United States: AB InBev close to acquire a distributorship in the Chicago area

Detroit-based Soave Enterprises Inc. is close to selling its 70 percent interest in its Anheuser-Busch distributorships in the Chicago area to Anheuser-Busch InBev N.V., which already owns the remaining 30 percent, Crain’s Detroit Business communicated on December, 24.

The distributorships, branded as City Beverage-Illinois, primarily serve Chicago's South Loop and surrounding suburbs. City Beverage-Illinois distributes more than 19 million cases of Anheuser-Busch, InBev, Crown, Guinness, Gambrinus and other brands in the market. It is one of the largest Anheuser-Busch distributors in the country.

The transaction is expected to close next year.

Since Anheuser-Busch was acquired by Belgium-based InBev in November 2008 to create Anheuser-Busch InBev, the company has said it was interested in bringing its distributorships under company ownership, a business model which is typical for its other brands.

Large U.S. brewers have been challenged in the current economy and Anheuser-Busch InBev is reported to have suffered sales losses in most of its major markets with the exception of Chicago.

According to media reports, AB InBev is steadily acquiring Chicago-area distributorships and is looking to buy more. The market, according to Crain's Chicago, is the largest where Budweiser is not the best-selling beer.

Soave sold another beer distributorship, Kalamazoo Beer Distributing, this fall to Grand Rapids-based West Side Beer Distributing. The deal was expected to turn West Side Beer Distributing into one of AB InBev's top 10 distributors.

29 December, 2009