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By Joe Sixpack
Posted on Jun 27, 2008 on Joe
Sixpack
PATRIOTISM,
THE LAST refuge of scoundrels, is apparently the first
line of defense against Belgium-based InBev's $46.4
billion bid for Anheuser-Busch. Somehow, an otherwise
run-of-the-mill international corporate-takeover proposal
has exploded into an assault on American values.
While A-B considers the offer, politicians like Sen.
Claire McCaskill (D-Mo.) are in full pander mode, suggesting
that foreign ownership might somehow diminish our enjoyment
of Bud Light.
Media dopes like ABC's Chris
Cuomo and CNN's Lou Dobbs are likening it to the takeover
of American ports by Arabs, fretting, "Is America for
sale?"
The Charlotte Observer prattled,
"With foreign ownership of Anheuser-Busch a real possibility,
beer drinkers may have to choose between their patriotism
and their Budweiser."
Some pundits have suggested
that the acquisition is a litmus test for the two presidential
candidates. Besides wearing a flag pin, the next occupant
of the White House presumably must promise to keep Bud
American. (Neither has expressed an opinion, yet.)
And then there's the SaveAB.com
Web site that, among other things, blames InBev for
genocide in Rwanda. We must protect Budweiser, the site
says, because it "represents the spirit of our country,
giving millions of Americans the 'pursuit of happiness.'
" At last count, the site had collected more than 55,000
signatures on a petition opposing the takeover.
Mom, apple pie and the Clydesdales
- it's not just a bunch of sentimental pap, it's yet
another example of fear-mongering over dreaded globalization.
The only quarter that hasn't
chimed in so far is the boardroom of Anheuser-Busch
itself. That's no surprise, for its execs know the dirty,
little secret behind this American icon:
Budweiser - its American
eagle logo notwithstanding - is already a global brand.
A-B operates more breweries on foreign soil than in
the United States. It sells almost a third of its volume
overseas.
It can't
complain that foreign ownership is un-American because
it already plays that game.
It owns half of Mexico's
biggest brewer, Grupo Modelo.
It owns China's second-largest
brewery, Harbin, and holds a 27 percent
stake in its largest, Tsingtao.
It just bought out its partner
in a half-million-barrel brewery that produces Bud in
India.
Foreign ownership is the
nature of an industry that involves worldwide distribution
of a perishable product. The relationships are as sordid
as a West Virginia family reunion.
In Japan, for example, Kirin
Brewery Co. makes Budweiser; in California, A-B brews
Kirin.
Where A-B doesn't own breweries,
it controls distribution rights. It imports Dutch Heineken
in Panama. It imports Spanish Estrella Damm
in the United Kingdom. It imports Mexican Corona
in China.
Anheuser-Busch is already
in bed with InBev, importing its brands, including Stella
Artois, in America, and brewing Bud at an InBev-owned
Labatt's brewery in Canada.
You don't hear much about
these relationships, I suspect, because over the years
the company has been burnt by bad publicity over its
foreign connections.
During World War I, A-B had
to contend with anti-German hysteria, which not only
hurt sales, it ultimately fueled the passage of the
18th Amendment. During the Cold War, it was accused
of aiding Communism because it imported hops from Yugoslavia.
So the company has played
the red-white-and-blue card, from the post-Prohibition
days when it declared itself "America's social companion"
to a post-9/11 tearjerker that had the Clydesdales bowing
their heads to the New York skyline.
Business is business, though,
and A-B knows that beer flows easily over international
boundaries.
Its former president of international
operations, Stephen J. Burrows, acknowledged the truth
a few years ago in a
revealing interview with BrandChannel.com.
Anheuser-Busch, Burrows said,
"is strongly opposed to any geographic indication for
beer, based on brewery location. Geographic location
has no bearing on a beer's quality - beer can be made
to the same standards anywhere and does not rely on
locations for its character."
So if Budweiser is Budweiser
no matter where in the world it's made, does it really
matter who actually owns the company?
Outside of some misguided
sense of patriotism, not one bit.
Right now, A-B's second-biggest
shareholder is Warren Buffett, who doesn't even drink
alcohol. As for the famed Busch family that has steered
this company for more than 150 years, it reportedly
owns just 4 percent of the company's stock.
Yeah, I know, jobs may be
at stake. Sadly, that's what happens when a multinational
corporation gobbles up the competition.
Just ask the good people
of Latrobe, Pa. They can tell you how a global beer
giant came to town two years ago, shut down their brewery,
put 250 out of work and took away their beloved Rolling
Rock.
Anheuser-Busch: What goes
around, comes around.
"Joe Sixpack" by Don Russell appears weekly
in Big Fat Friday. For more on the beer scene in Philly
and beyond, visit www.joesixpack.net.
Send e-mail to joesixpack@phillynews.com.
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