“This Bud’s Screwed”

This bit of beer news comes to us from a March 5th 2010 Wall Street Journal Article titled “U.S. Sales Slump Clouds Outlook for Anheuser” However, “This Bud’s Screwed” sounds like a more appropriate title for the article. Apparently due to the state of the economy in America and Europa, two of Anheuser-Busch/InBev’s prime beer consuming countries the outlook for profits seems grim at best. in 09 the amount of beer that Anheuser sold dipped seven percent from the previous year when the onset of the economic hangover we are currently in was just starting to creep up on us the way a real hangover does, as we sit guzzling down the suds in extreme excess the night before. However, even with the companies two prime cash pipelines “sobering up” there is a silver lining in Anheuser’s can in the form of Latin American sales. Some of the reasons that America and Europe markets are doing so poor and Latin America is not is that in Europe the slump is being blamed on the aging population which is turning to wine instead of beer as they “grow up”. I am highly suspect of that claim, just look at places like England and Germany. The last blog I did was about how much fighting was going on with beer glasses. You can’t expect me to believe that all that beer related carnage is being portrayed by young wanker alone, beer drinking as a way of life there as it is in places like Germany. The last time I checked October feat was about Beer once again beer drinking is a strong bar of the culture and not going to go away any time soon as such. However, in america the reasoning sounds a little easer to swallow.

1) due to the slump in the U.S. economy less people have money to piss away on beer.

2)Young men, Anheuser’s core consumer are finding themselves unemployed of which the article says that “the us jobless rate among males age 16 to 24 stands at 22.5%” according to the Bureau of Labor Statistics.

Meanwhile down in Latin America thanks to a 2009 wage hike which and some cleaver re-packaging of the beer (Remember when Bud lite cans got taller and sleeker looking? Even I found myself almost swayed to pick up the swill solely based on the new can design, however I am proud to say my “taste Buds” were not as easily tricked. Trick me once shame on you trick me twice shame on me.) the newly emerging Latin American segment of the market is doing very will in terms of “brand preference”. If Anheuser-Busch/InBev wants to remain as a beer behemoth in the American and European markets as it has in the past it needs to adapt to the new frugal consumer markets. Perhaps focusing on what is inside of the can and not on the outside is what needs to be done here. If you want to hold onto the European markets, brew beers that have a little complexity to them, an example of what to stay away from in terms of taste is Stella Artois, the Budwiser of Europa and go for something with a little more flavor like say wells Banana Bread Beer. As for American consumers what i think it will come down to is value. As we all reevaluate our spending habits the general populous will want a beer that tastes good and is a good value. Thanks to the micro-brewers of America the taste revolution has beer going on for quite some time. American now have an alternative to what has been the big three of brewing (Budwiser, coors and Miller). As the screws get tighter people will look for value in flavor and price. Because we all know that no matter how bad it get people will continue to drink, however they will now be drinking smarter. Smarter with there money and there taste buds.