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I was flipping through facebook today and came across an article that pretty much infuriated me and I had to share.
INbev Bully Article
We all know that Inbev is the big guy and we also know they pretty much control the distributors they are in because of the sheer volume and money they make for those distributors. This shouldn't and doesn't come as a surprise. What comes as a surprise is that they are publicly stating they are going to pressure the distributors to sell more of their product and less of another and I will add my own...OR ELSE. Here is the quote from article referencing North American Operations President Luiz Edmond.
An unapologetic Edmond says wholesalers must pick sides, and show "loyalty" to InBev.
Wow, just wow! Do they have the right to do that? Certainly. Do I think this wasn't basically going on anyway? Of course it was. The biggest problem I have with it is that the little guy doesn't have other options typically. They can try and get into another distributor but more then likely they will just be competing against another giant like Miller/Coors.
I know this is how a free market economy works. The debate would be, get as big as InBev and do the same thing. Yeah I get it and believe me, I realize that even the big and small craft beer guys are clamoring to put as much pressure on a distributor to sell their products, but honestly, who is going to hold more weight, the one that makes them more money. Once in a distributor arrangement, in many states, it is very hard to get out with out leaving that state all together for a period of time. What is a brewery to do, stick it out or leave?
I compared this to Wal-Mart on facebook, but honestly, not the same thing. While Wal-Mart does push out the little guy and put pressure on it's suppliers in much of the same ways InBev indicates they are going to do now, retail distribution channels are vast and in high numbers because the state governments do not regulate them as much, if at all, compared to how alcohol distribution is managed. If I am selling a widget that I want to get into Wal-Mart, but someone else is already selling a similar widget to Wal-Mart through one distributor I can work with another one to get it there so mine can get attention too. The point being, I can easily jump distributions and more distributors can be available to me to use if I so choose. One of the big keys is the fact there can be more then a few distributors in an area.
I am not bagging on distributors in this case at all. You will sell what sells, I have had that conversation in person with a few of you. During those same conversations though, attention is being paid to craft beer because the demand is there to warrant that attention. My concern is that if InBev starts pushing it's "craft" beer your way and doing things to influence your decisions are you going to still follow the dollar? You probably will, can't say I blame you, but if that is the case, let the craft beer people out of their contracts with you easily and quickly so that they can find someone that will sell their products, don't shut them out and not give them the option if you are not going to sell their product anyway or treat it with the respect it deserves.
What do all of you craft drinkers think of this news, if it is in fact news? What would you like to see be done to combat this? Let us hear it!
1 comment:
It is sad to see InBev blame their failures on their distributors. I have been amazed that so far they haven't screwed up Goose Island. I think we will see them continue to more beers as well as acquire craft breweries.
This guy is clearly insane if he thinks Bud Platinum is a game changer.
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