Thursday, February 28, 2013

Big Buds getting even closer: InBev/Modelo Merger

Original article from the Associated Press, Feb. 5th, 2013: Budweiser Corona Merger Challenged over Competition Concerns

As if Budweiser wasn’t satisfied with brewing the most ‘satisfying’ beer on Earth, it is now looking to add the most popular and ‘satisfying’ American import--Corona--to its massive ownership of the beer market. And we really feel ‘sorry’ that the Department of Justice (DOJ) has put the brakes on such a seemingly ‘legit’ deal between Anheuser-Busch InBev (ABI) and Grupo Modelo.  Really, we’re just ‘broken up’ about ‘it’… ‘.’

Budweiser is looking to buy the one company that has kept the two Big Brewers--ABI and MillerCoors--from controlling beer prices in the US. As the two big boys control around 70% of the US market and attempt to work together for price manipulation, Modelo has always competed by maintaining lower prices. The DOJ has stated that the merger would monopolize the beer industry. ABI would creep towards 50% ownership of the market and drive beer prices up, because God forbid you pay $2.00 for a Bud Light Select tall boy rather $1.50.

Lest we forget that InBev is already half owner of Grupo Modelo to begin with, so you’ll find Coronas and Buds commuting together in every major city. Lest we forget that Budweiser already owns dozens of breweries across the US and the world, some of them quite good ones. Lest we forget that pesky but valiant 25% of the beer market that includes craft breweries; whose creativity, quality, and higher alcohol content have inspired ABI to launch Bud Black Crown… the dark corporate wizard of beers. Lest we forget that we still have a blog to write.

What could this merger possibly mean for those of us who define summer with a lime-wedged Corona, or those of us who avoid the long cooler filled with the King of Beers all together (or pick up some Buds because we didn’t lest-we-forget our wallet at home)? Does any of this merger noise even matter?

Us 2 Brewths don’t have vast amounts of economic knowledge, but let’s pretend that you think we do. If Bud and Modelo actually buddy up, then prices might increase. But if craft beers hold their prices, the market might just swing their way. Why bother spending X amount of dollars when the alternative is only X.75? As effective as InBev's behemoth of an advertising campaign is--with its talking animals, ethnically diverse raves, and football-to-the-groin humor--the dark sinister label of monopoly might scare away a few Americans from drinking such a threat to the marketplace. Americans might look for a more honest alternative. Remember, we’re still pretending we know what we’re talking about.

So what’s your take on it all? Do you have any scruples with Big Beer? Would such a merger change the way people buy beer and if so, how? Also, what is your go-to Big Brew and when do you drink it? Finally, since we are all in need of some happy weather thoughts- what is your preferred beverage for the summer, alcoholic or not?


Sunday, February 3, 2013

Excuse me sir, can I see your beer license?


It is probably most appropriate for our brew news discussion to start in Ireland (sorry Ireland, you did this to yourself), where local politicians in Kerry County attempted, and failed, to pass a vote to increase the ABV limit for drivers and, yes, even issue drunk-driving licenses.

Before we get all MADD on these fellers, let’s take a look at the circumstances. The argument for the limit increase comes from Councilor Danny Healy-Rae. He says that the proposed changes would not affect the driving safety of the region, whose mainly-countryside roads wouldn’t let you “do any more than 20 or 30 miles per hour… it’s not a big deal.” Healy-Rae also laments that many of the older residents do not want to risk losing their license by going out to the pub and therefore end up staying in, causing loneliness and depression. As the younger Irish drink and socialize at the pub, the older generations sit at home:
"All the wisdom and all the wit and all the culture that <these old drunk people> had, the music and the singing, that's all being lost to the younger generation because these older people might as well be living in Japan and Jerusalem because the younger generation don't see them at all anymore.”
- Danny Healy-Rae, Councilor of Kerry County, Ireland
Of course the opposition probably aligns with most of our knee-jerk reactions when someone suggests something like a drunk-driving license. Kerry County Mayor Terry O’Brien (you were waiting for an O’Brien, weren’t you…) contended that these measures are bogus. O’Brien states, "It is incredibly dangerous. I don't know how anybody can be allowed to say: 'You've had two pints, so you're justified to drive.” Also, we don’t need to quote the beerzillion studies that link alcohol to depression and anxiety… do we? OK, maybe we do. (1)

