Beer Marketer's Insights - AB Assessments Find More Ruled Out-of-Compliance This Yr; Focus on Call Frequency, IRIS Software

In a normal yr, AB Equity Agreement assessments are par for the course, but this year they are creating a lot of friction between AB and its distributors. These assessments rate distributors across a variety of standards, i.e. requirements and metrics contained in its agreement that AB can amend at any time. Last year assessments were suspended in the wake of Bud Light controversy, big declines, distributor financial pressures, etc. But this year they have returned in a manner that many distributors find frustrating and bewildering. They feel as if AB is focusing on data analytics instead of sales. Much attention is reportedly focused on tracking call frequency, including at smaller accounts, looking for more regular visits. AB's also mandating more use of its software program called IRIS to track shelf sets, we hear. INSIGHTS has talked to several distribs who have been ruled out-of-compliance and hears that's more widespread than in a typical year. Doesn't necessarily mean there will be any penalty. But there is a sense that AB is more focused on policing its distrib network than it should be. Some who are out-of-compliance with their bank loans have more pressing concerns. Wholesalers "are incredibly frustrated," said one source. After "biggest brand crisis in history" and lost profits, "ABI's response is now data analytics?" Others ask if any of this increased measurement and pressure really has anything to do with building sales. Tho AB clearly thinks that it does.This is a big moment for AB and its distribs as cos lap Bud Light fallout. AB is seemingly pushing distribs to ramp up service levels as it hopes to regain as much as it can, or at the very least stop the bleeding. Very early days show some positive signs in scans. Mich Ultra and Busch Light are back to growth in several mkts, INSIGHTS hears. But for many distribs, relationship with AB is becoming more strained in the process.Here's a statement from an AB spokesperson: "Together with our independent wholesaler partners across the country we are focused on leading our industry's growth and accelerating our shared momentum, and we remain steadfastly committed to the personal and contractual relationships with our wholesalers which have enabled our joint success for generations. Every year, we meet with our wholesaler partners to discuss retailer feedback and ensure that we're working together to improve service and operate consistently at the highest possible level across all retailers and territories, and this year is no different."

AB Assessments Find More Ruled Out-of-Compliance This Yr; Focus on Call Frequency, IRIS Software

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