Tuesday, April 3, 2012

The Ship Continues to Sink

Women and children first!
There was a line from the movie Super Troopers that went like this: “Desperation is a stinky cologne.” These days, the funk of desperation is emanating from the Anheuser-Busch headquarters in St. Louis, Missouri (or wherever in Belgium that Budweiser claims its headquarters is these days). Take this little article I found that was published 5 days ago:

Desperate To Turn Sales Around, Anheuser-Busch Tries New Beers And Bullying Wholesalers
Kevin Spak|March 29, 2012

Anheuser-Busch InBev is desperate to turn its sales around. Sure, it's still the biggest beer company in the US, but shipments have fallen for three straight years, thanks to the growing popularity of small, independent craft brewers.

But this year Budweiser's got a plan, president of North American operations Luiz Edmond tells the Wall Street Journal: It's going to produce more beers, while leaning on distributors not to carry the competition.

Anheuser will introduce 19 new products this year, its biggest roll out since the InBev merger.

Some will aim to compete in the craft market, like additions to its Shock Top line, or boast higher alcohol content, like the 6% Bud Light Platinum, which Edmond calls a "game changer."

Still others, like Bud Light Lime-a-Rita, will be malt beverages bearing little resemblance to beer.

At the same time, Bud has urged 500 wholesalers to distribute fewer rival beers, warning that it will act against those who don't.

An unapologetic Edmond says wholesalers must pick sides, and show "loyalty" to InBev.


You won't get away with it AB-InBev!
Give me few moments to stop laughing… okay, now I’m ready. I am actually encouraged to read that AB is admitting a) that they are losing ground to craft brewers and b) that they are resorting to underhanded tactics to try to turn it around. Of course, it was underhanded tactics by big beer that led to the premature death of Sam Calgione’s Discovery Channel show “Brewmasters,” but they won’t admit to that. Back in the day, AB built its empire by telling local pubs to stop selling their competitors’ beer in exchange for their rent being paid for them. Sleazy business practices are part of what makes Budweiser Budweiser.

Then there are the 19 new products, which I’m sure are all of the finest premium beer quality that corn can provide. The Shock Top line is, and always has been, a scam to trick the unaware beer drinker into thinking that he or she is drinking craft beer, when in fact, its Budweiser’s corn-based interpretation on proper beer styles. The 6% ABV Bud Light Platinum is a joke, in which AB is convincing less-informed beer drinkers that ABV matters and then praying upon their ignorance. 6% isn’t even that high if that sort of thing DID matter to you, though it is higher than their normal offerings. I’m curious as to what “game” he thinks this crap will “change.” And as for the Bud Light Lime-a-Rita… I think I just vomited in mouth.
The beer drinkers control the means
of production!

I suppose the upside to all of this is that it shows desperation. They’ve been trying to solve the craft-beer conundrum for years, and if this article is any indication, they’re still missing the point by miles and miles. The reason that craft beer drinkers drink craft beer is that they’ve chosen quality over quantity; premium over generic; pride over shame; happiness over blah; good over evil. These aren’t phenomena that can be reversed with ill-conceived gimmicks and threats. The die has been cast Bud… you suck! And soon the entire world will not only hear it… they’ll believe it too.

Here’s to craft-brewed happiness… Cheers!

2 comments:

  1. Many years ago, in a place far far away Miller foolishly stated that they planned on topping Bud as the #1 beer. To which Bud replies, bring money! Not that that has anything to do with what your article speaks to just that Bud's mentality is provide the masses with inexpensive beer, something you fail to address and or believe, the folks aren't gonna pay $10 for a sixer. The vernacular "sixer" should be telling. The target for craft beer does not include the young nor the old, the young being broke and the old being thrifty, or cheap. That doesn't mean these 2 groups think bud,or bud like. They are looking for affordable quality. Yuengling Lager comes to mind, BUT- one mans trash is another man treasure.

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    1. All fair points. The enemy of the small independent brewer is not, and never will be, Budweiser, Miller, Coors or any other industrial super power. It isn't a fair fight. The fight is between craft beer in general and industrial corn-based yellow beer in general. The prize is the consumer. The big boys will never admit it, but in their hearts, they know that they will never bring a beer drinker who has graduated to premium craft beer back to the yellow side. Craft beer drinkers are loyal to craft beer to the death. The best big beer can hope for is to stop the bleeding of previous yellow beer drinkers deciding to pay more for a better product. But the reality is, while they will never lose to small breweries in national sales or advertising, they will ALWAYS lose to the appeal of the small local, regional, proud, artsy, face-to-face interaction that craft breweries have with their customers. That local face-to-face relationship that craft brewers have with their consumers will always allow craft beer to subvert and undermine the big boys, and they will never be able to do anything about it. Not to mention, the young people (who have no money) are the only reliable universal demographic that the Budweisers of the world have and, as those people grow up (and start earning money), many of them (not all) will decide that they can afford to and want to graduate to a better product.

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