Essay about Toyota

696 Words Jun 13th, 2011 3 Pages
The biggest producer of beer in American is Anheuser-Busch (AB). Formally the largest brewer in America, Anheuser-Busch is now part of the global beverage company InBev, the maker of approximately 200 brands of beer and soft drinks that primarily includes Stella Artois, Becks, Leffe, Hoegaarden, Skol, and Michelob. AB InBev, through its interest in Grupo Modelo, also offers the Corona brand. The company is valued at 130 billion dollars with revenues over 31 billion worldwide. The flagship product is Budweiser, the most popular beer brand in North America with a 20% market share along with Bud Light. Part of the reason for this control of the market is the complex system of distribution in the beer industry put in place since the end of …show more content…
Because all beer must go through a distributor, a single distributor can deal in multiple products, not just Budweiser and get more brewers on the shelves. The distributor helps the retailer reduced inventory costs.
Over the years, the distribution system has developed problems. AB distributors have had a reputation for pushing out smaller non AB products from shelves by threatening retailers that try to sell other products. They can reduce the availability of Budweiser, often the most profitable product. In 1997 AB had distributors sign an “exclusivity incentive program” which gave huge incentives to drop competitor products.
In an effort to compete more effectively, AB is attempting to buy controlling stakes in distributorships in some of the largest markets. Some states have modified their laws to allow this and AB is attempting to trip supply-chain costs. In this way Budweiser can get sold to the largest retailers directly from the brewer while the independent distributor can still provide service to the smaller restaurants and local bars.

Reference
Kesmodel, D. 2010. Anheuser Granted Partial Win in U.S. Court on Distribution. Wall Street Journal (Eastern Edition), p.B.8. Retrieved May 24, 2011, from ABI?INFORM Global. (Document ID 2132587221).
Kesmodel, D. 2009. Corporate News: Anheuser Weighs Change in Beer Sales, UBS Says--- Analyst Reports Brewer Is

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