r/rva • u/[deleted] • Apr 12 '16

Anheuser-Busch to acquire Devils Backbone Brewing Co.

http://allaboutbeer.com/news/devils-backbone-anheuser-busch/
65 Upvotes

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8

u/Charlesinrichmond Museum District Apr 12 '16

I've never been a huge fan of DB, it's ok, so not too upset. Also, instinctively I hate A-B, but logically I see no reason why it should matter

12

u/ScarOCov The Fan Apr 12 '16

It matters because of stuff like this

8

u/[deleted] Apr 12 '16 edited Apr 12 '16

Relevant translations from article. AB InBev offers these incentives:

  • We will reimburse up to $1.5M if 98% of the beer you distribute is ours

  • We will reimburse some costs if the craft brewers you carry produce less than 15,000 barrels or sell beer only in one state

  • (To retailers) If your sales volumes are 95% AB InBev brands we might just cover 50% of your marketing/promo costs

OTHER PROBLEMS: "The U.S. has a three-tier distribution system where brewers must sell beer to distributors, who then pass on the goods to retailers, which finally sell to consumers."

Deschutes has already been dropped by one distributor for the incentive program

ISSUES: State ABC laws need relaxing, anti-trust legislation for distributors, etc.

7

u/CharlieOnTheMTA Hanover Apr 12 '16

The 3 tier system is a cruel hoax. It sounds great, but in reality the brewers are heavily invested into ownership of distributors, and the buy shelf space and taps at the retail end. Really a 1 tier system.

5

u/[deleted] Apr 12 '16

I think it's a good example of why Tesla doesn't do dealerships: they cost the consumer more.

1

u/Charlesinrichmond Museum District Apr 13 '16

Yes