Thursday, June 25, 2009, 10:41am EDT

Analyst: Anheuser-Busch InBev considers distributor consolidation

Business First of Columbus

Anheuser-Busch InBev is considering consolidating its network of 600 beer distributors, according to a report by an analyst who met with company management.

The world’s largest brewer is weighing whether to sell as much as half of its U.S. beer volume directly to retailers through its own distributors in an attempt to save money and boost profitability, according to a report Wednesday from UBS analyst Melissa Earlam. That’s up from 7 percent today.

“ABI had thought that 20 percent direct distribution was possible in the U.S. market,” Earlam wrote. “ABI now believes, in theory, 50 percent of volumes could ultimately be sold through direct distribution.”

Even if A-B InBev doesn’t go through with the consolidation, the very idea could prompt distributors to merge, she said.

An A-B InBev spokeswoman, however, said the company has no plans to force consolidation.

“Consolidation has been occurring for many years, and we believe it will and should continue,” Marianne Amssoms, a spokeswoman for A-B InBev, wrote in an e-mail. “We believe this should happen voluntarily over time. This is a position we have expressed to wholesalers repeatedly, and there is no change in our position.”

Belgium-based A-B InBev is selling off assets and looking to trim costs to reduce the debt it took on when it bought St. Louis-based Anheuser-Busch last year for $52 billion. The company has a north Columbus brewery that employs more than 900 and ranks among the region’s largest manufacturing employers.

SABMiller Will Halve Emissions on Beer Through Renewable Energy

By Andrew Cleary

June 26 (Bloomberg) -- SABMiller Plc, the world’s second- largest brewer, plans to halve fossil fuel emissions from beer production by 2020 through greater use of renewable energy including agricultural waste such as rice husks in India.

The London-based company said today that it expects to contain emission levels at their 2008 levels by 2020 even though it will produce more beer. The brewer is targeting reduced carbon emissions through initiatives such as introducing lighter, returnable glass bottles in Colombia that can be used twice as often as regular bottle, SABMiller said in a statement.

To contact the reporter on this story: Andrew Cleary in London at acleary7@bloomberg.net.