On Oct. 31, the Illinois Liquor Control Commission ruled that Anheuser-Busch InBev (ABI) could continue to hold an interest in four Illinois distributorships despite a law enacted June 1, 2011, which prohibits brewers from owning distributorships. This ruling is contrary to public policy established by our Legislature and fully conflicts with Illinois' three-tier regulatory distribution system.
Every state regulates alcohol by using some form of a three-tier regulatory system (manufacturer, distributor, and retailer). Distributors are intended to be an independent licensee separating a brewer from a retailer. Brewer ownership of a distributorship is vertical integration of the three-tier system thereby destroying the purpose of the three-tier system.
There are also concerns about Illinois' job loss. In 2008, ABI, a Belgium-based international corporation, slashed costs of the combined company by $1.1 billion on the backs of American workers -- they laid off 1,400 people, about 6 percent of their U.S. workforce. By 2011, ABI was able to pay off a significant portion of the $54 billion it had borrowed to finance the Anheuser-Busch takeover, and 40 executives split $1.3 billion in stock-option bonuses. Also interesting is that this foreign entity that reaps profits from North America has no North American on its board, particularly since in North America, ABI generates around 42 percent of its revenue.
The Associated Beer Distributors of Illinois, a not-for-profit trade association, represents the interests of its members who distribute beer of all brewers. Distributors are licensed by the state to import and distribute beer to licensed retailers. ABDI members employ more than 3,300 people across the state. They collect and pay $63 million each year in excise taxes to the state and pay more than $280 million in direct wages and health care benefits.
William D. Olson, president, Associated Beer Distributors of Illinois Associated Beer Distributors of Illinois
Today is Thursday, May 23, the 143rd day of 2013. There are 222 days left in the year. 1863 — 150 years ago: Messrs. J. and M. Rosenfield have moved their leather and hidestore to the building formerly occupied by Temple Bufords's store. They buy and sellhides, pelts, furs, wool, beeswax, lard, tallow, etc. 1888 -- 125 years ago: The Rock Island Lumber Company has recovered 5,000 of the8,000 logs that were carried away by the Mississippi River flood last week. 1913 -- 100 years ago: John J. Ullemeyer has been awarded the contract to furnish RockIsland fire and police department members with uniforms, at the city's expense. 1938 -- 75 years ago: Work on Aledo's new $38,000 swimming pool was started thismorning at South Park when ground for the pool was broken by Mayor John W. Murphy. 1963 -- 50 years ago: Students and teacher at Moline High School called today "MissLeona Day" day at the school in honor of the government teacher who retires at theend of the school term. Although she's been teaching for 43 years at the school, Miss Dayfound a new way of arriving at the school this morning. At 7:30 a.m., a police squad carpulled up in front of Miss Day's home and escorted her to school. A caravan of students' cars joined the procession along the way. 1988 -- 25 years ago: Barbecue cooking and riverfront antics are planned for Discover the River Day Saturday in Leach Park, Bettendorf. A 5K run, wind surfing, a canoe race, hogcalling and more will round out the day under the Interstate 74 bridge.