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October 24, 2023

Bud Light Desperately BRIBING Stores To Keep Shelf Space After Sales PLUMMET More & ZERO Recovery!

TheQuartering [10/24/2023]

According to TheNYPost:

Anheuser-Busch is dangling big incentives to distributors to keep its beers on store shelves following Bud Light’s disastrous tie-up with Dylan Mulvaney — even as retailers begin reassigning the space they allocate to popular beers, according to reports.

The embattled brewer — whose Bud Light brand has been slammed by boycotts over an April 1 marketing tie-up with the transgender influencer — is offering as much $150 million in relief this year alone, according to Beer Marketer’s Insights.

That includes reimbursements to distributors for certain freight and fuel surcharges and giving them an extra five days to pay their bills to the brewery, according to the trade publication. 

“I imagine for those that are having some cash flow concerns, this would help somewhat,” one distributor told The Post.

Anheuser-Busch also is boosting a financial aid package to distributors that it began in June, according to Beer Business Daily.

Those relief programs including sales incentive payments, have been extended through the spring, according to the report.

What’s more, the largest brewer in the world told distributors hit by the Bud Light fiasco that it’s establishing a “market share recovery incentive” program beginning in the second half of 2024 through the end of next year, according to a memo from Anheuser-Busch’s chief commercial officer Kyle Norrington, the trade publication reported.

There were no further details about the “market share recovery incentives”, but the timing is significant as most retailers revamp their shelf space in the spring when they look at the last 12 months of sales and determine which products are hot and deserve more space — and which will lose space.

Anheuser-Busch did not immediately respond for comment.

Bud Light has lost more than 20% of its customers since April, according to industry experts.

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