Anheuser Busch, world’s largest brewer, buys local craft beer operations

Global Business

When the world’s largest brewer starts buying up small craft operations, the beer world takes notice. Anheuser Busch InBev recently announced plans to buy its third U.S. craft brewery in just this past year. CCTV’s Chris Casquejo reported this story from Seattle.

Anheuser Busch, world’s largest brewer, buys local craft beer operations

When the world's largest brewer starts buying up small craft operations, the beer world takes notice. Anheuser Busch InBev recently announced plans to buy its third U.S. craft brewery in just this past year. CCTV's Chris Casquejo reported this story from Seattle.

“Well, we named the brewery after my wife. Her nickname was Scuttlebutt,” owner of Scuttlebutt Brewing Co., Phil Bannan, said.

Over 18 years, Bannan has turned a hobby into a business worth $1.5 million.

In the U.S., the craft beer industry is worth about $14 billion, making smaller beer companies an increasingly attractive target for global giants such as Anheuser-Busch InBev. Last month, the company announced plans to buy Seattle-based Elysian Brewing — its third craft brewery acquisition in less than a year.

In 2013, U.S. craft beer sales rose more than 17 percent. But overall beer sales were down 1.9 percent. The U.S. now has more than 3,000 craft breweries, adding about 300 new brands every year.


African microbrewers growing, but still face challenges

The beer market in South Africa is dominated by SAB Miller, but there is a growing niche for microbrewers looking to provide a different taste to a market. It’s estimated that there are now more than 50 micro brewers across the country, and their market share is a little over one percent of the beer market. CCTV’s Angelo Coppola reported this story from Johannesburg, South Africa.

African microbrewers growing, but still face challenges

The beer market in South Africa is dominated by SAB Miller, but there is a growing niche for microbrewers looking to provide a different taste to a market. It's estimated that there are now more than 50 micro brewers across the country, and their market share is a little over one percent of the beer market. CCTV’s Angelo Coppola reported this story from Johannesburg, South Africa.

Market research is an essential ingredient when developing a product, and it’s also imperative that ongoing research is undertaken to stay on top of trends.

“I think to get ourselves established was obviously the challenge of the set up. All the equipment that we are using was imported. So that took a bit of time to jack it up,” Co-owner of Oakes Brewery, Tia Blom said.

One big challenge is that businesses rely on a consistent electricity supply. Another challenge facing small businesses is whether to expand, or stay small. It’s a decision that could mean the difference between success and failure.