Why AB InBev and the others suck

[Henry22]

When was the last time you bought dairy milk and it poured out blue?

That's a good argument you got right there.

Regulation for health and safety is a far cry from meddling in things the government knows very little about (business, what people want). Let the free market decide who should survive.

 

[Homercidal]

That is the price of being publicly traded companies. The big boys' hands are tied. Even if they wanted to make good craft beer, their margins and more importantly their bottom line would suffer. This would lead to a lower stock price, disgruntled stock holders, and management being given the boot. BMC owe their allegiance not so much to the customer but Wall Street. BMC is not interested in bucking tradition. All they care about is the bottom line. If they could bottle urine, which in this writer's opinion, Bud Light is, and make record profits, they would.

If any of the Craft beer brewers can sell their craft beer for a profit, then AB or anyone else can too. But their customer base wont' buy it because it would be considered too expensive. Craft beer people wont' buy it because it's made by a huge international conglomerate.

They are doing what they need to do:

1) buy craft breweries and sell under their name.
2) introduce begeinner level flavored beer for the BMC faithful who might like to step out of the canoe, but are too afraid of falling in a lake.

 

[BrewKnurd]

If any of the Craft beer brewers can sell their craft beer for a profit, then AB or anyone else can too.

Well, I agree, but its quite possible that for a craft brewer, a lower profit margin is considered OK vs what the board of directors at AB would be happy with. I don't actually know this for a fact, its complete speculation.

But their customer base wont' buy it because it would be considered too expensive. Craft beer people wont' buy it because it's made by a huge international conglomerate.

For their base it will not only be too expensive, they just won't like it. At least many of them.

 

[Homercidal]

Maybe. All of the BMC people I know drink it because A) it's what everyone else they hang with drinks, and B) it's cheap.

But they almost all have their favorite beer, as if there is really a meaningful difference in flavor.

I know people who drink black coffee and think anything more flavorful than Budweiser is nasty, bitter stuff.

 

[wildwest450]

Gas is almost $4 a gallon and the collective is whining about a foreign companies business practices?

 

[TyTanium]

Gas is almost $4 a gallon...

Maybe in your neck of the woods. Up over $4.50 here in Chicago.

 

[hwilshusen]

I do not know any battery aficianados, tho.

.

You should check out the E-Cig and flashlight forums

 

[Homercidal]

Monopoly law was written because ALL business seek to gain advantage over their peers. Unfortunately the 3-tier system has not kept the big beer companies from having a firm hand on the supply chain.

What I find disappointing are the comments the guy makes flat out saying they are strong-arming the wholesalers, who are likely making a ton more money on BMC than craft beer. The threat of BMC pulling out is probably scary to them.

I'm pretty sure there must be a law against threats like that.

 

[BrewKnurd]

You should check out the E-Cig and flashlight forums

Note that I did not say I wanted to know any battery aficionados.

 

[hwilshusen]

Since AB is/was a home town company and major employer I'm sad to say that I don't buy their products anymore. I even like Shocktop and some of their other products. It's the twist-off bottles.

 

[GilaMinumBeer]

Gas is almost $4 a gallon and the collective is whining about a foreign companies business practices?

OPEC drinks Bud light.

 

[PistolsAtDawn]

One thing that hasn't been specifically mentioned here - and I think bares mentioning - is that despite their best efforts, the conglomerates cannot dictate what the market wants. This is true for all industries. Yes, they can manipulate it for a while, but eventually the pendulum swings back the other way.

Look at the US auto industry. They're scrambling to recover from the bad image that they've deservedly gained from decades of shoddy workmanship (anyone seen the "Imported from Detroit" ads?). I wouldn't buy an American car again if you paid me - that is until the product reaches the quality of imports for a better price. I paid more for my Mazda than I would have for a domestic equivalent, and I'd do it 100 times over again since I've had next-to-no problems with it. I can't say that about my last Ford. Frequent, expensive repairs.

In any market, consumers will eventually notice that the invisible hand has become slightly opaque and react to it, even if they can't articulate what's really happening. Craft beer is on the rise, and I don't see that stopping despite the "commodity" breweries' best efforts.

And although I do personally lament the destruction of small breweries by BMC in the 1950 onward, that did leave a gap in the market that has created an opportunity for homebrewers to start their own businesses. That gives me something to work towards anyway!

 

[Homercidal]

One thing that hasn't been specifically mentioned here - and I think bares mentioning - is that despite their best efforts, the conglomerates cannot dictate what the market wants. This is true for all industries. Yes, they can manipulate it for a while, but eventually the pendulum swings back the other way.

Look at the US auto industry. They're scrambling to recover from the bad image that they've deservedly gained from decades of shoddy workmanship (anyone seen the "Imported from Detroit" ads?). I wouldn't buy an American car again if you paid me - that is until the product reaches the quality of imports for a better price. I paid more for my Mazda than I would have for a domestic equivalent, and I'd do it 100 times over again since I've had next-to-no problems with it. I can't say that about my last Ford. Frequent, expensive repairs.

Are you complaining about quality, or about variety of offerings? BMC defines what an American Light Lager is. The quality of their beer is not a problem.

 

[BrewKnurd]

Are you complaining about quality, or about variety of offerings? BMC defines what an American Light Lager is. The quality of their beer is not a problem.

That all depends on how you define quality. do they do an excellent job making what they intend to make? Of course. But whether that makes it a quality beer is highly subjective.

 

[PistolsAtDawn]

I'm not complaining about quality as much as I am about them monkeying with the free market. They eliminated their competition which kept them from having to produce anything but one product - however high or low quality you view an American Light Lager to be. This lead to the commoditization of beer rather than a ubiquitous, rich, full line of differentiated products.

