Testing Theory

A Primer for Policymakers and Regulators

Big Beer Duopoly

Marin Institute Report October 2009

Marin Institute

A Primer for Policymakers and Regulators

Executive Summary

While the U.S. beer industry has been consolidating at a rapid pace for years, 2008 saw the most dramatic changes in industry history to date. With the creation of two new global corporate entities, Anheuser-Busch InBev (ABI) and MillerCoors, how beer is marketed and sold in this country will never be the same. Anheuser-Busch InBev is based in Belgium and largely supported and managed by Brazilian leadership, while MillerCoors is majority-controlled by SABMiller out of London. It is critical for federal and state policymakers, as well as alcohol regulators and control advocates to understand these changes and anticipate forthcoming challenges from this new duopoly. This report describes the two industry players who now control 80 percent of the U.S. beer market, and offers responses to new policy challenges that are likely to negatively impact public health and safety. The new beer duopoly brings tremendous power to ABI and MillerCoors: power that impacts Congress, the Office of the President, federal agencies, and state lawmakers and regulators. Summary of Findings • Beer industry consolidation has resulted in the concentration of corporate power and beer market control in the hands of two beer giants, Anheuser-Busch InBev (ABI) and MillerCoors LLC.

Big Beer Duopoly

• The American beer industry is no longer American. Eighty percent of the U.S. beer industry is controlled by one corporation based in Belgium, and another based in England. • The mergers of ABI and MillerCoors occurred within months of each other, and both were approved much quicker than the usual merger process. MillerCoors was completed in approximately eight months, while the ABI merger was completed in only five.

• Shareholder rights and opportunities to participate in decision making...