Bud Light Distribution

Bud Light Distribution - Bud Light Distribution John T....

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Bud Light Distribution John T. Lilly September 12, 2008 Retail Distribution Professor Gielens Every commercial product has a form of a supply chain and of retail distribution. Many commercial products in fact have multiple methods of distribution before reaching the final consumer. One of the most advertised products and very widely available is Bud Light. When watching the game and the following commercial comes on: “Today we salute you, Mr. 80 SPF Sunblock Wearer. There are 24 hours in a day; you are wearing 80 hour protection. If the sun fails to go down, you’ll be ready. [don’t forget the moonlight] Your coconut scented force-field blocks out all the suns rays, …and stray rays from another sun…in another galaxy. 30 SPF, please. You might as well be wearing cooking oil. (something smells delicious) So crack open an ice cold Bud Light, Mr. 80 SPF Sunblock Wearer. In fact, feel free to crack one open at high noon…in the middle of the Sahara Desert. [Mr. 80 SPF Sunblock Wearer]” 1 Do you ever wonder how Anheuser Busch supplies all of the various places you can pick up a cool refreshing Bud Light? The process can take many different variations because Anheuser Busch distributes Bud Light through a number of different channels supplying many target segments. Anheuser Busch the maker of Bud Light was founded in 1852, and in 2005 distributed over 121 million barrels of beer. 2 To understand how Bud Light arrives to all of its various locations first I looked at some of the different locations it is sold in Chapel Hill and then followed the beer back up its supply chain. Primarily I will evaluate the different distribution methods highlighting some of the difficulties and reviewing the operations of Anheuser Busch, its distributors and retailers. At-Home Consumption One of the most common forms of consumption for Bud Light is in a personal residence. This might be during a fraternity party (720 Bud Lights in one night), watching a ball game with 5 1
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friends (30 Bud Lights during the game) or perhaps just enjoying a Bud Light when arriving home from a long day at work. “Bud Light is the world’s best selling beer.” 3 However, before it can arrive to any of these events it must go through a supply chain usually ending up at either a supermarket or a convenient store. Grocery Stores Bud Light allows each chain to help create the best supply model for itself. In the Chapel Hill area, the three main supermarkets are Food Lion, Kroger, and Harris Teeter. While Food Lion and Kroger have very similar supply chains, Harris Teeter’s supply chain was substantially different. Food Lion Food Lion stores, according to the manager at the Carrboro store, are visited on Monday’s of each week by a sales representative from Harris Distributors Inc. The sales representative reviews the inventory sold over the previous week and makes a log of what will be necessary to be delivered. The sales rep then communicates this information directly to a Harris Distributor
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Bud Light Distribution - Bud Light Distribution John T....

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