Last week the Justice Department gave their blessing to AB-InBev's takeover of SABMiller. The world's two largest beer making companies will be folded into "Megabrew," a nickname coined by its detractors (Newco is the name AB-InBev has floated).

Does this mean that one company will control most of the beer market in the United States? No. For a long time the two largest brewing companies in this country were Anheuser-Busch and Miller Brewing Company. In 2008, all of that changed. In June of that year Molson Coors and SABMiller formed a joint venture in North America called MillerCoors. A month later, Belgium-based InBev purchased Anheuser-Busch to form AB-InBev. Two big combinations following two different models, but in the end the consumer still saw two big brewing companies. Another transaction will keep the big brewer duopoly in place. When the transaction for AB-InBev to purchase SABMiller occurs, Molson Coors will purchase SABMiller's stake in MillerCoors.

So if AB-InBev is going to sell off Miller, why buy SABMiller? This is a transaction about global market share. It turns out that there are places where one has the bulk of the market, some places where the other has the bulk of the market, and some places where they compete. It turns out that when all of those places are mapped, Megabrew/Newco will have most of the world covered.

The Brewers Association (a trade group of the nations small breweries) and others have been quite concerned that this combination will have negative impacts on them, particularly in the area of distribution.  AB-InBev has been buying distributors as they become available and has long administered incentive programs for distributors who promote AB-InBev's brands over other brands that distributorship carries. Given that in most states, once a brewer selects a distributor, it is a very long process to switch from one wholesaler to another, these programs can leave small brewers feeling neglected by the very people who are supposed to be promoting them in the marketplace. 

Are the concerns of the Brewers Association and others warranted? I think so. While parts of the three-tiered system of alcohol distribution put in place at the end of Prohibition is starting to break down in different ways state-to-state, a small package brewer tied to a distributor who doesn't want to sell their beer can kill sales for that brewer and eventually mean that consumers have fewer choices. It will be interesting to see what happens...

Over the Independence Day holiday, my wife and I took a trip to northern Minnesota. On our trip back, we had lunch at the restaurant of a resort along the shore of Lake Superior. This is a place that mentions wine in some of the resort's promotional materials, and nearly all of the advertising for the restaurant itself. 

I asked for a beer list and was handed the separate wine menu. The beer list wasn't extensive, occupying half a page and sharing real estate with the cocktail list. About half of the beers were American Lagers and American Light Lagers from large breweries in the U.S. and Canada, but it included more than I expected. I selected a beer from a nearby brewery that specializes in Belgian-styles and does not distribute as far as my hometown. The server returned with a warm 750ml bottle and informed me of the price (it wasn't on the list), then said the manager suggested it was "supposed to be served like a wine - served with the bottle on ice and to drink only a small amount at a time." Normally, my Midwestern upbringing would drive me to respond with a simple and polite indication of compliance, "Okay."

I didn't do that. I responded chuckling, "Well, that's not the way I'd do it; but alright, let's go for it." The server left the bottle and returned with a bucket of ice and a pilsner-style glass, then said, "You must be quite a beer connoisseur. Is that the right term?" I said the term was just fine. She then asked, "Is there a term for someone who knows beer like a Sommelier knows wine?" "Well, yes there is." I said. "The term is Cicerone®, and I am one." Our server then asked how I would have served the beer (chilled and stored upright - not on its side like wine). Over the course of the meal, our server asked follow up questions about being a Cicerone® and beer service as she stopped by the table to check on our needs.

Have I discovered a new beer destination in this particular restaurant? No, but life isn't all about beer. The food flavors and presentation make the place well worth a return visit. Are they getting every detail correct? No, but they are, one step at a time, elevating beer. As a beer lover, I appreciate that.