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Old 01-24-2012, 12:51 AM   #1
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Default Budweiser lowers ABV

http://news.yahoo.com/blogs/sideshow/budweiser-lowering-liquor-levels-save-taxes-uk-202022125.html

The company that makes Budweiser, Beck's and Stella Artois brands of beer is lowering its alcohol content in order to save millions in taxes.

AB InBev is lowering the alcohol content levels from 5 percent down to 4.8 percent. In a report by The Grocer, they say the reduction will only affect sales in the UK. Ab InBev says they are making the change to save millions on production costs, which will allow them to avoid a 7.8 percent price increase that is being imposed by some other beer makers.

"Our decision to bring Stella Artois, Budweiser and Beck's to the UK market at 4.8 percent abv during 2012 is in line with evolving UK category trends," an AB InBev spokeswoman told The Grocer.

More from the Grocer:

Industry insiders said some retailers had rejected demands for price increases and producers were cutting abv to offset costs, retain price points and shore up profitability.

"Some of the major mults have denied price increases for three years, and the brewers' answer is to shift into smaller bottles and move from 5% to 4.8%," said one industry source.

It has been estimated that cutting Stella Artois' abv by 0.2% would save AB InBev about £8.6m a year in duty, based on its off-trade sales alone [Nielsen 1 October 2011].

However, it would need to persuade big customers there was something in it for them too, said Tim Wilson, MD of market analysts Wilson Drinks Report, with money being invested back into the brand.


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Old 01-24-2012, 02:41 AM   #2
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I'd do the same thing if it saved me millions of dollars. It's only .2%...



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Old 01-24-2012, 03:11 AM   #3
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Sounds like good business.

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Old 01-24-2012, 03:13 AM   #4
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England won't pitch the hissy fit their US drinkers would

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Old 01-24-2012, 03:51 PM   #5
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I'll have to remember not to drink Bud if I ever travel to the UK.

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Old 01-24-2012, 03:55 PM   #6
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I'll have to remember not to drink Bud if I ever travel to the UK.
In my most recent travel to the UK (almost exaclty a year ago from today), most of the locals were drinking bud...and it was 3 GBP!!! A pint of Guinness was 1.5 GBP, and Guinness on that side of the pond is much better than the Guinness we can get here in the states.

Granted this experience was at a more of a douche bag style club (or disco as some of them still call it)

At the smaller pubs it was a much different story.
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Old 01-24-2012, 03:57 PM   #7
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Does that mean they are going to raise the abv over 3.2% in Oklahoma?

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Old 01-24-2012, 04:08 PM   #8
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Does that mean they are going to raise the abv over 3.2% in Oklahoma?
That 3.2 is ABW...convert to ABV and there is little difference (3.2 ABW is 4.0 ABV)
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Old 01-24-2012, 04:20 PM   #9
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Originally Posted by Cromacster View Post
In my most recent travel to the UK (almost exaclty a year ago from today), most of the locals were drinking bud...and it was 3 GBP!!! A pint of Guinness was 1.5 GBP, and Guinness on that side of the pond is much better than the Guinness we can get here in the states.

Granted this experience was at a more of a douche bag style club (or disco as some of them still call it)

At
When my wife and I went to Paris, I had a Bud ( i heard they aren't allowed to use the Budweiser name in Europe ) and it was distinctly different than the american version. MUCH better beer.

Douchebag style club is the perfect title by the way.
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Old 01-24-2012, 04:30 PM   #10
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I heard they aren't allowed to use the Budweiser name in Europe
Yea they can't. From wiki http://en.wikipedia.org/wiki/Budweiser

Quote:
Anheuser-Busch cites prior registration of the trademark in the US and battles for the right to use it worldwide in many legal disputes against the Europe-based companies in several countries.[2] The Europeans wish to maintain or regain their right to market their beer under their traditional trademark. Bürgerbräu has marketed its beer as Budweiser Bier since 1876, while Budvar has marketed its product this way since 1895. The two companies in České Budějovice point out that Budweiser is not a generic name, but refers to a beer actually made in the city.

The existence of several beers with similar names has caused problems in some markets. In 1907 the US and Czech brewers made an agreement that Anheuser-Busch could market its beer as Budweiser only in North America, while the Czech brewers had the rights to the European markets. Anheuser-Busch markets its product as "Bud" (in France and elsewhere) and "Anheuser-Busch B" (in Germany, Austria and Switzerland),[2] where the beer brewed in the original city retains the rights to the name. The United Kingdom is one of the few places where both Anheuser-Busch and Budvar beer are sold under the name "Budweiser."


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