A-B Ahead of Plan in Picking Up InBev Brands

Report says legal actions may have accelerated shift.

Anheuser-Busch is snapping up InBev brands faster than it thought it would, an A-B executive says in a report in the St. Louis Post-Dispatch.

From the story:

About a third of the previous InBev wholesalers have given up the brands, and A-B wholesalers now distribute or have deals pending to distribute about 60 percent of the beers' U.S. volume, up from about 17 percent in January. "We're ahead of where we thought we'd be," (David Peacock, vice president of business operations) said.

Peacock also told the paper that A-B’s legal maneuvering -- which include lawsuits filed against InBev distributors in a number of states -- may have helped drive the quick pace.

Beer Marketer’s Insights reported that A-B CEO August Busch IV recently told distributors that as much as 75 percent of InBev volume will be transitioned within the year.

That said, the St. Louis Post Dispatch story quotes that some wholesalers in states with franchise protections may not want to part with the brands:

"Still, some InBev wholesalers may not accept any amount of money for the brands, said Lauren Torres, an equity analyst with HSBC Bank USA NA in New York. A-B is 'going to have to find a way around that.'"

To see the Post-Dispatch story, click here.

To go to the Beer Marketer's Insight website, click here.