Analysis - Anheuser-Busch InBev faces pitfalls in union talks
Anheuser-Busch InBev will open talks in February
Anheuser-Busch InBev is at risk of reputation damage and higher costs as it prepares to renegotiate its contract with brewery workers union, the International Brotherhood of Teamsters, according to an analyst.
In a note this week, CLSA's Caroline Levy said the talks, to take place on 28 February, are hoped to proceed as smoothly as the pair's last negotiations five years ago, when all 12 A-B InBev breweries in the US were guaranteed to stay open for the length of the contract. But the analyst warned of pitfalls.
"There is some risk of above-inflation, wage and benefit increases and of protracted negotiations causing higher brewery operating costs and poor public relations for A-B InBev," said Levy.
She added: “The Budweiser brand wants to be ready for anything and is increasing its distributor inventories, which it has done in years past.”
In the third part of this month's management briefing, Ben Cooper reviews the environmental sustainability of three of the world's biggest brewers: Anheuser-Busch InBev, Carlsberg and Diageo....
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