US: Crown Imports to attract brands put off by Anheuser-Busch InBev - analyst
Crown Imports should attract news business under Constellation
Constellation is set to take full control of Crown Imports as its JV partner, Grupo Modelo, is selling its stake to satisfy anti-trust concerns over the Mexican brewer's US$20bn merger with A-B InBev.
In a note today (23 January), Stifel Nicolaus analyst Mark Swartzberg said Crown's deal last year with Carlsberg to distribute its Somersby cider brand highlighted its status. “It illustrates Crown's value as a 'beer major' who can provide market access to distributors for high-margin brand owners not wanting to use ABI or another major with too many of its own brands to emphasise,” the analyst said.
Last week an analyst suggested A-B InBev's Modelo deal could collapse as the US Department of Justice is insisting on “draconian” measures.
But, the Crown deal remains on track to complete by March, according to Swartzberg, who met with Constellation's CFO Bob Ryder yesterday.
“We come away continuing to see high probability of a Modelo-Crown transaction at or a bit better than proposed with a closing by the end of March,” the analyst said.
A-B Inbev maintains that the Modelo deal will complete in the first quarter.
Anheuser-Busch InBev (A-B InBev) is facing challenges in the mature US beer category by focusing on premium and craft beer. As the US Justice Department precluded A-B InBev from controlling the lucrat...
- Spirits - Where does 'Craft' End and 'Mass' Begin?
- Brewers go Crazy over Flavoured Malt “Cocktails”
- What do A-B InBev results mean for SABMiller deal?
- Anheuser-Busch InBev's FY Performance by Region
- Much Work to do on Packaging in the US
- Diageo "smart bottle" targets consumers at home
- Tesco reinstates Dan Jago following suspension
- Tough US hits Mast-Jagermeister volumes in 2014
- George Clooney launches Tequila Casamigos in UK
- Pernod Ricard's Havana Club Union
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends research
- Wine, 2014 and the future
- Spirits and RTDs, 2014 and the future
- Global RTD/RTS insights - market forecasts, product innovation and consumer trends research
- Beam Suntory Inc. - Strategy and SWOT Report