If Beer Merger Happens, Would MillerCoors Leave Chicago?

If Beer Merger Happens, Would MillerCoors Leave Chicago?

Anheuser-Busch InBev’s potential takeover of SABMiller — joining the world’s two largest beer companies — would create a $275 billion brewing behemoth, but it could also spell the end of MillerCoors’ stay in Chicago.

Rumored for months, AB InBev’s unsolicited pitch was confirmed publicly Wednesday by both companies. AB InBev has until Oct. 14 to make an offer and, from there, the complex deal could take a year or more to close.

Shares of AB InBev rose 6.84 percent to close at $115.43 a share Wednesday, while shares of Molson Coors closed at $82.98, up 14.23 percent from Tuesday’s close.

For a deal of such magnitude to clear U.S. antitrust law, AB InBev likely would need to divest Chicago-based MillerCoors, a joint venture between SABMiller and Molson Coors established in 2008, said Philip Gorham, a Morningstar senior equity analyst.

The most likely suitor in such a deal would be Molson Coors, which already owns 42 percent of MillerCoors. That leaves an uncertain future for MillerCoors and its 450 employees. The company moved into 250 S. Wacker Drive, on the banks of the Chicago River, with the help of more than $20 million in city and state economic incentives.

Chicago won the headquarters because it was considered a neutral site, in between Molson Coors’ Denver-based U.S. operations and Miller’s in Milwaukee.

“The bad news for Chicagoans is the only sort of margin upside for Molson Coors would be to take out the back-office location in Chicago … and relocate them to Denver or Canada,” where Molson Coors has its headquarters, Gorham said.

Jonathan Stern, MillerCoors spokesman, declined to comment and referred questions to Molson Coors and SABMiller representatives, who also declined to comment.

Together, AB InBev and SABMiller represent about 70 percent of the beer market in the U.S. AB InBev produces beers like Budweiser, Corona, Stella Artois and Beck’s. Likewise, SABMiller’s portfolio includes beers with domestic and global appeal, like Miller Genuine Draft, Coors Light, Peroni Nastro Azzurro and Grolsch.

On Wednesday, SABMiller issued a statement confirming that AB InBev “intends to make a proposal to acquire SABMiller” but that no proposal has yet been received.

AB InBev responded with its own statement saying it intended to work with SABMiller’s board of directors “toward a recommended transaction.”

Rumors of this acquisition were rife 12 to 18 months ago, Gorham said, and globally, the impact would be tremendous, creating a combined beer company that produces four times the production volume of Heineken, which would be the second-largest competitor.

“This would build a monster of a firm,” he said.

Globally and in the U.S., it’s been a robust year for mergers and acquisitions. It’s only September and M&A activity has totaled $1.65 trillion in the U.S., the highest year on record, according to data provided by Dealogic. Globally, M&A has amounted to $3.31 trillion worldwide.

An acquisition of SABMiller by AB InBev would create a company valued at around $275 billion with annual sales of $73.3 billion, more than three times its closest rival, Heineken.

In beer alone, the two companies produced more than 550 million barrels last year, according to data provided by Beer Marketer’s Insights, and made an additional 100 million barrels of soft drinks.

That’s “in another ecosystem” than craft beer breweries like Revolution Brewing, said Revolution owner Josh Deth, whose operation made 50,000 barrels of beer last year. But it also “strengthens the resolve to do what we do every day” as an independently owned brewery, he said.

“Our business is not just about economics and efficiency,” he said. “We relate to people in a much more human way — from our mug club to getting to know people who visit the brewery.”

Deals like a potential AB InBev and SAB Miller hookup — or the recent 50 percent sale of Lagunitas to Heineken — provide Revolution with an important point of distinction in the marketplace, he said.

“My No. 1 competitor (Goose Island) was sold to Budweiser, and my No. 2 competitor sold to Heineken,” he said. “We don’t have to scream it from the rooftops. People get it, and I get business from people who want to support an independent brewery.”

Deals of such size trigger review by the U.S. Justice Department to ensure that they don’t create a monopoly, and the burden then falls on the company to justify any efficiencies it can achieve through the acquisition, said John McGinnis, a Northwestern University law professor and an expert on antitrust law.

“In general, divestiture is one of the remedies the Justice Department insists upon when there’s too much concentration in the industry,” McGinnis said.

