Ending weeks of intense speculation over the future of Anheuser-Busch, the St. Louis-based brewer agreed on Sunday to be acquired by Leuven, Belgium-based InBev. The deal, worth $52 billion, creates the world’s largest brewer and one of the top five consumer products companies in the world.

 

InBev upped its original offer for A-B from $65 per share to $70 per share in cash. The combined company, which will go by the name of Anheuser-Busch InBev, will have global volumes of 460 million hectoliters and revenues of $36.4 billion. Budweiser, Stella Artois and Beck’s will be its leading global brands.

 

The companies say A-B’s St. Louis home will be the headquarters for the North American region, and expect about 40 percent of the combined company's revenues to be generated in the United States. In addition, all of Anheuser-Busch's U.S. breweries are expected to remain open.

 

InBev Chief Executive Officer Carlos Brito will be chief executive officer of the combined company, and the board of directors will include the existing directors of the InBev board, Anheuser-Busch President and Chief Executive Officer August Busch IV and one other current or former director from the Anheuser-Busch board, the companies say.

 

The transaction is still subject to the approval of InBev and Anheuser-Busch shareholders, as well as regulatory approval. It is expected to be completed by the end of 2008. Read the full announcement.

 

 

 

Beer distributor Reyes Beverage Group has acquired Mesa Distributing in San Diego. Mesa distributes approximately 8.5 million cases of Miller Lite, Heineken, Samuel Adams Boston Lager, Sierra Nevada Pale Ale and other craft and import beers. The acquisition expands Reyes’ territory from Santa Monica to Mexico.

 

The transaction includes Mesa Distributing’s 180,000-square-foot San Diego warehouse, where Reyes will implement its "green initiative” to reduce the use of energy, raw materials and waste that it disposes of each year.

 

 

 

The Pepsi Bottling Group, Somers, N.Y., reported second quarter revenue of $3.5 billion, a 5 percent increase over the same period last year. The company says net revenue per case was up 8 percent, led by growth in Europe and Mexico. Net revenue per case improved 5 percent in the United States and Canada, primarily due to rate increases.

 

Total worldwide case volume declined 3 percent. Volume in the United States and Canada declined 4 percent as a result of the shift of the Easter holiday to the first quarter and overall weakness in the liquid refreshment beverage category, the company said. European volume grew 1 percent, with growth in Russia and Turkey partially offset by volume declines in Spain. In Mexico, volume declined 3 percent. See the full results.

 

 

Miller teams with Mark Anthony in Canada

 

Miller International Canada selected Mark Anthony Group of Vancouver, British Columbia, as its distributor in Canada, effective this month. Mark Anthony will be responsible for in-market sales, local marketing and distribution of SABMiller’s “global worthmore brands,” including Grolsch, Pilsner Urquell and Peroni.

 

Miller International said it had been evaluating its global portfolio of international brands and was in search of a partner that could help expand its offerings in underdeveloped markets in Canada.

 

“The Mark Anthony Group has a long track record of building distinctive premium brands in Canada and we are very excited about this new strategic partnership,” Miller International Senior Vice President Doug Brodman said.

 

Miller said its acquisition of Grolsch S.A. provided a strong platform to pursue growth in the Canadian market, as the brand is one of the top five imported brands in each Canadian province.