What's killing Big American Beer?

Discussion in 'Beer News' started by Todd, Jul 4, 2018.

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  1. Todd

    Todd Founder (13,254) Aug 23, 1996 Finland
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    Basically. Plus many beer drinkers are exploring other alcoholic beverages, which are capitalizing on the concept and success of "craft."
    No big surprises, but worth a read.

    http://money.cnn.com/2018/06/29/new...-miller-lite-budweiser-coors-light/index.html
     
  2. bbtkd

    bbtkd Grand High Pooh-Bah (7,326) Sep 20, 2015 South Dakota
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    I wonder what drastic measures big beer might resort to if the slip continues, since they surely won't stand idly by as they lose market share. For instance might they try making their beer look more like craft, as with Key Stone? Might they accelerate their purchasing of craft breweries? Might they step-up up their muscling of distributors and retailers to give them more visibility? Might they try buying more craft websites?
     
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  3. jesskidden

    jesskidden Grand Pooh-Bah (3,071) Aug 10, 2005 New Jersey
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    "Americans" are? So, whose drinking all that Bud Light, Coors Light, Miller Lite and Budweiser - illegal aliens and tourists? AB and MC together still control 2/3 of the US beer market. Those 4 flagship beers alone, losing market share as they are, make up over 1/3 of the beer sold in the US.

    Well, technically they are the brewer of those beers (granted, they are also licensed to distribute in a dozen or so states, as well, but their primary business in brewing not distribution).

    Nitpicky? Yeah, maybe - but shouldn't a US business magazine have a basic understanding of the industry they're writing about? I mean, who's going to take investment advice from a publication which doesn't know the difference between a producer/brewer and a distributor?

    And "ditto" for this comment --- plus Constellation Brands is headquartered in Victor, NY. They do own breweries in Mexico, where they brew Corona and other Modelo brands for the US market, just as they own wineries and distilleries in the US and elsewhere in the world.
     
    #3 jesskidden, Jul 4, 2018
    Last edited: Jul 4, 2018
  4. JackHorzempa

    JackHorzempa Grand Pooh-Bah (3,181) Dec 15, 2005 Pennsylvania
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    From the article:

    “The big four US brands — Bud Light, Miller Lite, Coors Light, and Budweiser — have been hit particularly hard.”

    And (with bold emphasis provided by me):

    “Corona time

    Americans are still drinking beer -- just better beer. The premium end of the market is growing faster than the bottom portion.

    "There's a huge shift toward higher end beer," Ottenstein said.

    Constellation Brands (STZ), the Mexican-based distributor of Corona, Modelo and Pacifico, has capitalized on Americans' love for imported lagers. Shipments from Mexico, the largest beer exporter to the United States, were up 9.5% through May, the Commerce Department said.

    Constellation is now expanding with new lines such as Corona Premier and Corona Refresca.”

    Hopefully I am not the only person who sees an ‘issue’ with the utilization of the verbiage “better beer” in the above paragraph.

    The beers of Bud Light, Miller Lite, Coors Light, and Budweiser are AAL beers.

    The beers of Corona, Modelo and Pacifico are predominantly AAL beers (some of the brands are American Amber Adjunct Lagers).

    I recognize (and anticipate that somebody(s) will comment) that “better” is a relative term but c’mon, Corona is not a “better” beer than Budweiser.

    The continuing growth of beers like Corona are not because the beer in the glass (or can) is a “better” product but because the beer is marketed as being a ‘premium’ product and consumers are buying in to this marketing.

    Generally speaking the companies of ABI and MillerCoors are astute marketers but in this instance they are getting ‘schooled’ by the companies (or importers) of Mexican AAL beers.

    Perhaps the recent introduction of Michelob Ultra Pure Gold with the marketing shtick of being organic is ABI’s way to encroach into the ‘premium’ beer market?

    I don’t have the ‘answer’ here (and apparently the highly paid marketers of ABI and MillerCoors don’t either) but if they could convince beer consumers to buy beers like Bud Light, Miller Lite, Coors Light, and Budweiser vs. buying Corona (which costs more) then they will improve their bottom lines.

    Cheers!
     
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  5. jesskidden

    jesskidden Grand Pooh-Bah (3,071) Aug 10, 2005 New Jersey
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    Oh, that's an easy one - the beers are "Better" - for the brewer's bottom line and their investors, 'cause they cost more :grin:.

    A friend of mine used to sell high end audio equipment in NYC, and his rich customers would sometimes ask:
    "So, why is this system $10k and that one $13.5k?"


    "Well," he'd say, "That one is better than this one..."
     
  6. drtth

    drtth Initiate (0) Nov 25, 2007 Pennsylvania
    In Memoriam

    You may well be in the minority in seeing a problem with the usage of "better beer" given how many BAs and others involved with craft beer in general talk about craft beer as being better beer. :sunglasses:
     
  7. JackHorzempa

    JackHorzempa Grand Pooh-Bah (3,181) Dec 15, 2005 Pennsylvania
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    Well, here is the thing. The $13.5k system may indeed be better and this can be distinguished by reading the specs. For example lower THD (Total Harmonic Distortion) and other parameters. Now, are this better spec values worth the extra $3.5k? No easy answer there.

    Needless to say I am an 'outlier' but when it comes to Corona the whole concept of putting a beer into a clear bottle (which is less ideal from a brown bottle as regards skunking), shoving a piece of fruit into and simultaneously charging more for it is a 'bridge too far' for me.

