The proposed consolidation of the world’s biggest beer companies in recent weeks has given rise to concerns that it could be harder for Canada’s small brewers to sell their brands in your local watering hole.

“Traditionally, big companies merging to become even bigger companies tends to have a little bit of a chilling effect on innovation and small companies,” said Jason Fisher, owner of the Indie Ale House, a Toronto brewpub that’s been in operation for three years.

“You want to go to a sporting event, they own that venue. You want to go to a concert, they own that venue. You want to buy beer at a store, they own those too.”

Large brewers use their financial heft for marketing and sponsorships to increase awareness of their brands. In exchange, those companies can buy up more beer tap lines to dominate distribution in bars and restaurants.

“That makes it a lot tougher for a smaller brewery to go into a bar and say: ‘I have a brand that’s better than yours,’” said Stephen Beaumont, a veteran beer industry watcher and author.

SABMiller PLC recently agreed to a $107-billion (U.S.) takeover by Anheuser-Busch InBev SA in a merger of the world’s two largest brewers. The deal would see Anheuser-Busch InBev control 31 per cent of the global beer market.

Molson Coors Brewing Co. is poised to nearly double in size after agreeing to spend $12-billion for SABMiller’s share of U.S. joint venture Miller Coors and Miller’s International brands, including those sold in Canada.

In Ontario, bars and restaurants are required to pay a 30-per-cent premium above the retail price at the Beer Store, a fee charged by many of the big breweries. But after establishing its Canadian division earlier this year, Miller eliminated that charge, which works out to be about $10 per case of 24.

James Rilett, Ontario vice-president of Restaurants Canada, fears Molson Coors will abandon that incentive once its purchase of Miller brands goes through.

“We had originally hoped that the Miller decision would go to other brands, but I think that hope is in jeopardy now,” he said.

Molson Coors declined to comment, saying it is premature to talk about changes when the deal is far from closing.

Molson Coors and InBev together control about 71 per cent of the Canadian beer market, according to market research firm Ibis World.

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