Anheiser-Busch sales are down, solution: Make better beer? No, step up marketing!

[fatmoose]

For instance Leinenkugels has some sort of deal with MillerCoors. Leinenkugels gets to use MillerCoors distribution channels, and MillerCoors gets to use Leinenkugels for small scale brewing I think.

Miller bought Leinie a number of years ago, mid 90's I think it was, prior to the SAB and later Miller-Coors deals. They've retained it largely as it was with the vast majority of production remaining at the old brewery in Chippewa Falls.

I had heard some random rumblings about the Leinenkugel family trying to buy back the company from Miller-Coors but I'd be surprised if that happened.

 

[swankyswede]

Surely the popularity of light lager beer overseas has nothing to do with prohibition in the US!

Right, because light, pale lagers were already becoming popular. If you look at the long view of history, the current trend of very pale, fizzy, cold lagers with little discernible taste is exactly that - a trend. The trend before that was more localized. Due to the industrialization of brewing in the 1800s through today, as well as the modernization and globalization of distribution, the current worldwide trend is toward BMC-type beers, still a technical marvel when you consider the amount of effort it takes to brew something that pale and clear over and over again with no change in taste. Modelo and Corona, Heineken, Amstel, Kingfisher, Kirin, the list goes on. The trend towards a more diverse style is still up and coming - remember, the craft beer movement is less than 40 years old, and trends in things as entrenched in tradition and memory as beer tend to move a lot slower than the trends in clothes and music.

 

[SteveM]

Wall Street Journal had a great (and very funny) article a few weeks ago on the same topic - check it out:

http://online.wsj.com/article/SB10001424052748704875604575280522341919974.html

 

[artyboy]

Wall Street Journal had a great (and very funny) article a few weeks ago on the same topic - check it out:

http://online.wsj.com/article/SB10001424052748704875604575280522341919974.html

Anyone who can't taste the difference between natty ice, coors light, miller and bud aren't even trying to taste the beer. I used to buy Coors Light when I wanted to go "cheap". Now I stick to Keystone Light and PBR. Miller isn't bad but Coors and Bud are both horrible to me now. PBR is $4 for a 6 pack. Keystone Light is $5 for a 6 pack of pints. They're both great ALLs. Even Old Milwaukee is pretty good. Why buy the expensive cheap **** when you get a better product with the cheap cheap ****?

I still buy good beers. Last night I took a bottle of RR Damnation over to my bro's to let him try it. I thought I'd be cute and put some Keystone Light into a sniffer glass for him. He did the whole sniff sniff sip sip thing and declared it extremely drinkable! It didn't even register to him that it was Keystone Light because he probably never actually bothers to taste it (even though I took it out of his fridge). He also doesn't know what "good" beer tastes like so he had no idea what to expect from the Damnation.

 

[dirtdigger]

Maybe we see the return of Spuds McKenzie?
Personally, I'd like that!

 

[doctorRobert]

You could say they tried to improve quality with American Ale, but for a dollar more you could buy Sierra Nevada. Done deal in my book.

I'm always surprised with the philosophy of competition between craft beer and mega-lagers, on both sides. IMO, it's like Volkswagen trying to compete with Harley Davidson. Sure, they're both vehicles, but completely different demographics and attitudes.

And take that a step further, what's the profit margins on SN vs American Ale.... I bet Bud makes more on their cheaper beer.

Making better beer is more expensive... not necessary the best thing to do during a recession.

 

[drac0]

Wall Street Journal had a great (and very funny) article a few weeks ago on the same topic - check it out:

http://online.wsj.com/article/SB10001424052748704875604575280522341919974.html

Not a bad opinion piece.

 

[harrydrez]

But the bottom line is that we are witnessing a Renaissance of beer. Tastes are changing, just as they were when refrigeration became common and people discovered the enjoyed the taste of Cold, Light Watery beer (amongst other reasons). Just as when porters became all the rage in England years back.

Yeah, people wanted ice cold watery beers that had no strong flavors either way, which is how these beers came about. Tastes do change, interesting times we're in.

 

[redalert]

"Anheiser-Busch sales are down.."

You mean the Vortex bottles didn't improve sales?! Wow I was sure every brewery would have to close down because of the cannibalization of sales. I didn't see this one coming

 

[OsbornBrewing]

If you are drinking bud light do you care about quality?

Just because you don't like it does mean it is low quality beer. Take your favorite homebrew, and I challenge you to make two separate batches with 2 requirements 1) they have to taste EXACTLY the same, 2) you can't mix any parr of one batch with the other, unless your harvesting yeast.
Now if that is not big deal brew one batch in St Louis and the other in Atlanta.
They have nailed the brewing process so well you can only tell where a Bud was brewed by reading the can. That is a high quality beer. I still don't choose to drink it, but that is a taste issue not a quality one.

 

[Sea]

This discussion is interesting and all, but I'm still stuck on the idea of A-B IINCREASING advertising. Their ads are already everywhere. What are they gonna do now, beam subliminal messages directly into our heads?

 

[billvon]

what's the profit margins on SN vs American Ale.... I bet Bud makes more on their cheaper beer.

Unlikely. When AB makes their 'cheaper beer' they are competing with Miller, Coors etc. Cost is a major decision there, and a slightly higher cost means a lot of lost market share.

When you get into the people who are going to buy better beer anyway, they're not going to care as much about cost. I doubt most people here are going to go to a store for Sierra Nevada pale, see another beer and think "oohh, Michelob Pale Ale is $2 cheaper! That's the beer for me."

 

[arturo7]

This discussion is interesting and all, but I'm still stuck on the idea of A-B IINCREASING advertising.

Hell, what else can they do? That's the only dog they've got in the fight.

Losing market share, management has to do something to show the shareholders they're on the job.

 

[wscott823]

Hell, what else can they do? That's the only dog they've got in the fight.

Losing market share, management has to do something to show the shareholders they're on the job.

I can agree on that. You'll never see Coca-Cola tweaking their recipe just to regain lost market share. They go to advertising first.

The only other option I see for A-B is additional acquisition.

 

[MeatyPortion]

I can agree on that. You'll never see Coca-Cola tweaking their recipe just to regain lost market share. They go to advertising first.

Uh, remember New Coke?

 

[wscott823]

Public didn't respond to it very well at all IIRC

 

[babalu87]

Uh, remember New Coke?

Max Headroom FTW

Pepsi had the "real" Pepsi not long ago as well.

 

[wscott823]

Crystal Pepsi too. Ah, all the failed, poorly executed marketing ploys :fro:

 

[MeatyPortion]

Public didn't respond to it very well at all IIRC

Very true. With that somewhat fresh in the minds of corporate America it's no wonder the BMCs don't want to mess with the formula.

 

[MeatyPortion]

Why would you not buy from this man?

 

[fatmoose]

Very true. With that somewhat fresh in the minds of corporate America it's no wonder the BMCs don't want to mess with the formula.

Exactly. In spite of the opinion of many folks here regarding the quality of their product they do have a specific taste, smell, etc that loyal Bud drinkers have become accustomed to. If you change that you take the chance of alienating your current customer base in the search for new customers. They can't mess around with their flagship products which is why it is that you see them try all these other approaches, including things like spending more on advertising, their attempts at mass producing "craft" beers and acquiring craft brewers.