacifico guys to supplty a quarter keg for poco pesos !!!
I'll drink water over bud....and corona as said if free.
BA is a Tecate town.... so no real threat here!
Zach you have beer with flavor hiding at your casa ???
Damn .......... |
Stan, I almost played a mean trick and left an empty bomber of Pizza Port Wipeout IPA on your door step but remembered the karma gods....yes, sitting
on plenty of bombers...come over and let's enjoy a few together
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