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Big Beer Companies Trying to Push Out Craft Beer


MJAlltheWay24

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Interesting how tall boys (16 oz) cans have become more prevalent these days & often discounted to same price as 12 oz. cans. There's your added Alcohol content.

 

In my hometown, the liquor store sells Bud/Bud Light 24-packs of pints for less than what it costs for a case of 12-oz.

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I guess I don't blame InBev for trying it, but why on earth are we still regulating beer sales and distribution like this?

 

A lot of these large companies demand rebates from trucking companies as well. We'll give you x amount of sales per month as long as you give us an 8% rebate on the loads...

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North Carolina BBQ Chain Boycotts Anheuser Busch for Questionable Business Practices :: Drink :: News :: Paste

 

Says managing partner Bryan Meredith in the story: “We’re all for a company to win market share due to their product and service, but we are not in favor of nor do we want to associate ourselves with a company that bullies its competition in the way that AB has chosen to.”

 

[...]

 

The BBQ restaurant will boycott Anheuser products in its four restaurants in the Charlotte, NC area—certainly not a huge dent in Budweiser sales, but an interesting precedent if other restaurants choose to follow their lead. In the end, it’s just cool to see a local restaurant supporting its local breweries and urging others to do the same.

 

“Paying or offering to pay distributors money not to sell craft beer, whether legal or not, in our opinion is wrong,” said Meredith. “This harms us and our guests by attempting to limit choices and restrict free trade. These [craft] brewers who are our friends and neighbors, have been very supportive of our growth and our community, and it’s important to us that we stand with them and against this bullying.”

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A lot of these large companies demand rebates from trucking companies as well. We'll give you x amount of sales per month as long as you give us an 8% rebate on the loads...

 

OMG HOW EVIL!!!!

 

I like how you phrased that for effect. However, most companies negotiate rates with carriers of their products. Basic business practice.

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OMG HOW EVIL!!!!

 

I like how you phrased that for effect. However, most companies negotiate rates with carriers of their products. Basic business practice.

 

This isn't price negotiation. this is volume negotiation. In order to do X amount of business, we need x amount of a rebate. It is different. I agree, in the end, you don't have to deal with that customer, but it is a demand to reach certain amounts of volume.

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This isn't price negotiation. this is volume negotiation. In order to do X amount of business, we need x amount of a rebate. It is different. I agree, in the end, you don't have to deal with that customer, but it is a demand to reach certain amounts of volume.

 

Agreed, it is a negotiated volume. However, it is not unlike when I am negotiating with a data carrier and I demand price breaks when I hit certain band width levels (volume). It's natural to demand lower costs, or credits, or rebates for higher volumes.

 

By the way, it is my understanding that GM dropped UPS as their preferred carrier precisely because they would not concede to volume based price breaks, or rebates, at least not to the extent FedEx would.

 

Also, what you are indicating flies in the face of the original premise. Isn't AB/InBev is offering incentives to carry more of their product and less of the craft competitors? That is the exact opposite of demanding a rebate for increased volume.

 

I not trying to be obtuse. This is making no sense to me.

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Agreed, it is a negotiated volume. However, it is not unlike when I am negotiating with a data carrier and I demand price breaks when I hit certain band width levels (volume). It's natural to demand lower costs, or credits, or rebates for higher volumes.

 

By the way, it is my understanding that GM dropped UPS as their preferred carrier precisely because they would not concede to volume based price breaks, or rebates, at least not to the extent FedEx would.

 

Also, what you are indicating flies in the face of the original premise. Isn't AB/InBev is offering incentives to carry more of their product and less of the craft competitors? That is the exact opposite of demanding a rebate for increased volume.

 

I not trying to be obtuse. This is making no sense to me.

 

You are correct. It is reimbursements and not rebates. My intent was to show that companies offer reimbursements to lead distributors with the carrot as opposed to demand rebates which is using the stick.

 

Also, demand is exactly what they do. It doesn't have to have a negative connotation, but it is "If you want this, you reduce pricing by this." That is a demand.

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  • 1 year later...

Was just speaking with a guy that used to work in the Finance Department at Miller-Coors. Decided to chit-chat about the beer industry before business and he told me that it was their goal to buy at least four craft breweries every month and then often times shut down their production to control their market.

 

He went on to say that from what they started to find, craft beers is starting to be too saturated and isn't affecting them as much as it used to. Something I found interesting.

 

I said Rivertown was owned by Miller-Coors, which surprised me.

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Was just speaking with a guy that used to work in the Finance Department at Miller-Coors. Decided to chit-chat about the beer industry before business and he told me that it was their goal to buy at least four craft breweries every month and then often times shut down their production to control their market.

 

He went on to say that from what they started to find, craft beers is starting to be too saturated and isn't affecting them as much as it used to. Something I found interesting.

 

I said Rivertown was owned by Miller-Coors, which surprised me.

 

The craft beer market is quite saturated. There's just too many to try and keep up with, and with extremely limited production runs, you might taste something at the bar and never get it again. Tough to keep up with it all.

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Just buy local. That solves all the problems at once.

 

I don't care how big the breweries get, but as long as they stay owned in Cincinnati and Louisville and their quality keeps up, I'm going to keep buying Rheingeist and Against the Grain and other such brands as my primary brews.

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