BeerBorg

My nephew linked to this article on his Facebook account.

http://www.slate.com/blogs/moneybox/201 ... n_bud.html

While at first it seems like the good guys are winning, I had to stop and think for a moment.

How many of those barrels of craft beer are from breweries bought out by AB/Inbev? The Budweiser brand may be taking a hit in the market, but perhaps not AB/Inbev as a megalith corporation.

No doubt Stone and Lagunitas and Sierra Nevada and Yazoo are part of the trend, as are many other independent craft breweries. And then there's the really small players who don't have much more than local distribution, like Captain Lawrence and Defiant here in my neighborhood. They're contributing a grain of sand to that beach, but it's still a contribution. Slate makes it seem as though Budweiser is in trouble, but I don't think they make enough of a distinction between Budweiser as a branded beer and the corporation for which it stands.

I just thought I'd share this, and share my own thoughts/interpretation. I'm sure my fellow Borgs will chime in with their takes, and I'm eager to read them.

This does not surprise me. I know very few macrobrew drinkers who drink anything but light beer. That is where the macrobrews are still far outselling craft brewers. It seems that those who do not want good complex flavors to their beers don't want any flavor in their beers at all.

Note that the article was in the WSJ, which they are quoting from. http://online.wsj.com/articles/budweise ... 1416784086

Let's look at the reality. The majority of beer in the US is consumed by blue collar folks (because they are a larger population than white collar folks, therefore whatever they drink is the majority). BMC is cheaper than craft beer. BMC is what they grew up on. And they drink it in bottles or cans, not draft, by in large.

The issue for BMC is that the millennials are going to take over everything. They are growing up with craft beers, where their parents did not. Therefore, BMC has to be there - in craft beers - or risk continual market share declines. At the same time they work to get millennials to try Bud, they'll continue to make "craft" beers and buy craft breweries. They want all of it.

Good analysis guys. History is full of businesses dying while the fiddler played. Even the beer industry changed several times, significantly, in the past. Giants like Rheingold were outsold and closed by better shipping and advertising. Bud isn't going to sit on their "King of Beers" while new businesses move up. So they buy some, try to compete with new products, innovate with advertising. The little note of "not including Bud Light" is a nod to the fact that Budweiser labels altogether are the best selling brand in the world.

Since we are talking about Budweiser taking it in the shorts....here's a timely marketing decision on their part...
http://www.foxnews.com/leisure/2014/11/ ... p=features

It is a completely different mindset. You have to learn to enjoy what you are drinking, and not just drink for the sake of drinking. It is an education process. SWMBO when we first met fell into the category of BMC drinker with her "craft" being a Blue Moon once in awhile. She used to make funny faces when sipping on anything resembling an IPA. Now that is her favorite style and in many cases she can identify what hops are being used. The oldest is also into his craft beer. When he wants to DRINK, he will drink the BMC, but when he wants to ENJOY he drinks a craft. It is probably similar to how the wine scene has matured. It used to be that for the majority, there was a "red" and a "white." Not anymore. I see the same thing happening in the beer industry, and down the road with ciders as well. Ain't no stopping it!