U.S. probes allegations AB InBev seeking to curb craft beer distribution
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Re: U.S. probes allegations AB InBev seeking to curb craft beer distribution
#2No surprise there
Typical of big companies to squash competition in favour of the crap they sell
Re: U.S. probes allegations AB InBev seeking to curb craft beer distribution
#3No surprise there Typical of big companies to squash competition in favour of the crap they sell
yep, don't people know how Capitalism works? This sort of stuff is perfectly expected, just like the VW cheat. It's a fight for money and there aren't many rules.
Re: U.S. probes allegations AB InBev seeking to curb craft beer distribution
#4No surprise there Typical of big companies to squash competition in favour of the crap they sell
yep, don't people know how Capitalism works? This sort of stuff is perfectly expected, just like the VW cheat. It's a fight for money and there aren't many rules.
and yet in this case the Big Company is using one rule -- sales through distributors exclusively -- to make seemingly anticompetitive moves.
Re: U.S. probes allegations AB InBev seeking to curb craft beer distribution
#5> Many states require brewers to use distributors to sell their product, and once AB InBev buys a distributor, craft companies say they find that they can't distribute their beer as easily and sales growth stalls
That seems like the problem here. Why can't brewers sell direct?
Like Telsla sales channels - what is it about the US and middle men?
Re: U.S. probes allegations AB InBev seeking to curb craft beer distribution
#6> Many states require brewers to use distributors to sell their product, and once AB InBev buys a distributor, craft companies say they find that they can't distribute their beer as easily and sales growth stalls That seems like the problem here. Why can't brewers sell direct? Like Telsla sales channels - what is it about the US and middle men?
Why would you think there's anything special about the US and middle men?
Re: U.S. probes allegations AB InBev seeking to curb craft beer distribution
#7> Many states require brewers to use distributors to sell their product, and once AB InBev buys a distributor, craft companies say they find that they can't distribute their beer as easily and sales growth stalls That seems like the problem here. Why can't brewers sell direct? Like Telsla sales channels - what is it about the US and middle men?
The three-tier system was created after the end of prohibition to provide a single point for the control and taxation of alcoholic beverages by the states, the wholesalers (distributors). It also protected the smaller suppliers (breweries) from the bigger ones by requiring that wholesalers be independent from the suppliers, who are independent from the retailers.
However, when you're as big as InBevAB, you essentially own any wholesaler you deal with, since your sales will account for such an overwhelming share of their overall sales.
Many craft breweries can get around this three-tier system by operating their own brewpubs, where they produce and sell their product on the same premises.
I feel like the three-tier system has probably outlived its use and is likely more harmful than beneficial.
Re: U.S. probes allegations AB InBev seeking to curb craft beer distribution
#8> Many states require brewers to use distributors to sell their product, and once AB InBev buys a distributor, craft companies say they find that they can't distribute their beer as easily and sales growth stalls That seems like the problem here. Why can't brewers sell direct? Like Telsla sales channels - what is it about the US and middle men?
Before prohibition, big brewers owned most of the bars and you could only buy their brand. Ken Burn's "prohibition" documentary explains how a single brand of beer owned all the bars for several blocks in a city.
State legislatures had this in mind and adopted the 3 tier system barring producers from controlling distribution and/or owning the bars.