Connecticut’s craft brewers leery of ‘Big Beer’ merger

Two Roads Brewery CFO Peter Doering shows the brewery's new energy efficient LED lights have recently been installed on Stratford Avenue in Stratford, Conn. on Wednesday Nov. 2, 2016. The new lights, installed by Digital Lumens, are state-of-the-art, can be controlled via WiFi or from a central computer and have motion sensors. less Two Roads Brewery CFO Peter Doering shows the brewery's new energy efficient LED lights have recently been installed on Stratford Avenue in Stratford, Conn. on Wednesday Nov. 2, 2016. The new lights, installed ... more Photo: Christian Abraham / Hearst Connecticut Media Photo: Christian Abraham / Hearst Connecticut Media Image 1 of / 26 Caption Close Connecticut’s craft brewers leery of ‘Big Beer’ merger 1 / 26 Back to Gallery

HARTFORD - If the state’s craft beer makers are feeling squeezed out of markets because of a recent mega-merger that created the largest beer company in the U.S. — they’ve got a senator’s ear.

U.S. Sen. Richard Blumenthal, D-Conn, said Monday he wants to hear from them.

“It’s a behemoth that will have massive influence,” Blumenthal said of the $106 billion merger of Anheuser-Busch and SABMiller approved last year by the U.S. Department of Justice and company shareholders.

Blumenthal said the new mega beer company could threaten small craft brewers now thriving in Connecticut by pressuring distributors to drop their products or drive up the price of ingredients.

“It will control half the U.S. market and there is huge potential for abuse,” Blumenthal said of the new Busch-Miller company.

Blumenthal on Monday toured a Thomas Hooker Brewery in Hartford and told brewery owners to notify his office of any discriminatory practices they encounter. The senator said he can file a complaint with the DOJ and hearings could be held before the U.S. Senate Judiciary Committee.

Peter Doering, a partner in Two Roads Brewing in Stratford, said he’s concerned about the future given the merger.

“We want to make sure craft brewers have the opportunity to work with distributors and that [Anheuser-Busch-SAB Miller] does not exert discriminatory practices,” Doering said. “They have a lot of influence over distributors.”

Beer, whether a craft brew or a mass produced product such as Budweiser, is distributed to stores and bars by small, family owned companies that operate within a defined territory.

The fear is the new Busch/Miller company could pressure those independent distributors to stop offering a craft beer, withhold products or sell only certain brands, Blumenthal said.

In 2016, the state’s 49 craft beer breweries pumped $569 million into the state’s economy and sold 129,825 barrels of beer, according to the Brewers Association.

Rules set

More Information Here are some craft beer facts: 49 craft beer breweries in Connecticut Breweries represent $569 million in annual economic impact Breweries last year produced 129,825 barrels of beer Source: The Brewers Association

During Senate hearings last year over the merger, Blumenthal said Anheuser-Bush and SABMiller agreed to conditions to protect craft breweries from being cut out of the distribution loop.

Blumenthal said the newly merged beer company cannot tell distributors to only sell certain products, force distributors to choose between products or buy ingredients to drive up the price or interrupt the supply.

“I know the best settlement is useless if not enforced, and that’s what I’m here for,” Blumenthal told a group of craft beer makers.

Curt Cameron, owner of the Thomas Hooker Brewery, said he’s concerned about the impact of the merger, although he said so far he has not seen an impact. Hooker products are sold through a Budweiser distributor.

“I’m worried about the pressures they could put on them,” Cameron said. “There could be some challenges. Miller has bought so many craft breweries it’s growth is something we have to monitor.”

Blumenthal said craft breweries deserve to be protected.“It’s a great American success story and it’s important to recognize the economic impact,” he said.