Just to be clear, you're saying that InBev (really ABI) is going to abandon their existing, largest, flagship brewery, and rebuild it all in NYC, on some of the most expensive real estate in the world?
Aiee...Didn't think I'd have to spell things out in detail as they seem pretty obvious but alas... What InBev bought was a nameplate and the goodwill that goes with it. The speed with which the transaction occurred and the relative surprise of the deal to everyone in the area demonstrates that they weren't kicking the tires on the hard assets. They were after brand recognition and established strategic partnerships. IB will move administrative operations to wherever they make the most sense....maybe they will stay in St. Louis maybe they will to NYC but none of it is likely to be left at the brewery. As for the brewing operation itself...tell yourself what you want...wax sentimental about history and flagship locations...it won't change the fact that the brewing component is simply an industrial kitchen in a profoundly high-maintenance facility. It can be duplicated in any low-rent light-industrial metropolis. Don't fool yourself into thinking that IB cares much about showing off their brewing operation in its original location. It's not what they were after and it's not likely to be the point of pride that it was for the previous owners.
With pretty well every other major institution having left town over the past 20 years we look outright foolish sticking our fingers in our ears pretending that it won't happen to us again. Even the major stakeholders in AB had made gestures or firm statements that they would not sell out. What happened? Look how quickly it happened. All I'm suggesting is that the possibility is well worth considering and merits a contingency plan.
One would think that phasing out the brewery in St. Louis would be out the question but I'm not so sure. The new owners are number crunching business people high on profit and results. Nobody gives a crap about history or civic-minded bull$hit.
Anyway, let's hope that if AB-InBev sells the brewery that they don't put a covenant on it stating that it can't be used as a brewery!
In all likelihood the cost of transporting beer will dictate that the brewery stays open and sales are OK, so likely no big cutback though it's clear that the location isn't revered within the new company.
I can't imagine they'd shut down the Soulard brewery in the foreseeable future. It produces the most beer by volume than any other A-B brewing facility. The previous owners had invested millions of dollars in the place in the past decade, making it among the most efficient.
It would be a huge waste of money to completely re-build such a high-volume brewing facility. At least for now.
Just to be clear, you're saying that InBev (really ABI) is going to abandon their existing, largest, flagship brewery, and rebuild it all in NYC, on some of the most expensive real estate in the world?
Aiee...Didn't think I'd have to spell things out in detail as they seem pretty obvious but alas... What InBev bought was a nameplate and the goodwill that goes with it. The speed with which the transaction occurred and the relative surprise of the deal to everyone in the area demonstrates that they weren't kicking the tires on the hard assets. They were after brand recognition and established strategic partnerships. IB will move administrative operations to wherever they make the most sense....maybe they will stay in St. Louis maybe they will to NYC but none of it is likely to be left at the brewery. As for the brewing operation itself...tell yourself what you want...wax sentimental about history and flagship locations...it won't change the fact that the brewing component is simply an industrial kitchen in a profoundly high-maintenance facility. It can be duplicated in any low-rent light-industrial metropolis. Don't fool yourself into thinking that IB cares much about showing off their brewing operation in its original location. It's not what they were after and it's not likely to be the point of pride that it was for the previous owners.
With pretty well every other major institution having left town over the past 20 years we look outright foolish sticking our fingers in our ears pretending that it won't happen to us again. Even the major stakeholders in AB had made gestures or firm statements that they would not sell out. What happened? Look how quickly it happened. All I'm suggesting is that the possibility is well worth considering and merits a contingency plan.
So you're saying that ABInbev, with a perfectly good, modern, efficient*** brewery in St. Louis, would board it up, and then build a new one, with equivalent capacity, from the ground up someplace else?
Why????
***There is a sort of "urban legend" (for lack of a better word) going around that the St. Louis brewery is outdated and inefficient. Nothing could be further from the truth.
^ I'm totally with CS on this. It's total legend that they would completely board up an existing brewery with billions of dollars invested into it, simply to move to a city with the highest property value and build from ground up.
Okay, so let me pose a few questions. I'm not trying to be cynical. If anything, these may be a bit naive but I think they're fair.
1. IB abruptly and unceremoniously unloaded Bevo Mill recently. The relative expense to continue holding that property would have been miniscule to a company seeking to affirm their 'commitment' to the City. A building worth maybe $800,000 and for which I'm sure the City would have waived property taxes, if asked, would have been a trivial good-will operation. But, they ditched it. Talk of commitment costs IB nothing. Holding on to a long-since paid-for minor asset as a token showing seems to be too much, however. Where am I wrong here?
2. Where has IB begun laying down new roots in our community? Yes, they provide many jobs but all that I've heard about is the ongoing dimunition of charitable contributions. If they don't want to go the charity route, that's fine, but there are many other opportunities for a good corporate neighbor to get involved.
3. Who, in City Hall, has been appointed as a general liason for IB (or Wells, Energizer, et al)? The IB operation means a lot to this city. There should be someone, akin to a project manager in private-industry-speak, seeing to IB's needs. Not that we should cave to every whim but to show that we can be flexible, responsive and coordinated as a city. Let's make them want to stay in every way possible.
Gregali said he was approached by an Anheuser-Busch InBev official not long ago who said the company no longer wanted to keep the South Side landmark. He speculated that the new company wanted to own as little property as possible.
So was it AB or ABI? Unless that article is dead wrong, it sounds like ABI unloaded Bevo.
umm, i don't think they're going to completely abandon the St. Louis brewery. that is complete nonsense. will they move the decision makers to NYC. i wouldn't be surprised. but that brewery has more history, etc. than any other brewery in the US. talk about negative PR that would actually expand beyond just stl. i love when people start these rumors when they have no idea what they're talking about.
