Essay about Toyota
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.
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