Inbev's new distro incentives

Paywall... http://www.nasdaq.com/article/craft...ith-ab-inbev-distribution-plan-20151204-00098 should work, and looks to be the complete article.

 

And to think I almost weakened . . .

 

How is this shit POSSIBLY legal??????




Oh, that's right... it's because the law makers are on the payroll.

 

Why wouldn't it be legal, though? All they're saying is that if you carry more of their stuff they'll give you a better price. That happens all the time in just about every industry.

The assumed carry through (distributors pressuring retail and actually removing individual shoppers' choice) IS illegal, but happens all the time now anyway.

 

Thank you for posting this. And to think, people lined up over night last week, just waiting to hand ABInBev their money.

 

I have to log in to the wsj? Is there a definitive list out there of breweries under this umbrella of InBev?

 

The part about this that is lost was on me is why the distributors (I know $$$) don't agree to this but only if ABInBev agrees to release them from any potential exclusivity in terms of their macro portfolio.

Wait what? You mean ABInBev (or MillerCoors for that matter) would never agree to that because it would be admitting there is de facto collusion?

My issue is really more with the administration of the Three Tier System's oversight and administration. Proper modernization would go a LONG way toward allowing for rules and regulations that make sense for today.

 

It's time for someone to shakeup the distribution model in this industry. I have no doubt that a number of regulatory, political, and corporate barriers have to be broken down, but there is certainly a way to improve this.

 

Could this possibly mean more beers might make it to NC?

 

I don't know what it's like elsewhere, but there are multiple different beer distributors in my neck of the woods. Only one distributes AB InBev brands.

 

"We are focused on improving our offerings for consumers, and our new voluntary incentive program better equips wholesalers to compete in the future," said Ricardo Melo, Anheuser-Busch vice president of sales strategy and wholesaler development, in a statement.

Let me get this straight. They want to improve consumer offerings, so they come up with a plan to push their brands over the ones that consumers have been voluntarily leaving their brands for in recent years. Yup, that makes a lot of sense...

 

Is this not the same as pay-to-play, except between the producer and distributor rather than distributor and retailer?

 

There is no central "administration" of the Three Tier System - thanks to Section 2 of the 21st Amendment, every state has the right to set up their own alcoholic beverage distribution and sales system. More than half of the states allow some form of self-distribution (eliminating the middle tier-wholesalers) and every US state allows brewpubs (which eliminates both the middle and 3rd tier of wholesaler and retailer) thus, there is no absolute, mandatory "Three Tier System" anywhere.

There is no real "umbrella" to be under. Anheuser-Busch has something like 500 independent distributors around the country and each one is free to distribute beers from any other brewer, "craft", import or otherwise. When a brewer enters a new state they often will sign with the established network of AB (or MC) distributors, but other times a brewer will be a mix of AB, MC and/or indie houses. Any such list would be a very long one and would vary from state to state, and within the state. In tiny NJ alone, for instance, breweries like Anchor, Victory, Ithaca, Brooklyn, Firestone-Walker and Stoudt are some craft brewers distributed by some of the AB houses. In other states, those same brewers may be with MC or independent distributors.

 

I bet they were. I bet it wasn't an "ask", either.

In fact, I bet that's somewhere in the fine print, under the heading "How To Get Disqualified From Our New Incentive Program".

 

AB-Inbev are desparate. They are losing market share in major markets and doing whatever they can to get it back with tactics like this, overpaying for craft brewers, etc.

 

While not illegal, this business practice blurs the line on what is ethically acceptable. Is it really fair to the distributor that InBev would require participation in the program to be limited to craft brewers who brew less than 15,000 bbl or sell beer in only one state? Do these distributors really have a choice? This is why I refuse to buy any beers that InBev sells.

 

Which is why I almost weeped when Ballast got bought out

 

JK is my BA Snopes.

Never mind all of the brewery workers on the west side of Chicago. Right?