A story to make you cry in your (increasingly expensive) beer
Now here’s a topic that could cause some cognitive dissonance among certain regulars:
Two huge international conglomerates — Anheuser-Busch Inbev and MillerCoors — now control 80 percent of the U.S. beer market. That dominance is the result of a recent joint venture between Miller and Coors, formerly the No. 2 and 3 biggest brewers in the U.S. market.
As a column in the New York Times notes, the two top surviving companies are now “raising prices at the same time, during a recession and while beer demand is slumping.” That’s the kind of pricing power that a noncompetitive market can provide. The column suggests that “the move almost begs for an antitrust review” by the Obama administration.
It also notes that “years ago, the Justice Department sued to prevent the merger of Pabst, then the 10th-largest brewer, with the 18th biggest, Blatz. The case went to the Supreme Court, which in 1966 ruled the deal was anticompetitive and forced Pabst to divest Blatz.”
The TImes offered that as an example of what could happen in the current situation. Personally, I think it’s telling evidence of just how much things have changed in this country. Forty years ago, consolidation of the 10th and 18th largest brewers was grounds for anti-trust action, upheld by the Supreme Court. Today the combined market share of the 10th and 18th largest brewers is too tiny to even be measured, and we allow the 2nd and 3rd largest brewers to combine without serious scrutiny.
All in the name of the free market of course.
Bottoms up!
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175 comments Add your comment
I Report/ Vast White Wing Conspirator :-) You Whine :-(
August 27th, 2009
12:00 pm
Oh no, not a government takeover of the beer market.
Imagine the Townhalls for that.
ByteMe
August 27th, 2009
12:02 pm
There’s a tear in my beer
’cause I’m cryin’ for you,dear
you are on my lonely mind.
Into these last nine beers
I have shed a million tears.
You are on my lonely mind
I’m gonna keep drinkin’
until I’m petrified.
And then maybe these tears
will leave my eyes.
There’s a tear in my beer
cause I’m crying’ for you dear
You are on my lonely mind.
Jay
August 27th, 2009
12:06 pm
My daddy’s version went:
“I got tears in my ears
from lying on my bed
cuz you laughed while
I cried over yoouuuuuu!”
And nobody better talk bad about my daddy!
PoliticalMan
August 27th, 2009
12:10 pm
It’s quite a twist with free-market nuts having to defend oligarchy in the name of free-markets. I wonder what it would be like to be a neuron in their tiny little brains.
Bud Wiser
August 27th, 2009
12:15 pm
This is indeed a revolting development.
Looks like I picked the wrong day to not give up beer drinking.
TnGelding
August 27th, 2009
12:15 pm
Well, we’re competing more against the rest of the world now. Have to circle the wagons.
Bud Wiser
August 27th, 2009
12:17 pm
Johnny Walker Black, neat.
Almost makes me forget that the refrigerator in the garage is full of beer.
Almost.
TnGelding
August 27th, 2009
12:18 pm
Why can’t they just make near-beer or non-alcoholic beer?
Normal
August 27th, 2009
12:20 pm
Blatz…The sound of beer hitting the toilet…
TnGelding
August 27th, 2009
12:21 pm
The international conglomerates have it all covered so it probably weakens U.S. antitrust laws.
Normal
August 27th, 2009
12:22 pm
Jay…your daddy wears birkenstocks
USinUK
August 27th, 2009
12:23 pm
Jay and ByteMe –
thanks for reminding me why I don’t like C&W
Bud Wiser
August 27th, 2009
12:24 pm
TG, where’s the fun in that?
That’s like shooting a deer with a paintball gun.
That’s like cooking a filet mignon in a skillet till it is very well done.
That’s like walking to Milwaukee instead of flying (the best beer city in America, deliberately chosen).
That’s like looking at a picture of Pamela Anderson naked (her, not you), while she’s ringing the doorbell you forgot to fix.
That’s like paying cash out of your pocket for those 17 Hyundai’s, while you could have had the ‘vette for the same money.
That’s like trying to run over the neighbor’s cat in your driveway – and missing.
It just isn’t the same…..
USinUK
August 27th, 2009
12:24 pm
Whiner –
your 12:00 is probably the (intentionally) funniest thing you’ve ever said … well done.
Matilda
August 27th, 2009
12:25 pm
Big business squeezing out small business again. The result: we accept s-uckage as the norm. Yuk!
pat
August 27th, 2009
12:25 pm
Yeah, but those beers suck anyway. They could cost $100 a bottle for all I care. I’ll take a Sam Adams, Sierra Nevada, Terrrapin, etc…There’s to many good beers out there to over pay for crappy ones. Let them jack up prices, that will just give more market share to the microbrews which actually have taste.
