{"id":3867,"date":"2017-01-31T06:00:56","date_gmt":"2017-01-31T11:00:56","guid":{"rendered":"http:\/\/www.beerbusinessunplugged.com\/?p=3867"},"modified":"2017-01-28T12:52:36","modified_gmt":"2017-01-28T17:52:36","slug":"a-trees-a-tree-how-many-more-do-you-need-to-look-at","status":"publish","type":"post","link":"https:\/\/www.beerbusinessunplugged.com\/?p=3867","title":{"rendered":"A trees a tree. How many more do you need to look at?"},"content":{"rendered":"

\"Red<\/a>The numbers for 2016 are now being released. \u00a0In 2016, we once again saw the industry produce similar results very similar to the last 10 years. \u00a0Since 2010, domestics have lost 16.5 million bbls. or 9% in volume, crafts have gained +13.2 million bbls., and imports +5.9 million bbls. \u00a0Therein lies the issue with wholesalers. \u00a0AB, MC, and even established crafts such as Boston are losing ground \u00a0 As a wholesaler do you stay or expand?<\/p>\n

In recent years, many wholesalers have expanded into non-beer products. \u00a0Even importers have done the same. \u00a0In the late 1980s, Warsteiner took on Nestles, albeit for a short time as this experiment did not work. \u00a0A number of these expansions do not<\/em> work, but there are some that are<\/em> very good, such as the energy drinks Red Bull and Monster.<\/p>\n

Monster is now leaving the beer network, predominantly AB houses, by exercising provisions in their agreement with the wholesalers to buy out their rights. \u00a0Monster, like Red Bull, is a very profitable product and a key part of anyone\u2019s business, and because of this, many of AB wholesalers are fighting back.\u00a0Yet, at the first of January, Andrews Distributing, which has MC houses in both north and south Texas, and is a long time Red Bull distributor, announced that they were getting out of the Red Bull business in Texas. \u00a0Andrews\u2019 annual volume is around 1.5 million cases of Red Bull. “This was a tough and thorough decision-making process, but the decision allows us to move forward with 100 percent focus on our core beer business,” per notes from Mike McGuire. \u00a0He states they will continue adding “new and powerful brands, territories, and customers to the company\u2019s portfolio.”<\/p>\n

So the question is, why would Andrews go this direction when most other wholesalers are doing just the opposite? \u00a0Could this decision be based on retiring debt? \u00a0Andrews has bought both the Miller and the Coors distributor in Ft. Worth in recent years with the goal to consolidate both in a new super facility which is under construction. \u00a0Makes sense?<\/p>\n

Maybe there is another reason why Andrews is making this move. \u00a0Andrews\u2019 markets, DFW and Corpus Christi, are connected by Interstate 35, which goes through San Antonio, Austin and Waco. \u00a0Two of these markets, San Antonio and Waco, are owned by Glazer’s. \u00a0Now that Glazer’s has merged with Southern with their wine and spirits business, and spun off their beer division, the question arises: will Glazer’s continue to retain just<\/em> the beer operations?\u00a0\u00a0No doubt Andrews would love to have Waco and San Antonio in their operations. Add in the Rio Grande Valley, which also is Glazer\u2019s, and you pretty much have it covered, omitting only Austin. \u00a0Divesting Red Bull should put Andrews in a much better position should they become available.<\/p>\n

2017 will be the year when we learn more behind this decision to get rid of 1.5 million cases of Red Bull.\u00a0\u00a0 Maybe there is another reason why Andrews is making this business decision.<\/p>\n

A tree is a tree. \u00a0How many more do you need to look at?<\/p>\n

Beer Fodder;\u00a0https:\/\/www.youtube.com\/watch?v=vQusMl8aNmg<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The numbers for 2016 are now being released. \u00a0In 2016, we once again saw the industry produce similar results very similar to the last 10 years. \u00a0Since 2010, domestics have lost 16.5 million bbls. or 9% in volume, crafts have gained +13.2 million bbls., and imports +5.9 million bbls. \u00a0Therein lies the issue with wholesalers. […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_s2mail":"yes","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_newsletter_tier_id":0,"jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[1],"tags":[],"jetpack_publicize_connections":[],"aioseo_notices":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p2xRTi-10n","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/posts\/3867"}],"collection":[{"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3867"}],"version-history":[{"count":17,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/posts\/3867\/revisions"}],"predecessor-version":[{"id":3930,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/posts\/3867\/revisions\/3930"}],"wp:attachment":[{"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3867"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3867"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3867"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}