Every once in a while, a story arises that makes even me shake my head in bewilderment at the odd alliances and relationships that exist, indeed almost define the global brewing industry. The latest in this series is this week’s announcement of a “strategic alliance” between Mexico’s largest brewery, Grupo Modelo, and Molson Coors.
On the surface, this is straight forward enough. Molson Coors and Modelo have signed to extend the former company’s distribution and representation of the latter’s brands all across Canada, further developing a relationship that already existed in Ontario and parts east. It’s when you start looking closely at the corporate relationships that things get interesting.
Modelo is half owned by Anheuser-Busch, the largest brewery in the U.S. and producers of Budweiser and Bud Light, both of which are licensed not to Molson Coors, but Labatt. Labatt, of course, is owned by InBev, who are in fierce international competition with Anheuser-Busch, Molson Coors and SABMiller, not to mention Guinness owner, Diageo, who are licensed to produce Budweiser in Ireland, and Heineken, who in the United States represent the brands of competing Mexican brewer, FEMSA Cerveza, which in Canada are represented by Sapporo-owned Sleeman. Bottled Guinness Extra Stout, by the way, is brewed under license in Canada by Labatt.
It gets better. SABMiller and Molson Coors, who were recently at each others throats in Canadian courts over the rights to brew and distribute Miller beers in Canada, have just agreed to merge their U.S. operations, although they will remain separate interests – and competitors – in the rest of the world. This sets that company up to go toe-to-toe with A-B and InBev, the latter of whom recently awarded representation of all their European brands to the former, although they remain in competition elsewhere. SABMiller, it should be added, has as one of their flagship brands Pilsner Urquell, which in Canada is represented by Sleeman.
Where all this ends is anyone’s guess. InBev and A-B have been rumored to be perusing merger talks for years, and Heineken and Danish brewer, Carlsberg, are presently attempting an unwelcome takeover of top British brewer, Scottish & Newcastle, who own Kronenbourg in France and half of the leading Russian brewer, Baltica.