With pretty well every other major institution having left town over the past 20 years
There are nine Fortune 500 Companies in StL. We are ranked seventh in the country. There are double the number of Fortune 1000 companies in stl today as compared to 10-15 years ago.
Again, can we please try to fight the woe-is me typical st. louisan attitude. aint what she used to be...gets old.
Where do these ridiculous rumors come from? I hear this crap all the time. It's like for every statistic St. Louis should be proud of, there's an ignorant contradictory rumor contradicting it.
I have close family that work in that brewery. They are not closing it!!! It is not only one of the most efficient in the AB 'fleet', it is one of the most high tech facilities in the world. The buildings are outdated, but the facility as a whole is very efficient & modern. Brito did not buy AB to lose money. This facility makes money. Whether or not decision makers are here in 5-10 years, that remains to be seen. I would not doubt they are mostly in NYC by then. There should be a brewery here for a long time. Beyond that, nothing is for sure. I can't say that this conversation will not be relevant in 20 years. Who knows. We all wish AB Inc. was still here, but I am over it. Nothing any of us can do. Just makes me angry to think about it. Not worth it!
I know this is old news, but anyone who believes that this 'takeover' was not in the works for a long time, is in denial. I am sure many a secret meeting occurred over the years. The keys to the company were handed over in July 2008, but it was in the works long before that. The major stakeholders knew they were in store for a HUGE payoff. Now they are gazillioneres who have no resposibility. What a life for them!
True, There are now thousands of locals with an extra 6 figures in their pockets because of this deal. Of course it's negated by what's happened in the rest of their porfolio over the last 9 months.
That will however rebound, and when it does, I'm interested to see how these folks spend their new fortune. It only takes one new startup to blossom.
DOGTOWNB&R wrote:I have close family that work in that brewery. They are not closing it!!! It is not only one of the most efficient in the AB 'fleet', it is one of the most high tech facilities in the world. The buildings are outdated, but the facility as a whole is very efficient & modern. Brito did not buy AB to lose money. This facility makes money. Whether or not decision makers are here in 5-10 years, that remains to be seen. I would not doubt they are mostly in NYC by then. There should be a brewery here for a long time. Beyond that, nothing is for sure. I can't say that this conversation will not be relevant in 20 years. Who knows. We all wish AB Inc. was still here, but I am over it. Nothing any of us can do. Just makes me angry to think about it. Not worth it!
I know this is old news, but anyone who believes that this 'takeover' was not in the works for a long time, is in denial. I am sure many a secret meeting occurred over the years. The keys to the company were handed over in July 2008, but it was in the works long before that. The major stakeholders knew they were in store for a HUGE payoff. Now they are gazillioneres who have no resposibility. What a life for them!
I've heard from people connected to engineering/operations that the St. Louis brewery is completely safe. The rumors are that Jacksonville FL or Cartersville GA are the locations on the current short list for shut down.
DOGTOWNB&R wrote:I know this is old news, but anyone who believes that this 'takeover' was not in the works for a long time, is in denial. I am sure many a secret meeting occurred over the years. The keys to the company were handed over in July 2008, but it was in the works long before that. The major stakeholders knew they were in store for a HUGE payoff. Now they are gazillioneres who have no resposibility. What a life for them!
Nope. While companies often discuss M&A informally, there was no "conspiracy" surrounding this purchase.
And the major stakeholders were gazillionaires before the sale. Many of them opposed it.
Nope. While companies often discuss M&A informally, there was no "conspiracy" surrounding this purchase.
And the major stakeholders were gazillionaires before the sale. Many of them opposed it.
Not a conspiracy, but more like a planned handover that required many a closed door meeting. Its not like the takeover wasn't rumored for years. Conspiracy, no, just a lot of rich people getting richer, at the expense of the local economy. They may have already been VERY rich, but now they are beyond VERY rich.
Owners of more than two-thirds of Anheuser-Busch stock voted for the deal. The 497 million shares cast in favor amounted to 96 percent of all votes, which Anheuser-Busch acclaimed as a strong endorsement. Some shareholders abstained from voting. (including myself)
Owners of more than two-thirds of Anheuser-Busch stock voted for the deal. The 497 million shares cast in favor amounted to 96 percent of all votes, which Anheuser-Busch acclaimed as a strong endorsement. Some shareholders abstained from voting. (including myself)
The "major stakeholders" <> the majority of shareholders.
Nope. While companies often discuss M&A informally, there was no "conspiracy" surrounding this purchase.
And the major stakeholders were gazillionaires before the sale. Many of them opposed it.
Not a conspiracy, but more like a planned handover that required many a closed door meeting. Its not like the takeover wasn't rumored for years. Conspiracy, no, just a lot of rich people getting richer, at the expense of the local economy. They may have already been VERY rich, but now they are beyond VERY rich.
Do you have a source for this "planned handover"? This is the first I've ever heard of it, and I would suggest, the first time the WSJ, FT, Fortune and other financial publications have heard of it. You may have a major scoop. But I doubt it.
CS, let me guess, you actually believe this was a 'hostile takeover'?
Business 101: Money talks! Major stakeholders walked!
You believed Busch IV when he said 'not on my watch' ? ....with all due respect, quite naive!
What would you call it? Do you actually think Busch IV was oblivious to the possibilities? Was there nothing they could do to prevent it, if he really wanted AB to remain independent? I first heard of a rumored 'combination' 5 or so years ago from friends that work there. It was a rumor to employees. Obviously those rumors carried some weight. You think Mr. Busch just ignored these rumblings? Highly doubtful? Employees (current & former) that I know, feel that this is without question, the way it went down. Did anyone ever publicly admit this, NO! Why would they? The 'friendly combination/hostile takeover' spin is much better PR.
