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U.S. probes allegations AB InBev seeking to curb craft beer distribution
Source: Reuters
Business News | Mon Oct 12, 2015 4:58pm EDT
Exclusive: U.S. probes allegations AB InBev seeking to curb craft beer distribution
WASHINGTON | BY DIANE BARTZ
The U.S. Justice Department is probing allegations that Anheuser-Busch InBev (ABI.BR) is seeking to curb competition in the beer market by buying distributors, making it harder for fast-growing craft brewers to get their products on store shelves, according to three people familiar with the matter.
In the past few months, the world's largest brewer has rattled the craft beer world by striking deals for five distributors in three states. Many states require brewers to use distributors to sell their product, and once AB InBev buys a distributor, craft companies say they find that they can't distribute their beer as easily and sales growth stalls.
Antitrust regulators are also reviewing craft brewers' claims that AB InBev pushes some independent distributors to only carry the company's products and end their ties with the craft industry, two of the sources said, noting that the investigation was in its early stages. AB InBev's purchase of several craft beer makers in recent years means that it is in a position to offer a greater variety of products itself.
Craft brewers, who produce everything from well-crafted classics to odd flavors such as pumpkin or raspberry beer, have been a bright spot in an otherwise dull U.S. beer market. While beer sales rose 0.5 percent in 2014, craft beer sales rose by 17.6 percent to capture 11 percent of the U.S. market.
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Exclusive: U.S. probes allegations AB InBev seeking to curb craft beer distribution
WASHINGTON | BY DIANE BARTZ
The U.S. Justice Department is probing allegations that Anheuser-Busch InBev (ABI.BR) is seeking to curb competition in the beer market by buying distributors, making it harder for fast-growing craft brewers to get their products on store shelves, according to three people familiar with the matter.
In the past few months, the world's largest brewer has rattled the craft beer world by striking deals for five distributors in three states. Many states require brewers to use distributors to sell their product, and once AB InBev buys a distributor, craft companies say they find that they can't distribute their beer as easily and sales growth stalls.
Antitrust regulators are also reviewing craft brewers' claims that AB InBev pushes some independent distributors to only carry the company's products and end their ties with the craft industry, two of the sources said, noting that the investigation was in its early stages. AB InBev's purchase of several craft beer makers in recent years means that it is in a position to offer a greater variety of products itself.
Craft brewers, who produce everything from well-crafted classics to odd flavors such as pumpkin or raspberry beer, have been a bright spot in an otherwise dull U.S. beer market. While beer sales rose 0.5 percent in 2014, craft beer sales rose by 17.6 percent to capture 11 percent of the U.S. market.
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Read more: http://www.reuters.com/article/2015/10/12/us-abinbev-doj-antitrust-exclusive-idUSKCN0S623R20151012
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