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07.16.2008 4:30 pm

Brito: Consumers “not too worried” about ownership change

St. Louis Post-Dispatch

Anheuser-Busch has filed a transcript of a conference call with distributors, and one of the more interesting questions comes from a Florida wholesaler who says he’s “very, very worried” about a backlash from people who think Anheuser-Busch “will not be an American brand anymore.”

August A. Busch IV responds that a possible backlash is “something we have to be very, very mindful of,” and that marketing VP Dave Peacock “will make sure we have the right types of emssages out there.” Busch adds:

There are very few, if you will, local just American options. We are still an American company. We will be brewed in America. We will make sure that the consumer knows about that ….

InBev CEO Carlos Brito then answers the question at greater length. He discusses consumer polls and ad panels that are done weekly, both in St. Louis and around the country:

What we saw in St. Louis there was — there were a lot of consumers saying they could change their purchasing habits depending on the outcome. In the rest of the U.S., what we saw was that people tend to be more pragmatic. They want to know what they are buying, (whether) the beer will change. If that will not change, that research shows us that they will not change their buying behavior because of a change in ownership. What they told us also is that in a way, some of them, at least for the majority in the rest of the U.S., they said we are not too worried about it.

(Note: The parenthetical “whether” isn’t in the transcript. I added it so the sentence would make sense.)

Brito also described how a competitor tried to use the patriotic issue against InBev in Argentina:

We acquired a company that had a 70 market share in Argentina …  And it was everything about the national Argentine values, even the colors of the brand was the colors of their national flag, they posted everything that had to do with the pride of the country. Our competitors, for many months, that was in 2002, would put ads on TV, prime-time, showing the Argentinean flag, the bottle and then that flag fading and the Brazilian flag coming on top of it and saying that this company is not an Argentine company anymore. And I don’t know if you know that but Brazilians and Argentines really don’t get along well at all. … We thought that could generate something. Today six years later it is growing, it is the market leader of the country; it continues to sponsor the same things so in a way consumers realize that what matters didn’t change.

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25 comments

Comments are closed.

Brito may be right. But I know one thing, I won’t buy anymore A-B Inbev products EVER. By the way, I live in Florida. Call it what you want but if you threaten to take a company to court to change board of directors, that’s hostile. Before this I never bought anything but AB. Not again.

— Ken
5:26 pm July 16th, 2008

I live in the St. Louis Metro area. I drink Bud Light. At first I said I would never drink a A B product ever again. The only thing that does is take jobs away from hard working blue collar workers who produce my beer. Don’t get me wrong, I am bitter, very bitter.

Matt

— Matt
7:32 pm July 16th, 2008

Scott, as an employee of A/B, I thank you. Please talk to your friends and neighbors who may be thinking of boycotting. All they will do is end up costing some us blue collar guys our jobs, it won’t change what’s been done.

— R
8:10 pm July 16th, 2008

R, you are the last person on earth I want to hurt. Not my intent at all. You guys are awesome. I’ve been on A/B tours before and really respect what you do. Still irks me to think of one cent of my money going to Btito’s gang. I hope some group plans a coup on his company in a few years.

— Ken
8:21 pm July 16th, 2008

I hate to say it but blue collar jobs aren’t the only ones we should be worried about. It seems that that is the only thing people are worried about. Guess what? White collar workers have families too. We should be worried about them just as much, probably more since they will be the first out the door.

— Eric
8:44 pm July 16th, 2008

No InBev products for me, there are plenty of other locally owned options–I will not help Brito succeed.

— Chuck
7:59 am July 17th, 2008

My first thought was no more AB products. Then I realized that all I would be doing is hurting those at AB. I will continue to buy my bud light under one condition, that being Brito keeps his word and does not close the local brewery or move the north american headquarters from STL.
We have to keep in mind that even if AB stayed independent there was going to be a 15-20% reduction in the corporate jobs. I wouldn’t feel too sorry for most of the 15-20% that will loss their jobs will be management that has been there for a considerable time. They will get very good severance packages and most of them own considerable stock.

— kdunlap
9:12 am July 17th, 2008

I switched last Saturday. Betwwen the Busch’s cut and run for a buck and expecting us to continue stay loyal and Brito’s lack of respect for the customers of the products I will never switch back to AB. It about money on my end too … I do not need these people telling me how to spend it !

— Fredbird
9:12 am July 17th, 2008

The blame for the deal really falls on the board for not being more aggressive in the past in expanding the company globally. Yes, the Busch’s were on the board but there were 11 other men/women on that board who could have directed/mandated expansion. If the board was simply a “yes board” to the Busch’s then shame on them, then they were not doing their job.
I am not a Busch apologist, but they couldn’t stop the sale because the board agreed to sell, the Busch’s were outnumbered.

— kdunlap
9:39 am July 17th, 2008

I can’t believe anyone is buying into “Carlos the Conqueror”.The company he swallowed up did not have the storied history as AB, and their beer was horrible. He can’t push his own Brahma beer anywhere. I probably will still be a Bud consumer, the only reason being the other so called craft beers, imports, micro this and that, are just plain terrible.
John

— John Newman
9:59 am July 17th, 2008

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