This article is from the source 'independent' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.independent.co.uk/news/business/comment/the-west-will-be-very-small-beer-for-the-giant-brewer-absab--brewer-10504821.html

The article has changed 5 times. There is an RSS feed of changes available.

Version 3 Version 4
The West will be very small beer for the giant brewer AB-SAB brewer The West will be very small beer for the giant brewer AB-SAB brewer
(4 months later)
It’s the beer blockbuster to end them all, and if it goes ahead the combination of Anheuser-Busch InBev with SABMiller (AB-SAB?) will represent a triumph of brand and bland.It’s the beer blockbuster to end them all, and if it goes ahead the combination of Anheuser-Busch InBev with SABMiller (AB-SAB?) will represent a triumph of brand and bland.
The $270bn (£174bn) company that will be created if the former’s takeover ambitions are realised will control nearly a third of global beer volumes. That can only grow thanks to the powerful position the giant will have in fast-growing markets – in South America and especially Africa, SAB’s stomping ground.The $270bn (£174bn) company that will be created if the former’s takeover ambitions are realised will control nearly a third of global beer volumes. That can only grow thanks to the powerful position the giant will have in fast-growing markets – in South America and especially Africa, SAB’s stomping ground.
There will undoubtedly be some disposals to satisfy the world’s largely supine competition authorities. They’ll want to be able to claim they’re doing their jobs.There will undoubtedly be some disposals to satisfy the world’s largely supine competition authorities. They’ll want to be able to claim they’re doing their jobs.
But the company created will still be a brandzilla: one whose products taste remarkably similar, whatever their name.But the company created will still be a brandzilla: one whose products taste remarkably similar, whatever their name.
In more mature markets, the homogenous brews of multinationals have become decidedly déclassé, providing an opening for the micro men. Hoping to impress at a dinner party with a chilled cabernet franc from that darling little château in the Loire? It might just get trumped by a chocolate-and-chili stout the neighbours found at the microbrewery that’s just opened up down the road.In more mature markets, the homogenous brews of multinationals have become decidedly déclassé, providing an opening for the micro men. Hoping to impress at a dinner party with a chilled cabernet franc from that darling little château in the Loire? It might just get trumped by a chocolate-and-chili stout the neighbours found at the microbrewery that’s just opened up down the road.
This trend is not unique to Britain, or to those parts of Europe that possess a strong tradition of independent brewing. It has also taken hold in America. Big booze businesses might pay an arm, a leg and a liver to flaunt their wares during the Superbowl, but the doyen of football journalists, Peter King, has long been highlighting the country’s wealth of boutique brews at the end of his weekly Monday Morning Quarterback column to a growing band of more discerning drinkers.This trend is not unique to Britain, or to those parts of Europe that possess a strong tradition of independent brewing. It has also taken hold in America. Big booze businesses might pay an arm, a leg and a liver to flaunt their wares during the Superbowl, but the doyen of football journalists, Peter King, has long been highlighting the country’s wealth of boutique brews at the end of his weekly Monday Morning Quarterback column to a growing band of more discerning drinkers.
This deal, though, isn’t about the West. It’s about emerging economic powers, and their emerging middle classes, with money to spend. It’s about countries on the rise, where being seen out on the town with a brand in your hand says that you’ve made it.This deal, though, isn’t about the West. It’s about emerging economic powers, and their emerging middle classes, with money to spend. It’s about countries on the rise, where being seen out on the town with a brand in your hand says that you’ve made it.
As that middle class grows, so should this monster, if it clears the necessary hurdles, and given that a deal has been rumoured for years you can expect AB InBev’s ambitious Brazilian investors will have at the very least sounded out SABMiller’s dominant families.As that middle class grows, so should this monster, if it clears the necessary hurdles, and given that a deal has been rumoured for years you can expect AB InBev’s ambitious Brazilian investors will have at the very least sounded out SABMiller’s dominant families.
As for the West, who cares? AB-SAB’s finance chiefs will make their bonuses cutting costs in Europe and the US. It’s easier to do that than invest in the creative thinking and innovation you need to produce products with the character and flavour to find favour in a variety of markets.As for the West, who cares? AB-SAB’s finance chiefs will make their bonuses cutting costs in Europe and the US. It’s easier to do that than invest in the creative thinking and innovation you need to produce products with the character and flavour to find favour in a variety of markets.
Raise a glass to Britain’s “other” big sports retailer, the one that largely manages to avoid the sort of negative headlines that plague Sports Direct. While the latter focuses on the cost conscious, JD Sports’s growing band of customers is drawn from among the fashion conscious. Its formula is proving equally effective in domestic and European competition. The recent rash of retail updates have been a mixed bag, but JD’s results put it into the realm of title contender.The self-described “king of trainers” is living up to its boast. But there’s more to it than that. JD’s bluff boss Peter Cowgill says he’s benefiting from the “casualisation” of Britain. In other words, people are increasingly willing to wear the trendy sportswear and shoes that are JD’s staples when they’re out on the town as well as when they’re out for a run. And why not?
It doesn’t hurt that JD is a lot easier to like that its rival, eschewing the latter’s cynical reliance on zero-hours contracts and steering clear of the crass behaviour that has become Sports Direct’s calling card.
One might quibble a bit about Mr Cowgill’s insistence on operating as an executive chairman. However, he questions how an outside chairman would help his business, and it’s hard to argue with him when he reports revenue rising 21 per cent and profits up by 88 per cent.
He’d only need point to Keith Hellawell’s record as the independent non-executive chairman of Sports Direct if he ever felt the need to strengthen his case.
When it comes to the EU, conventional wisdom holds that big business would rather the UK stayed in, while smaller firms, tired of a vexatious bureaucracy and its addiction to never-ending spools of red tape, would head for the exit.
That perception isn’t borne out by the results of a commendably comprehensive study the Federation of Small Business is releasing on Thursday. It polled more than 6,000 members and found 47 per cent favouring a “remain in” vote against 41 per cent who would back Brexit if a referendum were to be held tomorrow.
A reformed relationship with the EU found wide favour, while those trading across the continent were more supportive of the UK staying in than those exporting to markets outside the EU. This suggests a line that an “in” campaign might like to pursue. It should make the point that our position in the EU is useful when it comes to trading with countries outside it. Being a member of a big trading bloc helps with striking favourable trade deals.
One thing a majority complained about was that they don’t feel terribly well informed. Those who value a constructive relationship with Europe should address that issue, and with some speed.