Kudos to Emerson for standing up to A-B InBev
I don’t work for Emerson Electric or AB-InBev, so I have an outsider’s perspective on the article about the Emerson boycott of AB-InBev that appeared in the April 16 issue of the Post Dispatch.
Dave Peacock’s response voiced concern about the boycott’s impact on the AB In-Bev employees and their families. Clearly he doesn’t have any concern about the employees and families of Emerson and other AB-InBev suppliers that have been told they will finance the debt incurred by the buy out of AB by InBev.
AB was a phenomenal corporate citizen of St. Louis, supporting numerous charities, civic events and lending their business expertise to numerous projects. I am pleased that, so far, they have continued their support, but perhaps when they are listed as a corporate sponsor, they should also list their many suppliers that are financing the AB-InBev donations by waiting up to four months for payment.
Emerson Electric is also an excellent corporate citizen of St. Louis and I applaud them for taking a stand against the “bullying tactics” of the new management at AB-InBev.
Chuck Mittler
St. Louis County
Here’s a question–has anyone asked Emerson’s CEO if his company is really at 120 day payment terms with AB? Might be a good question to ask. Also, as a follow up, you might ask him if Emerson’s payment terms with any of its suppliers are more than 30 days. I’ll bet the answer is “yes.” Finally, a little research might show that extended payment terms (beyond 30 days) are not uncommon in the U.S. This doesn’t make AB right or wrong for attempting to extend payment terms, but it might offer some perspective. In business, you can negotiate anything–from price to payment terms or anything else. If Emerson doesn’t agree to AB’s terms, it can walk away from the business, attempt to negotiate different terms or assume that its products are irreplaceable and tell AB to “take it or leave it” on 30 day terms. Last I checked, it is still call “free” enterprise.
Although I applaud anyone who boycotts AB InBev, what Emerson is doing is not going to effect production or profits on Pestalozzi Street.
It’s not as if Emerson has a liquor license to sell beer everyday, nor do they have that many company functions that require them to serve Budweiser products that often. If they have a Christmas party or company picnic, then buy diffferent beer.
Who is going to lose money is the county Distributor, Grey Eagle. The brewery does not deliver beer. It is sold to the distributors, they take the orders from the customers and then deliver the beer to customers who have a liquor license. If Emerson does not have a liquor license, they have to go to a retailer to buy their beer which was delivered by the distributor.
The only one Emerson is hurting will be the distributor, the retailer, and the union drivers who deliver the beer.
Jim Kozlowski–why do you “applaud anyone who boycotts AB?” Because you don’t want to support businesses that employ St. Louisans? Because prior AB management didn’t see that it needed to change the way the business was run and got caught by a competitor that seized an opportunity? The constant bashing of AB is getting tiresome. If you don’t want to drink AB products, fine; if you do, even better because you’re still helping to support friends and neighbors that are employed there and you’re buying a quality product. Is it the same company it was a year ago–not by a long shot. But look around and show me one large company that is. I didn’t hear the call for a boycott when Southwestern Bell (AT&T) moved its headquarters to Texas or outrage when Boeing bought McDonnell Douglas and laid off large numbers of people. And as for Emerson taking a stand–how many US jobs have been lost as Emerson has moved its production to foreign countries over the last decade or more? Finally, I’d ask the Post to call the CEO at Emerson and ask him what his payment terms are with AB–are they 120 days? While you’re at it, ask him what payment terms have been negotiated with Emerson’s suppliers. I’ll but you a Budweiser they’re more than the “standard” 30 days.
want the whole truth,
My reason for supporting anyone who boycotts AB InBev, not that it’s any of your business, is due to the fact I was one of the Lohr Distributing Beer delivery drivers who went on strike in 2006, and after thirteen months was replaced by non union drivers.
While we were on strike, we asked the people, including the employees of AB to not buy Budweiser products in the city to support us. They walked past our picket lines at the bars, restaurants, and ballparks ignoring us.
The brewery could have stepped in and helped to resolve the strike, but they did nothing.
If you want to know what Emersons business practices are, I suggest you call them and ask. What do you think they will tell you? Right, it’s non of your business.
Again, Emerson is not huting the brewery. Their boycott means less sales for the distributor, less stops for the drivers. Many times, these large companies who are freinds of the owners of the distruibutors or the former owners of AB never paid for their beer, There are what are called “comp” deliveries. This is free beer given to many of these companies.
If you want to know what the practices of the brewery or the distributors are with giving beer to companies, call and ask.
As for anyone losing their jobs, I never said I supported that. But the writing is on the wall. In the distant future, that place on Pestalozzi will be closed. It will be a museum giving tours of how beer was made here in St. Louis at one time. Compared to the newer breweries, they will say they cannot justify keeping it open. It’s old and out dated.
As for your question about Southwestern Bell telephone, there were not a lot of other choices back then for people to change carriers like there is now. As for Boeing, I stopped buying my air planes as soon as the sale was final. And as to your bet, I would imagine you buy your beer at Wal Mart.
Hi Jim:
“While we were on strike, we asked the people, including the employees of AB to not buy Budweiser products in the city to support us.”
Most of my group and I, myself did support your boycott and honored your strike. Alas, many others did not. I am vp of SOAR 11-3 (retired steelworkers in St. Louis area).
I too believe Emerson Electric did the right thing and hats off to them for doing it.