Budweiser sees big sales drop

This is what happens when Brazilian hedge fund / PE type investors take over the company. The writing has been on the wall. Belgium or not, strings are being pulled way down in S America where profit is king and drinking enjoyment suffers.

Having said that they still are in a good position with the continued expansion of craft beers. At least for now, thanks largely to Goose Island.

 

Some of the worst moves to make ... overreacting for shareholders, if they keep on cutting deep they'll eventually paint themselves into a corner they can't get out of. They are grasping at anything these days. Sad to see ... expect more jobs to be cut. Globally they'll be buying up more and closing down breweries as usual.

 

Next thing ya know, G. Heileman will resurrect itself and buy out the Bud brands. Things will never be the same again.

 

If they get a bailout, I'm going to quit paying taxes.

 

thank you for the paraphrase

 

yes they are. Unless all you care about i$ money. And some drinkers will notice. They def did with Becks. Been hearing about that for a while, and I am not in much of a Becks circle

 

AB-Inbev is damned near evil. Most everything you all have said is true. Their "beer" sucks, but they control most of the taps at most of the bars. So, unfortunately, they will continue to profit no matter what they call the swill they sell, and even if craft continues to cut into their percentage, ever so gently. I'd love to dance on the ruins of their operations (and re-hire the laid off workers at local craft breweries), but it ain't happening anytime soon. Sadly.

Did I make my visceral dislike for that business, and others like it, clear enough? Will the bros dis me for dissing "beer"?

 

Well assuming that a new brand extension has a cannibalization rate of less than 100%, perhaps less than 50%, then that means retained sales volume within the company portfolio, plus the other half of the sales which werent cannibalized from the company's own products but instead added to the company's sales volumes.

Granted, if the price of the new product/brand extension is lower than that of the product it took sales away from, then there could be a problem. But the type of products which AB is coming out with in the light beer category are not economy brands or even sub-premium, but premium and above premium and are fetching premium or above premium prices. So any shift from one product to another is likely to maintain sales value.

There might of course be other variables to this, a shift from one brand to another within the portfolio might reduce brand loyalty overall and generate an exodus to other brands outside of the company portfolio, which in turn could reduce the overall volumes for the company, but I'm not well versed enough in marketing insight to know if that's the case or a potential risk.

 

THIS is what they're doing to combat the problem. My earlier post in this thread is pretty damn accurate, I must say.