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February 27, 2013

Anheuser- Busch InBev is Sued for Allegedly Watering Down its Beer

by bryancarey — Categories: Beer Media, Domestic, Macrobreweries — Tags: alcohol, Anheuser- Busch InBev, beer, brewing, budweiser, lawsuit — No Comments

Anheuser- Busch InBev finds itself in some hot water, or shall I say cold water, as of yesterday. The big brewer has been accused of watering down its products, and the allegations have resulted in class action lawsuits filed in several states.

Beer drinkers have often complained about the watery nature of products brewed by Anheuser- Busch InBev, Miller, Coors, and other large breweries, but now the accusations are more than just a casual comment in search of an easy laugh. The matter is much more serious now, with plaintiffs claiming that Anheuser- Busch InBev is not being truthful about (more…)

February 4, 2013

Department of Justice sues Anheuser- Busch InBev to stop takeover of Grupo Modelo

by bryancarey — Categories: About Beer, Beer Media, Domestic, Macrobreweries — Tags: Anheuser- Busch InBev, beer laws, budweiser, sales — No Comments

Anheuser- Busch InBev, the world’s largest beer manufacturer, is having some legal problems with its $20.1 billion attempt to take over the third largest beer manufacturer, Grupo Modelo.

The U.S. Justice Department has filed a lawsuit against the beer giant, claiming that its proposed merger with Grupo Modelo would stifle competition in the marketplace. The concern by the Justice Department is that such a merger will inevitably lead to higher prices for beer since the two companies combined would (more…)

March 3, 2012

Budweiser Rolls Out Track Your Bud Program

by bryancarey — Categories: Breweries, Domestic, Macrobreweries — Tags: Anheuser- Busch InBev, brewery, budweiser — 1 Comment

Budweiser, the Anheuser- Busch flagship brand and one of the company’s top sellers, is introducing a new program that will help consumers trace the origins of their beer to an exact brewery location.

Track Your Bud is the new campaign and the way it works is simple. Consumers are asked to first find the QR code taken directly from the Budweiser packaging. The code can then be entered one of several ways: Scanning using a cell phone, downloading via the Track Your Bud application, or going directly to TrackYourBud.com. Once the code is entered, consumers will be asked to enter the born- on date, taken directly from the package. They will then know which one of Budweiser’s twelve U.S. brewing locations brewed the beer they hold in their hands and will then be presented with a guided tour of the brewing process.

Track Your Bud at first seems like an educational initiative more than anything. It will let consumers see the raw ingredients used to make the beer and the seven step brewing process, including Budweiser’s unique Beechwood aging. Casual drinkers can learn a thing or two about Budweiser and the amount of work and time invested in production.

Looking a little further at the Track your Bud program reveals that it is more than simply educational in focus. The platform includes a social application available at present through iTunes and on Android in a few days. This will integrate with Facebook and connect Budweiser drinkers across the nation. Consumers will be able to watch videos, collect badges from each of the twelve brewery locations, and create a name for a batch of beer if they are the first person to tack a beer from a specific batch.

Another important aspect of the Track your Bud program, according to the management of Budweiser, is to make sure the beer is fresh. If a consumer enters information from a package that is not within the recommended freshness range, the digital program will automatically send a message to Budweiser for quality control investigation.

To learn more about this educational program and marketing effort, visit TrackYourBud.com or download the application to your cell phone.

January 29, 2012

Bud Light Platinum: Precious Metal or Imminent Scrap?

by bryancarey — Categories: Breweries, Domestic — Tags: Anheuser- Busch InBev, brewery, budweiser — 1 Comment

Anheuser- Busch InBev is the largest brewer in the world and its products can be found among the top- selling beers in the United States and the world. However, the last several years have not been kind to Anheuser- Busch InBev and the business has witnessed flat or declining sales and market share among many key brands.

The fortunate fact for Anheuser- Busch InBev is that it is a very large business with ample supplies of capital, making it easy to develop and market brand new products. And in a short time, beer drinkers will get to sample the latest new entry in the Anheuser- Busch InBev family: Bud Light Platinum, a higher alcohol version of the popular Bud Light brand.

Looking at the numbers, Bud Light Platinum has just over 40% more alcohol by volume and about 25% more calories. Bud light has 4.2% alcohol by volume and 110 calories per 12 oz. serving while the new Bud Light Platinum has 6% alcohol by volume and 137 calories per 12 oz. serving,. These increases are fairly significant and the alcohol level of this product is actually higher than that of regular Budwesier.

