Analysts for Citigroup predict an alliance between Anheuser-Busch Cos. and Belgian-based InBev likely and write it “will have a domino effect on the entire global industry.”

Anheuser-Busch “is at a critical juncture at this stage as it has managed to box itself into a corner,” the analysts wrote. It “has no other choice, in our view, but to combine with another global beer player to quickly dig itself out of the slow growth trajectory and restore the company’s position in global brewing.”

A big reason Citigroup is making the prediction: It believes A-B CEO August Busch IV is “incredibly focused on winning and regaining A-B’s past glory,” the report said.

The rather large boom you heard this morning came out of Yards Brewing Co. in Philadelphia.

Basically, the only production brewery in the city is breaking up. Great reporting about this on multiple fronts:

– Jack Curtin has details has his own site and the Beer Yard (link at his site).

– Don Russell (Joe Sixpack) turns the press release into English:

Founder and co-owner Tom Kehoe is splitting with his partners, Bill and Nancy Barton, and will move the 13-year-old brewery to a new, to-be-chosen location. Production of the beer is expected to continue without interruption.

The Bartons will keep Yards’ hulking brewing facility in Kensington and begin producing a new brand.

The breakup ends an occasionally bumpy, eight-year partnership that saw the beloved brewery grow into the city’s most popular microbrewed brand.

About 200 taverns throughout Philadelphia and the region serve Yards, and its flagship Philly Pale Ale is poured at Phillies and Eagles games.

“We basically had two different philosophies about how to run the company,” Kehoe said yesterday. “It was time for me to move on.”

To recap, when this is over Yards beers will be made someplace else and something else will be made at what was Yards brewery.

Curtin has the full press release and (we expect) will offer more details/commentary in the coming days.

Updated Aug. 7: The Philadelphia Inquirer has an update, more details.

City Brewery in LaCrosse, Wis. – home of the world’s largest six-pack – is selling all its locally owned beer brands to a shareholder and getting out of the beer distribution business.

Brands such as La Crosse Lager, Kul Light and Golden Leaf Wheat still will be made by City Brewery and distributed by the new company.

City Brewery created the brands in 1999 when it reopened the former G. Heileman brewery. Heileman previously had six lagering tanks big enough to hold 7.3 million cans of beer painted to look like a giant six-pack of Old Style. City had the tanks repainted to read “LaCrosse Lager.”

From the British Guild of Beer Writers site:

Adnams, the Southwold-based brewer and leisure retailer, announced today that it had secured exclusive distribution and sales rights of Meantime draught beers throughout the UK and sales rights to all Meantime packaged beers.

The move came following the strategic decision for Adnams to strengthen the range of products available to them. Alastair Hook, founder of Meantime Brewery comments, “I feel very proud that our two companies are working together. Adnams is a brand that is trusted and recognised for pushing the boundaries of what is expected from a regional brewer. They have a strong base of high quality customers throughout London and the South that are well suited to Meantime beers. Adnams and Meantime share a similar philosophy and passion which we strive to express to our consumers, who understand and identify with the special nature of our beers.”

Adnams Managing Director Andy Wood explains, “Adnams is famous for brewing a wide range of excellent English beers. By working with selected third parties like Meantime we can further enhance our portfolio of premium brands and in turn, strengthen our relationship with our customers. Adnams has a record of developing successful long-term partnerships with like-minded companies such as Bitburger and Aspalls, recognising that this gives us access to premium products that we are not able to produce ourselves.

“We have long admired the work of Meantime. Our companies share a passion for brewing interesting and flavourfull beers and the addition of Meantime draught beers compliments the Adnams range extremely well. Our sales team is fired up and roaring to go with their portfolio boosted by the Meantime deal. Meantime offer an exceptional variety of beers from Bavarian-style Helles to their Anglo-American style Pale Ale. Their latest beer, London Stout, is particularly exciting and it is fantastic to see the brewing of this famous style of beer return to its roots in London.”

Both breweries sell a limited numbers of beers from the respective ranges in the United States.

What was the effect of the decision by Czech brewery Budejovicky Budvar to make a deal with Anheuser-Busch to distribute Czechvar in the United States?

Sales were up 58% in the first half of the year.

Budvar and Anheuser-Busch signed a contract for Czechvar sales in January this year.

The two brewers have wrangled over the Budweiser trademark for more than 100 years. Disputes have been settled gradually, some of them won by the US company and others by the Czech brewer. Because A-B has the rights to the Budweiser in the US, Budvar sells its beer as Czechvar in the States.

While the growth is significant, the US was only the sixth leading market for Budvar in 2006. The brewery’s export numbers:
Germany 190,000 hectolitres, Great Britain 106,000, Slovakia 60,000, Austria 45,000, Italy 10,000, United States 8,000.

Following a recommendation by the Swedish Brewers Assocation, most brewers will begin putting information labels on beer to highlight that consumption of alcoholic beverages may be inappropriate under certain conditions.

The proposed warnings are: “Under 18? Avoid Alcohol,” “Pregnant? Avoid Alcohol,” “In Traffic? Avoid Alcohol” and “At Work? Avoid Alcohol.”

The report in the Edmonton Journal does not indicate if winemakers do anything similar.

Brewer and pub operator Marston’s has acquired the Ringwood Brewery in the south of England.

Americans know Ringwood – founded by Peter Austin in 1978 – best because Shipyard Brewing produces its Old Thumper under license in the United States. Many small breweries, particularly on the East Coast, use “Ringwood yeast” sourced from the British brewery and brew on systems manufactured by another company Austin started.

Hampshire-based Ringwood’s pubs will also be added to Marston’s estate.

“We plan to develop its excellent brands as part of our strategy to meet consumer demand for premium ales with local provenance and heritage, said Alistair Darby, Marston’s beer company managing director.

The Campaign for Real Ale (CAMRA) expressed concern that the latest acquisition will encourage a “domino effect” of consolidation in pubs and brewing.

CAMRA Chief Executive, Mike Benner said: “The practice among larger breweries of acquiring smaller competitors is a race where the only loser is the consumer who is often denied a locally brewed beer. As one of the larger breweries buys a brewery and expands their estate their competitors start hunting for their next purchase to keep up. CAMRA’s fear is that an increasing number of smaller breweries will be lost if this race continues and consumer choice will suffer as a result.

“In the last three years alone we have seen another Hampshire brewery, Gales, bought and closed by Fuller’s and Greene King bought and closed Hardys and Hansons in Nottingham, as well as buying and closing Ridley’s brewery in Essex.

“Marston’s purchased Jennings in Cumbria and invested in the future of the brewery and we hope they will continue this model with Ringwood. But, it begs the question, who is next in line for acquisition?”