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Merger to create new national brewery?

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GregClow
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Merger to create new national brewery?

Post by GregClow »

I came across this article about Moosehead being the only Canadian-owned major brewery left if Sleeman gets sold off to a multinational, and I was very intrigued by this bit:
The potential sale of Sleeman is fueling speculation in the industry about other possible sales and mergers.

A potential merger between New Brunswick's Moosehead Breweries, Ontario's Lakeport and Brick Brewing Company and Calgary-based Big Rock Brewery could create a new national company that would be larger than Sleeman, said beer industry analyst Peter Holden of Toronto-based Veritas Investment Research.
This is the first I've heard of this, and it seems like an odd fit to me. Moosehead is already in Ontario via Niagara Falls Brewing, so unless it's a question of volume, I don't see what they need the others for. I could maybe see Brick and Big Rock getting tighter, since I think they're already doing brewing for each other, but Lakeport?

I dunno, this just looks like something that someone pulled out of their ass and managed to turn into an "industry rumour"...

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joey_capps
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Post by joey_capps »

I agree that this merger seems farfetched. However, if it were come to be, there would be an interesting aspect in Ontario—a national brewer that doesn’t own stock in The Beer Store, their main method of distribution. Would they choose to invest in The Beer Store, thereby investing in the competition? Or, would they choose to fight The Beer Store’s monopoly. It seems to me the only way we may break the bi-opoly of beer distribution in Ontario, is when a big player decides that it wants a different distribution method. Labatt’s and Molson’s have no reason to fight the status quo as they benefit from it. A new national brewer might.

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Rob Creighton
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Post by Rob Creighton »

If SABMiller, Femsa or Scottish Newcastle were to buy Sleeman's, they would get Sleeman's minute 1% share in TBS. It would be interesting to see what would happen next.

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JerCraigs
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Post by JerCraigs »

I cant imagine it would lead to anything other than maybe just eliminating the beer store in favour of LCBO only sales?

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