{"id":4651,"date":"2018-03-20T06:00:51","date_gmt":"2018-03-20T11:00:51","guid":{"rendered":"http:\/\/www.beerbusinessunplugged.com\/?p=4651"},"modified":"2018-03-18T14:38:29","modified_gmt":"2018-03-18T19:38:29","slug":"collaborations-have-no-meaning-if-1-1-does-not-equal-much-more-than-2","status":"publish","type":"post","link":"https:\/\/www.beerbusinessunplugged.com\/?p=4651","title":{"rendered":"Collaborations have no meaning if 1 + 1 does not equal much more than 2."},"content":{"rendered":"

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The history of Heineken\u2019s\u00a0expansion and growth after WWII has been previously documented in past blogs.\u00a0 The importer, Van Munching, predominantly appointed liquor houses to distribute the beer. This was, at the time, a logical way to distribute beer, as the trade channels that sold the most volume were liquor stores, upscale bars and restaurants.<\/p>\n

The rise of Corona, however, in the 1980s motivated Heineken to acquire the importing rights, which then began the movement from liquor houses to beer houses.\u00a0 Heineken had no choice as the brand was falling behind Corona, especially in terms of distribution.<\/p>\n

The early 90s saw multiple liquor\u00a0companies interested in future growth; expand into the beer segment of the industry by creating beer\u00a0departments.\u00a0 Glazers took the lead in purchasing beer distributorships, a strategy which at the time proved to be successful.\u00a0 Many of the liquor houses, however, Glazers included, have in recent years, sold off their beer portfolios to local MC or AB houses.\u00a0 The reason for these reversals in the purchase of beer distributorships is delineated below.<\/p>\n

Initially, many of the liquor companies believed that by expanding into beer sales they could be a one-stop\u00a0vendor for the retail market.\u00a0 \u00a0There was also the belief that the liquor companies could leverage their combined portfolios and gain an advantage over their competitors and, to some extent, the retailers.<\/p>\n

Beer vendors saw the above mentioned model as the first option in a market in which AB, at the time, exclusively held an almost three-fourths exclusivity of their wholesalers.\u00a0 With the passage of time, however, many breweries came to the same conclusion as Heineken had years earlier: \u00a0that liquor houses are not going to service the retail industry as well as beer wholesalers.\u00a0 Being in one of these liquor houses limited the growth of a brand.<\/p>\n

Now, 25 years later, Constellation Brands, is hoping to capitalize on their liquor and wine portfolios with their powerhouse beer brands through the leverage of their chain teams and sharing data.\u00a0 Needless to say, if Constellation Brands is able to create an effective model (Total Beverage Solutions) to\u00a0take advantage of their portfolios in the chains, Constellation Brands would have a tremendous\u00a0advantage over their competition.<\/p>\n

History has shown that on paper, these models appear to provide an overall advantage; however, the actuality is that such a version has yet to be successful.\u00a0 The culture of the three industries: spirits, wine, and beer, is totally different.\u00a0 Selling beer differs from selling liquor, which differs from selling wine.\u00a0 Of course, warehousing and delivery work, but that is on the wholesale side, not on the supplier side.<\/p>\n

In the end, management in both the liquor and wine side has, and will continue to focus on their respective portfolios.\u00a0 The liquor and wine industries have little interest in selling beer.\u00a0 Constellation Brands, to be successful in the Total Beverage Solutions strategic plan, will need to understand these challenges.\u00a0 If there is any company with the means to be able to take advantage of this model, however, it will be Constellation Brands.\u00a0 Their portfolio gives them a great advantage going forward.<\/p>\n

Collaborations have no meaning if one plus one does not equal much more than two…<\/p>\n

 <\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

The history of Heineken\u2019s\u00a0expansion and growth after WWII has been previously documented in past blogs.\u00a0 The importer, Van Munching, predominantly appointed liquor houses to distribute the beer. This was, at the time, a logical way to distribute beer, as the trade channels that sold the most volume were liquor stores, upscale bars and restaurants. The […]<\/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-1d1","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/posts\/4651"}],"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=4651"}],"version-history":[{"count":9,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/posts\/4651\/revisions"}],"predecessor-version":[{"id":4670,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/posts\/4651\/revisions\/4670"}],"wp:attachment":[{"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4651"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4651"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4651"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}