It is interesting to get a glimpse of the thinking of the men in suits once in a while. Those who think that Bud and Heineken are high quality beers just because they charge premium prices for them.
Dave Peacock, president of the US operations of Anheuser-Busch InBev NV boldly proclaims in the Wall Street Journal that We feel we have brands that can meet any consumer need.
Not my needs, I can tell you.
But there is some substance to the story in the Wall Street Journal, too:
This year through April 19, U.S. retailers’ sales of domestic “subpremium” brands were up 2.6% by volume and 8% by value from a year earlier, according to market-research firm Information Resources Inc. The data exclude sales at bars, restaurants and Wal-Mart Stores Inc. outlets.
By contrast, the U.S. beer industry’s total volume rose just 0.5%. Sales of “premium” beers, such as Bud Light and Miller Lite, which account for about half the industry’s total sales, fell 1.4%.
For shoppers, the math is simple. While prices vary, Busch Light or MillerCoors’s Keystone Light generally cost around $14 a case, about $5 less than a case of Bud Light or Coors Light.
Not long ago, drinkers were “trading up,” favoring imports, small-batch “craft” beers and premium lights. Now, Heineken and other import brands are struggling, and the growth of craft beers has slowed.
There is further reporting pointing to the same trends, among them an article in Beverage Daily showing that consumers are more cost conscious when buying alcohol.
Maybe some consumers are concluding that one crap lager is as good as the next one, and that the only premium about Heineken is the price? The truly amazing fact is that so many of us have been fooled for so long!
Man, I think even the neighbours could hear me laughing at ““premium” beers, such as Bud Light and Miller Lite…”
The funniest thing I’ve read in ages!!!!
It’s like the ad men inhabit a parallel universe, where declaring something premium has a magical effect. But sure, I pay for brand names when I buy groceries, too, even if the own label stuff is from the same factory. Some more decent journalism on these issues would be of help.
I always love the argument that “the growth of craft beer has slowed.” It’s still GROWTH.
I can tell you, I have been very, very fortunate to be relatively unaffected by the slow down, and my intake of craft beers hasn’t declined at all.
I was actually out at a bar a couple weeks ago and three comely young ladies (A-B InBev “reps”) offered me a free Bud Light, and I declined. It’s a shame I didn’t realize that it was a “premium” beer… that totally would have changed my mind.
I understand that there are a lot of people that hate Bud products, but they fill a consumer want. People don’t bash Coke and Pepsi and praise small micro sodas. They create a refreshing product. I drink them, I drink craft brews as well. With 50% market share, they must be doing something right, and it’s not just advertising.
The consumer want that they fill is “I want to be the same as everyone else.”