07.15.2008 12:27 pm
A-B: The Wal-Mart of beer
St. Louis Post-Dispatch
It appears Anheuser-Busch InBev is the Wal-Mart of beers. As stated in the article in the Post about the sale, “The approximately $500 million bump-up in savings will include about $360 million from greater leverage with suppliers….” That certainly is a Wal-Mart tactic - “Give us the price we want or we won’t do business with you.” They will be the only game in town. Do corporations ever care about anything but the bottom line? What about the employees? Where does the greed end?
Michele Bowman
St. Louis
Before everyone dumps on Wal-Mart, remember that consumers save about 16 billion per year by shopping at Wal-Mart instead of its competitors.
Ms. Bowman -
While I totally agree with your thoughts - in all candor, this “negotiating-from-size/strength” position is common in the education/health industry as well.
What DOES surprise me, however, is that I have seen nothing in print (I am a P-D subscriber) or TV coverage about the new juggernaut demanding concessions from STL (or other Metro communities) concerning keeping the “USA” headquarters here.
If other, smaller, companies like Centene or (insert name here) can coerce municipalities into granting huge concessions to remain/move/build - how come InBev has not mentioned it? Indeed, it would seem that it would be remiss to its stockholders if it does not demand incentives from the poor City to stay; the old HQ could be razed for a warehouse/parking lot/BreweryPark Village.
Heck - Sleaze*Mart does this sort of thing daily with much success, so why would InBev not do it?
I would presume many cities are preparing offers as I write this … Winghaven, here we come…
Ms. Bowman -
Excuse this addendum; on occasion - fingers frequently faster in engagement than brain.
Your employer or its MotherShip are not exactly shy about requesting
“help,” either. It is the literal 800-pound gorilla in its environs.
How many residential properties have been removed from the tax rolls in the ‘hoods by their purchase by WU/its affiliates?
To respond to your questions Ms. Bowman, unlike the other writers, corporations care about nothing but the bottom line, employees are a liability, and their greed is infinite.
A Congressional report from 2004 indicates that the average Wal-Mart employee receives $2,100 a year in state or federal assistance. That’s some savings for American consumers who purchase Wal-Mart clothing made by 12 year old Asian girls tied to sewing machines.
Mr. Maher
While you are correct that there has been no TV coverage about AB InBev demanding concessions from their suppliers (as yet). However, if you read the recent article, you will see that my quote is correct. And just because you can do something doesn’t mean you should.
While InBev has stated the North American headquarters will remain in St Louis, but historically there has been a pattern with other companies making the same claim. Southwestern Bell moved their headquarters to San Antonio. After Macy’s purchased the May Company, they moved their headquarters as well.
And as an addendum, I am not representing the University by writing this letter to the editor. My intent was to voice my opinion as a private citizen. The Post made the decision to print my entire address.