Shift in works to boost sales at Anheuser-Busch By Todd C. Frankel ST. LOUIS POST-DISPATCH 02/17/2010
ST. LOUIS The whispers went on for months in hallways and phone calls among Anheuser-Busch's vaunted U.S. sales and marketing force. A major reorganization was coming. It even had a code name: Kashi, as in the cereal with the slogan, "Go Lean." Employees considered that a worrisome, telling detail.
On Tuesday, A-B unveiled "Kashi" a plan to reshape the way the nation's dominant brewer sells its beer. A greater focus will be placed on core brands like Budweiser and Bud Light; sales regions will be smaller but greater in number to make them more manageable; and executives supervising core brands will enjoy greater creative control over how they sell their products.
The moves are seen as a way for A-B to strike closer relationships with both distributors and consumers in hopes of goosing A-B's U.S. beer shipments, which dropped in 2009 for only the third time in three decades. Internal sales numbers, obtained by the Post-Dispatch, showed a precipitous 12.2 percent drop this January compared to January 2009.
Company president Dave Peacock said the changes were aimed at making A-B "optimally organized and as efficient as possible."
A source knowledgeable about A-B's plan said close to 450 jobs would be cut, targeting white-collar managers spread across the country.
Peacock declined to say how many jobs would be eliminated or if any layoffs would occur. He said he recognized the degree of uncertainty some workers have "about their standing within the company" as the plan was hashed out over several months by company executives and outside consultants from Accenture.
"We wanted to be as upfront as possible," Peacock told the Post-Dispatch as the reason for unveiling the plan to workers during a 3 p.m. nationwide conference call. "Some of that design work is still in process."
A-B has been roiled by a series of layoffs since Belgian-Brazilian InBev's $54.8 billion takeover of the American brewer in 2008. The combined company, A-B InBev, is the world's largest beer company, but faces billions in acquisition-related debt. A-B still employs about 4,400 people in the St. Louis region, down from approximately 6,000 before the takeover.
Peacock said the sales force changes should be in place before next week's annual A-B sales meeting in Orlando, Fla. Most of the other changes should be completed by the end of March.
The plan calls for A-B to increase the number of sales regions from five to eight with new offices in St. Louis, Denver and Charlotte. The St. Louis market currently is handled by an office in Dallas. RELATED LINKS bullet Get more business news, blogs and opinion