If MillerCoors were divested, Molson Coors certainly appears to have the inside track.

According to the terms of the MillerCoors operating agreement, Molson Coors has the right to increase its share in MillerCoors from 42 percent to 50 percent in the event of a change in control. Molson Coors would also have the right to make the first and last offer in a bidding process for the remaining 50 percent stake, according to the agreement.

Eric Shepard, executive editor of Beer Marketer’s Insights, a trade publication covering the beer industry, agreed that Molson Coors would be the “most logical buyer” of MillerCoors. But he wasn’t convinced that it meant the end of the Chicago headquarters.

“They’re pretty well entrenched there,” Shepard said. “I’d be surprised if they move out of Chicago.”

But Shepard said he believed the deal would get done, noting InBev’s 2008 acquisition of Anheuser-Busch. That deal created the world’s largest beer company, which appears on the brink of further dominating the global market.

“When they set their sights on something, they’ve been fairly successful,” he said.

If beer merger happens, would MillerCoors leave Chicago?

Josh Noel contributing writer,  Chicago Tribute


New Laws for Louisiana Breweries Help Grow Businesses

New Laws for Louisiana Breweries Help Grow Businesses

SHREVEPORT-BOSSIER CITY, LA (KSLA) 

New laws in the State of Louisiana are helping some breweries grow their business.

Simply put, the laws that changed this year for breweries is a small victory in the eyes of owners.

“Now that we can sell more, we can be open more hours,” said Ben Hart, co-owner of Flying Heart Brewery.

Before the change, breweries were limited to the amount of beer they could sell at their tasting room to only 10 percent of their total production per week. Now, that law states breweries can either sell 10 percent or 250 barrels at their tasting room. The owner can pick whichever they feel is better for their business, or whichever amount is greater. For Flying Heart, that made a huge impact.

“The impact has been completely positive. Obviously having longer hours which means we can sell more product. We’re open later, and we’re getting more people through here,” he said.

Not only does Hart say they are benefiting from it, but he also says so will the community.

“It’s going to put a lot more money back into the local economy because we’re able to be open longer, sell more product, and contribute more to the tax base,” he said.

He said this will also open up the door for other local breweries to come into Shreveport-Bossier, and open a tasting room.

“Because they’re now going to be able to have that profit margin at their own tasting room rather than the lower profit margin that you have when you distribute your product,” said Hart.

Looking forward, Hart says the state made a great move by changing the law because in the long run it doesn’t only affect them.

“We’ve come in here, and we’re bringing a lot of people in here that have never come down to this area,” he said. “I think it’s also helping some of the local businesses around us. We also have a lot of tourism that comes from the casinos that are from out of town that are coming here for something else to do beside the gambling. So it’s really opening this area up, and opening the eyes of the local government to see what the potential of this area is.”

While the law did change the amount of beer breweries can sell in a week, it did not change the amount of hours the tasting room can stay open. For now, breweries can only operate for a total of 20 hours per week. That’s something Flying Heart hopes will also change in the future.

New Louisiana Law Help Breweries Grow

Clay Ostarly, KSLA News, Shreveport, Louisiana


Louisiana-Say hello to Lafayette’s first craft breweries!

Louisiana-Say hello to Lafayette’s first craft breweries!