USinUK
August 27th, 2009
12:26 pm
Bud –
“That’s like cooking a filet mignon in a skillet till it is very well done”
waitaminnit … you mean that isn’t a crime?? (if it isn’t, it should be!)
jt
August 27th, 2009
12:27 pm
There is NO free market.
You know this Jay. It seems as if the federal goverment will drive this commodity to medocrity too.
Chapter 22
Government Beer Regulations
(selected excerpts)
The brewing industry is subject to extensive government regulations at both the federal and state levels, as well as to regulation by a variety of local governments. Some of the regulations imposed at the federal and state level involve production, distribution, labeling, advertising, trade and pricing practices, credit, container characteristics, and alcoholic content. Federal, state and local governmental entities also levy various taxes, license fees and other similar charges and may require bonds to ensure compliance with applicable laws and regulations. Specific alcohol taxation (as opposed to more general sales taxes) is primarily a federal and state right although some states permit some additional local taxation. The brewing industry must also comply with numerous federal, state, and local environmental protection laws.
pat
August 27th, 2009
12:28 pm
I wear birkenstocks…and I love them. I hope summer never ends…
USinUK
August 27th, 2009
12:29 pm
my favorite american beer:
http://abita.com/
Dogs Against Whiners
August 27th, 2009
12:33 pm
Normal wears jorts.
Hef
August 27th, 2009
12:33 pm
Goose & a smidgen of cranberry-ah nice. Have’nt picked up a beer in a year.
Bud Wiser
August 27th, 2009
12:36 pm
USinUK, this is absolutely the finest beer in the world, bar none</a, and I can say that I have had the pleasure of sitting in a beer-garden in Stuttgart, by the central train station, and enjoying Stuttgart’s finest along with one of those fabulous pretzels.
Great.
Now I have the urge to jump on a plane to Germany tonight.
Bud Wiser
August 27th, 2009
12:37 pm
I hope this thread degenerates into a serious beer discussion.
It might be more effective closer to happy hour.
Or over in Manuel’s Tavern.
jconservative
August 27th, 2009
12:38 pm
So? I drink vino, and there are thousands of producers & the price is falling like a can of beer off of the leaning tower.
tortured choice
August 27th, 2009
12:39 pm
less filling!
TnGelding
August 27th, 2009
12:42 pm
Bud Wiser
August 27th, 2009
12:37 pm
Will they let you in at Manuel’s?
I Report/ Vast White Wing Conspirator :-) You Whine :-(
August 27th, 2009
12:43 pm
The jack in prices, by the way, is to make up for the loss of sales following the death of Swimmer Kennedy.
We all get to pitch in.
Normal
August 27th, 2009
12:44 pm
Dogs Against Whiners
August 27th, 2009
12:33 pm
Normal wears jorts.
Yeah, and if you go to jorts.com that’s me in the picture…so?
Normal
August 27th, 2009
12:44 pm
tastes like pi$$
Bosch
August 27th, 2009
12:44 pm
USinUK,
Chicken/rice casserole – with broccoli and water chestnuts – and sliced maters. Yum.
Peach cupcakes?
Normal!!!
Blatz – the sound of beer hitting the toilet! So glad I didn’t take a swig of my tea as I read that – I can’t find my keyboard cleaner right now.
~~~~~~~~~~~~~
American beer sucks – it’s just the plain, honest truth. Except Samuel Adams – is that still American? So who cares if they try to price it higher.
But that’s not really the topic is it.
I remember in 1983 (I think) when old Ma’ Bell broke up – my dad’s company – it was like a family member had died. My dad gave me this plaque that read something about now the best company in the world didn’t exist anymore ’cause of the stinking government, something along those lines.
Anywho – yeah, now we have companies that can take out the economy if they fail.
Paul
August 27th, 2009
12:45 pm
And decades ago GM drove other automakers out of business so they could have the market. Then, when they got in trouble, we had to finance them because they were ‘too big to fail.”
Great what we could face in the future. Bailouts of Bud or Miller. ‘Cause they’re too big to fail. Sound silly? So does a lot of what we now do.
And, I think I’ve figured it out. “Free Market” doesn’t mean the market’s free. It means people are free to do whatever they can get away with until the market crashes. Then they’re free to get help.
Bud Wiser
August 27th, 2009
12:46 pm
And US…, I do believe there is a law against pan-frying a filet. If found guilty, the convictd moron is sentenced to 36 hours of community service mopping the floors at McDonald’s…..with his obviously non-functional and useless tongue.
And, I pulled up the site you left to discover that there are no less than 18 establishments within a 10 mile radius of my home where I can sample Abita, including a package store, oyster bar, and a bar and grill. I was surprised that Taco Mac wasn’t listed, but I’ll check that out next time in.
