Anheuser-Busch, St. Lou...er...Leuven, Belgium

[Dr. Whiplash]

By Michael de la Merced, The New York Times

Anheuser-Busch has agreed to sell itself to the Belgian brewer InBev for about $52 billion, the two companies confirmed Monday in a joint release, putting control of the nation’s largest beer maker and a fixture of American culture into a European rival’s hands. The board of both companies have approved the deal, the statement said.

The all-cash deal, for $70 a share, will create the world’s largest brewer, uniting the maker of Budweiser and Michelob with the producer of Stella Artois, Bass and Brahma. Together, the two companies would have sales of more than $36 billion a year, surpassing the current No. 1 brewer, SABMiller of London.

The combined company will be named Anheuser-Busch InBev, fulfilling a promise by the Belgian company to include the Anheuser name in the new brewer’s title. Anheuser will be given two seats on the board, including one for August A. Busch IV, the company’s chief executive and a scion of its controlling family.

For millions, Budweiser is synonymous with American beer. Because of Anheuser’s huge advertising budget and strong distribution network, few brands are as omnipresent in daily life as Budweiser and its more popular sibling, Bud Light.

Several American beer giants have already been taken over by larger overseas rivals in the last decade. The Miller Brewing Company was sold to South African Breweries in 1999, and the Adolph Coors Company was bought by Molson of Canada in 2005. (Last year, Molson Coors agreed to merge its United States operations with those of SABMiller.)

Anheuser’s concession caps a wave of consolidation within the beer industry. InBev and SABMiller, themselves the products of mergers this decade, have led efforts to gain distribution channels around the world. The rising cost of beer ingredients like grain has also driven companies to seek greater scale and purchasing power.

The deal marked a sharp reversal for Anheuser, based since it was founded in St. Louis. When InBev announced its initial $46.3 billion offer last month, Anheuser mounted a fierce defense. It drew upon its heritage and its history as a major benefactor of its hometown, and argued that it could increase its profits alone.

Many politicians, including Matthew R. Blunt, the Republican governor of Missouri, and Senator Barack Obama of Illinois, the presumptive Democratic presidential nominee, expressed support for keeping Anheuser independent. Senator John McCain, the presumptive Republican nominee, has major ties to Anheuser. His wife, Cindy, is the chairwoman of Hensley & Company, a large Anheuser distributor, and holds a significant amount of Anheuser stock.

The battle grew nasty early on, as both Anheuser and InBev resorted to lawsuits as bludgeons. InBev had began a campaign to oust Anheuser’s board, while Anheuser accused its suitor of lying about its financial commitments and criticized its beer business in Cuba. But Mr. Busch, the company’s chief executive whose family has controlled Anheuser for more than a century, was facing pressure to consider a deal. Anheuser’s stock had remained mostly stagnant in recent years, but has climbed since InBev made its offer public last month.

Since 1860, Anheuser has been controlled by members of the Anheuser or Busch families, which expanded the company from a small Midwestern brewer into a beer juggernaut. On the back of Budweiser, Anheuser steadily pushed aside competitors like Schlitz with a mix of brute force and marketing guile.

One of the company’s hallmarks is its omnipresent advertising. It is the biggest buyer of Super Bowl ads, according to TNS, a market research company, and last year, it spent about $24 million on those ads. Dozens of its commercials, like those featuring Clydesdales, Spuds MacKenzie and the “Wassup” guys, have been ingrained in pop culture. The company’s total ad spending last year in the United States was more than about $475 million.

Yet the domestic beer market has struggled recently as customers drifted toward wine and spirits, craft brews and imports. Though Anheuser holds significant stakes in Modelo and Tsingtao of China, the bulk of its sales come from the United States.

InBev has its own long history, with its predecessor having been founded in 1366. But the modern company sprang from the 2004 union of Interbrew of Belgium and AmBev of Brazil. Though the combined company remains based in Leuven, its chief executive is Carlos Brito, who led AmBev before the merger.

The two companies already share some ties. InBev distributes Budweiser in Canada, and Anheuser imports InBev beers like Bass. In 2006, InBev sold its Rolling Rock brand to Anheuser-Busch for $82 million.

[lastone]

The only thing left in America that is "American" is....ah....well....er....

Gee. I guess I am glad I won't live but another decade or so.

[Big Media]

as Chinese as Apple Pie.

[CoolBreeze]

For all its popularity at home, Budweiser's true-blue American image may not translate well in some countries, particularly in Europe.

In Europe, Anheuser-Busch has long fought legal disputes over the Budweiser name, which is claimed by a Czech brewer. InBev said it would be able to use the full name in only 19 of 35 European countries. In others, it will have to market Budweiser as Bud or Anheuser-Busch Bud.

Now... The Boston Beer Co., who brew the Samuel Adams line of beers, will be the biggest brewer in America.

The original KING of beers

You might know that the Pilsner is a Czech original but did you know that Budweiser is originally Czech? oh yes. Also, did you know that it was basically stolen from them? oh yes. Did you know that a lawsuit was quietly settled out of public eye by the US company? OH YES!

Fact is... Budweiser (and all beers like it) originated from the Czech Republic. I visited the Budweiser brewery in Prague last Sept. So you might say that Bud is simply going home again....

[Big Dawg]

In my opinion, Anheuser-Busch blasphemed when it bought Rolling Rock and started brewing it in New Jersey, leaving Latrobe, PA. The Latrobe Brewery was once owned by InBev, who sold it to A-B. I wonder what will happen to the Rolling Rock name? It doesn't matter. By principle, I have not, nor will not drink a Jersey Rolling Rock. Meanwhile, according to the Wikipedia "Latrobe Brewery" entry: "In March of 2007, the brewery reopened its doors and now produces Samuel Adams (beer). The Boston Beer Company signed a deal with the plants current owners, City Brewing Company in April of 2007 to produce beer in the plant. The Boston Beer Company has pledged $3 to 7 million dollars to upgrade the plant. It is estimated that 200,000 to 250,000 barrels of beer will be produced in the plant during the remainder of 2007"

[Ace Purple]

Wow, I haven't thought of Budvar in years! I had some of that during my semester of college in England in 1998.

[Big Media]

mmmmmmm beeerrrrr.