The Anheuser-Busch InBev/Miller Coors Empire: The Good, the Bad, and the Bubbly

Ever drank a Kona Pipeline Porter?  Goose Island Matilda?  How about the sessionable, pub ale, Boddington's?  If so, did you know you were drinking an Anheuser-Busch InBev or Miller Coors-owned product? 

Thanks to one of my home brew friends, I recently came across a list of breweries partly or wholly owned by either Anheuser-Busch (AB) InBev or Miller Coors.  The amount of breweries these conglomerates collectively own is staggering.  Take a look here: Big Brewers Brands (Thanks to Brookston Beer Bulletin for compiling the list, which is not an easy task).

Even one of our own local breweries, Terrapin, although not on the above list, is partly owned by Millers Coors (Terrapin/Miller Coors Deal). 

Among this list, I personally often drink the European brands Spaten, Beck's, Franziskaner, Leffe, Stella Artois, and Pilsener Urquell.  I never knew until now they had "sold out" so to speak, and on second inspection, may not even be so European anymore. 

Beck's, founded in Bremen, Germany in 1873, now brews out of St. Louis for all products sold in America

When I first skimmed the list, I was about to dust off the bongo drums and write an anti-multinational corporation diatribe about how no good could possibly come from traditional and microbreweries selling away their souls and identities to make a quick buck (or millions of bucks). 

Indeed, it is a little unsettling  to see 600 year old breweries such as Spaten with proud traditional brewing values being bought out by a multinational corporation.  Will quality suffer in favor of an enormous amount of quantity?  Will the brewers continue to produce their beers the same way they've been brewing for centuries, or will InBev/Miller Coors forcibly influence how and what they brew to maintain a comfortable profit margin?  In America, will the lack of independent control hinder innovation in favor of what comfortably appeals to the masses? But then, as I'm so apt to do, I got to thinking. . .

There's a picture for everything on the internet

Would most of these foreign brands even be available in the U.S. if it wasn't for the financial backing of the heavy hitters?  Would you find the Argentinian beer Quilmes, for example, in your local Kroger if it wasn't for the shipping, importation, storage, and distribution capabilities of AB InBev or Miller Coors?  If it wasn't for AB InBev, would a 12-pack of Spaten Oktoberfest still cost only $11.99 at the local package store, or would it sell for $12.99 a 6-pack like its independent, Bavarian counterpart, Augustiner? 

Augustiner is my favorite Bavarian brewery and is still independently owned and operated in Munich going on its 700th year.  But damn is it expensive!

Ultimately, brewing is a business.  To be fair, the principle objective of any passionate brewer is to make great beer.  However, the second goal of commercial brewing is to be able to make a living (hopefully a comfortable one) from turning your dream into a reality.  For a brewery, the profit margin for a case of beer is miniscule (Three Tier System).  Beer producers must sell a substantial volume in order to turn a profit, and the best way to do that is to increase capacity and expand to new markets.  For better or worse, InBev and Miller Coors can financially and logistically support a brewery looking to expand in exchange for a part or full stake in the business.  

Unfortunately, from the perspective of small, independently-owned microbreweries, the big two and their "sell outs" pose an unfair competitive advantage.  The smaller guys sell less volume, and thus must sell their products at a higher price than those supported by large corporations.  For the average consumer just looking for a 6-pack to bring to a party, $6.99 for Spaten looks a lot more attractive than $8.99 for Jailhouse e.g.  Needless-to-say, microbrewery owners, understandably, are opponents of corporate takeovers. 

In summation, the corporate arms race between AB InBev and Millers Coors is a double edged sword (of Damocles for independent brewers).  Conquered breweries often forfeit their traditional identities and methods, and possible quality, in exchange for larger markets, increased exposure, and greater brewing capacity. Also, small, independent breweries must struggle to compete with the low prices and ubiquitous exposure of the acquired brands.  However, without the financial aid of the big two, we most likely would never have had the chance to try many of these beers, and if we did, they would come at a much higher price than what we've grown accustomed to. 

Now that's some fair and balanced coverage!