Single Store Owner

APR 2016

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APRIL 2016 / / 41 BEER What Will A-B & SABMiller Merger Mean for You? The largest worldwide brewer, Belgium-based Anheuser- Busch InBev (A-B), recently announced it will merge with the world's No. 2 brewer, United Kingdom-based SABMiller plc. The transaction, pending regulatory approvals, is val- ued at $105 billion, with the combined company boasting annual revenues of $64 billion. If and when the deal — announced in November and set to close in the second half of this year — is completed, the new com- bined company will control a number of top beer brands, including Budweiser, Corona, Stella Artois and Foster's. The deal should also give A-B the opportunity to enter untapped regions of the world, such as Africa, creating what A-B calls the "first truly global beer company." Also as part of the transaction, Molson Coors has agreed to pur- chase from A-B, SABMiller's 58-percent stake in the MillerCoors joint venture and the global rights to both Miller and Coors legacy brands. In addition, Japan's Asahi Group Holdings Ltd. announced on Feb. 10 a bid of $2.9 billion for the Peroni, Grolsch and Meantime brands, as well as the Italian, Dutch and British companies of SABMiller that manufacture and distribute these brands. In the convenience channel, the foremost question right now about the merger is: How will it affect convenience store retailers and whole- salers? Will their business change at all? On the retailer side, many c-store operators expect to maintain the status quo post-merger. Some foresee more of an impact on the global beer market than the U.S. market. Others anticipate some Selling synthetic drugs as an alternative to illegal or restricted drugs may seem like a safe choice for convenience store operators, but the reality is more dangerous, according to a recent NACS webinar presented by the U.S. Drug Enforcement Administration (DEA) and the Office of the At- torney General for the District of Columbia. While suppliers of synthetic drugs, which are often sold under names like Spice and K2, claim the products are a legal alternative to marijuana, they have actually been outlawed in numerous states, and many types have been criminalized by the federal government via the DEA. Addi- tionally, they often cause unexpected and severe side effects. Popular forms of synthetic drugs include: • Cannabinoids, which are typically sold in three- to five-gram packages of herb-like material and are smoked in pipes, rolled cigarettes and electronic cigarettes, as well as ingested in tea; and • Synthetic cathinones, which are sold in foil or plastic packages of crystal- line powder. C-store operators, fuel distribu- tors and property owners can all face consequences for the sale of syn- thetic drugs where prohibited, even if they were unaware or believed them to be legal. Penalties can range from fines to loss of business licenses to prison sentences. The DEA and Attorney General recommend that rather than trying to distinguish between legal and illegal synthetic drugs, c-store operators err on the safe side by assuming all brands and types of synthetic drugs are illegal. They are encouraged to contact local law enforcement if they are approached with an offer to sell them. philosophy changes in go-to-market strategy, but nothing too radical in nature. "From an execu- tion standpoint, I don't believe we will incur any change in our day-to-day business. The product will still be distributed by our current houses, and we don't believe our custom- ers will experience any change," said Damian Wyatt, beverage category manager for Brentwood, Tenn.- based MAPCO Express Inc., operator of 373 c-stores in eight states. In fact, Wyatt sees the potential for benefits stem- ming from this transaction. "In regards to promotional periods and planning, I believe this merger could prove to be beneficial. The merger has the potential to institute easier execution and implementation, as a one-call point system could prove to be representing a stronger unified and more diverse portfolio," he explained. "This would make it easier on us as buyers and category managers as this would lessen conflicting competition and competing priorities as well as hid- den competitive agendas." HEALTH & BEAUTY CARE The Consequences of Selling Synthetic Drugs

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