Ryan B wrote:Shawn Vest wrote:The big 3 (now the big 2) have consistently attempted to (and succeeded in several cases)
1 - not allow fair distribution of micro products (given that almost all major distributors of beer in the current 3 tier system are economically bound to or directly owned by the big 3)...
OK Shawn, I'll agree with many of your points but take exception to this one. Do you have a specific example that illustrates this? Being in the distribution business, I can say that I have not seen this manifest itself. Excluding brewery owned distributors (like the local AB branch), major breweries have little influence on how well other products are distributed in the market. Every distributor I'm familiar with has the goal to sell as much beer as they possibly can regardless of who the supplier is. Generally they prefer to sell higher priced micros over lower priced "economy" brands. If a particular micro has low distribution in a market it is more likely a reflection on both the distributor and the brewer who produces that brand, rather than any other brewer. In fact, distributors who carry one (or more) of the "big 3's" products are usually in a better position to grow distribution of craft and imported beers. Their businesses have the infrastructure required to support and deliver smaller volume brands to a greater portion of the market. As you point out, many distributors are "economically bound to the big 3", but rather than hurting micro distribution, one could actually make the argument that the revenues the big 3 generate for distributors have helped subsidize the growth of craft beer.
I used to work for a big bad Budweiser distributor in Indianapolis. I respect their operation a great deal. It's unfortunate, but AB has bought microbreweries and shut them down. They much preferred to make their own costly stabs at what I will call "mass micro"
Amber Bock - Neither amber or bock
Anheuser World Select - Heineken start, Bud finish (Marketed poorly: Sold in to high-end accounts, should have been marketed to new to import drinkers who made not have cared for Heine's aftertaste at first)
Bare Knuckle Stout - Attempted Guinness competitor, b/c Diageo supposedly once claimed it would take over the stronghold on American beer distro w/ Guinness & Smirnoff Ice. I heard AB managed to lure a couple of brewmasters away.
Only recently has Budweiser taken the approach of buying and running the brewery at the attempt of keeping the product the same and profitting off of greater distrobution. When I left, Budweiser was most concerned over loss of beer sales in favor of liquor. I heard Bud was in the bidding to purchase Absolut from Sweden. Pernod-Ricard won the bidding war in the end.
Budweiser is a publicly traded company that has a responsibility to its stockholders. Hostile takeovers, spin-offs, and other such practices will occur the same as other businesses on the NYSE. It is what it is...
"major breweries have little influence on how well other products are distributed in the market" -Ryan B.
BF Beverage was the AB distributor in Indy until the late 1990's. They also put on most every Newcastle tap in town. When AB loaned one of their men the money to take over BF beverage, one of the stips was that they give up Newcastle and others to focus on AB brewed products. In my experience they do wield more power than one would like to believe.
As far as Roger's comments about Slugger Field/Macro-Brews/Ketchup: Exclusivity is the name of the game in every Venue or Chain. I'm pretty sure Heinz makes sure I can't have Red Gold ketchup at White Castle.
