Inbev's new distro incentives

MJ is right about who they're targeting, and obviously Sam Adams and Lagunitas and Deschutes and Duvel Moortgat and New Belgium. The guys who have half a door or so at the store, or at least 5-6 facings (or whatever they call them in the trade.) They don't give a s**t about Prairie and Jester King and Crooked Stave and Surly and Three Floyds etc. Thing is, these targets are big enough to be able to afford antitrust lawyers of their own. I have a feeling this one is going to be interesting.

 

what a great post! the essence is summed up in the line about the walk of shame, and my condensed version is that its BS to wave the flag over free market principles when you've already diddled the government into giving you the advantages of a decidedly unfree market.

 

Makes beer geeks look downright civil.

 

I find that the only way that they will be successful with this approach is to continue to snatch up proven craft brewers where they can flood the shelf with their portfolio and convince retailers that their craft needs are handled. But as someone mentioned earlier, there will still be the market for those who don't drink their products. I think they are basically just driving themselves into litigation with these actions.

 

I believe Surly and 3 Floyds are both above the magical 15,000bbl limit AB is using.

 

The article made it sound like AB-InBev will try to make craft drinkers switch to Bud Light, but that's not true [and exposes how poor Mother Jones' reporting is]. AB-InBev has their own craft brands (Goose Island, Shock Top, Elysian, Blue Point, etc.) to fill the voids on shelves when distributors stop selling other brands. So, there will still be flavorful craft beer on the shelf, but AB-InBev is hoping a larger percentage of it will be theirs. Keep in mind that most beer drinkers, craft or otherwise, will simply buy what's available to them and are not as informed about beer brand ownership as members of this website (we are a niche within a niche).

 

Good point. Neither are sold in my market and I didn't fact check. They are definitely, then, on the hit-list, although I continue to believe it's primarily aimed at top-ten or top-twenty type national craft brewers.

 

I assumed Homer there was going by the stats in this 2014 Brewers Association graphic for his 20% "Dollar Share" figure:

I noticed, too, that the two different charts for 2014 had different barrelage totals for craft, as well:

Yours - 21,775,905 bbl.
This one - 22,159,327 bbl.

Could be the difference between "produced" and "sold".

 

The correct percentage value of craft beer dollar share for 2014 is 19.3%. I made a math error in my previous post.

Cheers!

 

Hey, as Beer Dictator, I did decree that this should not happen! What the hell?!?!

 

@joyntbrewing thanks for that link. The article was indeed an interesting read.

Some extracts from the article that I particularly found interesting:

“The beer giant plans to devote big bucks to the scheme—about $150 million next year, as part of a "three-year plan to restore growth in AB InBev's most profitable market," the United States, the Journal reports.”

This is the first time I have read that the US market is AB InBev's most profitable market so there is indeed a strong financial incentive for AB InBev to regain sales volume in the US.

“At least one distributor has dropped a craft brewer as a result of the incentive program. Deschutes Brewery President Michael Lalonde said Grey Eagle Distributing of St. Louis last week decided it will drop the Oregon brewery behind Mirror Pond Pale Ale because it "had to make a choice to go with the incentive program or stay with craft."

This is the first example that I have read where this new incentive program is having specific impact on craft breweries (Deschutes in this example).

These are indeed dynamic times in the competition between the mega-breweries and craft.

Cheers!

 

I think that somebody should point out that Grey Eagle is the St. Louis distributor of AB products. The idea that what happens in St. Louis with AB products is any way indicative of the rest of the country is asinine. Go order a Bud Light in Milwaukee or Golden, Colorado if you want to figure out why...

 

But it is true that Grey Eagle dropped Deschutes, right? This is an indication that this new incentive program is having an impact, right?

Cheers!

 

I was just using the extreme case as an example. If I lived somewhere and didn't like the options, then I won't buy anything. No I don't drink whalez 24/7, and yes I do buy Stone, Sierra Nevada, etc on a regular basis.

 

First time I heard the term "zip code brewery" I love it. Much better than "nano" or "local" brewery IMO.

So is this your creative title or does someone else get bragging rights for its creation?

 

LOL at this working.

 

I will not take credit. I work at a brewery for a little while and it was another gentleman who I worked with who I first heard utter the term. I do agree though! It works well and it really doesn't disguise anything. Its a brewery that serves only it's community because it does not wish to grow large enough to distribute.

 

I'll just switch to wine

 

...or they could just make a better product that people want to buy. The CEO makes how much?

 

Woah. Turning garage into a refrigerated walk-in? Brilliant!