U.S. Justice Dept. OKs beer merger, but demands sale of Labatt USA

Fri Nov 14, 2:49 PM

By The Associated Press

WASHINGTON - The U.S. Justice Department has ordered Belgian brewer InBev to sell its American Labatt operations before it can proceed with the US$52-billion acquisition of fellow brewer Anheuser-Busch.

It wasn't immediately clear how that will affect Labatt Canada, which is a related but separate subsidiary of InBev.

The Justice Department says it will have to sell the U.S. Labatt operations because the deal could mean higher beer prices for beer in the New York cities of Buffalo, Rochester and Syracuse.

In those cities, Anheuser-Busch's Budweiser brands and InBev's Labatt brands are the two biggest-selling beers lines, which means the merged company would be competing with itself.

InBev has to sell Labatt U.S.A., along with a license to brew, market, promote and sell Labatt beers for consumption in the United States.

"This divestiture will ensure that consumers will continue to benefit from the significant competition between the merging companies in upstate New York," Deputy Assistant Attorney General Deborah A. Garza said in a statement.

InBev and Anheuser-Busch don't compete in most other beer markets around the country. InBev brews Stella Artois, Beck's and Lowenbrau.

The Justice Department gave its blessing to the beer merger just two days after Anheuser-Busch shareholders approved the merger, which still is subject to regulatory approval in Britain and China.

Additionally, 10 angry beer drinkers in September filed a federal lawsuit in St. Louis, asking a judge to block the deal that they said violates antitrust law, regardless of the Justice Department's approval.

The new company will be known as Anheuser-Busch InBev. It brings about the end of the more than 150 years of family rule of the St. Louis-based Anheuser-Busch, though the newly combined company's North American headquarters will stay there.

InBev has said it will keep open all 12 of Anheuser-Busch's North American breweries.

August A. Busch IV, Anheuser-Busch's president and chief executive, will be on the new company's board but in a non-executive role. He has said decision to sell the nation's largest brewer was a difficult one.

Does this mean American Labatt will get better?

At least it won't be Budweiser.

B.C. brewery toasts tough times with Bailout Bitter beer

Wednesday, November 12, 2008

A microbrewery in British Columbia is toasting the current economic downturn by launching a special brand of recession-style beer.

Howe Sound Brewery has named its most bitter-tasting brew Bailout Bitter in honour of the government bailouts of the financial sector that have taken place in an attempt to mitigate the global financial crisis.

Calling it "bitter ale for bitter times," the brewery said the new beer will cost less than its other brands.

A pint of Bailout Bitter will sell for $5.50, or about $1 less per glass than other brews, at the company's restaurant and pub, located in Squamish, B.C., north of Vancouver.

The company is also planning to sell one-litre bottles of the new ale in the coming weeks, at a price less than the $7.10 per one-litre bottle it charges for some of its current brands. The price per bottle hasn't been set yet as the company waits for bottling approval from provincial government.

"We are trying to inject a little bit of humour into this dire economic situation, while still responding in a serious way to these tough times," the brewery's co-owner, Leslie Fenn, said of the new brand.

Fenn said because the brewery is small, it can produce a timely new brand faster than its larger competitors.

The idea was hatched about two months ago, when impacts of the global financial crisis began, he said.

The Howe Sound Brewery, which started in 1996, produces about 10,000 litres of beer per week. The brewery makes 12 different types of beer, which are bottled by hand and sold primarily at liquor stores in B.C. and Alberta.

anheuser busch sells out... never thought i'd see the day. unfortunately, it's not really selling to that much better of a company, so i don't look for too many improvements. if anything, bud might get worse. well, i don't drink anheuser busch products anyways.

-m

     love to have one with you YF !

  Shame British real ales just don't travel well , but if you ever get to the UK. try Godsons black horse (GBH !!!) Courage directers , Abbots bishops tipple , Youngs, Fullers & many others ! just find a good "free House" & experiment !

Al...........between you and Brill I'd be forever tipsy if I made it over there

       Thats the idea hon !

OMG..........you'd love that ........

I can certainly vouch for Fuller's.

Al........we're all going to Muzy's place for drinks

Welcome Alana1ax, and thanks for stopping by. have a great time here and feel free to join in anywhere.

    Thanks Muzy, you'r so kind ! , can't believe you can get "ESB"  over there !!!! , have you tried Fullers London pride ??? , one of the local pubs to me is a Fullers & these beers come on tap ( good cellerperson very important) they do great food as well !  .... lovely atmosphere, open log fires & very good company !!!! , thats the one I've already mentioned to you YF ,  ......... better go I'm breaking a promise (long story ! ) wish I could say talk soon !     xxx

Oh heck..........pull up a chair, I'll pour the beer and we'll talk

i just picked up a few beers yesterday that i hadn't tried yet:

unibroue seigneuriale

jack's pumpkin spice ale

michelob dunkel weisse

labatt's amber ale

labatt's honey lager.

also got some labatt's classic and porter, but i've had them already.

