E-Malt.com News article: UK: AB InBev’s takeover of SABMiller is a cause for concern for Great Britain’s Campaign for Real Ale

At present, the British real ale market is flourishing, with more than 200 breweries opening in the past year, making a total of 1,540, writes Neville Grundy.

The storm cloud on the horizon is the £80 bln merger this month of the world’s two biggest brewers, AB InBev and SABMiller, who have already moved into the London craft sector.

In 2015, SABMiller bought the respected Meantime Brewery in Greenwich.

As a result of subsequent takeovers, Meantime has since been sold to Asahi of Japan. A popular local brewery is now a commodity to be traded internationally.

AB InBev has bought another London craft brewery, Camden Town, and it’s planning to make it a leading player in the capital’s beer sector, using its marketing muscle to undercut competitors. Big corporations slash costs by bulk buying of raw materials, at enormous discounts, and cutting jobs.

The merger will save around £1 billion, resulting in cheaper beer that drives other beers off bar and supermarket shelves, cutting 575 UK jobs in the process.

CAMRA’s Roger Protz said: “The way in which the global brewers are muscling in on the craft sector in Britain and other countries is a cause for concern and a potential threat to the independent sector.”

Real ale is a UK success story.

In a declining beer market, new breweries are opening, while others are expanding to cope with demand.

The annual Cask Report (not produced by CAMRA) states real ale accounts for 55% of the total ale market, rising to 70% by 2020.

As the ale market includes expensively promoted keg brands such as Guinness, John Smith and Tetley, this is a remarkable achievement by the real ale sector which cannot afford costly advertising campaigns.

New breweries are experimenting with variety.

The term ‘real ale’ now covers a wide choice of interesting beers.

Alongside Mild, Bitter and Golden Ale, they have revived old styles, such as Porter and India Pale Ale (IPA), produced ales aged in whisky and wine barrels, and have employed different brewing methods and ingredients.


27 October, 2016