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cyberswede

(26,117 posts)
Thu May 5, 2016, 02:23 PM May 2016

The world's largest beer maker should be worried about its survival

Budweiser, the so-called King of Beers, may be on its last kegs.

It may seem odd to picture the demise of the flagship brand of the world’s largest beer company. But Anheuser-Busch – the U.S.-based unit of AB InBev – is following in the footsteps that led to the irrelevance of a host of other once-dominant companies – Eastman Kodak, Woolworth’s Department Stores, Bethlehem Steel and Blockbuster Video, to name a few.

While AB InBev shareholders are cheering each move to boost short-term profitability by snapping up other companies – including the US$110 billion takeover of rival SABMiller – CEO Carlos Brito may be unwittingly digging Anheuser-Busch’s grave by ignoring long-term trends.

How could the rational pursuit of profits and growth through acquisition mean the beginning of the end for Anheuser-Busch?

This, we would argue, is a case of disruption theory in action. And the disruptors are the growing ranks of craft brewers that are collectively changing the industry and beer consumption habits as consumers increasingly shun Anheuser-Busch and its products – the disrupted – for beers made locally and with a wider variety of higher-quality ingredients.

http://www.businessinsider.com/budweiser-may-be-fighting-for-its-survival-2016-5


Bonus quote:
In the words of Bill Coors, Adolph Coors chairman and CEO, in 1987:

You could make Coors from swamp water and it would be exactly the same.


Good beer is going mainstream now. I got this article from my daughter's track coach's Twitter.
39 replies = new reply since forum marked as read
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The world's largest beer maker should be worried about its survival (Original Post) cyberswede May 2016 OP
Beer that tastes like goat pee doesn't deserve to survive. The Velveteen Ocelot May 2016 #1
You know what goat pee tastes like? Throd May 2016 #8
Yeah, tastes like Budweiser... Human101948 May 2016 #10
Bud Light. The Velveteen Ocelot May 2016 #11
Pabst! Blue! Ribbon! Fairgo May 2016 #14
Stroh's! The Velveteen Ocelot May 2016 #26
Good riddance to undrinkable beer. zappaman May 2016 #2
Budweiser's latest ad campaign is rather risible gratuitous May 2016 #3
Budweiser. YUCK! pinebox May 2016 #4
Great quote. cali May 2016 #5
Oh yes. zappaman May 2016 #16
It's more of a return to pre-prohibition beer production jberryhill May 2016 #6
Prohibition did a number on the US in general nemo137 May 2016 #20
Fact is, people become paralyzed by too many choices, and feel less anxiety with fewer options. IamMab May 2016 #7
Why the hate on this thread? Drink what you enjoy. Throd May 2016 #9
Beer snobs.....they hold their pinkie in the air when they sip their precious. panader0 May 2016 #13
Bud can be bought for 50 cents a beer, which is already too expensive, but good beer is much more. braddy May 2016 #12
Abita Amber Fairgo May 2016 #15
I love the Abita Purple Haze! n/t iscooterliberally May 2016 #30
The sad thing though, is that way too many smaller brewers can't wait to sell to big beer. Initech May 2016 #17
Aw, wish I had seen your post first. I said basically the same thing. trotsky May 2016 #19
Yeah we'll see. trotsky May 2016 #18
They're snapping up Lagunitas?! KamaAina May 2016 #22
Yep. :( trotsky May 2016 #24
Huh, Ballast Point and Elysian too - guess I won't give those two bonus petronius May 2016 #32
Yeah Ballast Point (and Lagunitas) really pissed me off. They had good stuff. trotsky May 2016 #39
Says there they were sold to Heineken. KamaAina May 2016 #36
Oh yeah. Pretty much. trotsky May 2016 #38
Canadians compare American mass-market beer to making love in a canoe. KamaAina May 2016 #21
They've been digging their grubby hands into Portland's Local Beer Culture Trajan May 2016 #23
Budweiser will be around and one of the leading seller for the next hundred years. NCTraveler May 2016 #25
As long as there are college students there will be Budweiser. The Velveteen Ocelot May 2016 #27
Bud Light was the clear choice at UF. Coors Light second. NCTraveler May 2016 #29
OK, I'll say this - after the first two or three it all tastes the same anyway tularetom May 2016 #28
Beer is high carb, and diuretic. I stick to lower volume stuff with more kick - closeupready May 2016 #31
Completely wrong re: Reinheitsgebot mathematic May 2016 #33
Whiskey is basically concentrated beer Major Nikon May 2016 #34
Bud is gross. bigwillq May 2016 #35
Well at least until learn they are being charged $9 for stuff that on the average tastes JCMach1 May 2016 #37

