Google three tier system. Brewers aren’t allowed to distribute.That's BS, if the stores in this state are any example.
It is possible state or local laws have altered it somewhat in your area. Or maybe you just got lucky and have really good stores, or just shop at good stores. If you’re talking about major chains though I’m surprised.
ChatGPT has made me lazy. Here. Google for more detail. The shelf stuffing is the work of the distributors. It’s like factory farmed chicken. Maybe your stores don’t do it but all the big ones do.
ChatGPT
The three-tier beer distribution system in the US involves three distinct layers:
This system, established after Prohibition, aims to prevent monopolies and encourage moderation by separating the production, distribution, and retailing of beer.
- Brewers or Importers: This is the first tier, consisting of the companies that brew or import beer.
- Distributors: The second tier is made up of distributors who buy beer from the brewers and then sell it to retailers. These distributors may be independent or tied to specific brewers.
- Retailers: The third and final tier includes bars, restaurants, liquor stores, and supermarkets that sell beer directly to consumers.
ChatGPT
The three-tier system can result in the "shelf stuffing" of Budweiser products due to a few key factors:
This system can lead to a market where big-brand beers dominate retail spaces, making it challenging for smaller breweries to compete effectively.
- Market Power of Large Brewers: Large brewing companies like Anheuser-Busch InBev, which owns Budweiser, have significant market power. They can offer incentives or discounts to distributors, which may encourage them to prioritize Budweiser products over smaller brands.
- Distribution Relationships: Some distributors might have long-standing relationships with big brewers like Anheuser-Busch. These relationships can lead to a greater focus on pushing their products in the market, often at the expense of smaller or craft breweries.
- Volume Incentives: Big brewers often provide volume-based incentives to distributors. The more Budweiser products a distributor sells, the better the pricing or terms they might receive, leading to a push for greater shelf space in retail outlets.
- Limited Shelf Space: Retailers have limited shelf space, and with distributors focusing on major brands, smaller or less well-known beers can struggle to find shelf space.
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