Anheuser-Busch InBev Reorganizes High End Division

Discussion in 'Beer News & Releases' started by jesskidden, Jul 10, 2018.

  1. jesskidden

    jesskidden Meyvn (1,344) Aug 10, 2005 New Jersey

    AB just announced they're going to "re-organize" their High End division, according to Brewbound:

  2. MNAle

    MNAle Meyvn (1,034) Sep 6, 2011 Minnesota

    “Today’s announcement is an important step to better align our commercial structure with our new long-term business strategy, specifically as it relates to premiumization and innovation,”

    That there is some High End Corporate Babble! I'm impressed!
  3. dennis3951

    dennis3951 Champion (835) Mar 6, 2008 New Jersey

    I'm impressed too. This also means wait and see what happens next.
    LuskusDelph, jdell15 and MNAle like this.
  4. TongoRad

    TongoRad Poo-Bah (2,505) Jun 3, 2004 New Jersey
    Premium Trader

    'Premiumization' really takes the cake!

    No matter where I turn these days it feels like I'm stuck in a dystopian satire. I only wish that someone would premiumize it already...
  5. rgordon

    rgordon Champion (859) Apr 26, 2012 North Carolina

    Premiumization. They should just say they charge more for it now than before. I love making up words, but that one is less than euphonious and sounds like something from 1984 or Brave New World.
  6. JackHorzempa

    JackHorzempa Poo-Bah (3,713) Dec 15, 2005 Pennsylvania

    What do you say to them inventing a word that does not exist in the dictionary: “Premiumization”?

    I would guess that the appropriate response is: Dilly dilly!:stuck_out_tongue:

  7. beertunes

    beertunes Poo-Bah (5,588) Sep 24, 2007 Washington

    I was so stunned by that bullshit that I was left speechless.

    Which is a rare thing.
  8. JackHorzempa

    JackHorzempa Poo-Bah (3,713) Dec 15, 2005 Pennsylvania

    To the "pit of misery" you go!:wink:

  9. Rdubya87

    Rdubya87 Initiate (37) Feb 10, 2014 California

    I think Craft Brew News had a great take on this:
    So AB’s efforts to effectively and efficiently sell craft beer in the US evolve once more. Most craft brands, this move suggests, play regionally or locally, though efforts to support those brands may require coordination at national level, where Felipe and his High End team come into play. But reorg also highlights a clear difference between that regional or local work and what’s required to build a national craft brand. It’s the difference between leveraging Goose’s renovated Clybourn brewpub or selling 16oz canned 4-pks of 312 Dry Hopped in Chicago and a Goose IPA Super Bowl ad, for example. Separating the two will benefit each, AB seems to believe. Exactly how it allocates resources across them, plus competition for those regional/local resources among its acquired craft brands, will continue to impact each brand’s and AB’s success within the segment."

    I'd be pretty nervous if I was working at one of the smaller regional breweries. At the end of the day, guys like DB and WW were betting that ABI's support would counterbalance backlash from the Craft community and allow for continued growth. If ABI's support begins to fade, you become an acquired brand without the benefits. Will be interesting to see how this shakes out
  10. rgordon

    rgordon Champion (859) Apr 26, 2012 North Carolina

    Making up words is a very fun exercise. Some become recognized words. Many are euphemisms. Some apply varied layers of entendre. And then just about every other way imaginable. Dilly dilly comes- I think- from the tune Ring Around the Rosies, dealing with The Great Plague.
  11. JohnnyChicago

    JohnnyChicago Crusader (795) Sep 3, 2010 Illinois

    Premiumization is such an equally awesome and awful nugget of bogus, empty officetalk, I may have to steal it for a beer name...maybe an American Premium Pilsner?
    Hey, worse case scenario, maybe I can score some free super bowl tickets! :grin:
    TheDoctor, AZBeerDude72 and FBarber like this.
  12. NotAlcoholicJustAHobby

