Policy: Law

DOJ cracks down on beer company with antitrust lawsuit

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Politics,Beltway Confidential,Food and Drink,Joel Gehrke,Justice Department,Law,Antitrust

Fears about a potential increase in the cost of beer led the Justice Department attorneys to file an antitrust lawsuit against Anheuser Busch Inbevs for attempting to buy one of its Mexican competitors.

“The department is taking this action to stop a merger between major beer brewers because it would result in less competition and higher beer prices for American consumers,” assistant attorney general Bill Baer said in a statement.  “If ABI fully owned and controlled Modelo, ABI would be able to increase beer prices to American consumers.”

DOJ notes that “ABI and Modelo–the largest and third largest beer firms, respectively–together control about 46 percent of annual sales in the United States.” ABI wants to buy Modelo for $20.1 billion. DOJ emphasized that ABI hopes the purchase will help it in “sustaining a price increase.”

President Obama did not drink Busch at his famous beer summit, perhaps because the company is based in Belgium. Instead, he drank the American-made Bud Light.

 

 

 

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