Thursday, January 31, 2013
Beer -- Relevant Market
So this post relates to two of my (our) very favorite things: beer and competition. DOJ is blocking the Anheuser Busch/Grupo-Modelo merger. My first instinct is that there's relatively little good to say about mega-brew, and encouraging competition in the market is a good thing. My second thought is that the amount of beer variety has considerably increased in the last 10 years. Indeed, my own beer taste has become increasingly local and micro. My third thought is that the beer market has inverted. In the old days, there were lots of low cost local beers, the Utica Club, Genesee Cream and Falstaff of my youth. They disciplined the bigs. Now those smaller breweries are renting their tanks to the high end micros that charge more than the major brands. My fourth thought is that if you look at which brands ABI InBev controls, my second thought about increased variety may be entirely wrong. Thoughts??