Molson Coors Brewing Company - 43.31
The Boston Beer Company - 116.58
Dow Jones Ind. Ave. - 13,093.16
S&P 500 - 1,414.20
NASDAQ - 2,982.15
Big news in the Brewing industry this week. The Anheuser-Busch InBev Company is planning on buying out the Mexican beer maker Grupo Modelo for 1.85 billion dollars. The AB Inbev company would controls more than 47 percent of the market in the U.S. This raises a few complications in the industry. One of these is the fact that the other companies are worried that AB InBev will stop the smaller craft breweries beers flowing to the market, by keeping it off their delivery trucks, due to more brands of beer that BUD will now be distributing. The craft brewery market, which has grown tremendously in last 20 years, this would seriously hurt these companies and we would see cutbacks and chaos in these markets. We would also see a price increase and a less fewer variety in the long run. The Justice department has to look over this deal to actually see if the Modelo deal will hurt these craft breweries. If this deal goes through, all the other companies in the brewing industry will see a set back in there companies. We would see maybe some other deals popping up to try the match BUD huge portion of the beer market. In all I expect to see a big change in the companies in the coming weeks. Managers in these other beer companies should start to motivate their employees to be more efficient and to work effectively to make up some ground if this deal goes through. I can see the share profit in BUD to increase here, due to speculation of the deal.
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