Beer consumers send warning shot to AB InBev

The European Beer Consumers Union, of which Beoir is a constituent member, has written to the CEO of the world’s largest brewer, AB InBev, expressing concerns over the company’s business practices. The letter from EBCU chairman Henri Reuchlin to ABI’s Carlos Brito (full text here) notes that the multinational brewer now controls 30% of the world’s beer market and appears to be further intensifying pressure on its competitors. ABI now has worldwide business interests in hop growing, as well as packaging, distribution and retailing. It is obvious how this level of involvement in the entire supply chain can have a knock-on effect on the consumer as other brewers are given less preferential treatment or locked out of the supply chain altogether.

EBCU has noted in particular the creation of ABI’s “disruptor company” ZX Ventures which, as well as buying up previously independent breweries in Europe and abroad, has interests in the media, bars and home brewing. ZX made headlines recently when its investment in RateBeer came to light, and it is particularly concerning that this revelation was more or less accidental: ZX is under no obligation to reveal where its business interests lie. EBCU executive member and beer writer Tim Webb has written more on the ZX situation here.

Though ABI does not operate directly in Ireland, employing C&C Gleeson as its agent, Beoir fully agrees with EBCU’s position that the company’s activities are a matter of grave concern, for both smaller beer producers and the consumers who drink their products. At the very least, the management of AB InBev need to be made aware that their activities are being watched. EBCU will continue to report on the consolidation activities of all multinational brewers to help keep consumers informed via its news page at EBCU.org.

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