An Anheuser Sellout Would Effect More Than Just The Beer

The headlines have poured across the newspapers and internet for the last couple of days, and it’s become a hot topic of debate on morning radio as I learned today while listening to Elliot in the Morning on my way into work. For those of you that have been stuck under a rock or just don’t care, and therefore are not familiar with what I’m talking about, earlier this week Anheuser Busch received an unsolicited offer from InBev, a European brewing company and the largest in the world, to purchase Anheuser for a reported $46.3 billion, which would make it the largest cash transaction in history, and the second biggest acquisition of a consumer product.

Anheuser Busch is the largest beer distributor in America, with their top products including Budweiser, Bud Lite, Busch, Natural Lite, Michelobe Lite & Ultra Lite, and a slieu of others. While some of the Busch family members are strongly opposing such a deal to take place, many reports are indicating that the others are pushing for further negotiations. The problem is that even if the entire Busch family wanted to say no to the offer, they control only 4.5 percent of the total company, and no single family member owns more than 1 percent of the shares. So, the decision may not entirely be their’s to make.

The latest reports state that in an effort to ward off the attempts of a takeover, the family has entered negotiations with Grupo Modelo, the makers of Corona. Anheuser already owns a non-controlling 50 percent of Modelo, and the discussions between the two companies are still a bit vague at this point, but the potential ultimate end goal would be to make the combined company too large for InBev to be able to pull the trigger on.

Okay, so there’s the long and skinny of what’s happening. Right about now, I’m sure you’re checking back up at the top of the page to make sure that this is indeed a NASCAR site, and are now asking yourself why on Earth I would be taking so much time to cover this topic. Well, since you asked, allow me to explain:

Anheuser Busch is headquartered in my hometown of St. Louis, MO. With Gateway International Raceway located just outside of the St. Louis area, and given NASCAR’s recent expansion through the midwest, St. Louis is a growing market for NASCAR. There may be a laundry list of reasons why NASCAR has not given Gateway a Cup race despite the track’s petition for one, but somewhere on that list would be St. Louis’ declining economy. Known as one of the country’s leading banking and car manufacturing markets, several St. Louis residents have recently suffered from mass layoffs with the spike in foreclosures effecting the mortgage industry, and reported losses in 2007 have caused Ford to close plants and Chrysler to cut back personnel. Despite the fact that InBev has made statements regarding that they would not shut down any of AB’s plants, general concensus is that there would still be several cutbacks on employment and that St. Louis would likely lose its status as the company’s headquarters. More layoffs seem inevitable should a deal be struck, and with even less resvenue flowing into the area, it could easily negatively influence future endeavours that Gateway may have planned. 

On an even larger scale, what does this say for America’s economy as we continue to see foreign investors taking control of American products?

As it relates to NASCAR itself, with the recent downward spiral of America’s economy, the sport has experienced some rough goings as of late when it comes to sponsorship. When a team like Yates Racing has drivers sitting 18th (Travis Kvapil) and 23rd (David Gilliland) in the points standings, and even with the backing of Roush-Fenway Racing, the team still cannot lock on permanent sponsorship, you know something’s amis. NASCAR has also seen a bit of sponsorship changes in its two main series within the last decade, with Winston pulling out of the Cup Series, opening the doors for Nextel and then Sprint after their acquisition of that company, and then Anheuser pulled its Busch label off of what is now known as the Nationwide Series. There have even been talks of Craftsman pulling out of the Truck Series in the near future. Yet, Budweiser has been a long-standing sponsor in NASCAR’s premier series, and is still widely associated with their sponsorship of NASCAR’s most popular star, Dale Earnhardt Jr, though their loyalties have now been placed on the hood of Kasey Kahne’s no. 9 Dodge owned by Gillete-Evernham Motorsports. But, if Anheuser were to sellout, as a Euro company, would InBev still wish to remain connected to NASCAR? And, even if so, would the Budweiser logo still maintain its appeal?

Finally, what about NASCAR’s tradition? It’s a sport that was designed for the cars to turn left because European cars turned right. We race on ovals because the rest of the world races on roads. Yet, now we’re going to Mexico and Canada every year for the Nationwide Series, we’re soliciting non-American citizens to compete, and we’ve got a foreign car model running the most horsepower in every race.  I can tolerate a couple of trips across the border, I like diversity, and I’ve learned to live with Toyota. So, in essence, I’m okay with all of that … but, where does it end?

And, you know what, if you can identify with symbolism, then you might even say that NASCAR symbolizes modern-day America in those regards. As a former Marine and a red-blooded American that stops the fast forward on the DVR so that I can listen to the National Anthem everytime it’s on and gets a sense of pride each and every time I see that American flag, I have to wonder what has happened to our sense of tradition. As one of the largest and most profitable companies in America – as well as the leading US beer distributor for over HALF A CENTURY -  people like the good folks at Anheuser Busch are the ones that have the power restore tradition, remind us of our roots, and fend off an economic takeover. We beg of you … stop the bleeding.

*Credit photos to Newscom.