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New Tactic by Inbev to limit craft's market penetration

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  • New Tactic by Inbev to limit craft's market penetration

    I saw this article" http://m.motherjones.com/tom-philpot...our-craft-beer

    In summary it reports that, to get around the 3 tier system, AB Inbev is offering $$ incentives to distributors if the distro carries them and doesn't carry crafts who are over 15k bbl / year or who distribute in more than one state.

    Deschutes has been dropped by 1 distro, according to this article. Has anyone else seen an effect?
    Chief Fermentation Officer
    Oregon Mead & Cider Co.

  • #2
    I like it. Keep it small and local. Jobs/raw materials/community.

    Let people make the pilgrimage to experience your nectar if it deserves. Don't brew beer to get rich. Brew beer to keep your community happy and proud to have you. You should have a great life brewing < 15,000 bbl. Let Bud try to bring us down. Your community will always support you.

    Originally posted by BrooksCooper View Post
    I saw this article" http://m.motherjones.com/tom-philpot...our-craft-beer

    In summary it reports that, to get around the 3 tier system, AB Inbev is offering $$ incentives to distributors if the distro carries them and doesn't carry crafts who are over 15k bbl / year or who distribute in more than one state.

    Deschutes has been dropped by 1 distro, according to this article. Has anyone else seen an effect?

    Comment


    • #3
      Same program, different name. In the 90's AB called it "share of mind." August the 3rd classified each wholesaler as A B or C depending on the other brands and product types the wholesaler carried. Back then their main enemy was Sam Adams. BMC market share has remained flat or shrunk since then. Wholesalers were forced to look for other brands and product types (water, juice) to support their shrinking business. Those trucks cost money to own and operate. Salesmen cost money. Both are already going to the accounts. Adding brands and products adds incremental volume.

      I don't see how this strategy works now unless BMC continues to add (buy up) other breweries to their portfolio to offer these wholesalers. Extremely few wholesalers could survive on BMC alone. Think about it.. How much would Carlos Brito have to subsidize a distributor to ditch their more profitable and growing brands?

      As for the other comment, It sounds like the commenter is saying be content by being an irrelevant little beermaker for your local neighbors because you have no chance to ever amount to anything as a viable brewery. That pissed me off at first, but upon review it's actually good advice for most of you out there I'm sorry to say. Most new breweries are of the small variety. 15 barrels and under. That's fine. Make the best beer you can and serve your local market. It beats the crap out of working for someone else.

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