Three of Missouri's biggest Anheuser-Busch InBev wholesalers have reached an agreement to share certain craft brands in order to keep sales and deliveries within their home turfs.
The deal, effective this month, is between Maryland Heights-based Grey Eagle Distributors, St. Louis-based Lohr Distributing Co. and St. Peters-based Krey Distributing Co.
Under the new arrangement, the wholesalers will pool their collective craft portfolios, keeping their sales reps and drivers within their respective territories: Lohr in the city, Grey Eagle in St. Louis, Franklin and Gasconade counties, and Krey in St. Charles, Lincoln, Warren and Montgomery counties.
Previously, for example, Lohr representatives accustomed to selling beer in the city found themselves traveling to Grey Eagle's county accounts to sell craft brands, and vice versa. This is frowned on by A-B InBev and was a topic of discussion at the company's national distributors meeting in Dallas in November.
"(Then-A-B President) Dave Peacock called the practice of A-B distributors selling non-A-B brands outside their territories as the 'most insidious' act," said Harry Schuhmacher, editor and publisher of trade publication Beer Business Daily. By reaching this agreement, Schuhmacher said, the Missouri wholesalers are "becoming more aligned with what A-B wants."
The craft breweries that are part of the deal include 2nd Shift, Ferguson, Green Flash, Morgan Street, Nebraska, O'Fallon, Perennial, Six Row, Southern Tier and Tallgrass. They will now be distributed by Grey Eagle, Lohr and Krey on the wholesalers' respective turfs.
The local distributors in recent years have been expanding their previously A-B-only portfolios with craft beer from small breweries. Lohr started picking up craft accounts in 2010, and Grey Eagle and Krey added O'Fallon and Perennial last year.
"We are pleased with the opportunity to exchange distribution rights with Lohr Distributing on certain craft beer brands to maintain focus within our established Anheuser-Busch territory," said David Stokes, president and CEO of Grey Eagle.
The arrangement should benefit all parties involved, Schuhmacher noted, including A-B, craft brands and the wholesalers.
"Distributors typically make much less money or even lose money when they are selling only craft brands outside of their usual territories," he said. "This is a smart move ... to increase profitability per stop."
Evan S. Benn is the assistant editor of Go! magazine. He also writes about beer and food, and he is author of the 2011 Post-Dispatch book "Brew in the Lou: St. Louis' Beer Culture - Past, Present and Future," available here. Follow him on Twitter and Facebook.


