LONDON — Anheuser-Busch InBev NV is exploring the sale of a number of SABMiller PLC’s European premium brands to address regulatory concerns ahead of their planned merger, SABMiller confirmed Thursday.
SABMiller said AB InBev plans to sell its premium beer brands Peroni and Grolsch and their associated businesses in Italy, the Netherlands and the U.K. The Belgium-based company is also aiming to sell Meantime, a 16-year-old London craft brewer that SABMiller bought earlier this year.
Socié té Gé né rale analyst Andrew Holland said AB InBev likely is looking to sell Peroni, Grolsch and Meantime to a single buyer if it can find one.
SABMiller described AB InBev’s moves to sell the brands as being “in line with its commitment to promptly and proactively address potential regulatory considerations.”
Regulators scrutinize market share within segments — like premium and mainstream — rather than just looking at overall market share across all segments, a person familiar with the companies’ moves to gain regulatory approval said.
AB InBev decided to sell Meantime, which is considered a premium brand, because its own brands, like Stella Artois and Corona, are already large players in the U.K. premium segment, the person said.
AB InBev and SABMiller have combined market share of 30 percent in Italy and 27 percent in the Netherlands. The companies also have a combined share of more than 20 percent in the U.K.
Peroni and Grolsch are two of SABMiller’s four global brands, the others being Miller Genuine Draft and Pilsner Urquell. Brewing Co. gives Molson Coors worldwide rights to Miller Genuine Draft.
SABMiller’s announcement Thursday made no mention of Pilsner Urquell, a strong indication that AB InBev plans to keep the premium brand. That is likely because Pilsner Urquell’s biggest market is the Czech Republic, where AB InBev has only a small presence. Bernstein data shows that SABMiller has a 44 percent share of the Czech Republic market by volume, while AB InBev has just 0.8 percent.
AB InBev agreed last month to buy SABMiller for about $108 billion, a deal that will create a brewing giant that dominates about 30 percent of the world’s beer market.