The first microbrewery in the Lafayette city limits is opening soon, and another one could be on its way.
Cajun Brewing is only a permit and few days away from operating as a legal brewery while Hub City Beerworks is still at least a year away.
“Getting the opportunity to be involved in something like this on the ground floor is huge,” said James Lutgring of Cajun Brewing. “I think we have an amazing chance to do something and be a big part of the community.”
Craft beer is hot right now.
There were 3,464 craft breweries in America in 2014, according to the Brewers Association. That’s the highest number since 1873.
Louisiana is a bit behind on the trend, ranking 49th in the nation for craft breweries per capita, according to the association’s stats.
Acadiana currently has two craft breweries, Parish Brewing in Broussard and Bayou Teche Brewing in Arnaudville. There are currently 15 craft breweries in the state, but another 13 breweries are planning to open soon.
Cajun Brewing was born out of friendships formed in the local beer group, Dead Yeast Society.
Oilfield engineer Zeke Bossley led the effort, surprising his friends in 2010 when he purchased an auto shop at 206 Rayburn St. to house the brewery business he’d talked about opening for years.
The brewery has been more than 10 years in the making, which involved everything from perfecting 100 home-brewed recipes to building out a space suitable for brewing.
Located near the intersection of Congress Street and Bertrand Drive, Cajun Brewing has 10,000 square feet with a brewing warehouse, lab, taproom and office space.
Now that the building is taking shape and the brewery is almost up and running, the friends speak with pride about opening something new for Lafayette.
“It’s important for Lafayette to have its own brewery because it gives the beer drinkers here an identity,” said Chad Legé, who handles marketing for Cajun Brewing. “I hope that one day, when people hear ‘Cajun’ outside of Louisiana that they’ll think of crawfish, zydeco and Cajun Brewing.”
Although craft beer can sometimes challenge the palate, many brews are approachable for any taste. Cajun Brewing will offer easy-to-drink options as well as more complex beers.
“A lot of people have this misconception on what craft beer is,” Legé said. “They think it’s this crazy-tasting beer, but that’s not necessarily true.”
Cajun Brewing’s focus for the rest of the year will be brewing three flagship beers to serve on tap at a few Acadiana restaurants and bars.
Those three beers include:
•Cajun Wit — a cloudy Belgian wit beer with notes of orange peel, chamomile, coriander and spice.
•Ragin’ Red — a red ale that’s easy to drink when tailgating in the hot Louisiana sun
•Brown ale — a brew that still needs a name, this malty, hoppy brown ale has a lot of body
Early- to mid-2016, the brewery will begin offering Wednesday and Saturday tours and tastings.
As demand grows, the brewery will begin bottling and selling their products on store shelves.
“If enough people tell us they need it in the grocery stores, that’s when we’ll begin bottling,” said Aaron Breaux, an assistant brewer. “We don’t want it sitting on the shelves, especially since the bottling equipment is such a big investment.”
Hub City Beerworks is in its infancy compared to Cajun Brewing.
Home brewers Hunter Hebert and Daniel Amire have designed a logo, created a Facebook page and purchased a website for their business, but they do not have a dedicated business location and are still perfecting their beer recipes.
Hebert and Amire hope to open their brewery near downtown or Freetown by the end of 2016.
“We have pretty limited resources and space right now,” Hebert said. “But I feel like the product we put out is going to be far superior than the space it’s made in.”
The two are crafting many brews — from lawnmower and Scottish ales to black and double India pale ales — to see what works and what doesn’t.
“We can go in any direction right now. That’s the exciting part,” Hebert said. “We haven’t decided what we can’t do yet.”
Although Hub City Beerworks might still be several months from becoming a reality, Cajun Brewing is just several days away.
And with the growing popularity of craft beer in Louisiana and America, those two might be just the beginning for Lafayette.
“It just seems like the time is right for Lafayette to have its own set of breweries,” Amire said. “Lafayette needs breweries. It’s time.”
Keep up with what’s happening at Lafayette’s first breweries by following Cajun Brewing and Hub City Beerworks on Facebook or by visiting cajunbrewing.com and hubcitybeerworks.com.


Craft beer production a $462.2 million business in Louisiana, magazine reports

Craft beer production a $462.2 million business in Louisiana, magazine reports

Louisiana’s burgeoning craft beer industry does a little more than provide the fuel for late night parties or days spent tailgating. Brewing the stuff also produced a $462.2 million business in the state in 2012, despite ranking as No. 49 for the state’s total number of craft breweries, according to the Baton Rouge Business Report.

In its front page feature, the monthly magazine focuses on the craft brewing industry and how the state’s tastes have shifted as more suds are coming out of Louisiana.

“In Louisiana, we are very much locavores,” said Andrew Godley, who operates Parish Brewing Company. “People are very proud of what comes from Louisiana. There’s such a strong cultural identity. People know what’s made here and they support it.”

Supporting it has come in the form of many new beer festivals and various events tied to canned and bottled beverages, as well as simply buying what’s locally on tap. The state’s craft breweries produced 197,853 barrels of beer, according to the report.

Craft beer production a $462.2 million business in Louisiana

Chelsea Brasted, NOLA.com/The Times Picayune


Themed craft beer to be unveiled at Rougarou Fest in October

Themed craft beer to be unveiled at Rougarou Fest in October

With the promise of cooler temperatures around the corner, a Thibodaux craft brewery will be unveiling its new fall-themed beer at the Rougarou Fest on Oct. 24 and 25 in downtown Houma.

