09-19-2005, 03:53 PM
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#13 (permalink)
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Unbelievable
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Quote:
Affiliation brings change to Widmer distribution
Michael Rose
Business Journal Staff Writer
While Widmer Brothers Brewing Co. toasts its recent deal with the world's largest beer company, it could mean a shake-up for some of Widmer's distributors.
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Portland-based Widmer Brothers, one of the Northwest's microbrewing kings, signed a deal with Anheuser-Busch Inc. on April 17. The agreement calls for Anheuser-Busch to own a minority interest in Widmer and helps clear the way for Widmer to have its beers distributed by Anheuser-Busch wholesalers. But 44 of Widmer's existing distributors in 16 states--who aren't affiliated with Anheuser-Busch--may lose Widmer beers from their lineup.
President and co-founder Kurt Widmer confirmed that the company wants to shift its existing distribution operations to Anheuser-Busch-affiliated distributors. Independently owned Anheuser-Busch distributors are not obligated to push Widmer's beers. But the deal with Anheuser-Busch puts Widmer on the same side as the almighty Budweiser brand. In the past, Anheuser-Busch had discouraged its distributors from carrying competing beers.
"Some Anheuser-Busch distributors listen very closely to urgings from the top to carry Anheuser-Busch-approved products," Widmer said. All of the Anheuser-Busch distributors Widmer has talked with are eager to distribute Widmer Brothers beers.
Founded in 1984, Widmer Brothers opened a $24 million brewery and bottling plant in Portland in the spring of 1996. The company's best-known product is its hefeweizen, a golden, cloudy wheat beer. This year Widmer expects to brew about 140,000-barrels.
In the Portland area, Widmer Brothers has used Anheuser-Busch distributors and Columbia Distributing Co., whose major account is Miller Brewing Co.
"Our intent and desire is to move to Anheuser-Busch," Widmer said. As far as Columbia Distributing is concerned, he said the company had no specific timetable to switch its products to an Anheuser-Busch distributor. He also cautioned that the company could change its plans.
Ed Maletis, president of Columbia Distributing, described the Widmer account as "a very lucrative franchise" and said he still has a chance to keep the business.
"What's going to happen in distribution has not been determined at this point," Maletis said. Columbia Distributing, which also distributes beer for Portland Brewing Co., Full Sail Brewing Co., Nor'Wester Brewery and Deschutes Brewery in the Portland metropolitan area, was one of the first local distributors to handle microbrews. It started carrying microbrewed beers 10 years ago.
"We were there at the inception, paying the dues, when the category was nonexistent and the profitability was extremely hard to come buy," Maletis said.
Although Widmer represents less than 5 percent of Columbia Distributing's business, Maletis said it's still an important piece of his operation. High fixed costs in the distribution business make each bit of marketshare vital, he said.
"I look forward to continuing to do business with them," Maletis said of Kurt and Rob Widmer, the founders of the brewing company. He declined to disclose details of his distribution contract with Widmer. Besides portions of the Portland area, Columbia Distributing also distributes Widmer's products in Southern Oregon.
Maletis Beverage, a competitor of Columbia Distributing that's operated by members of Ed Maletis' family, is affiliated with Anheuser-Busch and currently distributes a portion of Widmer's product in the Portland metropolitan area. If Widmer Brothers moved its business out of Columbia Distributing, Maletis Beverage would probably get an additional share.
"How things develop are between Widmer and Columbia," said Chris Maletis, an owner of Maletis Beverage. The company also distributes other microbrews in the Portland market, including Nor'Wester and Pyramid Ale. With the microbrew craze in full swing, all distributors need to have some craft beers in their portfolios, he said.
© 1997 American City Business Journals Inc.
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Yes Anheuser-Busch does own a portion of Widmer, however they do not have a controlling interest. This move appears to be intended to widen their distribution base. |
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