So why, exactly, would Anheuser- Busch InBev create such a product? According to the company, Bud Light Platinum was created to appeal to a market that likes Bud Light, but wants something a little more flavorful and slightly sweeter. And since Bud Light is already a top seller, it makes sense that Anheuser- Busch InBev would try to capitalize on the Bud Light name. he company also plans to go for a specific brand image with this product, bottling it in a blue bottle- something never before tried by any large commercial brewery.

I don’t have any problem with Anheuser- Busch InBev trying to expand and improve sales because this is, after all, an important activity of any business. But what bothers me is that this product is really pushing the limits of “lightness”. A beer with 6% alcohol by volume hardly qualifies as a light beer and even though the calories are lower than most brands, they are still pushing the limits for something that is supposedly “light”, which, in he world of malt beverages, is supposed to signify a beer that is easier on the waistline.

I like the use of the word Platinum in the name because it does have a certain appeal and it sounds much better than other words often used to denote a beer with stronger, more alcoholic attributes. But is the name “Bud Light Platinum” really going to be sufficient to help this product sell? I’m not so sure, even though I agree that the sweeter flavor profile will win over converts who are a little uneasy with the somewhat bitter profile associated with Budweiser and Bud Light products.

I guess when your market share is dwindling and your sales are in decline, you have to do what you have to do, but once again, I must question Anheuser- Busch InBev’s wisdom in introducing a product like Bud Light Platinum. Simply fortifying the alcohol of your best selling product will not necessarily result in a better tasting brew and it could even backfire with some beer drinkers who enjoy Bud Light solely for the calories and carbs it saves.

January 3, 2012

Budweiser to Sponsor a new Reality Television Program

by bryancarey — Categories: Beer Media, Breweries, Domestic, Macrobreweries — Tags: Anheuser- Busch InBev, brewery, budweiser — No Comments

Beer and sports are natural accompaniments. It is widely known that beer companies rely on sports to help encourage beer sales and attendees at sporting events and viewers of sports on television do not need to look far to see and hear the names of specific brands of beer.

Among the brands promoted at sporting events, Anheuser- Busch InBev is the brewer whose advertisements are most widely seen so it may not come as a surprise to discover that the so- called “king of beers” is considering promoting its name through a somewhat different but related marketing channel. Starting in January, 2012, Anheuser- Busch InBev is going to sponsor its own reality program. Titled Budweiser: The Big Time, this reality program is going to focus on competitions in different sports and in different activities.

Now, what exactly would encourage Budweiser to sponsor a reality television program? Well, (more…)

October 9, 2011

Anheuser- Busch and SABMiller, Together as One?

by bryancarey — Categories: Beer Media, Breweries, Domestic, Macrobreweries — Tags: Anheuser- Busch InBev, beer, budweiser, Buyout, Coors, Merger, SABMiller — No Comments

Anheuser- Busch InBev, the largest brewing operation in the world, has reportedly been in talks to purchase the second largest brewer, SABMiller, in what would be one of the largest takeovers in corporate history.

According to the Brazilian news website IG, SABMiller has been talking with Anheuser- Busch InBev for some time about a potential sale of the business to its larger foe. Spokespersons on both ends decline to comment on the deal, but SABMiller shares spiked in price last week when the news hit the street.

The thought of a merger of any type between Anheuser- Busch InBev and SABMiller doesn’t sit well with many people for numerous reasons. For one, the partnership reeks of potential monopoly. Both companies are already very big and the idea of them becoming one would be like Toyota purchasing Ford Motor. These two businesses are not based in the United States anymore so any merger between the two would not be subject to U.S. anti- trust overview, but it still concerns some people just the same.

Then, there is the mere idea of old rivalries joining together in unison. As anyone in the United States knows, Miller and Anheuser- Busch were bitter rivals for decades and the thought of these two enemies becoming a single company just doesn’t feel right. Add to this the fact that SABMiller owns a portion of Molson Coors and the feelings of uneasiness become even more vivid. Anheuser- Busch, Miller, and Coors products sold by the same company?- the thought sends shivers down my tall boy.

Most financial analysts say there is no reason to worry about this deal going through because, among other things, the cost would be staggering. Anheuser- Busch InBev would have to cough up somewhere in the neighborhood of $70 to $100 billion to seal a deal this large. InBev had to borrow a huge sum of money when it purchased Anheuser- Busch back in 2008 and, as of June 30, 2011, still has more than $40 billion in debt. Given a debt load this large, coupled with the difficult global economy, it is unlikely that Anheuser- Busch InBev would be able to purchase its closest rival, even if it wanted to.

