B12 Solipsism

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Cat Fight Emerson vs Bud

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St. Louis cat-fight!

Taj Mahal

Emerson, one of St. Louis’ largest companies, is apparently steamed at what it thinks is rough treatment at the hands of Anheuser-Busch. The Ferguson-based manufacturer of cooling equipment, network power products, appliances and tools plans to boycott Anheuser-Busch products to protest stingier payment policies and what it claims are Anheuser-Busch’s cutbacks in funding for local non-profits.

In an internal memo obtained by Lager Heads, Emerson sounded off:

“With the InBev acquisition of Anheuser-Busch we have seen negative things happening in the St. Louis community and in regard to Emerson doing business with InBev. InBev payment terms with Emerson have now been stipulated as 120 days – take it or leave it!”

Before being taken over by InBev, A-B typically settled its accounts in 30 days. Emerson, an Anheuser-Busch supplier, is evidently mad at the change. It’s not alone, but this is the most interesting response – by far- to Anheuser-Busch’s new way of dealing with suppliers.

[Click to continue reading Emerson to boycott Anheuser-Busch | Lager Heads | STLtoday]

DDB Chicago has both petulant companies as clients, as Jeremy Mullman reports:

DDB, Chicago, finds itself in exactly that awkward position today following a report in the St. Louis Post-Dispatch that Emerson, an engineering conglomerate, has instructed its divisions to boycott Anheuser-Busch products in response to A-B’s new insistence on making vendors — including Emerson — wait 120 days for payments. Emerson also included among its reasons what it described as A-B’s cutbacks in funding to local nonprofits, including the United Way and the Girl Scouts.

The orders were contained in an internal memo obtained by the newspaper. “With the InBev acquisition of Anheuser-Busch, we have seen negative things happening in the St. Louis community and in regard to Emerson doing business with InBev,” the memo reads. “Effective immediately, we will not use Anheuser-Busch InBev products at the Emerson World Headquarters complex, Winfield Conference Center, on Emerson planes, or in Emerson suites at Busch Stadium (Cardinals), Scottrade Center (St. Louis Blues & concerts), and Edward Jones Dome (Rams).

“We want all divisions to comply and not purchase or stock any Anheuser-Busch InBev products. We suggest you use Coors, Miller, Modelo or Heineken products.”

[Click to continue reading Coors Light at Busch Stadium? – Adages – Advertising Age]

I’d be annoyed too if all invoices were paid after 120 days – that really would mess up our cash-flow. A few years ago we did a large marketing program with a major financial corporation, and because they paid their invoices within 60 days, we had to take out a bridge loan with a local bank just so we could stay afloat. Turned out ok, but money was more liquid a few years ago. Four months is a long time to hold someone’s money before paying it.

Written by Seth Anderson

April 17th, 2009 at 7:13 am

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