Could it possibly get any worse for Anheuser-Busch? Maybe. Members of the Teamsters union representing 5,000 brewing, packaging and warehouse workers at AB breweries have overwhelmingly voted to authorize a strike.
Union workers are asking for a wage increase and health and retirement benefits protections. Negotiations on a new contract broke down last month. The negotiations have not been without some success, as the two groups reportedly have reached a tentatively agreement on some issues.
The current contract expires at the end of February, and it was not clear if workers would strike before then if an agreement was not made. But the vote to strike puts added pressure on AB to get a deal done. If the union were to strike, it could shut down much of the production across the country.
The union strife comes on the heels of by far the most difficult year in the history of the company following the epic decline of Bud Light due to a consumer boycott. The boycott has pummeled the world’s largest brewer with the biggest brand drop ever in the modern brewing industry. Bud Light has gone through the largest brand decline ever in the industry – in the short span of less than a year. It is the first time in over 50 years that an AB brand has not been at the number one beer position as Bud Light has ceded the top spot to Modelo Especial.
All eyes will now be on any further negotiations that take place. Any shortage of AB products would add another devastating blow to the AB distribution network and would erase even more of the fragile Bud Light retail shelf space that AB has been able to cling onto.
This article was culled from a variety of sources.