The King Isn't Dead

From the reaction, you’d think the Belgians were massed at the border ready to invade, or they had rustled Clydesdales or something. News that a Belgium based brewery run by a Brazilian CEO is intent on purchasing Anheuser-Busch (A-B) is triggering an outcry from Riccardo-loving, Freemarketeers and Bud fans alike that is bordering on the Xenophobic. Editorialists are outraged, Candidate Obama has expressed disappointment in the sale, McCain whose second wife owns increasingly valuable A-B stock, remains less vocal about the takeover.

Who are these barbarians at the brewery gates? Belgium is a country of 10 million wedged in between The Netherlands, Germany, Luxembourg, and France. A member of the European Union, the nation’s capital resides in Brussels, but for those who know geography from Wars – Belgium is notably home to Antwerp, Bastogne and Liege. More recently the medieval city of Bruge/Brugge was popularized in a film starring the creepy Colin Ferrell.

St. Gudula, is the national saint of a country that is 75% Roman Catholic. While faith might be a unifying national force, in recent years tensions have flared between the Dutch speaking Flem(ish)s of the north and the French Speaking Wallonians from the south of the country. Technically King Albert II rules, but as of 2008 it is Christian Democrat Prime Minister Yves Leterme who runs the show in conjunction with a bicameral parliament.

Like most of the world they are football/soccer loving, but the Belgs are also motor sport crazy - not the NASCAR wheels on the track go round and round variety, rather Formula 1 is venerated. Biking legend Eddy Mercyx won 5 Tour de France’s and is still considered the greatest ever despite an American who won a few more Tours.

More than Waffles

Culinarily, Belgium Chocolate is synonymous with quality. French Fries are thought to have originated in Belgium – ‘to French’ is not to make in the style of our oldest ally, fellow NATO member, France but it is to julienne; cut into small strips. Although it is dubious distinction to have deep-fried anything be your national dish, it is doubtful to believe one country/culture/nation-state alone came up with the idea to throw something in near boiling fat to see what happens. Oh and Belgium is home to 500 breweries including InBev, maker/distributor of Becks and Stella Artois and now Budweiser.

So what is the problem with a beer loving, french fry eating, motor sport watching country with a famous bicyclist, who have cash on hand from a weak dollar/strong Euro, gaining control of a US company? The cash infusion saves layoffs and by offering shareholders 27% above the previous high of A-B stock, InBev helps create a little wealth as well.

The thought that A-B is a local brewery, a small St. Louis based family-run business is far from reality - through partnerships and distribution, pre-InBev-Bud was brewed in China, Ireland, Japan, Brazil, India and Russia just to name a few countries. Besides being a multinational corporation themselves, A-B hasn’t always been sweet and innocent when dealing with their fellow countrymen. Through a combination of lawsuit, buyout, aggressive expansion, distribution and blitz marketing – A-B has absorbed or ruined more than one competitor including its flagship beer, Budweiser - The originator of Czech style budweis pilsner was Carl Conrad, who in the 1870s lost control of his Bud to Anheuser – Busch.

So what are the lessons to be learned here - a company that competes globally is okay as long as it is US based? Where was the outcry when Miller was purchased by cigarette giant Altria who then sold its controlling share to a company that eventually became known as SAB (South African Brewery) Miller? The iconic Guinness is owned by international holding company Diageo, yet the Irish Republic is thriving.

While the sale to InBev might have Cub Fan/Bud Man, Harry Caray, rolling over in his grave, in reality it alters little – Beer is a product traditionally made from Hops, barley, malt and yeast: Anheuser-Busch is the single largest purchaser of rice in the United States - Bud has never won folks over with taste, rather the wassup ubiquity of its cultural presence. More of a brand than a product, the new owners are going to do little to damage their investment by making Bud more Belgiumy, which considering some of the beers from there, is kind of a shame.