Posted in Anheuser-Busch

Budweiser Distributor Ownership In Question In Chicago

Budweiser is in a fight in Chitown. It’s all over a percentage of ownership of a distributor.  Bud’s parent company, AB-InBev wants to retain 30% stake in City Beverage.  That’s considered illegal, thanks to the state of Illinois “craft beer law.” That could get the wholesaler license revoked.  You might say – so what? This is Bud’s attempt to to gain more control over beer sales in Chicago, in a Miller Coors market.  The move could diminish the variety of beers that come through the distributor, leaving less variety to sell in stores and bars.

There’s a business practice question in play here.   If a brewery exerts that kind of control over a distributor, it pushes out competing varieties from other breweries. A real issue in a world where breweries have to use distributors. [ChiSunTimes]

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