A 4 billion dollar shandy


Shandy is a beverage consisting of beer mixed with a soft drink. Whether it’s coke, sprite, fanta or something else that’s up to your personal preference. For a true beer lover this might seem like blasphemy but it isn’t all that bad. It’s a growing market as it is quite refreshing during the summer and it has a sweeter flavour; perfect for people who aren’t too fond of beer. Examples that became quite popular over the last few years in Belgium are Hoegaarden- or Maes Radler. But as the French say “des goûts et des couleurs, on ne discute pas” meaning that we can’t argue about taste and colours.

It’s only been a few weeks since beer giant AB InBev bought SAB Miller and speculations about the interests in soft drink magnate Coca-Cola already came to light. It won’t be for anytime soon as they’re still processing and refining their previous purchase but stock-market analysts expect an offer in 2020.
Even though these are all conjectures Coca-Cola is already breaking bonds with AB InBev.

With their purchase the Belgian-Brazilian beer brewer also got SAB Millers 57% share of the rights in the South-African control of the Coca-Cola production. This is the bottling process and shipment of Coca-Cola to 14 different countries in Africa and it makes a turnover of 2.6 billion euros.
What SAB Miller originally did for Coca-Cola in regards to bottling is what AB InBev does for PepsiCo in South-America and that’s where the shoe pinches. PepsiCo is Coca-Cola’s biggest concurrent and wants to avoid at all cost that one of their partners also works for the concurrent, which is quite understandable.ab-inbev-pepsi-coke_0

Coca-Cola, as the owner, has the right to buy out SAB Millers majority stake in the venture due to the change in ownership. It doesn’t happen often but this time Coca-Cola didn’t hesitate to do so with AB InBev coming into to the picture and that for a price of 4 billion dollars.

As AB InBev owns almost 30% of the world’s beer market there’s not much room for further consolidation. Which is why the speculations of the interest in the soft drink market isn’t that preposterous. Though they’ll have to brew a few more pints to get rid of their debt after the 95 billion dollar purchase.

Now for us this all is unimportant news as it has no immediate impact on our daily life. While they talk about billions I’ll just be saving up a few quid to get myself a few well deserved pints during the weekend.

See you next time, cheers!
~Blanckey The Brewer


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