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North Carolina, Tennessee Syndicate content


Is A-B Facing Distributor Jailbreak?

More wholesalers dropping exclusivity, WSJ reports. Budbowtie1 For years, Anheuser-Busch racked up share gains with a distributor network that was willing to drop imports and crafts to focus exclusively on Budweiser and Bud Light. But now a growing number of distributors are dropping exclusivity to bring in hot imports and crafts -- and A-B could pay a price. So reports Wednesdays Wall Street Journal in a story headlined Beer Distributors Want More than Just One Best Bud. From the story: In the past year, distributors in Texas, Tennessee and elsewhere have decided to eschew Anheuser's incentives and begin selling rival beers such as Yuengling Lager, as well as wine and spirits. Recently, R.H. Barringer Co. became the first Anheuser distributor in North Carolina to start selling other brands, acquiring a rival that sells wine and imported beer. Today, about 60% of Anheuser's sales flow through distributors carrying only its brands, down from about 70% at its peak. The shift might help competing alcohol brands gain market share, as distributors divert some of their attention from Anheuser, which accounts for about 48% of U.S. beer sales. For consumers, it means greater choice at their local bars and liquor stores. Wall Street analysts say the movement signals a weakening of the St. Louis brewer's clout in the marketplace, as small-batch "craft" beers and imports, as well as wine and spirits, wrest market share from mass-market brews like Budweiser. The defection of distributors comes despite A-B offering approved crafts and imports -- including brands from InBevs European portfolio and Goose Island brews -- to its distributors. A-B embarked on the funnel strategy two years ago amid reports that its distributors were looking to pick up non-A-B brands. But for a variety of reasons, the funnel strategy hasnt stopped A-B distributors from picking up outside brands, the Journal reports. The story notes how last fall 11 Tennessee distributors started marketing beers from D.G. Yuengling & Son Inc. The move may be hurting A-B in Tennessee, based on scanner data. And it appears A-B was not happy about its distributors move. From the story: Dave Peacock, Anheuser's vice president of marketing, says Yuengling is having a minimal, if any, effect on its Tennessee sales, noting that other brewers experienced similar declines late last year. Still, Anheuser wasn't happy with the way it learned of the Tennessee distributors' decision. We found out later [in their decision-making process] than we would have liked, says Mr. Peacock. When we don't get early communication, it rubs us wrong. So is a broader jailbreak on the horizon?  read more »

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Foothills Brewing to Expand Production


One of the best small breweries in America, Foothills Brewing in Winston-Salem, N.C., plans to double its production.

According to the Winston-Salem Journal, Foothills will spend $250,000 to increase production to 6,000 barrels later this year.

The company makes a number of great brews, including Seeing Double IPA and Sexual Chocolate Imperial Stout.  read more »

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Piedmont Distillers Powers Daytona 500 Entry With Moonshine

NASCAR and bootleg moonshine share a common history in the southeastern United States. It is only fitting that for the 50th Daytona 500 taking place next week that a legal moonshine company is sponsoring a car in the sport's premier race. Piedmont Distillers of North Carolina is sponsoring Jeremy Mayfields Haas CNC Racing entry in the Daytona 500. The number 70 car will be promoting Junior Johnson's Midnight Moon brand. Johnson, who won the race in 1960 and ran illegal moonshine in his youth, is also driving the pace car for the big race.  read more »

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