9 sinking industrial beer brands

MAJOR fall off of demand for a lot of iconic brands. Yeah Craft Beer!

http://247wallst.com/special-report/2013/12/09/nine-beers-americans-no-longer-drink-2/2/

And they are dumping that crap on 3rd world countries. I’m in Costa Rica right now and the grocery store has MGD cheaper than anything. Don’t mind the fact that it’s a YEAR past it’s expiration date.

I suspect Budweiser will remain an important player for sometime, though clearly it has lost share. Budweiser at a -28% from its relatively recent market highs is still a behemoth. Bud has always sold well in every country around the world. I’m from STL, so there is a hometown bias, even if I seldom drink one, and even though the brand is no longer locally owned. Certainly a lot of employees count on it in that town. They do own a lot of smaller brands now too. And in fact, the sale to InBev was a catalyst to the start ups of a number of great craft breweries.

I think a lot of the spun off domestic brands will continue to fail or at least to suffer, but there will be a (very large) place for a few core brands. Of course, the “light” versions didn’t feature much in that list. I’d much rather see the light beers go down, but perhaps those, the most offensive and watery iterations of the US “pilsner”/lager will be the last to go down as their fans would be the least interested in more flavorful beers. It will certainly be interesting to survey the US beer landscape in ten or fifteen years and see where things stand.

I’d guess that they are just cannibalizing each other rather than craft brewers making a dent in them. Who knows why Bud & MGD are down, but Coors Light & High Life aren’t.

No, Craft continues to take sales away from the big boys. Total beer sales were up 1.735 million barrels from 2011 to 2012. Craft was up 1.689 million BBLs, imports were up 0.374 million BBLs, and non-craft was down 0.328 million BBLs. Craft’s share of the market (in barrels) went from 5.73% to 6.58%. Craft’s share in dollars is bigger and growing faster.

Well, in fairness, they are also cannibalizing themselves as well. Not so much in the way they use to go after each other and after small brands, but, every time they see a trend and make a new beer they actually hurt their own market shares. Making a hundred different kinds of cans and bottles, beers with flavors, ciders, fake craft beers, bottled sangrias, etc. does nothing positive for them. Especially since almost none of their new creations have had any sustained success.

Don’t mind the fact that it’s a YEAR past it’s expiration date.

That’s probably a best by date so you’re not experiencing it in its prime. A shame.

As long as I can still get Guinness in a can…

Very true - they are diluting their own brands.

Calling the diversification of major beer manufacturer’s portfolios “cannibalism” or “dilution” makes it seem unwise. When the writing is on the wall that trends are moving, I call it a good business decision to own as much of the new competition as possible.

Thank God.