I guess 48% of the American beer market wasn't enough for Anheuser-Busch. Neither was 'Blue Ocean', the name the company execs gave to their plan that cut health and pension benefits and offered early retirement to employees 55 and older. Supposedly, they were trying to cut costs, but in retrospect you can see they were just trying to boost the value of the company on the backs of their employees.
Why?
To get a better offer from Belgian brewer InBev, who had initially offered sixty-five dollars a share.
And it worked. InBev ponied up five more bucks a share and then management sold the whole thing overseas.
Budweiser has been providing suds to America since the beginning of the Civil War. They are MORE than a tradition, even more than an icon. There isn't really a name for what Budweiser represents to this country. Bud beer often made better foreign policy inroads than the best diplomats, because everyone knew where it came from. Bud has attended every graduation, every college party, and has been to every war in the last hundred and fifty years, reminding our boys of home.
Not any more, though. InBev says all the Budweiser plants will remain in the United States. And they will - right up until the moment it isn't cost-effective for them anymore. If the shareholders of Anheuser-Busch had any real balls, they'd be screaming about the sale and insisting that Budweiser remain an American-owned company. Any company worth its salt could easily recover from a temporary loss when they own half the market share in the U.S., otherwise that particular company needs a new Board of Directors.
If they aren't a monopoly, they are the closest thing to it.
And nobody's ever complained about that, because Bud is, and has always been, The King of Beers. Even people who never touch the stuff like the Clydesdales.
InBev isn't talking about layoffs after the merger, but this seems a given. Do you believe they are going to keep a dozen U.S. plants open, and continue to pay the health and retirement benefits of all those American workers forever? For a while, perhaps. After that, they may move some of the brewing over to another InBev outlet - maybe even the one they own in Cuba.
As for this writer, I say it's Miller Time.
(NOTE - This article was recently added to the infamous 'Straight Talk' Podcast.)





