How BUD wins with the distribution business

The 10 Biggest Brewers in America

Excerpt:

... the brewer is beholden to the distributor. Though some of the brewers on this list -- Craft Brew Alliance, for one -- operate brew pubs where they can cut out the middleman, distributors remain vital to the long-term growth story of U.S. breweries. This reality forms the basis of a pretty strong competitive advantage for Anheuser-Busch InBev. At 500 wholesalers -- 17 of which are owned outright -- the company's U.S. distribution network is much larger than that of Boston Beer. Does it pay to own 17 wholesalers in markets like Boston, New York, Denver, and Los Angeles? You bet. Consider this gem from the company's annual filing: "Revenue per hectoliter derived from sales through own distribution tends to be higher than revenue derived from sales through third parties." It's just one more way Anheuser-Busch wins with distribution.

Comment: A nice 3.7% dividend