Inspired by the red-eyed swamp monster of Cajun folklore, the Rougarou, the “Red Eyed Wit” is a Belgian white that will be infused with fall spices like cinnamon, vanilla, nutmeg, clove and allspice, said Mudbug Brewery brewmaster and co-owner Leith Adams. The beer may have a slight citrusy taste as well.

“Since we will still have fairly sweltering days by mid-to-late October, we’re taking that fall aspect but with a lighter beer,” Adams said. “A Belgian white includes coriander and orange peel, but we’re adding other spices.”

The idea was to create a light, approachable and refreshing beer that would appeal to all types of beer drinkers, he added. Stronger, heavier beers like porters and stouts are typically consumed during the colder months.

“It’ll be a good seasonal beer getting you away from the lighter pilsners and pale ales of summer and transitioning into fall and winter time, without being too heavy on the alcohol,” Adams said. Red Eyed Wit is also ideal for other fall festivals, including Best of the Bayou and Bayou Beer Fest.

Adams started throwing around the idea of a festival beer with Wetlands Discovery Center Executive Director Jonathan Foret about a month ago. All money raised during the Rougarou Festival will go towards the center, Foret said.

“We’ve been very fortunate to have great partnerships with businesses in our area. I can’t tell you how excited we are to have Mudbug join our team this year! They offer great tasting beers with a local touch, and that’s important to our festival,” he added.

The festival aims to promote the culture of Cajun folklore in Terrebonne Parish through live music, cultural activities, children’s activities and local cuisine. The two-day festival will feature a costume contest, the Rougarou Run and the Krewe Ga Rou Parade. It will run from 10 a.m. through 10 p.m. on Oct. 24 and 9 a.m. through 5 p.m. on Oct. 25. Mudbug Brewery will have their own booth.

Themed beer at Rougarou Fest

Maki Somosot, HoumaToday.com


Beer-House District? A new World of Beer tavern adds to what’s becoming a forest of taps in downtown New Orleans

Beer-House District? A new World of Beer tavern adds to what’s becoming a forest of taps in downtown New Orleans

For beer lovers, the cup runneth over these days in the Warehouse District.
Next week marks the opening of the latest large beer-based concept to come calling in the downtown area, which has seen draft handles proliferate lately and where still more is on the way.
On Monday (Aug. 24), World of Beer is scheduled to open a new tavern at 300 Julia St., adjacent to the Marriott Courtyard hotel, following a private party on Sunday.
World of Beer is a Florida-based chain with more than 70 locations around the country. In December, the company opened its first Louisiana location in Metairie, at 4100 Veterans Blvd.
Like its other locations, the new Warehouse District tavern will have 500 beers available, including close to 50 on tap. Its menu runs through burgers and sandwiches, salads and bar snacks.
Meanwhile, the Tchoupitoulas Beer Garden is taking shape just around the corner at 840 Tchoupitoulas St.
Now slated to open in mid- to late-September, this addition follows an Oktoberfest theme spread across some 4,400 square feet of brick-lined space, trimmed with Bavarian banners and awnings. There will be a pair of beer bars, a kitchen serving bratwurst, pretzels and other traditional German street food and seating at a collection of narrow picnic tables of the sort common to beer gardens.
Local businessman Joseph Logreco, who previously ran the wine bar and restaurant Bouche at this address, is developing Tchoupitoulas Beer Garden.
Beer is big everywhere these days, though the Warehouse District in particular has seeing more new beer-centric venues.
There’s Wood Pizza Bistro and Taproom, for instance, which opened over the winter at 404 Andrew Higgins Blvd. Built in a former ice house, it has a large patio, a small dining room with a wood-burning pizza oven and a long line of draft beer behind the bar. And in 2013, Barcadia opened a few blocks away at 601 Tchoupitoulas St. with a concept combining craft beer, burgers and vintage arcade games.
For Monday’s opening of World of Beer, the Arnaudville-based Bayou Teche Brewing will supply a cask of specially made Biere Noire that incorporates molasses, among other flavorings, as a nod to what World of Beer describes as its new location’s history as a molasses warehouse.

ian mcnulty|

Budweiser out, Busch beer returning to NASCAR as sponsor

Budweiser out, Busch beer returning to NASCAR as sponsor

Beer producer Anheuser-Busch had decided to switch its beer brand that is associated with NASCAR, beginning in 2016.

