The Electric Commentary

Tuesday, October 09, 2007

Huge Beer News

Wow. I'm speechless. I am without speech. MillerCoors? Sounds like the beer in some futuristic, overly-corporate dystopian nightmare. It's like CokePepsi. No good could come from CokePepsi.

You can bet that there are a ton of nervous Miller and Coors employees in Milwaukee and Golden right now.

With an ever-increasing number of imports and microbrews, the "Macrobrewers" had no room to grow, and consolidation was inevitable (SAB's purchase of Miller several years ago was just a first step), but I must admit I never thought that one of the Big Three American brewers would merge with another. I also wonder if the government will fight this at all. I suspect not as the last time they vetoed a brewing company merger they basically destroyed Heileman and Pabst as major brewers. They will be very cautious about doing it again.

What does this mean for you, the consumer? Probably not much. It's unlikely that there will be much in the way of brand consolidation. Most beer consumers are fiercely loyal to one brand starting at an age that beer companies would prefer that you, and the government, not know, and getting rid of Coors Light to help out Miller Lite would just piss off a bunch of Coors Light fans. You will probably see a wider distribution of Killian's and Blue Moon in Miller territory, and maybe see some of the Miller "craft brews" like Leine's will start to have a larger national footprint. In general, you will probably end up with more variety, which is good.

Some fringe beers may bite the dust, but in general this should be good for the beer-swilling consumer.

My family has always been a Miller family, and drinking Bud or Coors in the past has always come with a little twinge of guilt for me. At least now with Coors, that little twinge can be gone. The awful taste will still be there, but the guilt will be gone.

5 Comments:

  • Good entry.

    I was definitely born a Miller girl since my dad worked at Miller's corporate hq for years.

    When I heard news about the merger between Miller and Coors I was shocked and probably cringed a bit.

    I still won't drink Coors though. Eww.

    By Anonymous karen, at 10:12 AM  

  • I doubt the gov't will do anything because CoorsMiller will still be much smaller in marketshare than Bud.

    By Blogger Scott, at 6:35 PM  

  • I used to work there myself, actually. As did my father.

    Scott, 8 years ago this would have been anti-competitive per se. It's only under this current administration that a merger iin such a non-competitive market may be approved.

    By Blogger PaulNoonan, at 11:40 PM  

  • Probably a good point Paul. My perspective is entirely formed based on the last 7 years because I didn't pay any attention to mergers until a few years ago.

    By Anonymous Scott H, at 11:47 AM  

  • I better not catch you drinking Coors around me.

    By Blogger RyanSimatic, at 4:29 PM  

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