American Antitrust Institute releases report outlining why A-B InBev/Modelo is a bad deal

a-b inbev logoWith the DOJ still looking at the A-B InBev – Modelo deal, the American Antitrust Institute (AAI) just released a report in which it outlines that the acquisition will be bad for competition. More below…

On Wednesday, November 14, the American Antitrust Institute (AAI) released a new monograph “Global Beer: The Road to Monopoly” and a new White Paper analyzing the pending transaction that will bring Corona under the full control of Anheuser-Busch.

The AAI White Paper identifies a series of questions to assist the DOJ in its analysis of the proposed transaction. The principal author of the White Paper is AAI Special Counsel Sandeep Vaheesan.

“Global Beer: The Road to Monopoly” is a 117-page monograph written by AAI Research Fellow and economist Bernard Ascher that describes and analyzes beer competition in a comprehensive way, including:

• the history of the beer industry’s domestic and global consolidation
• the effects of antitrust policy in shaping the industry
• the nature and effects of the Post-Prohibition three-tier distribution system, administered by each of the 50 states
• the emergence of specialty craft brewers
• the influence of advertising, brand loyalty, quality, and price in competition
• the potential of a megamerger between ABInBev and SABMiller

Download the 117-page report.

Listen to an audio presentation discussing the A-B InBev – Modelo deal (discussion starts at 57 mins).

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