    The fact that beer consumers are willing to buy beers like Corona and sales growth is occurring means that beer consumers do indeed want to buy AAL beers. Both ABI and MillerCoors need to do a better job here or else they will continue to see declining sales of their AAL beers.

    Maybe Michelob Ultra Pure Gold will be a 'winner' for ABI but I have my doubts. My 'interpretation' of the marketing strategies of ABI and MillerCoors for selling their AAL beers has been a combination of inane commercials (Dilly Dilly anyone?) and new product introductions via "let's just throw something against the wall and see if it sticks" approach.

    Cheers!
     
  8. JackHorzempa

    JackHorzempa Grand Pooh-Bah (3,181) Dec 15, 2005 Pennsylvania
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    My commenting was solely in the context of what I quoted above under the "Corona time" section of the article.

    Do you think that Corona is "better" than beers like Budweiser?

    Cheers!
     
  9. laketang

    laketang Pooh-Bah (2,993) Mar 22, 2015 Arizona
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    For those of you that dont get to europe, i have been to Paris France a number of times, and while i cannot speak for all places, the ones I've gone into do not have Miller lite, bud or bud lite, or Coors. I have only seen imports like Heineken, German beers and their domestics. So they aren't selling there .
     
  10. drtth

    drtth Initiate (0) Nov 25, 2007 Pennsylvania
    In Memoriam

    And my comment was to expand into the broader context that lots of folks talk about lots of beers as being "better beer" whether it is Corona as in the case of the Author using Corona as an example of "better beer" or in the case of a BA using the example of PtE as being a "better beer."

    Do I think Corona is a more enjoyable beer that Bud Light Lime-o-Rita? Yes. Better? From the stand point of personal enjoyment, yes I'd say it's better than Bud Light Lime-o-Rita.
     
  11. JackHorzempa

    JackHorzempa Grand Pooh-Bah (3,181) Dec 15, 2005 Pennsylvania
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    Which is contrary to what I posted.
    Do you have a response to the question I posed vs. the question you posed?

    "Do you think that Corona is "better" than beers like Budweiser?"

    The "Budweiser" term in the above is intended for an AAL beer (e.g., Budweiser itself).

    Cheers!
     
  12. jesskidden

    jesskidden Grand Pooh-Bah (3,071) Aug 10, 2005 New Jersey
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    So, your answer for the OP question of "What's killing Big American Beer?" is:

    "The French." ? :thinking_face: Kinda doubt that AB, Miller or Coors, pre-international mergers, ever had much market share in Paris to begin with.

    But, according to the ABInBev-France website:
     
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  13. drtth

    drtth Initiate (0) Nov 25, 2007 Pennsylvania
    In Memoriam

    I never said it was better or worse and my point was not about what I think. Rather it was about what others think.

    Lots of people use the phase in exactly the same way as the author talking about many beers, including talking about AALs on this site.
     
  14. dennis3951

    dennis3951 Initiate (0) Mar 6, 2008 New Jersey

    Not better beer just "premium priced" beer.
     
  15. laketang

    laketang Pooh-Bah (2,993) Mar 22, 2015 Arizona
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    Thanks for your insightful info
     
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  16. Shanex

    Shanex Grand Pooh-Bah (4,466) Dec 10, 2015 France
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    Ah! @laketang was making an observation about what he saw being distributed in parts of Europe. To back up ABinBev France claim being third on the market; I’m not surprised since many many people here drink Leffe. It’s fairly cheap and still considered a « good » beer. I still buy it frequently for the price of its 12 or 24 packs.

    About Murica; I agree with Todd no big surprise in this article. Drinking better are we? The price of the beer(s) will forever be the heart of the issue and I reckon Sierra Nevada to cite one example can be found at a fairly interesting price for the quality and variety of its products. Prairie and Clown Shoes while also having exceptional beers are at least here around $10 for a single 12oz bottle... etc

    Happy 4th of July, btw.
     
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  17. woodchipper

    woodchipper Grand Pooh-Bah (3,321) Oct 25, 2005 Connecticut
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    I know everyone is serious here, but the best quote if you skim the article after a few beers- "You now see a much more promiscuous alcohol consumer."
     
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  18. Bitterbill

    Bitterbill Grand High Pooh-Bah (6,772) Sep 14, 2002 Wyoming
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    "I wonder what drastic measures big beer might resort to if the slip continues, since they surely won't stand idly by as they lose market share."

    Change their packaging? Hit us with some highfalutin commercials?
     
  19. laketang

    laketang Pooh-Bah (2,993) Mar 22, 2015 Arizona
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    My backfired misguided attempt to also point out that their beer wasnt being drank in places that i have been outside of America. Oh well, some people just want to tear apart things other people offer up here . I'll go back in my hole. But on a side note, sales for bud are down in US 1.3% in first qtr, but up 2.5 percent in rest of world. We are drinking less big beer, but somewhere out there sales are up. I just dont know where.
     
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  20. JackHorzempa

    JackHorzempa Grand Pooh-Bah (3,181) Dec 15, 2005 Pennsylvania
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    Do you know what the US vs. rest of the world statistics are as regards revenue/sales?

    Being up 2.5% but not bringing in much revenue is not as great of an increase. In contrast a loss of 1.3% in the US can represent a HUGE loss of money.

    Cheers!
     
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