zappaman

(20,606 posts)
2. Good riddance to undrinkable beer.
Thu May 5, 2016, 02:25 PM
May 2016

I'm lucky in that Firestone brewery just opened a new brewery within walking distance.
They are brewing some beers unique to this facility and they are amazing!
Too much quality out there to settle for bland watery urine.

gratuitous

(82,849 posts)
3. Budweiser's latest ad campaign is rather risible
Thu May 5, 2016, 02:30 PM
May 2016

They seem to be accentuating the fact that their beer is a mass production commodity designed solely to make you piss and stagger. That's all well and good if you're underage or barely of drinking age, but as people mature, they're not drinking cheap beer just for the buzz.

Smaller batch craft beers are coming down in price as production methods get less expensive. When you can get a six pack of something good for nearly the same price as Bud, why not drink something more interesting?

 

jberryhill

(62,444 posts)
6. It's more of a return to pre-prohibition beer production
Thu May 5, 2016, 02:38 PM
May 2016

Prohibition threw a real monkey wrench into the way that beer is made and sold in the US.

Even when prohibition ended, it was not until the Carter administration that laws on homebrewing were relaxed.

Brewing beer was a family craft that came to the US with immigrants from countries with strong brewing traditions.

Just as you wouldn't expect there to be a national brand of milk, beer was primarily a local product. Prohibition killed off all the local breweries which couldn't limp through the 1920's on other lines of product.

nemo137

(3,297 posts)
20. Prohibition did a number on the US in general
Thu May 5, 2016, 04:11 PM
May 2016

Not just beer, but local wine and spirits traditions, and with them, probably changed local foodways for the worse.

 

IamMab

(1,359 posts)
7. Fact is, people become paralyzed by too many choices, and feel less anxiety with fewer options.
Thu May 5, 2016, 02:41 PM
May 2016

Going into a craft beer bar means having to wade through long menus that are often not very descriptive, having to choose from dozens, if not hundreds, of beers with nothing but the varied and strange names that are visible. This is the same phenomenon that has been studied in grocery stores. People feel increased stress when asked to choose from more options, especially under pressure (pretty common in a busy bar with a line behind you).

And the reason that beers like Budweiser continue to be successful is because while craft beers are popular among young drinkers with disposable income, eventually people age up and their budgets become tighter. College investment for kids or craft beer? Home repair or craft beer? Car payment or craft beer? Something eventually gives, and it's usually superfluous expenses like over-priced beverages.

I have no skin in this game, though, because I drink cider.

 

braddy

(3,585 posts)
12. Bud can be bought for 50 cents a beer, which is already too expensive, but good beer is much more.
Thu May 5, 2016, 02:50 PM
May 2016

If I'm throwing a party I want to buy 36 packs on sale, not stuff that costs an arm and a leg.

Initech

(100,117 posts)
17. The sad thing though, is that way too many smaller brewers can't wait to sell to big beer.
Thu May 5, 2016, 03:51 PM
May 2016

Lagunitas sold to Heineken for an insane amount of money, Ballast Point sold to Constellation. Golden Road is part of the InBev conglomerate. So is Goose Island. Saint Archer is part of MillerCoors, I could go on and on. Good for the owners, I guess, but sad for those of us that want real competition.

trotsky

(49,533 posts)
19. Aw, wish I had seen your post first. I said basically the same thing.
Thu May 5, 2016, 04:06 PM
May 2016

Now whenever I go shopping if I'm not buying one of my local varieties, I have to bring up the Google and research a brand to find out if it's a stealth InBev operation.

