Can you say “moo”?
Ahhh, the quite of the pasture… the chirp of the birds… the cute bunnies scurrying here and there… and the contented sound of the cows as they are milked in the barn… moo.
Moo indeed. After recently reading in Harry about upcoming price hikes, led by ABI as usual, I had a sudden mental image of the US beer market (consumer and wholesaler) being milked and milked and milked… whether happily or not is another question ;-)
In a prior post, which you can find here I discuss the business concept of a cash cow. And what does one do with a cash cow? You milk it. And my oh my, ABI with MillerCoors (and others) willingly following are yanking on those teats like no one’s business! Even those craft folks are enjoying a tug here and there.
Even you wholesalers are getting in on some nice milk… what are your gross profit percent’s? What are you putting to the bottom-line? There’s a little moo for everyone ;-)
But what of the poor cow? Is there any concern for ol’ Bessie? Or is she simply milked and milked and milked until there is nothing left? And what happens to ol’ Bessie when she can’t produce any more milk? Why she is sent to the Slaughterhouse. Don’t forget, that place has earned that name.
I know the craft beer folks are laughing all the way to the bank – from both a profit and market share perspective. Think how the entire US beer business would be different if ABI had pursued a balanced market share strategy versus grabbing the ol’ milking stool and sitting down for some hard work. The entire US beer market would look much different if the Third were still running the show.
Think of paths not taken… this milking strategy has strengthened the craft brewer’s incredible growth… wine and spirits love it too… and with the now un-stoppable power of the prettiest girl at the dance, in affect it has set in motion the complete destruction of the 3 tier system (I believe that is already baked in the cake). A butterfly beats its wings in the Amazon and… ;-)
To the quickly shrinking pool of beer wholesalers out there (and all of us unfortunate consumers who have little say in this)… can you say moo? ;-) At least you wholesalers are being well-fed – for now…
We poor consumers are simply getting milked without even a kiss or an extra bale of hay… and many are following the value proposition that craft is a better deal… Moo. Moo indeed.