Big beer merger sparks exile fears
In a statement e-mailed to reporters last week, Reps. Lincoln and Mario Diaz-Balart, brothers and incumbent Republican Cuban-American congressmen from South Florida, expressed concern about what was then the impending acquisition of Anheuser-Busch of St. Louis, Mo., by the Belgian conglomerate InBev. The Diaz-Balart brothers’ concerns stemmed from the Belgian firm's “ties to the Cuban dictatorship, a State Sponsor of terrorism,’’ their statement read in part. It added that InBev “distributes and markets its products throughout the entire ‘tourism apartheid sector of communist Cuba.’’ The statement also suggested that InBev may be involved in undetermined “trafficking in stolen property in Cuba,’’ a reference to possible use of properties confiscated without compensation by the Cuban revolutionary regime from Cuban or U.S. owners after Fidel Castro seized power in 1959.
Now that the Anheuser-Busch-InBev merger is a reality, it’s perhaps a good time to explore the Cuban concerns. (The Associated Press photo shows crates of Beck’s beer at an InBev brewery in Germany).
The fears of InBev’s Cuban connections were not raised by Cuban-American leaders first.
Anheuser-Busch itself denounced InBev’s Cuba deal when it was fighting the InBev acquisition.
Here’s what Anheuser-Busch disclosed about InBev’s Cuba involvement, according to a Reuters story July 7.
InBev, through a subsidiary, has a partnership with the Cuban government to produce and distribute products in Cuba, the story said.
InBev suggested, before the merger deal went through, that its dealings in Cuba were small and that if need be it might divest itself of them to comply with U.S. laws related to the American trade embargo on Cuba, Reuters indicated.
“Like many multinational companies, InBev has modest activities that relate to Cuba,’’ InBev said, according to Reuters. “The affected volumes constitute less than ½ of 1 percent of InBev’s global volumes.’’
On its Internet website, http://www.inbev.com/, InBev features a market fact sheet listing as local beer brands in Cuba Bucanero, Bucanero Malta, Bucanero Max, Cristal and Mayabe and a beverage plant in Holguin in eastern Cuba.
InBev also said, according to the Reuters piece, that its Cuba business does not violate U.S. or international law and that it would comply with all legal requirements were it to successfully acquire Anheuser-Busch.
U.S. Cuba embargo laws prohibit any “person subject to U.S. jurisdiction from dealing in any property in which Cuba or a Cuban national has an interest.’’ Under the regulations, property includes contracts and services, according to a U.S. Treasury Department Office of Foreign Assets Control fact sheet on the embargo. The regulations also say that persons subject to U.S. jurisdiction "may not provide accounting, marketing, sales, or insurance services to a Cuban company or to a foreign company with respect to the foreign company's Cuba-related business.''
InBev had no immediate comment on what it intends to do with its Cuba interests now that it has acquired Anheuser-Busch. But it sent The Miami Herald Wednesday a written statement via e-mail.
Here's what the statement says:
"Like many multinational companies, InBev has modest activities that relate to Cuba. These operations do not violate US, EU or international law. All aspects of our Cuban business are handled out of Europe. InBev currently brews, distributes and sells Beck's and Bucanero, Cristal and Mayabe branded beers in Cuba through a 50-50 joint venture with the Cuban ministry responsible for food matters, and the volumes constitute less than 1/2 of 1% of InBev's global volumes.
"Inbev continuously reviews its commercial activities and contractual relationships to insure compliance with all applicable laws and regulations. Once the transaction with Anheuser-Busch is completed, which will still take a few months, the combined company will continue to comply with US, EU or international law.''
-- Alfonso Chardy



































