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Global: Temporary beer price spike following merger trend, says research

By  |  August 29, 2013

Research suggests the recent trend of major beer breweries merging will likely lead price hikes throughout the globe, though only temporarily.

The study, published Thursday, studied the effects of the 2008 Molson Coors Brewing Company merger with SABMiller, which resulted in about a two percent increase in beer prices throughout the US, according to the report.

The study pointed to markets within the US, South America and Canada, with especially consolidated beer markets, as particularly vulnerable to the effects. The UK, however, maintains strong competition in the beer market.

In the report, the researches looked at the effects of beer mergers since 1968.

Despite the price hikes, the study found that prices leveled-out about three years after a merger.

Full Content: International Business Times

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