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A-B to sell off distribution system in New Jersey.

"To enhance customer service capabilities and to create opportunities for minority businesspeople," an Anheuser-Busch, Inc., executive said the brewer will develop a network of independent wholesalers in northern New Jersey to replace its company-owned distributorship there.

According to Paul Morrissey, A-B's vice president for wholesale operations, the brewer has operated a company-owned distributorship in northern New Jersey, the largest Anheuser-Busch wholesaler in the United States, for more than 40 years.

Morrissey cited the need to provide more "individualized service to customers," the need to capitalize on sales growth opportunities in the region, and the need for space at the Newark brewery, as reasons for the planned divestment.

"We are committed to develop some of the new wholesalerships under minority management and ownership," Morrissey said. "While we have identified the candidates for ownership of the new distributorships, sales agreements have not yet been finalized."

Morrissey added that the independent wholesalers will be in operation as early as this spring, and that service to retailers would not be interrupted in the meantime.

"We're very sensitive to the interests of our employees in Newark," Morrissey went on. "We currently employ approximately 275 people at the wholesalership here and the majority of the Newark branch employees will be offered employment either at our Newark brewery, elsewhere within the Anheuser-Busch system, or at one of the new wholesalerships."

Morrissey also said that because of a transfer agreement with one of the company's labor unions, about 125 of the wholesaler's employees could claim jobs at the brewery.

The Newark operation is one of 11 company-owned branches. A-B will maintain ownership of its other branches, Morrissey stated.
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Title Annotation:Anheuser-Busch Inc.
Publication:Modern Brewery Age
Date:Feb 1, 1993
Previous Article:Coors Cutter ads are aired nationally.
Next Article:Molson/Miller offer more deal details.

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