Anheuser-Busch Serves Radio A Cold One
February 17, 2009 at 5:18 AM (PT)
If your station is still billing in this economic downturn, but is having more problems with collections -- this isn't going to help. ANHEUSER-BUSCH has stopped paying advertising agencies retainers as part of the brewer’s plan to cut $1.5 billion in costs, reports BIZJOURNALS.COM. Now it will pay a set fee for specific projects, regardless of whether they take longer, ADVERTISING AGE reported MONDAY.
In a letter sent to media suppliers, the company wrote "Effective MARCH 1st, 2008, ANHEUSER-BUSCH and all its subsidiaries will adopt the AB INBEV global corporate policy governing payment terms for Media supplier invoices as net 120 days. Payments will be distributed on the 4th and 19th days of each month (or subsequent business day)."
Continuing, they wrote, "If you are not able to work with the change in payment terms, we may have to consider an alternative supplier."
Read the full letter here.
A-B’s biggest advertising agencies, including DDB in CHICAGO and CANNONBALL in WEBSTER GROVES, will likely make less money off the brewer under this new policy.
BELGIAN brewer INBEV bought ANHEUSER-BUSCH COS. INC. last fall for $52 billion. ST. LOUIS-based ANHEUSER-BUSCH is now a subsidiary of ANHEUSER-BUSCH INBEV.