A Question of Big & Small

If you follow the world of business news, you might be aware that a huge corporate merger that's been debated and negotiated for more than half a year seems to be poised for success now - that between two giants of the beer industry, AB Inbev and SAB Miller.  The corporations themselves have agreed on terms.  All that remains is to navigate any particular legal challenges that may arise in the many countries around the world where this new couple, united in corporate matrimony, will now operate.

Two beer companies merging, what's the big deal?  The most important angle to consider in this development is the extent to which it perpetuates an ongoing aspect of consumer capitalism that benefits companies and builds another level of obfuscation in between the consumer and the vast machinery that provides the products that they consume; essentially, that the new corporation resulting from this merger will control the vast majority of the world's beer supply.

"How is that possible??" you might now be wondering, perhaps with the slightest edge of apprehension.  There are two main reasons.  The first is that both of these companies are already tremendously huge, the result of previous mergers between gigantic companies (Inbev bought Annheiser-Busch a few years ago, and Corona shortly after; SAB is a major South-African Brewer that merged with Miller).  The second reason is that each of these major corporations produces many different brands.  Once the merger is complete, all of the following brands will actually be produced by the same corporation:

• Budweiser
• Coors
• Miller
• Michelob
• Becks
• Corona
• Hoegaarden
• Blue Moon
• Stella Artois
• Fosters
• Leffe
• Ice House
• Imperial
• Keystone
• Leinenkugel
• Milwaukee's Best
• Peroni
• Pilsener Urquell

Along with dozens of others that are less popular in the United States.  All things told, the new company will represent about 70% of beer sales in our country currently.  Monopolies are a market failure, one that we do a terrible job of preventing.  If the beverage world continues on its current trajectory, we'll soon be living in the world where the beer industry looks like the Telecom industry, with only a handful of options and all the negotiating power concentrated in the hands of companies, because consumers that would like to vote with their dollars have no alternative choices for their beer purchasing.

Don't let the beer monopoly succeed!  The solution is simple.  Drink locally brewed beer.  Support your neighborhood craft brewer, and tell AB-Inbev-SAB-Miller that they can't buy their way to controlling the supply of one of the world's most storied beverages.

If we don't want the ruthless giant to win, then we have to get in the ring and support the little guys.