So, my first thought on this was that it’s kind of ridiculous.  There have got to be other ways to avoid depression while living alone or secluded.  This seems like an awkward band-aid to cover up what might be a more serious mental health problem.  I realize that the drinking culture in Ireland—especially the pub culture—is a lot different than it is in the U.S.  In Ireland, they go to the pub as more of a social activity; it’s just as important to hang out with family and friends as it is about getting drunk.  I guess my question is why do these people, who live so secluded from everyone else, have to get drunk to enjoy hanging out with their friends?

Ireland has certainly paved the way for the drinking arch-stereotype, but recent laws in the country have considerably lowered the number of drinking related accidents and fatalities. But let’s try to wipe away all the shamrocks and Leprechauns and Leprechaun 6: Back 2 tha Hoods and look at the actual issue faced by these councilmen, many of whom are actual pub owners (not an Irish joke).

What we have here is an honest concern. With younger generations becoming increasingly unavailable to the older ones, we see the disappearance of traditions, which means they miss out on some cool stories. Just remember the last time you were in a pub and had a brief conversation with an old, slightly whimsical person sitting at the bar. If the conversation wasn’t of some odd, sexual nature, then I bet that it was a fascinating discussion. These moments are actually quite interesting ones and it would be a shame to lose them. Let’s face it, these old people are going to drink whether they sit at home or are clubbing to the newest DJ Whazzhisname set. Of course, youngins don’t want grandpa hanging around the club or the bar… but maybe there is a place for younger and older people to actually drink and socialize together beyond Ruby Tuesdays.

My second thought is that that the culture of drinking in these places may need to change.  I have always been a proponent of teaching children the effects of alcohol and how to drink appropriately.  I think it causes too many problems to enforce a blanket prohibition on booze to younger people. Once they reach an ambiguous age, they are tossed into a public drinking culture, wholly unprepared to handle it properly.  As they grow they develop a personal culture of getting drunk at the pub because it’s what they believe they should do.



Third thought (this might be a record) is that these people knew the risks of driving drunk and decided to take them anyway.  They made a conscious decision to live in secluded areas.  They knew that they had to drive to the pub, and they knew that drunk driving was illegal and dangerous.  They chose to drink and drive anyway.  I’m not hating on them. We’ve all had to make those decisions, too, but we have to constantly remind ourselves of the consequences.  We’ve got to be more conscious of our own personal limits. No amount of fun is worth making a mistake and seriously hurting someone else in an accident. 

So what can Kerry County do? Should there be licenses? Should rural Ireland change their drinking habits and culture? Should they just suck it up and deal with the reality of the law? 

How about organizing a volunteer Designated Driver program? Have younger people take one night a month off so they can bring the older residents to the pub. I can guarantee you that if the stories aren’t very interesting on the ride there, they’ll be more interesting driving back home. It would be a positive solution that connects people while keeping them safe. It’s a win-win, if you can stand a group of old Irishmen singing jigs in the back of your paddy wagon (I had to get couple more in there.)


I guess that my final reaction (for now, anyway) is that the law to make driving drunk legal is fucking stupid.  People who drink and drive know the consequences.  There have been plenty of anti-drinking and driving campaigns, enough that a reasonable person would understand the risks.  So, if you get caught, tough shit, take it like a man.  

2 Brewths has TWO questions for you this time around: First, how do you think Kerry County should solve their issue- Keep trying for the drunk-driving license, or can they do something else? Secondly, what are your experiences with drinking with another generation; whether it is older or younger, how do you think these situations shape both our drinking habits and traditions in general?


(1) So we only have a handful of sources, but we will pick up this topic in another 2 Brewths post:



We could always just visit Mee Maw at home...