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Anheuser-Busch May Merge with Belgian Beer Giant: Local Implications?

Published Jul 28, 2008

Ringside Observer Special Report: Well, it appears that after years of hearings, lawsuits and general harangue, that L. Knife & Son is about ready to build their addition. Keep in mind, the purpose of the huge addition was to set up a recycling facility for their products. The rationale was that by doing the recycling locally they could effectively decrease traffic though the narrow roads off Spring Street. It should also be noted that the Knife brain trust has considered another huge expansion potential on the opposite of the building. The explanations were suspect at the time, but fast forward to the present and you gotta wonder. Anheuser-Busch has been approached by Belgian beer giant InBev, distributor of such products as Stella, Artois, Beck’s and Bass. In June InBev CEO Carlos Brito contacted all Anheuser-Bush Wholesalers stating that they had “made a proposal to the Board of Directors of Anheuser-Busch to combine our two companies to create a global leader in the beer industry…” Brito continued, “InBev has great admiration for the Budweiser. We have proposed to make it the combined company’s global flagship brand…We strongly believe that the combination of InBev and Anheuser-Busch would create a stronger, more competitive, sustainable global company to the benefit of all stakeholders.”

As the merger continued its process, two weeks ago Anheuser-Bush President and CEO August Busch IV stated: The merger is the right move for everyone.” With the inevitability of the merger, it would not take a brain surgeon to conclude that the Kingston wholesaler would need more space, both for the expansion of the pre-existing brands and the influx of the Imbed product line. The deal, if culminated would have to require additional space at the Kingston plant where already construction can be seen from Route 3

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