Sports Business Journal first reported the news.

Anheuser-Busch, a primary sponsor on Stewart-Haas Racing’s No. 4 Chevrolet driven by Kevin Harvick, will switch out its Budweiser brand with Busch.

Busch was the brand long associated with NASCAR, beginning in 1982 when it began sponsoring what is now the Xfinity Series. Busch left its role as a title sponsor in 2007, when it was replaced by Nationwide Insurance.

Lucas Herscovici, the vice president of consumer connections at Anheuser-Busch, released the following statement:

NASCAR continues to be a priority platform for our beer portfolio. We are committed to the sport of racing, the fans and the Stewart Haas Racing team we support – specifically the No. 4 car of Kevin Harvick. To that point, and given we evaluate all of our sports properties on an annual basis, we will be shifting our brand equity in Harvick’s car and team from Budweiser to our Busch beer portfolio for the 2016 NASCAR season. The Busch brand is well positioned for this partnership given the brand’s storied history with the sport. We have a lot of exciting plans in development with SHR for 2016 and will share those details once finalized.

The report says the reasoning behind the decision is “unclear,” but that sources said Anheuser-Busch “conducted a comprehensive reassessment of its NASCAR deals, some of which were up for renewal in coming years.” Those deals included the estimated $11 to $13 million invested annually into Harvick’s car and the title sponsor of the two, 150-mile qualifying races for the Daytona 500.

Anheuser-Busch switching NASCAR brand in 2016 on Kevin Harvick’s car

Daniel McFadin, NBCSpoorts.com


Craft Beer-A craft brewery is coming to Monroe

Craft Beer-A craft brewery is coming to Monroe

A new partnership between the Monroe City Council and the Police Department could make city streets safer. That’s just one of the several stories to report out of the city council meeting on Tuesday night.

Under the leadership of Officer Mark Johnson each council member will be assigned a deputy for his or her district. That deputy will work with the assigned member to answer any questions or concerns they have about their districts.

Chief Quentin Holmes says this program is just another way the department wants to improve their presence in the community.

“Of course the council members get contacted an awful lot about citizens. This will help bridge the gap so that we can be more responsive to citizens’ needs in a much timely manner,” Holmes said.

The council is also allowing the police department to buy 10 new Chevy Tahoes. The SUV’s cost around $30,000 each.

In other news, the Monroe Regional Airport terminal is only three years old, but the city council voted to dedicate more than $500,000 to renovations. The project includes several upgrades and expansion. The estimated cost $525,000 and the engineering department says it’s worth it to keep the terminal looking new and working properly.

“It’s building out some of the office spaces that weren’t built out before that are going to be available for business incubation or someone to rent or retail area. It’s upgrading the air conditioning. It’s making the electrical a little more resilient. It’s an upgrade package,” city engineer Kim Golden said.

A southside economic project is also moving forward after hitting a speed bump last month. The council voted to re-advertise for bids on a development project in that area.

The project will provide sewer and water to a plot of land being developed for a convenience store. The city agreed to extend its infrastructure in hopes of sparking more development in south Monroe.

Initially, the city only received one bid and it was too high. So they rejected that bid last month.

The city expects the project to cost around $525,000.

Also, big news for the city of Monroe. If all goes as planned, the city will soon get a craft brewery facility because the council voted to allow a business to open up shop on in the downtown.

Flying Tiger Brewery has already bought a building on North Second Street. Now that they’ve been given the go ahead, they will start the process of making craft beer on site. Once they are up and running, the craft beer will be for sale, they’ll have tours at the facility, and a tasting room open to the public.

Robert Brewer, a co-founder of the company, tells us the endeavor could bring in tax dollars, eight new jobs the day it opens, and more tourism in the area.

“There is quite a bit of renovations and revitalization in the downtown area, we just want to be another piece to that puzzle. We want to add a destination location for not only the locals but also for possible tourist that come in and visit our facility, tour the brewery, sample the beer we are going to be making,” Brewer said.

The owners also want to keep a local feel. They tell us they have already experimented with a Ruston peach beer, and they hope to be up and completely running by Spring.

