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New CAMRA guide warns that global brewers pose threat to British beer


Real Ale may be the success story of British beer, but the new Good Beer Guide, published by the Campaign for Real Ale (CARMA), warns of possible threats posed by global brewers moving into the buoyant cask sector.

The new edition of the Guide - this year sponsored by beer quality assessor Cask Marque - records the vibrancy of the British real ale market, with more than 200 new breweries opening in the past year, with 1,540 now operating in Britain.

The Guide reports that the world's two biggest brewers, AB InBev and SABMiller, are due to merge this month at a cost of £79 billion and have already moved into the London craft sector.

'In 2015,' Roger Protz says, 'SABMiller bought the Meantime Brewery in Greenwich and paid an astonishing £120 million. As a result of the takeover of SAB, ownership passed to AB InBev In order to meet the demands of regulators in the United States and the European Union, AB has had to divest some of its brands and breweries and has sold Meantime to Asahi of Japan.'

At the same time, AB has bought another London craft brewery, Camden Town, for £85m and plans to make it a leading player in the capital's beer sector and will use its marketing muscle to undercut competitors.

In a special interview for the Guide, Professor John Colley of Warwick University's Business School, who is an expert on global companies, says the likes of AB InBev and SAB Miller can strip costs from production as a result of their ability to bulk buy such raw materials as grain and hops at enormous discounts.

Professor Colley added that big brewers enjoy 40% lower costs than even medium size producers. He said that when AB bought Modelo of Mexico it stripped 20% of costs from the company. With Beck's in Germany it took out 15% of costs.

He estimated that the AB merger with SABMiller will generate cost savings of $1.4 billion.

The end result is cheaper beer that drives other brewers' products off bars and supermarket shelves.

Good Beer Guide editor, Roger Protz said, 'The way in which the global brewers are muscling in on the craft sector in Britain and other countries is a cause for concern and a potential threat to the independent sector. In its 44 year history, the Guide has never been complacent and believes that beer drinkers' choice and freedom demand constant vigilance.'


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