Does Another Round of Beer Mergers Make Sense?
Posted on November 13, 2009 at 14:05 PM EST
Mass-produced beer is a slow-growth industry and major brewers have merged in an effort to cut costs and grab market share. But consolidation may be little more than a short-term fix. The best known deal: InBev snapped up Anheuser-Busch once an American icon in 2008 for about $52 billion to create Anheuser-Busch InBev (BUD) the world’s largest brewer with operations in about 30 countries around the world.InBev’s third-quarter profit increased 11.9% to $1.55 billion by reducing expenses including jobs and advertising expenses. But revenue dropped 10% to $9.76 billion as beer volume fell 3.1%.Bloomberg reports that InBev may attempt ...
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