Beer Marketer's Insights - AB Distribs Detail "A Different Narrative" to INSIGHTS; Good Relations, Much Appreciation, Alignment, Belief

This was a rare, perhaps unprecedented, move by a group of AB distribs reaching out to INSIGHTS. In the wake of recent reports of forced sales, METs and distrib unrest, about a dozen AB distribs, including several former wholesaler panel chairs (and the current one), asked for a call with INSIGHTS and BBD to express a "different narrative," as Redwood prexy John Johnson put it. Distrib after distrib talked about their appreciation for AB's investment, alignment and belief in AB plans, and the strength of relationship with AB. Asked whether it was AB's or the wholesalers' idea to schedule the call, Hensley Bev Co prexy/ceo Andy McCain said it was "wholesaler driven," that there were "no talking points," that they gathered the group together in less than 24 hours and that AB legal didn't review it. There's a "groundswell among our ranks" to "share a little more" about AB's relationship with distribs, according to Andy, kicking things off. The relationship between AB and its distribs is "in a really good place," he said, praising AB's level of investment, the "hundreds of millions" AB is spending and the strength of its plans. What's more, Phorm Energy could be "revolutionary," said Andy. All of this is a testament to AB ceo Brendan Whitworth and the leadership team, Andy said. Redwood prexy John Johnson followed saying the call was "our initiative" and "independent of the panel." John used to be an AB region veep and he was one of the few on call who referenced the recent situation with distribs asked to turn in Exhibit 5 for equity agreement violations (tho without specifics). "Quality of our products" is paramount," he said, adding "nobody would have blinked an eye" if AB made such moves 25 years ago. (INSIGHTS covered difficult situations with distribs extensively then too)."The partnership is at an all-time high," claimed John, citing "unprecedented investments." Current panel chair Mark Lednick also said the relationship is "as strong as it's ever been." A smaller distrib, Tim O'Neal in Texarkana, TX and AR, praised "two-way communication," even with a smaller distrib. Neal Katcef of Katcef Brothers said that he's been working at the family distrib for 56 yrs and after the "Bud Light debacle," he would have considered selling except for his continued belief in AB and its "overwhelming" investment since then. Tri-Eagle Sales' Tripp Transou said his co is "fully aligned" with AB and "appreciates the massive investment. We plan to win" and "have a great partner." Tripp too said he wanted to provide "a different perspective" about, among other things, "the level of optimism" within the system.In one of the only departures from the uninterrupted hosannas for AB, Peter Heimark of Heimark Distributing reminded that 2 things can be true at the same time. And while AB can make "disappointing" decisions (like moving Nutrl from AB distribs in CA and giving that brand and Cutwater to Southern Glazer's to sell), AB "continued to show up" and "keeps supporting our core business." After its "very questionable" decision to move Nutrl, it would have been possible for it to make other moves away from its equity distribs. "Instead, the opposite happened." While he doesn't like losing approx 15K cases of Nutrl, far more important is the 5 mil cases of AB he continues to sell. Both distribs and AB "haven't given up" and "keep investing."Andy closed by again referencing the "strong relationship" between AB and its distribs, "by far the majority." He called the views of the distribs on the call the "tip of the spear" that he thought reflected the views of "hundreds of distribs" in the "unanimity of our thoughts." And John Johnson again brought up AB's equity agreement as the industry's "best agreement," which was crafted under August Busch III. And whether AB is enforcing it more or less in a given period, "we are bound by that agreement." While this group of distribs collectively expressed a different perspective, which Andy said reflected "by far the majority," there are still a significant number of distribs who are unhappy with several of AB's recent actions, even if they like AB's mktg and plans. Since there seems to be considerable controversy, INSIGHTS invites distribs to express their views in confidence to This email address is being protected from spambots. You need JavaScript enabled to view it..

AB Distribs Detail "A Different Narrative" to INSIGHTS; Good Relations, Much Appreciation, Alignment, Belief

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