Foundation says Justice Department should investigate beer monopolies
The New America Foundation is calling on Congress to push the Justice Department on the question of whether major beer producers like Anheuser-Busch InBev are violating antitrust law, reported the National Monitor.
Anheuser-Busch InBev, which bought Anheuser-Busch in 2008, is currently seeking federal approval to buy the Mexico-based Grupo Modelo.
Taken together, Anheuser-Busch Inbev and MillerCoors control about 80 percent of the beer market in the United States, according to the foundation.
A new report from New America claims that market consolidation will ultimately drive microbreweries and craft beer out of the market, reported ABC News.
At a recent panel hosted by the foundation, many argued that the post-prohibition system that separates the industry into three tiers — producers, distributors, and retail sellers — that should prevent monopolies is quickly being pushed to its limits. Because the big producers have grown exponentially and control a mammoth percentage of the market, “They have a great level of influence on what’s supposed to be an independent tier in pressuring those distributors to favor their product,” said Dogfish Head Brewery’s Sam Calagione, one of the panelists.
[Image via AFP]