Investors Bet on the Gods of the Brewery

westland_barrel_roomEarlier this week, stocks for AB InBev’s Budweiser and Molson Coors both hit all-time highs on the market, the reason being that investors in the brewery world are betting that Budweiser, which will slice a megadeal to buy its rival SABMiller, will have a better chance of getting faster approval for new concoctions by regulators. This falls in lines with the company’s plans of selling off several segments in order to appease anti-trust regulators worldwide. This deal will give Molson Coors control world wide over the Miller brands. It also means that Asahi, a Japanese brewer, gets the rights to buy SABMiller’s Peroni, Meantime, and Grolsch beer brands from AB-InBev.

China Resources Beer Company accepted to buy the remaining portion of CR Snow’s company, a joint venture along with SABMiller that makes Snow, the world’s most popular beer, from AB InBev. This is good news for Molson Coors who plans on purchasing the rest of the stake that it doesn’t already own Miller Coors. The question remains as to what InBev will do now it has sold both parts of Miller Coors. A lot of smaller brands are doing rather well in emerging markets like Latin America and Africa, where beer is considered a special commodity. With an increase in the purchase of micro breweries and craft breweries, such as Devil’s Backbone, the company could become a giant in the burgeoning microbrewery market.