A new report says Anheuser-Busch showered retailers with $150 million in “incentive payments” to keep Bud Light beer on shelves.
Accordingly Insights from beer marketersAnheuser-Busch is offering up to $150 million in relief to beer and liquor retailers this year alone. AB InBev will reportedly offer distributors millions of dollars in “market share recovery incentives.”
The New York Post reported: “There were no further details on the ‘market share recovery incentives,’ but the timing is important as most retailers reorganize their shelf space in the spring as they look at sales over the past 12 months and determine which products are hot and deserving.” “More space – and the space will be lost.”
The relief plan was launched by Anheuser-Busch in June and will reportedly last until the spring.
“Bud Light will lose refrigerated space in a major chain of major beer sellers like Walmart and 7-Eleven as retailers typically reallocate shelf space based on recent sales, taking space away from struggling brands and giving it to others.” specimens,” industry sources said ABC News in September.
Former Anheuser-Busch InBev CEO Anson Frericks told ABC News that shelf space is “the biggest selling factor in a store.”
“During a busy shopping period on a Friday or Saturday night, when beer is not available cold on the shelf, consumers will choose something else,” Frericks explained. “There will be a dramatic change.”
Dave Williams – vice president of analytics and insights at Bump Williams Consulting – added: “There is explosive growth on one side and sharp decline on the other. This actually has the ripple effect that if Bud Light loses shelf space, it could make it a longer-term endeavor to get back to where they were, if they ever succeed at all.”
In July, a poll found that Bud Light was no longer among the top 10 beers in America following the Dylan Mulvaney controversy. As of the second quarter of 2023, Bud Light was the 14th beer brand with a popularity rating of 42%. Bud Light was associated with Pabst Blue Ribbon beer.
Anheuser-Busch reportedly did not immediately respond to a New York Post request for comment.
Anheuser-Busch became embroiled in a culture war in April when Bud Light partnered with transgender influencer Dylan Mulvaney. The move to promote LGBTQ activism has cost Bud Light and parent company Anheuser-Busch declining sales, revenue and market share.
The advertising partnership sparked outrage, backlash and boycotts of Bud Light.
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