I am not really speaking to if or why, but more to how effective it would be for InBev's end goal. Imho it would limit homebrewing which probably not have an impact on sales of Budweiser. Maybe some craft beer brands they own would see some benefit, but how much compared to buying up multiple business' in a squeezed margin space to begin with?
I think they already own BSI group don't they? That would be the best way to raise prices. Raising pricing at the retail level has a risk of losing customers and not making your rent. (in this case not operating in the black). It is odd but as you state, predatory practices is not new for the space.
I think the question of “why” is important to try and understand their motives. In reality we will never fully know what their motives are until the act on them, with the exception of maximizing profits, as that is a given.
Concerning the buying up of businesses and consolidating the operations, that cost is minor in the scheme of things. Market cap of AB/InBev is about $96 billion US, with revenue of about $53 billion worldwide.
I believe we would be hard pressed to think they couldn’t take majority control of the home brew market for more the $20-30 million. Just a guess on my part.
I would like to know what AHB & AIB sold for. That info may shed more light on these questions. Realistically, $50 million would likely be a fair price for a 1% market share increase and more control in that same market.
Concerning losing customers, I know of more then 1 person who would live in their car before the would give up beer! Lol
And most people would give up other things before giving up beer or a place to live.
Beer is important to many people in the US and elsewhere. If the price doubled, consumption would go down, but not by 50%.
I’m retired on a fixed income, but the wife likes her apple cider and wine, so we make adjustments.
As an example, Locally we pay $12.00 a 6 pack for Angry orchard. That’s $2.00 a bottle!
I am currently ramping up my cider and apple wine making and hoping she likes it well enough that I can discontinue purchasing commercially produced stuff.
I can make Edworts apple wine for less the 50 cents a 12 oz bottle. That’s paying $4/gallon for juice. Add sugar, yeast and bottle caps and I’m under 50 cents/bottle. Get the juice on sale and it’s less. Recently got generic juice for $2/gallon locally. That gets my cost down to under 30 cents/bottle.
As Americans, we will find a way to make things work as long as we have the freedoms that allow us to.
My opinions are not meant to be empirical evidence of anything, rather a thought provoking exercise.
Brew on!
Ibrew2