    NotAlcoholicJustAHobby Savant (901) Jun 13, 2015 Vermont

    Premiumization is a travishamockery for sure.
  13. darktronica

    darktronica Poo-Bah (1,846) Aug 29, 2014 Indiana
    Premium Trader

    Premiumizationalized would make a great name for a brandy barrel-aged, triple dry-hopped IPA with lactose and oats.
  14. syppr

    syppr Initiate (38) May 19, 2011 Florida

    Weighing in at 8.00. Syllables, that is.
  15. JohnnyChicago

    JohnnyChicago Crusader (795) Sep 3, 2010 Illinois

    You forgot the uglifruit. I award you zero Dogfishbucks.
  16. flat_lander

    flat_lander Devotee (431) May 11, 2016 Illinois
    Premium Trader

    I think this type of strategery speaks bigly to the known unknowns of the splendiferous future of the high end craft division at ABI.

    i.e. This shit isn't paying like we had hoped so be ready for us to start tinkering with you even more. Welcome to the ABI family.
  17. Boomer4ES

    Boomer4ES Disciple (300) Jan 31, 2012 North Carolina

    Can you please clarify "they charge more for it now?" What is it, and when are you comparing it to?
  18. lordofthemark

    lordofthemark Aspirant (225) Jan 28, 2015 Virginia

    This actually makes sense to me. The "captive craft breweries" are a different kind of business, in from "crafty" shock top and the imports/ "imports", I think .
    Ranbot, drtth and TongoRad like this.
  19. Boomer4ES

    Boomer4ES Disciple (300) Jan 31, 2012 North Carolina

    I'm failing to see where the idea that ABI's support is going to fade is coming from. They are dividing the high end portfolio, which formerly included all of the brands listed in the first post, into two groups. The craft portfolio will have all of the same employees as the former high end group, but with fewer (only 12 vs 20+ previously) brands to focus on. Maybe I'm crazy, but it seems to me that would mean more focus and support on the craft brands while Stella, Hoegaarden, etc will be considered core brands and will no longer have a separate, dedicated sales team.
    Beer_Economicus likes this.
  20. Squire

    Squire Poo-Bah (2,033) Jul 16, 2015 Mississippi
    Premium Trader

    So if I premiumization myself does that mean I'll finally meet that rich widow who owns a liquor store?
  21. TongoRad

    TongoRad Poo-Bah (2,505) Jun 3, 2004 New Jersey
    Premium Trader

    For sure. That it's taken this long for AB-I to figure this out doesn't inspire confidence, though.
    Beer_Economicus and Bitterbill like this.
  22. drtth

    drtth Poo-Bah (3,650) Nov 25, 2007 Pennsylvania

  23. TongoRad

    TongoRad Poo-Bah (2,505) Jun 3, 2004 New Jersey
    Premium Trader

  24. drtth

    drtth Poo-Bah (3,650) Nov 25, 2007 Pennsylvania

    No disagreement here. What I'm wondering about is the timing of when the understanding developed. I can envision two scenarios for understanding and then for taking action. One is that they just recently figured out the difference. The other is that they figured out the difference about they same time they realized they needed to trigger those layoffs but then, given corporate inertia, it's taken them several mos to set up this new arrangement.
    TongoRad likes this.
  25. cavedave

    cavedave Poo-Bah (2,459) Mar 12, 2009 New York

    I don't know. I am re-thinking things based on some comments in this thread. But when I first read this Brewbound article via another page I had the same exact thoughts as you say in your post.
    Beer_Economicus likes this.
  26. steveh

    steveh Poo-Bah (2,104) Oct 8, 2003 Illinois

    Interesting that Franziskaner is listed, but no mention of Spaten.

