FOR IMMEDIATE RELEASE
Points To Community Redevelopment Act (CRA) Obligations
SAN RAFAEL, CA (June 13, 2008) --- Marin Institute, the alcohol industry watchdog, has requested that the federal Office of the Comptroller of the Currency (OCC) investigate JP Morgan Chase Bank’s (JMPC) potential loan to Belgium-based InBev Corporation. The advocates raised concerns that a loan enabling InBev to acquire Anheuser Busch would harm low income communities. Marin Institute believes this would be in direct violation of the bank’s obligations under the Community Reinvestment Act (CRA) to “serve the convenience and needs of the community.”
In letters sent to bank, regulatory and brewery officials, Marin Institute outlined the possibly negative impacts on vulnerable communities from the transaction, made possible by a $50 billion loan from JPMC and other investors. In their letter to the OCC, Marin Institute stated that the “…acquisition of Anheuser-Busch by InBev will result in lower beer prices that will solely benefit the affluent few while creating tremendous harm to the health and local economy of low and moderate income communities.”
Marin Institute believes the negative effects of the JPMC-financed sale would include reduced market competition and increased unemployment as well as potential impacts on advertising and products sold in low income areas and communities of color.
Marin Institute raised concerns about marketing to youth, as well. Anheuser-Busch manufactures and distributes a number of dangerous alcopops and alcoholic energy drinks (Bacardi Silver products and Tilt) that are particularly appealing to underage drinkers. With InBev’s great competitive advantages and potential price wars, those products could be sold even more cheaply, in locations frequented by youth, and advertised more aggressively on the Internet at sites like BudTV.com.
“Federal CRA regulators must examine economic impacts on low-income communities from this mega-merger,” stated Bruce Livingston, Marin Institute executive director. “Bigger corporations are not always better for people of color and youth. An InBev-Busch global monopoly on beer would create global sized beer-related problems.”