No one has confirmed or denied any rumors yet, so there is still an outside chance that this marriage may actually reach consummation. I don’t believe it will, but be prepared for the pitter-patter of Anheuser- Busch/Miller/Coors feet if the deal becomes reality.

August 12, 2011

Anheuser- Busch InBev Announces 2nd Quarter Results

by bryancarey — Categories: About Beer, Breweries, Domestic — Tags: Anheuser- Busch InBev, beer, brands, budweiser, marketing, profits, sales — No Comments

Anheuser- Busch InBev, one of the largest beverage companies on the planet, has report improved profits for the second quarter of 2011.

Anheuser- Busch InBev

Total net income for the international consumer product business was $1.45 billion, which represents a 27% improvement compared to the $1.15 billion profit for the same period last year. Sales for this second quarter of 2011 were $9.95 billion, which is 8% higher than last year’s $9.21 billion.

Anheuser- Busch InBev reported some solid growth in its core brands in markets such as China, but results in the United States were mixed. Bud Light enjoyed market share increases in the second quarter and the company expects this trend to continue thanks to its partnership with the NFL, which begins its season shortly.

Among the dozens of brands in the Anheuser- Busch InBev lineup, Budweiser still leads in overall sales, but the brand hasn’t fared well in the United States as of late. Market share has been flat, but according to Anheuser- Busch InBev, the brand is starting to see momentum in the past several months and they expect this momentum to continue with strong advertising and other marketing programs. Budweiser sales in the UK were also lower, but they were higher in China, Russia, and Canada and the stage is set for higher overall Budweiser sales for the 2011 calendar year.

On the positive side, Anheuser- Busch InBev reports that Michelob Ultra, Stella Artois and Shock Top have enjoyed solid increases in sales in the past year. Michelob Ultra benefits from its low calorie and low carb counts, making it a hit with the health- conscious consumer. Stella Artois benefits from its more sophisticated image and is similar to a standard American lager, making it attractive to those who still prefer this style. Shock Top is Anheuser- Busch InBev’s answer to the popular Blue Moon Belgian White produced by Miller/Coors. Blue Moon is still ahead in the sales game, but Shock Top is gaining ground.

Other Anheuser- Busch InBev products such as Beck’s and Lette witnessed sales improvements. The marketing muscle of Anheuser- Busch InBev is generally the reason. Introduction of new variations on these brands (such as Beck’s Lime) as well as “green” and other advertising campaigns and sponsorship has helped fuel brand recognition and sales growth.

All things considered, the first six months of 2011 have to be considered a general success for Anheuser- Busch InBev. The company didn’t quite achieve the sales and profit increases that analysts expected, but results were still better than the same period last year and are respectable for any business that has to deal with such a difficult world economy.

August 5, 2011

Budweiser Makes a Change

by bryancarey — Categories: Macrobreweries — Tags: beer, budweiser, design, news, packaging — No Comments

Budweiser, the self- proclaimed King of Beers, is about to undergo a change in design.

Bowtie Design

Budweiser has experienced much change in the past few years, particularly in its ownership. By now, most everyone is aware of the takeover by InBev and the loss of Anheuser- Busch as an exclusive American company. Change has been rapid at A-B, and with this change the company has decided to remake the beer’s packaging. It will now sport a “bowtie” design, one that sports a red- colored bow- tie shaped area with the Budweiser name in the middle.

This change in design might seem a little odd for a product that already sells so well. After all, if a product enjoys high sales, any attempt at change is inevitably going to be met with the “if it ain’t broke, don’t fix it” routine. This would have likely been the rallying cry at the old Anheuser- Busch, but as everyone knows, A-B is no longer an exclusively American company. It is now owned by a Belgian/Brazilian business that is progressive in its philosophy and ready to remake the company in a new and forward- thinking image.

According to officials at InBev, the change to the design is an effort to reinforce Budweiser’s position as a global brand. Budweiser, they say, is a big selling brew and change is needed to reflect the times and keep the beer in- tune with its loyal consumer base. However, it is likely also a move intended to boost sales. Budweiser is still a top- selling brand, but its sales in 2010 have dropped and it is far from its market- leading sales peak from many years ago.

Budweiser has sported twelve different packaging versions since 1936, so a change in uniform is nothing new to the business. It will be interesting to see if this new bowtie design has any real impact on the beer, its following, and ultimately its sales, which have been slumping as of late.

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