Microsoft sorta did this with the OS market, but now Linux is on the rise (especially in the server and embedded electronics markets). Not an exact analogy, but close enough to brewing for you to catch my meaning.

I'm actually not complaining at all seeing as how I have aspirations to do this for a living. In some sense, they've ironically created the necessary circumstances to do so more easily than had they not closed down most of the competing breweries. Less saturated markets and all that jazz.

 

[shoreman]

http://online.wsj.com/article/SB10001424052702304177104577309631081128556.html?mod=e2tw

Basically if you sell competing brews (which is everyone else right?) then you arent allowed to have our product.

Ridiculous if you ask me.

That's been going on for a long time - most sales reps sell BUD - that's what they are used, that's what makes their numbers. In MA and where I live it was impossible to get any of the reps to sell our brand - you have to go to consumer and have them demand it from the store...that's why you see the shift now.

They also will be very generous to stores with any sort of ipad, cash, etc if they carry their brand - the 3 Tier system is a nasty beast.

 

[cheezydemon3]

I think it bears mentioning that the unwashed masses may, on the whole, buy a little more BMC because they are at the grocery, they won't make a special trip.

It also bears mentioning that while the quality of BMC is good, so is the quality of quaker oatmeal.

No matter how many stores just sold quaker oatmeal, most people would just about die to find a way to buy other food.

 

[cfrazier77]

Don't forget that the government wants the 3 tiered system for $$$.

My home state, Illinois, just passed a self distribute law for small breweries. It barely passed. Why did politicians go on record against it? It was not because of lobbyists but because of lost tax money. When a brewery sells its beer to a distributor the transaction is taxed. When the distributor sells that beer to a retailer or bar it is taxed. When the retailer or bar sells it to the final consumer it is taxed again. The same beer is taxed three different times. The government does not want to lose a third of that tax.

And don't forget why distributors were required by law. Before prohibition breweries owned saloons and rented them to people to run it. They were required to sell only that brewery's product. This was banned by law. Also, the government wanted a "buffer" between the evil breweries and the bars to limit influence of the breweries. If they were right, doing away with the 3 tiered system would increase their ability to squash craft breweries.

Personally I don't would like to see distributors being optional for all breweries. The government does not need to tax beer three times. On the other hand, distributors are vital for small craft breweries. Some friends of mine, 3 brothers, just started a brewery and they contracted with a distributor because they need to in order to survive. They all have other full time jobs and do not have time to sell and deliver their beer. One day they hope to be big enough to quite their jobs and only be brewers, but that is a long way off for them.

 

[Homercidal]

Don't forget that the government wants the 3 tiered system for $$$.

My home state, Illinois, just passed a self distribute law for small breweries. It barely passed. Why did politicians go on record against it? It was not because of lobbyists but because of lost tax money. When a brewery sells its beer to a distributor the transaction is taxed. When the distributor sells that beer to a retailer or bar it is taxed. When the retailer or bar sells it to the final consumer it is taxed again. The same beer is taxed three different times. The government does not want to lose a third of that tax.

And don't forget why distributors were required by law. Before prohibition breweries owned saloons and rented them to people to run it. They were required to sell only that brewery's product. This was banned by law. Also, the government wanted a "buffer" between the evil breweries and the bars to limit influence of the breweries. If they were right, doing away with the 3 tiered system would increase their ability to squash craft breweries.

Personally I don't would like to see distributors being optional for all breweries. The government does not need to tax beer three times. On the other hand, distributors are vital for small craft breweries. Some friends of mine, 3 brothers, just started a brewery and they contracted with a distributor because they need to in order to survive. They all have other full time jobs and do not have time to sell and deliver their beer. One day they hope to be big enough to quite their jobs and only be brewers, but that is a long way off for them.

It was my belief that the breweries had to pay tax on the beer in either case, but without going through a distributor, they paid directly to the state...

 

[day_trippr]

If you want a sobering take on the whole three tier system and how the Inbevs of the world game it to death, watch the movie "Beer Wars". I watched it last night. The bigs cause a lot of pain to the little guys...

Cheers!

 

[bleme]

If you want a sobering take on the whole three tier system

-1 for using the "S" word!

 

[chalmer9]

I couldn't care less about what they do. I don't buy or consume their products, ever. I'll be buying/drinking good beer the rest of my life, and there's nothing BMC can do about it.

 

[day_trippr]

-1 for using the "S" word!

I'm ok with that. It had to be said...

Cheers!

 

[day_trippr]

I couldn't care less about what they do. I don't buy or consume their products, ever. I'll be buying/drinking good beer the rest of my life, and there's nothing BMC can do about it.

You'd be surprised just how wrong you are...

Cheers!

 

[chalmer9]

You'd be surprised just how wrong you are...

Cheers!

No I'm not.

Cheers!

 

[day_trippr]

No I'm not.

Not wrong, or not surprised?

Cheers!

 

[LimerickBrewCo]

Personally I try to support local breweries and one's who make products I enjoy. However, if I'm having a party at my house I'm buying Miller Lite and Yeungling (which is a family owned fairly local company) because frankly most people aren't going to appreciate craft beer and I will spend twice as much for it.

 

[Henry22]

Personally I try to support local breweries and one's who make products I enjoy. However, if I'm having a party at my house I'm buying Miller Lite and Yeungling (which is a family owned fairly local company) because frankly most people aren't going to appreciate craft beer and I will spend twice as much for it.

Agreed except sub out Miller Light for coors light.

 

[chalmer9]

Not wrong, or not surprised?

Cheers!

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