QUOTE (Alana1ax @ November 21, 2008, 17:22)

You're very welcome. I can get the ESB in a specialty store here, but it's the only Fuller's variety I've been able to find. I'll bet it's fabulous on tap (I agree about the importance of a good cellarman).
I will keep looking... It's well worth it.

By the way, I've read about the promise you've broken. Now that you have broken it, I think you should just forget about it and get back to posting as normal.

One of Britain's best-known breweries is to close with the loss of 170 jobs as the recession bites into demand and pub closures rise above the rate of five a day.

The Danish giant Carlsberg today announced a two-year rundown of the Tetley site in Leeds, where ales have been made under the sign of the monocled huntsman since 1822.

The GMB union appealed for talks to discuss a change of heart, but the move has been foreshadowed since talks with Leeds city council earlier this year.

The brewery is the last major industry in an area of prime office and residential development land close to the river Aire, following the departure of Yorkshire Chemicals three years ago. Although the land market is currently sluggish, a revival is expected by 2011 and estimates of the land's value top £100m.

Carlsberg will continue to brew Tetley's range of beers which, like rivals brands such as Manchester's Boddington's and Newcastle Brown, are emblematic of the north of England. But production is likely to move down south to Carlsberg's other major English brewery in Northampton, although discussions are planned about other possibilities in Yorkshire or the wider north.

Carlsberg UK's marketing director, Darran Britton, said that the economic downturn was piling "unprecedented pressure" on the company, at a time of strong competition, higher duties and increasing regulatory costs. The firm's supply chain director, Nick Webb, said: "Unfortunately, in this environment, we can no longer justify running two major breweries in the UK."

Carlsberg hopes to manage a careful rundown between now and 2011, but the firm offered no guaranteed alternative work for the 170 Leeds staff. Webb said: "We are announcing the closure proposal more than two years in advance so that our employees are able to prepare for the future.

"But we have to consider difficult decisions to remain competitive in the current environment and we regret the risk to the jobs of our employees. Although the business has remained robust in tough market conditions, this proposed move is vital to ensure Carlsberg UK remains a strong and sustainable business in the future."

Automation at the Leeds brewery has steadily reduced staff, with Carlsberg investing millions of pounds in the plant since acquiring Tetley in 1992. The firm has been a central part of Leeds life but a brewery museum closed after less than five years because of low visitor numbers, and the famous shire horses which ran dray deliveries in the city centre were retired on financial grounds in 2006.

Britain's beer market has been falling for a number of years, with the closure of 30 breweries since 1998, but the slump has accelerated by between 7% and 8% in recent months. Britton said: "It is a reality of the market - people are drinking less beer."

Workers leaving the nightshift this morning and those arriving for the day were given the news, while the firm issued a parallel announcement that it would continue its sponsorship of rugby league teams Leeds Rhinos and Bradford Bulls. Tim Roache, regional secretary of the GMB union, which represents workers at the site, said: "This is very disappointing news.

"We will be seeking talks with Carlsberg to see if there is anything that can be done to change their minds about closing this historic brewery".

Tetley's was founded by a Leeds maltster, William Tetley, who narrowly escaped bankruptcy when barley prices soared during the American War of Independence and the town's mayor warned that the situation amounted "almost to prohibition". The brewery was the work of his son Joshua, an outstanding entrepreneur who used a borehole far below the Aire to avoid the river's filthy water.

This is very sad news.

Tetleys is iconic in Yorkshire (Leeds in particular) things just wont be the same..

Wow that is sad news Brill. Let's hope something changes for them.

I've never understood how a lot of pubs etc continue to thrive when money gets tight. It's much cheaper to buy your beer, wine etc and stay at home with friends and family.

Maybe it's just me, but I also can't see paying over $5 for a beer in a pub in the first place, and to do this weekend after weekend (not to mention some evenings).....I've no idea how people can afford this. I know I can't

Yep thats true Ms Young drinking is an expensive hobby these days and trends have changed dramaticaly.The main issue with Tetleys is that is really is in the heart of the city (on prime real estate see where this is going ?) .Carlsberg want the money for the land it stands on and believe me its a huge place,now I know there is no place for sentiment in business,but to take Tetleys out of Leeds would be like taking the owls off the city flag.Happily there is a very strong camaign being fought to stop this closure however I doubt it will be sucesful and we will be left with only  few micro breweries (as we call them)

Oh yes I was reading between the lines........it sucks is all I can say. However, one wonders about the money involved to close the brewery

This is very bad news. It seems like this always happens when an icon is bought by corporate beancounters from elsewhere. There may be no place for sentiment in business, but when a city or region is deprived of a major symbol of its identity, it is never a good thing.

I hope there will be a way of saving the brewery and its jobs. Maybe it can be declared some kind of landmark by the government, or some kind of tax incentive could be offered.

My best to the city and especially the workers and their families.