GIVE THE RECOMMENDATION AND CONCLUSION Anheuser-Busch InBev and Miller Coors LLC. Control about 80% of the U.S. beer market. Most of the beer distributed by both companies is sold through independent beer distributors who, in turn, sell the beer to retailers, restaurants, and bars. Anheuser-Bush InBev, which had been acquired by Belgium-based brewer InBev in mid-2008, soon after embarked on cost-cutting program. One key cost focus was distributors received about $1.00 for each case of Budweiser distributed to Retail channel members compared to $.85 paid by MillerCoors to distributors, by eliminating that 15 cent differences in margin. Anheuser-Busch distributors, many of whom had decades-old relationships with the brewer, would not be happy with the lower margins.
GIVE THE RECOMMENDATION AND CONCLUSION
Anheuser-Busch InBev and Miller Coors LLC. Control about 80% of the U.S. beer market. Most of the beer distributed by both companies is sold through independent beer distributors who, in turn, sell the beer to retailers, restaurants, and bars. Anheuser-Bush InBev, which had been acquired by Belgium-based brewer InBev in mid-2008, soon after embarked on cost-cutting program. One key cost focus was distributors received about $1.00 for each case of Budweiser distributed to Retail channel members compared to $.85 paid by MillerCoors to distributors, by eliminating that 15 cent differences in margin. Anheuser-Busch distributors, many of whom had decades-old relationships with the brewer, would not be happy with the lower margins.
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