Craft Brewery Coming to Monroe

MONROE, La. (KNOE 8 News)


ATC Agents Issue Over 800 Citations During Summer Crackdown

ATC Agents Issue Over 800 Citations During Summer Crackdown

PRESS RELEASE

August 11, 2015
Baton Rouge, LA – Agents with the Louisiana Office of Alcohol and Tobacco Control
conducted 5,474 compliance checks during the agency’s 2015 Summer Crackdown and issued
821 citations. Of those citations, 460 were issued for alcohol sales to a minor and 361 were
issued for tobacco sales to a minor. Approximately 15% of the businesses checked during the
Summer Crackdown actually sold alcohol and/or tobacco to an underage operative, which is in
line with previous years.
The summer initiative is an attempt by ATC to follow through on its mission to prevent access of
alcoholic beverages and tobacco products to underage persons. Statistics show an increase in
teenage alcohol consumption during summer months. Most of the operatives used were 16 and
17 years old.
“We are not satisfied with a 15% non-compliance rate, but the good news is that 85% did the
right thing. There is nothing good that can come out of selling alcohol or tobacco to a minor and
ATC will hold those that sold accountable,” said Commissioner Troy Hebert.
This is the third year Commissioner Hebert has ordered ATC agents to increase the number of
random compliance checks at alcohol and tobacco retail outlets statewide during the
summer. Anyone caught selling or serving alcohol or tobacco products to minors are subject to
criminal and/or administrative charges. Businesses and servers face fines that range from
$500.00 to $5,000.00, and penalties that could result in suspension or revocation of their alcohol
and tobacco permits.

For more information, please contact:
Troy Hebert, Commissioner
Louisiana Office of Alcohol and Tobacco Control
(225) 925-6645
Troy.hebert@atc.la.gov

 
Seller’s Names-Summer Crackdown 2015

Business Violation List-Summer Crackdown 2015

Press Release-ATC 2015 Summer Crackdown

 


A-B’s growth may leave craft brewers fewer options

A-B’s growth may leave craft brewers fewer options

Anheuser-Busch InBev’s acquisition of two prominent Colorado beer distributors has industry professionals worried the aggressive growth will leave more than 200 Colorado craft brewers with fewer options for selling their beer.

For Colorado consumers, the result could be less craft beer on the shelves.

By fall, A-B InBev — the world’s largest beer maker and the U.S.’s second-largest beer distributor — will own the Littleton, Colorado Springs and Pueblo operations of Standards Sales Company as well as Loveland-based American Eagle Distributing.

“American Eagle currently sells approximately 20 non-AB brands. We are seeking to keep a handful of local brands, pending supplier approval,” said Bob Tallett, Anheuser-Busch vice president of business and wholesaler development.

INDUSTRYAnheuser-Busch buys American Eagle Distributing

Loveland-based Grimm Brothers Brewhouse is one of the craft breweries under American Eagle distribution. Brewery vice president Russell Fruits said he doubts his and other non-A-B-owned craft brands will continue to be distributed under Anheuser-Busch ownership.

Fruits said it “will be a first” if A-B InBev keeps the existing distributor’s craft brands — including Epic, Breckenridge, Great Divide and Odell — in its portfolio moving forward.

Steve Findley, president of the Colorado Beer Distributors Association, echoed Fruits’ concern.

“Historically, in their branches, they only distribute the Anheuser-Busch family of products,” Findley said of A-B-owned distributors.

“It remains to be seen how this is going to shake out (for craft brewers),” he added.

The acquisition of the three Standard Sales distribution territories came as part of a trade in exchange for A-B InBev’s distribution territories in Kentucky, where the beer maker can no longer legally own them.

MONEY: Fight over Anheuser-Busch plant’s worth, taxes drags on

By buying up territory in Colorado, A-B InBev will gain control over beer distribution in a large part of the state.

Colorado ranks third in the country for breweries per capita and number of craft breweries. The state is also at the forefront of a movement now eating up double-digit market share (11 percent, as of 2014) of the big beer industry led by A-B.

Though affiliated with A-B InBev, American Eagle was previously independently owned. It distributed craft beer brands to more than 1,100 retail stores, restaurants and bars in Northeastern Colorado.

Looking to retire, American Eagle owner Jerry Helgeson sold the distributorship to longtime beer partner Anheuser-Busch for an undisclosed amount and will finalize the sale in September. Last year, American Eagle distributed 3.5 million cases of beer, less than 3 percent of Anheuser-Busch’s U.S. distribution.

The Loveland company currently employs 100 workers.

