Justice Department Orders InBev to Unload Labatt USA
There’s one small hitch in the Justice Department’s approval of the InBev-Anheuser Busch merger: InBev must unload its Labatt USA subsidiary.
That’s nothing, really. The Canadian brews Labatt Blue and Labatt Blue Light make up less than 1 percent of the beer market in the United States. The Associated Press notes, however, that both are big in upstate New York, where they are on a par with popular American beers like Budweiser and Bud Light, both made by Busch, and Coors Light and Miller Lite, both made by MillerCoors. And that’s why the Justice Department made its demand: to ensure price competition in Rochester, Buffalo, and Syracuse.
Which seems slightly weird, but OK.
Elsewhere around the country, there isn’t much competition between InBev’s and Busch’s brands. InBev’s Stella Artois, Lowenbrau, Beck’s and other brands make up less than 2 percent of the U.S. market. Busch has about half of the market.
Busch and InBev said they would comply and sell Labatt USA to a third party licensee.
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