AB InBev seeks to sell SABMiller’s Grolsch, Peroni brands

Anheuser-Busch InBev has been moved to confirm that it is looking to offload SABMiller’s “European premium brands” to ward off regulatory issues that may arise from its pending purchase of SAB.

SABMiller confirmed that AB InBev will contact potential buyers in the coming weeks regarding premium beer brands Peroni and Grolsch and their associated businesses in Italy, the Netherlands and the U.K. The Belgium-based firm is also considering selling Meantime, a craft brewer bought by SABMiller earlier this year.

The sale is conditional upon completion of the AB Inbev acquisition of SABMiller and would be subject to “appropriate engagement with stakeholders, including employee representative bodies such as unions and works councils”, SABMiller said in a statement. The sale of Peroni and Grolsch could raise an additional $1 billion to $1.2 billion for the company, according to Susquehanna Financial Group analyst Pablo Zuanic.

If AB InBev’s takeover of SABMiller is successful, the resulting conglomerate would control over 30 percent of the global beer market, almost 75 percent of the American market, and have an unprecedented hold on distribution, which separates beer’s production from its wholesale and retail sales.

“What they really want is Africa and bits of Latin America”.

BRUSSELS – Anheuser-Busch InBev is looking to sell SABMiller’s Grolsch and Peroni brands in a bid to address potential concerns among European competition regulators over its planned acquisition of the world’s second largest brewer.

– But Heineken would remain the leader in all three markets, with shares of 29.4 per cent in Italy, 38.6 per cent in the Netherlands and 27.5 per cent in Britain.

Heineken would be excluded give its existing market share.

Irish cider maker C&C could similarly be stretched and reluctant to expand until its US business turns around.

The U.S. Justice Department is already investigating allegations that AB InBev is using unfair distribution practices to squeeze out the competition.