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Wholesalers dread fuel costs more than excise tax in 1991.

Wholesalers dread fuel cost more than excise tax in 1991

Beer wholesalers say the rise in fuel costs caused by the crisis the Persian Gulf posed the worst economic threat to them in 1991, according to a nationwide survey. The new 16-cent excise tax per six-pack ranked second on a list of five factors that might affect business this year.

Facing uncertainty over what effect the price hikes in beer will have on the beer-drinking public, 85 percent of wholesalers said they will push the high-priced end of their product line, thereby making the greatest profits.

In the coming months, the public will see fewer odd-ounce bottles and cans that appeal to small segments of beer drinkers since 60 percent of surveyed wholesalers said they will clear slow-moving packages from their warehouse shelves.

The survey, conducted by Washington, D.C. and Los Angeles-based management consulting firm of Heaney & Burns, sent questionnaires to 1029 beer distributors nationwide in December.

In these tight economic times, most wholesalers said they do not plan to lay off employees, according to the survey. Instead, the majority will raise wages 4.6 percent, keep benefits packages the same, and increase training.

While willing to spend on personnel, 65 percent of the surveyed distributors said they will sit tight and see what happens before expanding fleet or warehouse space.
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Publication:Modern Brewery Age
Date:Jan 28, 1991
Previous Article:Resurgent regional.
Next Article:Fuel taxes unfair, NBWA tells IRS.

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