WASHINGTON – Today, after hearing concerns from Connecticut breweries, U.S. Senator Chris Murphy (D-Conn.) called on the U.S. Department of Justice to carefully consider the impact that the impending merger between AB InBev and SABMiller – two of the world’s largest beermakers – would have on independent craft brewers across the country. In a letter addressed to Assistant Attorney General William J. Baer, Murphy expressed concern that the merger could significantly impact supply and distribution chains, posing a unique set of challenges to Connecticut’s small craft brewers. Citing the valuable economic contributions of small and independent craft brewers, Murphy emphasized the importance of protecting choice and competition for American consumers.

“I have heard from a number of small craft brewery owners in my state of Connecticut who are already facing challenges accessing an effective and reliable distribution system, and who are deeply concerned about the potential negative impact this merger could have on the market,” said Murphy. “Many of these breweries have informed me, for example, that they consistently have difficulty procuring sufficient cans to distribute their product, raising concerns that larger producers like AB InBev and SAB Miller may already be impacting the supply of this critical component for their business. Merging these two companies into a larger market player with the ability to control an even greater share of the supply and distribution chains could have a significant impact on the continued viability of the currently thriving craft beer industry. Thus, the unique challenges in distribution and access that small craft brewers face in Connecticut and elsewhere require careful consideration as part of your review of the AB InBev-SABMiller merger.”

Earlier this year, Murphy co-introduced the bipartisan Small Brewer Reinvestment and Expanding Workforce (BREW) Act to support small brewers and reduce the excise tax on each barrel of beer brewed by small brewers.

The full text of the letter is below:

William J. Baer, Assistant Attorney General

Antitrust Division, U.S. Department of Justice

950 Pennsylvania Avenue NW

Washington, DC 20530-0001

Dear Assistant Attorney General Baer,

I write to you regarding the impending merger between two of the world’s largest beermakers, AB InBev and SABMiller, and the effect it could have on the small brewery industry in my state. According to recent reports, the deal reached by AB InBev to buy out its main rival would create the largest beer producer in the world. As the Department of Justice reviews this merger, I urge you to specifically consider the impact it will have on competition and access for all American brewers, particularly those in the independent craft brewing industry. While I take no position on the legality of the merger under U.S. antitrust laws, I believe careful review is necessary to ensure that consumers are protected and economic competition is preserved. 

I have heard from a number of small craft brewery owners in my state of Connecticut who are already facing challenges accessing an effective and reliable distribution system, and who are deeply concerned about the potential negative impact this merger could have on the market. Many of these breweries have informed me, for example, that they consistently have difficulty procuring sufficient cans to distribute their product, raising concerns that larger producers like AB InBev and SAB Miller may already be impacting the supply of this critical component for their business. Merging these two companies into a larger market player with the ability to control an even greater share of the supply and distribution chains could have a significant impact on the continued viability of the currently thriving craft beer industry. Thus, the unique challenges in distribution and access that small craft brewers face in Connecticut and elsewhere require careful consideration as part of your review of the AB InBev-SABMiller merger.

Last year, American small and independent craft brewers contributed $55.7 billion to our economy and provided more than 424,000 Americans with employment. Connecticut alone has 32 breweries and brewpubs with another 19 in planning, and in 2014, these brewers employed over 4,000 workers and produced over 72,000 barrels of beer. As craft beer continues to increase its contribution to the American economy, it is imperative we ensure these businesses are able to fairly provide their product to consumers through a competitive market.

Like you, I share a profound interest in protecting choice and competition for the benefit of American consumers. I trust that you will thoroughly review the proposed merger between AB InBev and SABMiller to ensure that fair access is protected for all in the beermaking industry, and that consumers continue to be offered competitive prices and a wide range of products. Thank you for your attention to this important matter.

Sincerely,

Christopher S. Murphy

United States Senator