Thursday, October 20, 2011

Budweiser tanking, shareholders yawning.

This analysis was forwarded to me by Ray and Bob, and while it previously has been reported in the beer press, it’s worth observing that while Budweiser may be down to an incredible, seismic dimension, most allegiances surely remain within the AB Inbev stable of beer-flavored sparkling water, with Bud Light (and probably Michelob Ultra) making up the losses. In the main, they're not jumping ship for craft beer, folks.

The evidence also points to where some of the Budweiser and MGD drinkers migrate: Stella Artois, Heineken, Corona and other tastealike imported brands that are no better than the previous beverage choices of the untutored, but cost more. That’s trading “up” in a self-defeating way, but as this update hints, if you’re afraid of flavor, then the interchangeable, malt-based alcohol delivery device of the moment never mattered very much, anyway.


Sales Drop for Major Beer Brands - Some major beer brands controlled by Anheuser-Busch and MillerCoors are gradually falling out of favor with US consumers, according to recent analysis by financial website 24/7 Wall St. Sales of Anheuser-Busch's flagship Budweiser brand have fallen 30 percent since 2006. Other Anheuser-Busch brands have seen even more dramatic contractions in sales: Michelob, Michelob Light, and Bud Select sales have fallen 72 percent, 64 percent, and 60 percent, respectively. Several MillerCoors brands are also in steep decline as sales of Milwaukee's Best, Old Milwaukee, and Miller Genuine Draft have all fallen more than 50 percent since 2006. The 24/7 Wall St. report cites consumer preference for lower-calorie beers and imported brews as the chief causes of lackluster sales of more traditional US brands.

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