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February 02, 2007

Comments

sabik

Surely 80 isn't really much of a long tail — it's more of a bigger head (on your beer), isn't it?

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tim

Nearly none of those products in the 2007 photo are from A-B as niche products. They're all attained as corporate buyouts. The "beer energy drinks" are about the only things developed in-house by A-B.

Bob

I thought that Long Tail implied a greater variety in consumer choice. What happens when A-B acquires a small craft brewer? The thinking is that A-B will sell a few of the beers it deems marketable but end production of all else. So while A-B's product line increases, there is a net loss for the consumer as brands get concentrated under the A-B label.

A-B's unique position as a distributor also allows for some, er, unique methods in forcing craft brewers to 'comply'. See Chicago's Goose Island.

Lucky

The head is still formidable, with nearly one in three beers in America carrying the Budweiser trademark (Bud, Bud Light and Bud Select).

The A-B NPD/acquisition strategy is generally assumed to have three objectives. 1. While their distributors are, in fact, "indedependent," most have become exclusive to A-B. As the the market fragments and goes premium, A-B is providing these products to keep their distributors from going to competitive suppliers. 2. A-B has the scale to do the product development required to enter every niche, thus allowing them to place a bet on every potential new sub-category. If one or two hit, it's worth it. 3. By entering every niche early, it sucks the oxygen out of the air for the little guys, who used to get a few years of momentum before encountering direct competition from the Empire.

Timothy

This post reminded me of a recent WSJ article (1/29): "Smaller Brands Hitch Ride with Coke Distributors"

"Grappling with sluggish sales of their core brands and eager to expand, some distributors are making deals with new companies that market small, faster-growing beverages.

"Coca-Cola Bottling Co. Consolidated, Coke's second-largest U.S. bottler, created a wholly owned subsidiary, BYB Brands Inc., in May 2006 to develop new types of drinks that it wasn't already getting from Coke in Atlanta."

Here's the link - login required I think. http://online.wsj.com/article/SB117003288942590723-search.html?KEYWORDS=honest+tea&COLLECTION=wsjie/6month

John I.

Having red the related article of A-B I see two things on the level of corporate culture:

1. What I see as "corporate arogance" is quite present

2. They begin to grasp something of the Long Tail but....just a little.

Ok... it's not much.

But it's a beginning.

p.s. In my opinion A-B should actively and in a larger scale help the local brands and provide them resources and know-how to develop and market their niche products, in exchange they could keep some percentage of the earnings (or something like that).

nakliyat

good beer :)

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What happens when A-B acquires a small craft brewer? The thinking is that A-B will sell a few of the beers it deems marketable but end production of all else.
A-B has the scale to do the product development required to enter every niche, thus allowing them to place a bet on every potential new sub-category. If one or two hit, it's worth it.
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Having red the related article of A-B I see two things on the level of corporate culture:

1. What I see as "corporate arogance" is quite present

2. They begin to grasp something of the Long Tail but....just a little.

Ok... it's not much.

But it's a beginning.

p.s. In my opinion A-B should actively and in a larger scale help the local brands and provide them resources and know-how to develop and market their niche products, in exchange they could keep some percentage of the earnings (or something like that).

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mmmm those beers looked delicious!!
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Interesting and nice post I like to know more about this beverage so common and enjoyed for many people is a nice article.

Jelq

Hey nice beer collection, don't drink a single one can be a real pain hahaha

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hey buddy great picture I love beer and this post about Anheuser-Busch and the Long Tail of beer is excellent

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Redbridge tastes horrible, I prefer other beers.

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Brian

Very important this information I like it and I love the beers, but first I need to know about Health Promotion because I think that this is excellent.

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I love these images have caused great thirst in my mouth.

gadgets

Personally, I don’t much care who owns A-B of any city. this country and millions of peoples lives would be better off if they ALL found something better to brew! And there would be less trash. Having worked there after the OKC Murrah Bombing, my response is still the same: SOME people wanted to be wealthy orphans!!

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Hi, nice post. I have been wondering about this topic,so thanks for sharing. I will certainly be subscribing to your blog

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Tidbits

The Long Tail by Chris Anderson

Notes and sources for the book

FREE was available in all digital forms--ebook, web book, and audiobook--for free shortly after the hardcover was published on July 7th. The ebook and web book were free for a limited time and limited to certain geographic regions as determined by each national publisher; the unabridged MP3 audiobook (get zip file here) will remain free forever, available in all regions.

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