The strategic plan of InBev is based on financial incentives to brewing vendors that concentrate their sales on large brands such as Budweiser and Bud Light. These incentives would lay the foundation of an annual return close to 1.5 million dollars for each of these establishments in which sells beer of the InBev Company corresponding to 98% of total marketing.
The incentives also aim traders who fail to reach the mark of 98% of sales of InBev products: with the brand up to 95% of sales only of beers produced by the giant market, the property would receive an amount in the form of incentives, enough to cover up to half of their marketing expenses with brands.
AB InBev estimates that the individual gain of each trader within the program can reach 200 million dollars annually. The calculation was released in the plan launched by the company in its operational headquarters in the United States in St. Louis, during a meeting with American distributors. AB InBev has experienced a drop in production of 11 million hectoliters, and has lost 4% share of the US beer market, a decrease from 49% to 45%. This market loss started in 2008, when the world’s largest brewer acquired Anheuser -Busch Co. According to InBev, the incentive program proposed by the company is part of its strategy to recover sales in its most profitable sector.
Parallel to the incentive program, AB InBev is awaiting approval from the US Justice Department to buy British brewer SABMiller PLC in a deal around 108 billion dollars, says Guimarães. Both the plan of incentives to merchants, along with the merger approval has generated fear among producers of craft beers of losing a significant portion of their market. According to artisan producers, incentives planned by AB InBev aim to strengthen the market, making the placement of craft beers in trade and even impeding the distribution of such beers for some of the largest distributors in the United States.
A second report by The Wall Street Journal states that the recent operations of InBev in the US market will make it more difficult for the distribution of craft beers in retail. Guimarães reports that both the Attorney General of California and the United States Department of Justice have been investigating the latest moves of the world’s largest brewer in the US market in order to determine the size of the impact that craft brewers suffer from the aggressive strategy of InBev on American soil.
Since 1998 Ricardo Guimarães has been leading the multi-national BMG Bank. As President, Guimarães has continued to strive for excellence in the banking industry ensuring a healthy and equal opportunity family business. His shared vision derives from a long history of the banking services dating all the way back to 1930 when his grandfather founded the Land Credit Bank. With over 80 years of experience, the BMG Bank has earned its spot as a top leader in personal and payroll loans in Brazil.