11 Sep 2009 @ 8:08 AM 

Some days you just wish you could get somebody’s ear. Like the BA.

MSN published this awesome article the other day: Why Every Cold Beer Costs You More.
Just imagine the cost of THIS pitcher.
Don’t feel obligated to click through. It’s just short of being a Jackie Harvey-esque Hollywood gossip column about the beer business in a “This is what they DON’T want you to know!” (gasp!) kind of way. It’s still informative, though, because it gives us this lovely little piece of information:

The top 13 executives [at A-B] made $73 million in the first half of 2009, or $5.6 million each, on average — up from $38 million a year before.

And mind you, Anheuser-Busch InBev execs received a 79% pay increase in 2008, reminds Paul Hodgson of The Corporate Library, an independent corporate governance research firm. The increases are mainly due to gains from stock options and stock vesting.

Anheuser-Busch InBev top brass aren’t the only beer execs getting in on the act. Molson Coors Brewing chief Peter Swinburn got a 120% pay increase in 2008, to $6 million from $2.7 million the year before, according to company reports. And Boston Beer chief Martin Roper saw his pay go up 28% last year to $2.75 million, according to company filings.

For the love of god, craft brewers: SAY SOMETHING. I’m pretty sure that the majority of craft brewers are just barely making enough to squeak by. The thing that I’ve heard over and over again when I talk to people about wanting to start a brewery is “I hope you like cleaning stuff!” and then “You’re not going to get rich doing this, you know.”

Well, no. I know. But I’m going to be happy, and that’s pretty awesome. I don’t ever expect to make $2.75 million, much less $6 mil!

Come on craft brewers, get out there and work this! You’re the beer for the people! These companies aren’t being run by somebody who just loves beer and wants to make a quality product, they’re being run by some cushy exec in a corner office who just loves profit! (Not to say I don’t love profit.) There’s so much spin to be had!

Go! Strike! Win market share!

Posted By: erik
Last Edit: 11 Sep 2009 @ 02:24 PM



Responses to this post » (6 Total)

  1. Billy Broas says:

    Great marketing frequently involves framing the competitor as the bad guy. You can even turn a company’s strength against them. Pepsi said “Coke has been around the longest sure, but it’s old and stale, but we’re hip”. Enter New Coke. Fail.

    I meant to comment on your Oligopoly post but it applies here too. Craft brewers need to use this stuff to their advantage. In every great story throughout history of the little guy overcoming tremendous odds there is always a big bad guy standing in his way. The bigger and badder he is, the stronger the support for the little guy.

    Preach on brother!

  2. erik says:

    The only thing is:

    What happens when the little guy becomes the big guy?

  3. Billy Broas says:

    What happens is a new little guy replaces him :>)

    Fables aside, the key point is craft brewers should leverage this win market share like you said. I see craft beer operating as the little guy in a niche for quite some time, but they should still grasp opportunities to grow.

  4. erik says:

    Yeah. I tend to agree with you. All wonderful fantasies aside, craft beer gets to be the little guy(s) for a long time, yet.

    I actually quite enjoy it. But what I really want are more and more little guys.

    • Edward says:

      “…is a wicked mess beirwng in Syria.”I’d re-think going there if you have anyone waiting for you back home.That sh!thole is going to be a blackhole for suicidal-jihadi maniacs for years to come.Snoop-Diggity-DANG-Dawg

  5. I’m there. I’m going to really push Skyscraper beer…that’s where I work, so maybe I can get some of the AB fat-cat cash.

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