Are you trying to get the sun past a rooster?

 

I used to like to play competitive golf and did so until 10 years ago.  These tournaments were local, regional and state events.  Over the years, I noticed that an increasingly large number of contestants were reinstated amateurs who, at one time, had been professional golfers.  Most of these golfers were very competitive and frequently lead or even won the amateur tournaments in which they played.  The USGA will reinstate a pros if he/she writes to them and requests reinstatement of their amateur status.  Typically one must wait a year once application for reinstatement has been submitted before reinstatement occurs.  Jack Nicklaus’ son Gary, who was once on the PGA tour, is a reinstated amateur and made a run at this year’s US Amateur title.  I always thought that if one was a pro, say for 10 years, and decided to return to amateur status, one should wait 10 years, as these players have a decided advantage over the players who never turned pro.  It didn’t seem right to play against a former 15-year pro who had turned amateur only a year earlier.  If that seems a little harsh, perhaps a five year wait period could be considered.

Much has been written about the ABI/Modelo transaction and how it will be approached by the DOJ.  As I write this article, there is talk of the DOJ forcing ABI to delegate another brewery to produce Modelo products for the US market.  If this transaction goes through, ABI will control, either directly or indirectly, almost 60% of the beer volume in the US.  Now I hear the DOJ and ABI are discussing long-term pricing and supply issues with no discussion on any divestiture, there are, however,  rumors of eliminating the newest brewery in Mexico.

As previously written in last summer’s blogg, “You Are What You Are,” I mention that pricing is the key platform in ABI’s overall strategy to control as much of the US market as possible.  The three-tier system and franchise laws continue to be what hold ABI at bay, however, they are trying to work around it with programs including the “anchor wholesalers,” new products and line extensions.  Also helping is the changing consumer who is seeking and embrasing all the crafts and alternative beverages, such as ciders.  They are a small, but growing factor.

Rest assured, ABI will not stop with the Modelo acquisition, regardless of how the DOJ rules.  Perhaps the DOJ should approach ABI like the USGA handles a reinstated amateur.  Since ABI is buying 5.7% share of the US market, they should divest 5.7% share of their current portfolio in an effort to level the playing field. Or, is the sun just trying to get past the rooster?

 


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