Bud Wiser
August 27th, 2009
12:47 pm
TG, if they let you in, you have to believe anyone can get in.
Bosch
August 27th, 2009
12:47 pm
USinUK,
OMG! And Bud Wiser was actually funny at 12:24!
Brad Steel
August 27th, 2009
12:47 pm
If beer was the only beverage, Jay would have a point.
There are myriad substitutes for beer that are not controlled by the filthy Dutch or a NeoFascist.
Bosch
August 27th, 2009
12:49 pm
Now I must run to get in shape for soccer.
Back in a bit – ’cause I’m so out of shape, I don’t think this run will take long.
USinUK
August 27th, 2009
12:51 pm
Bud –
(in reverse order)
“I do believe there is a law against pan-frying a filet. If found guilty, the convictd moron is sentenced to 36 hours of community service mopping the floors at McDonald’s…..with his obviously non-functional and useless tongue.”
hear, hear!!! it’s time to get tough on culinary abuse!!!
… Manuels Tavern (heavy, heavy sigh) … that bar is the cause of many of my hangovers when I was in my 20s … and they had damn good wings back in the 1990s
and lastly … DAMN. that German beer looks downright LETHAL!! me, I gotta admit, I really enjoyed the weissbiers I had in Salzburg – my first go at wheat beers and I can highly recommend them!
I liked the Abita amber … let me know what you think
USinUK
August 27th, 2009
12:52 pm
Bosch –
peach cupcakes: http://smittenkitchen.com/2009/08/peach-cupcakes-with-brown-sugar-frosting/#more-4820
TnGelding
August 27th, 2009
12:52 pm
Bud Wiser
August 27th, 2009
12:47 pm
It’s just that it’s infamous for catering to your nemesises.
Mrs. Godzilla
August 27th, 2009
12:57 pm
Jack Daniels, crushed ice and a sprinkle of water…..save the beer
for battering fish filets.
Matilda
August 27th, 2009
12:58 pm
Macallan 25, please. No ice.
Redneck Convert (R--and proud of it)
August 27th, 2009
1:01 pm
Well, ain’t nobody mentioned what this drop in beer demand is going to do to my job, so p_ss on you all, is all I got to say. So I ain’t going to waste any more time writting pearls of wisdom for a bunch of unthinking louts. I’m outta here.
Taxpayer
August 27th, 2009
1:01 pm
I got one of those home brew kits for my birthday one year and I made me a dozen large bottles of beer with it. They were actually very good. I’ll have to check into the price per ounce to see if it’s worth it or not. Then again, a six-pack can last me anywhere from one to six months, depending on how much the company drinks so maybe it’s not worth the trouble.
stands for decibels
August 27th, 2009
1:01 pm
I do believe there is a law against pan-frying a filet.
Hmm. I think it’s perfectly fine to use the cast iron pan in conjunction with the broiler. I’ll grant it’s a bit trickier, though, if there’s no broiler involved, and it’s all done on the stove top.
Jefferson
August 27th, 2009
1:05 pm
PBR, a premium beer at popular prices. Considered too strong for girls.
stands for decibels
August 27th, 2009
1:06 pm
Forty years ago, consolidation of the 10th and 18th largest brewers was grounds for anti-trust action, upheld by the Supreme Court. Today the combined market share of the 10th and 18th largest brewers is too tiny to even be measured, and we allow the 2nd and 3rd largest brewers to combine without serious scrutiny.
I do love how the Times piece buried that lede.
Paul
August 27th, 2009
1:06 pm
Chamay.
God bless those Belgian Trappist Monks.
JF McNamara
August 27th, 2009
1:09 pm
They are just recouping the money from buying their way to legality. It takes a lot of money to buy Presidential antitrust inaction and Congress.
Either way, They are a business, and they have to make thier Wall Street numbers just like everyone else. If one is struggling then the other likely is too and they both have to raise the price. It’s likely some fall out from heavy competition when times were good and each was trying to gain share. There’s probably a little gouge in there too, but not like what you’d think.
While I agree that Oligarchy is negative, it’s not all bad. Look at Wal-Mart, AT&T, and Microsoft. Because of their size you have cheap everything, the iPhone, and cheap personal computing.
Finn McCool
August 27th, 2009
1:10 pm
A cast iron pan is perfect for a good steak!
Heat oven to 500 degrees with a cast iron pan inside.
Turn burner on high and put heated pan on it.
Slap in the steak (salted and peppered already)
Cook 60 seconds on each side then put the pan in the oven for 3 minutes.
Remove and tent with foil for 2 minutes.
That’s Alton Brown and it works really well.