trotsky

(49,533 posts)
18. Yeah we'll see.
Thu May 5, 2016, 04:05 PM
May 2016

They are snapping up once glorious local craft brands (Goose Island, Lagunitas, RedHook, Magic Hat) but kept the appearance that they are still independent. Market confusion.

petronius

(26,607 posts)
32. Huh, Ballast Point and Elysian too - guess I won't give those two bonus
Thu May 5, 2016, 06:02 PM
May 2016

points for being craft anymore. Although I don't begrudge folks if they want to cash in on their success, and ultimately I'll just buy what I enjoy drinking (as long as I'm not lining the pockets of the too-uber-sleazy of course)...

trotsky

(49,533 posts)
39. Yeah Ballast Point (and Lagunitas) really pissed me off. They had good stuff.
Fri May 6, 2016, 09:11 AM
May 2016

Outside of a couple of German brands, most of the beer in my fridge is local stuff. Brands I know are still independent. Like these guys:

http://www.schellsbrewery.com

trotsky

(49,533 posts)
38. Oh yeah. Pretty much.
Fri May 6, 2016, 09:09 AM
May 2016

With InBev also snapping up Miller-Coors, it wouldn't surprise me to see them merge with Heineken too.

 

KamaAina

(78,249 posts)
21. Canadians compare American mass-market beer to making love in a canoe.
Thu May 5, 2016, 04:35 PM
May 2016

Because it's fscking close to water!

 

Trajan

(19,089 posts)
23. They've been digging their grubby hands into Portland's Local Beer Culture
Thu May 5, 2016, 05:04 PM
May 2016

Widmer ... Full Sail ... 10BARREL ... All now at least partially owned by The Mighty Annheiser Busch ....

Suckage, but we still have lots of local options ...

 

NCTraveler

(30,481 posts)
25. Budweiser will be around and one of the leading seller for the next hundred years.
Thu May 5, 2016, 05:30 PM
May 2016

They will have their ups and downs but a solid customer base will continue to get drunk off of their swill for the next century. Nationwide legalization of marijuana might hurt it some.

 

closeupready

(29,503 posts)
31. Beer is high carb, and diuretic. I stick to lower volume stuff with more kick -
Thu May 5, 2016, 05:56 PM
May 2016

wine, basically.

Micro/craft brewing has been a thing since the early 90's, so if it hasn't conquered Big Brewing at this point, I don't see the immediate threat.

Part of why the big American brews aren't as popular in the US as 'craft' or European beers is, IMHO, because Germany has a beer wholesomeness law - the Reinheitsgebot - which dictates you can't sell in Germany something as "beer" if it has any ingredients beyond hops, barley, malt, and water (if I'm remembering correctly - if not, DU will correct me shortly, I predict). So when you buy a German beer, you feel confident that it meets a minimum of standards in terms of food hygiene. US craft brews mimic the spirit of these laws so as to improve the brand value to a US consumer which increasingly is demanding more transparency in food products.

Meanwhile, there are no such Reinheitsgebot laws in the US (of which I'm aware), thus US breweries can adulterate their brews with substances added in the interests of preservation, coloring, head formation, ... basically whatever.

mathematic

(1,440 posts)
33. Completely wrong re: Reinheitsgebot
Thu May 5, 2016, 06:13 PM
May 2016

The Reinheitsgebot reflects a conservative beer tradition, not purity or quality or food hygiene.

American craft brewers are the polar opposite of the spirit of the Reinheitsgebot. American craft beer is characterized by experimentation and risk taking. The absence of a Reinheitsgebot-style law is why we have craft brewers and Germany doesn't.

"Ghost pepper imperial pale ale" is not a thing in Germany. It's an American craft thing. And it's pretty gross, unless you're totally into ghost peppers.

 

bigwillq

(72,790 posts)
35. Bud is gross.
Thu May 5, 2016, 06:30 PM
May 2016

Although I am sure others will say the same about the beer I drink (Heineken).
Different strokes for different folks, I guess.

JCMach1

(27,582 posts)
37. Well at least until learn they are being charged $9 for stuff that on the average tastes
Thu May 5, 2016, 09:40 PM
May 2016

nearly as bad...

Sorry, but there is some awful craft beer out there.

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