Goodbye Bud

"A 'New Brew' Giant in Town" "This Bud's for Belgium" "Great American, Belgium, European Lager" I know they will still be around, but wondering the repercussions, and if they will be positive or negative for the breweries...

We have heard of our beloved Anheuser-Busch possibly being acquired by someone the past few years, and the day has arrived. This traditional American Brand has had some of the most widely known products for the past 150 years in Budweiser and Bud Lite. It has been purchased by InBev NV for 52B. They plan to call the new brewer Anheuser-Busch InBev, and now includes nearly 300 brands. So they aren't going out of business or leaving, but a sense of loss or a different attitude has to be brewing in St. Louis at the moment for the City and workers while a company headquartered in Belgium has taken over this beer giant.

Cost War

With higher commodities costs, advertising, price wars, stock price, and the volatile economic climate globally, beer makers have to adapt to change by strategic alliances (such as Miller-Coors joint venture), cost reductions (lay offs, packaging, eliminating brands), and other approaches for sustainability. Anheuser-Busch/InBev (50%) and Miller/Coors (30%) control an estimated 80% of the US market. According to analysts, the new 'Beer Wars' won't be focused on 'tongue in cheek' advertising as much as who can control costs the best. Whoever wins the 'Cost Wars' will prevail during these challenging market times.

What's Next?

I am curious to see how the company's culture, competitors, employees, market, stock price, attitude, advertising, and consumer connection changes. It is not uncommon to have brewers merge or be acquired, but this is a market leader under going a tremendous change. I am certain we won't see Bud leaving retail refrigerators, but wonder what qualitative effects this will have.

Buzz Kill Notice

The good, the bad, and the ugly - This blog does not market, support, or suggest consuming alcohol in any way. Its' focus is on speaking towards/informing you of business, marketing, and branding in the above material. Consuming alcohol can be fun, socially accepted, reduce stress, and have many other positive effects. Drinking also causes liver disease, damage to the brain, birth defects, addiction, and many other harmful symptoms. Think before you drink.