    When I was in the bigger corporate world, the whisper of a "re-org" always meant layoffs and had us hiding under our desks. I wonder if Spaten has a big desk?
    Beer_Economicus likes this.
  27. Ranbot

    Ranbot Zealot (545) Nov 27, 2006 Pennsylvania

    Premiumization sounds perfectly cromulent to me. What's the big deal? :thinking_face:

    Agreed. I remember this quote from @Alexmc2 in the High End lay-off discussion:
    If that's true the High End was didn't have the direction or structure to sell their craft brands, which would have different strategies than brands like Stella and Shock Top. Corporate babble aside, this restructuring was probably needed for a while. For the AV-InBev acquired craft brewery I would think at the very minimum this restructuring probably won't make things any worse, and there's reason for some optimism the change could help.
  28. FBarber

    FBarber Poo-Bah (2,452) Mar 5, 2016 Illinois
    Premium Trader

    Shock Top falls into that category? Yikes.

    Dilly Dilly!
    JohnnyChicago likes this.
  29. eppCOS

    eppCOS Crusader (721) Jun 27, 2015 Colorado

    Year: 2079 - amid the ruins of skyscrapers and sewage treatment plants, the last known hominids are left with only businesspeak as their shared vernacular.
    JackHorzempa likes this.
  30. guinness77

    guinness77 Savant (936) Jan 6, 2014 New York

    Brawndo!! With electrolytes! It’s what plants crave! The thirst mutilator!
  31. JackHorzempa

    JackHorzempa Poo-Bah (3,713) Dec 15, 2005 Pennsylvania

    Outstanding! A quote from “Idiocracy” which also happens to be a made up word.

    Cheers to you!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
    eppCOS, guinness77 and Tucquan like this.
  32. Rdubya87

    Rdubya87 Initiate (37) Feb 10, 2014 California

    So first off, when I say "support", I really mean money and focus. When all of these brands and breweries were under one organization/division, resource allocation and budgets were likely shared (note: this whole discussion is speculative - I have no knowledge of the inner workings). So some of these regional breweries might of had access to an out sized pool of resources relative to their size and to the potential ROI of a given position/project/investment. Now that they have been split out, there will be a different (and smaller) budget available to them and probably more onus to prove out the value of a given spend due to increased competition among themselves for $'s.

    It could be that in practice this has no impact on a given brewery given their growth targets. However, I have to believe that each of the breweries that sold out had some lofty expectations around future growth that now may be looking more difficult to achieve if they aren't part of the larger Sales & Marketing org.

    Just my thoughts and I've probably overblown the situation - but I really do think it could have some interesting effects
  33. MistaRyte

    MistaRyte Devotee (429) Jan 14, 2008 Virginia

    Maybe this is punishment for Shock Top producing Pretzel Wheat
  34. meefmoff

    meefmoff Zealot (540) Jul 6, 2014 Massachusetts

    Thank you so much for embiggening this thread. I salute your noble spirit!
    eppCOS, TongoRad and Ranbot like this.
  35. Giantspace

    Giantspace Defender (673) Dec 22, 2011 Pennsylvania

    I love that documentary from the future.

    guinness77, eppCOS and JackHorzempa like this.
  36. guinness77

    guinness77 Savant (936) Jan 6, 2014 New York

    Unfortunately, life/civilization as a whole seems to be heading in that direction. The scariest part of that movie is that it’s supposed to be set in 2505. Might come true by 2025.
  37. JackHorzempa

    JackHorzempa Poo-Bah (3,713) Dec 15, 2005 Pennsylvania

    But since you have seen the movie you are now prepared. I would be willing to bet you could pass the IQ test.

    Secretary of Education: IQ Test: If you have 1 bucket with 2 gallons and 1 bucket with 4 gallons, how many buckets you got?

  38. Jonc

    Jonc Initiate (50) Feb 12, 2007 Missouri

    At least 3.

    3 X 2 gallon buckets. Any more, you could hurt your back. Possible hernia.
    guinness77 likes this.
  39. guinness77

    guinness77 Savant (936) Jan 6, 2014 New York

    Hahaha. Nice

    How come you keep saying brought to you by Carl’s Jr.?
  40. Alexmc2

    Alexmc2 Aspirant (240) Jul 29, 2006 Massachusetts

    Ha, yeah... If only we told them this years ago... But I guess because the people saying those things didn't have Ivy league degrees or Brazilian passports it didn't quite get through...
    rgordon, Ranbot and TongoRad like this.