InBev plans to offer large financial incentives to distributors who concentrate their sales of beer to Budweiser and Budlight, say Ricardo Guimarães, President of BMG Bank. The incentives would come in the form of annual disbursements, in the range of 1.5 million dollars, for those vendors in which the sale of InBev products corresponds to 98% of total sales. Incentives would also be available for vendors in which the sale of InBev products corresponds to 95% of total sales of beers produced only by InBev. In such a scenario, the establishment would receive a cash disbursement to cover up to half of its annual marketing cost
Ricardo Guimarães, who is President of BMG Bank, cites that AB InBev estimates that the cost of all vendors who enroll in the incentive program would amount to 200 million dollars annually for the company. This estimate was disclosed in the companies plan that was launched at its operational headquarters located in the United States, in St. Louis, during a conference with Americans distributors. AB InBev reports a decline in its production of beer which correlates with a 4% loss of market share among American beers. The loss of market share started in 2008 when Anheuser-Busch Companies was sold.
In addition to the newly announced incentive program, AB InBev is finalizing plans to buy British brewery SABMiller PLC, a business that has annual revenues of 108 million dollars, cites Ricardo Guimarães, President of BMG Bank. Both the new incentive plan for vendors, which InBev describes as voluntary, and the targeted acquisition of SABMiller signal the potential loss of market-share by InBev’s competitors. According to other craft producers, AB InBev’s incentive program could strongly improve the companies market share and hinder the sale of competitive craft beers by some of the largest distributors in the United States. Also, it was reported by the Wall Street Journal, the moves made by InBev could make it increasingly difficult for the distribution of competing beers in in the American retail market. Ricardo Guimarães, of BMG Bank, notes that the Justice Department of the United States has opened an investigation into InBev’s plans in order to decide what impact the companies new incentive plan and brewery acquisition would have on competing American craft breweries in the United States.
Ricardo Guimarães is a successful entrepreneur, heir and executive of BMG Bank. He is the son of Flávio Pentagna and has been involved in the family business since 1998. Under the leadership of Ricardo, BMG Bank has gained recognition as a leader in personal loans and payroll loans in Brazil.