Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Tribune News Service
Tribune News Service
National
Christopher Condon

US Treasury calls out beer industry over anti-competitive practices

A U.S. Treasury examination of competition in the nation’s beer industry concluded the market remains dominated by two players — despite an explosion of small-sized brewers in recent decades — and troubled by complaints about restrictive practices in distribution chains.

The Treasury Department recommended in a report released Wednesday that the Department of Justice re-examine the way it assesses mergers and acquisitions. The Treasury also encouraged regulators to take a closer look at distribution practices that may seek to exclude smaller firms.

The study is part of a broader effort by the Biden administration, set in motion by an executive order signed in July, aimed at increasing competition for the benefit of consumers.

“Today’s report on competition in the markets for beer, wine and spirits is part of the Biden-Harris administration’s government-wide commitment to a fair and competitive economy,” Treasury spokesman John Rizzo said in a statement.

The 63-page report notes that more than 6,400 breweries operate in the U.S., up from a low of 89 in the late 1970s. Still, two brewers — Anheuser-Busch InBev NV and Molson Coors Beverage Co. — account for about 65% of the beer market, based on revenue. The companies didn’t immediately respond to requests for comment.

Shelf Space

Pointing a finger at other regulators, the report says, “Some of the increased concentration may have resulted from the absence of consistent merger enforcement.”

It goes on to encourage the DOJ and the Federal Trade Commission to “apply particular skepticism to claims of efficiencies” when assessing mergers and in considering revisions to their merger guidelines.

The paper also presses the Treasury’s own Alcohol and Tobacco Tax and Trade Bureau to do more to combat unfair and illegal distribution practices, like pay-for-play shelf-space agreements. It urges the bureau to “address complaints of under-enforcement, particularly as pertains to conduct by the larger members of the industry.”

Rizzo said the Treasury will release additional studies and recommendations, including on competition in the labor market and in the fintech sector.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.