“I don’t foresee any changes,” Helgeson said, when asked how his business and employees would be affected by the sale.

A three-tier system

Following the repeal of Prohibition in 1933, a three-tier system for alcohol’s production, distribution and sale was developed. The purpose was to prevent abuses among brewery-controlled taverns, known as tied-houses, by separating the three tiers under distinct business owners.

But a loophole in the three-tier system allows breweries — from microbrewers to beer giants — to control two of the three tiers by distributing beer under a separate wholesaler’s license. Many craft breweries distribute their own beer under this loophole. Part of their success in Colorado is predicated on it. A few, such as Denver’s Crooked Stave and California’s Stone Brewing, also distribute other breweries’ brands.

As long as breweries can only control production and distribution, three-tier separation may remain intact.

But Mat Dinsmore, owner of Fort Collins liquor store Wilbur’s Total Beverage, said he worries when two of three tiers are controlled by one large company.

“This is a breakdown of the three-tier system,” he said.

FORT COLLINSOdell Brewing moves to employee ownership

Along with the rise of thousands of small craft breweries, the U.S. also has seen large-scale consolidation of its brewing industry over the past few decades.

Last year, Reyes Beverage Group purchased Florida’s biggest distributorship and surpassed Anheuser-Busch InBev as the country’s largest distributor; both companies distribute more than 100 million cases of beer annually.

And A-B InBev’s purchasing of craft beer distributors is a side note to it purchasing craft breweries, which started most notably in 2011 with Chicago’s Goose Island (now produced in large part in Fort Collins) and continued with Seattle’s Elysian Brewing Company earlier this year.

A-B’s recent departure from Kentucky, where it controlled two distribution territories, followed a change in legislation that closed the loophole allowing brewers also to distribute beer there. It was hailed by proponents as a strengthening of the three tiers.

“We strongly support the three-tier system,” Tallett said. “And we anticipate working with our wholesaler partners to potentially sell portions of the (Colorado) territory in the near future,” he added, when asked about the possibility of a monopoly over the state’s distribution.

The Oregon example

In 2014, A-B InBev purchased Portland, Oregon’s Morgan Distributing, merging it with A-B’s previously acquired Western Beverage distributor, which is based in Eugene.

Some Oregon craft brewers, such as Ninkasi Brewing Company and The Commons Brewery, protested the acquisition and switched distributors after the change in ownership.

“Some local brewers elected to move their brands to other wholesalers, and a small number we chose to discontinue,” David Craig, an Anheuser-Busch regional vice president of sales, told the Portland Business Journal at the time.

He said his company’s moves weren’t “meant to harm the local craft beer industry, but to create a better environment for its customers,” the journal reported.

If Anheuser-Busch’s Colorado distribution follows its example in Oregon, competitive craft brewers will find other means of distribution while the less competitive ones could disappear from shelves.

“If another distributor picks (the craft brewery) up, normally you don’t miss a beat,” Dinsmore said.

But, he added, “The Bud(weiser) (and Miller)Coors networks literally touch every person in the state with a liquor license. Their footprint is so big … your ability to sell, your access to market shrinks (under a smaller distributor).”

LEADERSHIP CHANGEChristine Perich to replace Kim Jordan as New Belgium CEO

Fruits said Grimm Brothers has been in discussions with “several craft beer-focused distribution companies.”

CR Goodman Companies, Elite Brands of Colorado, Western Distributing Company and Loveland-based High Country Beverage are some of the other local distribution options for Colorado craft brewers.

High Country Beverage previously competed with American Eagle Distributing by partnering with MillerCoors as well as with New Belgium Brewing. The company declined to comment on the implications of its Loveland neighbor’s change in ownership.

For one of American Eagle’s biggest current craft customers, Odell Brewing Company, the distribution situation will take at least a few weeks to sort out.

“We are currently gathering as much information as we can, just as we do when we enter new markets,” said Eric Smith, director of sales and marketing for Odell, “and always look for the opportunities to decide what path is best for the brewery.”

Anheuser-Busch InBev at a glance

•12 breweries across the U.S.

•47.6 percent share of U.S. beer sales

•Second largest distributor in U.S.

•600 independent wholesalers in network

•16 million barrels of Budweiser shipped in 2013

•Approximately 10 million barrels brewed in Fort Collins

A-B’s growth may leave craft brewers fewer options

Josie Sexton, The Coloradoan