Anheuser-Busch has reached an agreement with Belgian beverage conglomerate InBev to form the world’s largest brewer. The deal, which is approximately $52 billion all-cash ($70 per share of Anheuser-Busch), will result in a company with projected first-year sales of $36 billion. Anheuser-Busch finally gave up its long fight to increase profits after going through a period of bleak earnings.
This development has sparked several questions for me:
- Will Budweiser actually improve in quality or will they “stay true” to the old, barely-palatable recipe?
- Does this mean that the die-hard Bud fans will no longer wish to patron their not-so-much-anymore true, blue American beer?
- Are the Belgians smart enough to bring back the Bud Bowl?
- Will the Real Men of Genius Bud Light commercials continue?
The reason this all went down is Anheuser-Busch has been unable to grow earnings or revenue despite the recent efforts of trying to re-position the beer in the marketplace, change and enhance the advertisting to bring a more up-scale feel to the brands. Here’s the rub: Bud drinkers don’t drink it because they think it makes them look chic, or posh, or knowledgeable about beer. They drink Bud for price and tradition (some fools actually like the way it tastes, too, that is their perogative), and the fact that it is American.
Attempts at improving the brands’ positions in the market have proven to be futile. This is partially attributable to the same reason why many loyal Budweiser patrons come back for more: tradition. The long-standing image that Budweiser has crafted is built over decades. Trying to change this persona in five years is a fool’s errand because all of the people who perceive Bud the “old way” will continue to do so despite efforts to the contrary. So, by trying to change this image, Budweiser may have actually lost some of its old supporters while not really gaining any new business because the fact is that the brand remains unchanged.
We have a situation where this manufacturer is no longer American. Sure, you can keep the name and the recipe and the packaging, but people know that the profits now go to another country. They know that this is no longer an American beer. This will drive away people who prefer to buy American beers. Another side-effect to this is the Belgians probably do not appreciate the Super Bowl as much as Americans. They will be less likely to bend to my personal demands of bringing back the Bud Bowl.
In conclusion, the Real Men of Genius commercials have been a media-staple. These commercials are everywhere on the radio and television. They are awesome. I am sure they are out there, but I have never met anyone who dislikes these advertisements. They are the only commercials that I know of where people actually go in search of them. Most people avoid commercials like the plague but this little brain-child has consumers searching for the ads. The developers of this commercial series are the Real Men of Genius.
Will Bud being owned by a Belgian company change your mind the next time you walk in the bar and see a happy hour special on old faithful? InBev and Anheuser-Busch together, oh what a pair.
12 Comments
I wonder if Budweiser will become an official sponsor of the Euro Cup?
And who can forget Bud Bowl III, starring the 40 oz. refrigerator who was the difference maker in that affair. The nostalgia almost brings a tear to me eye, almost.
The irony behind this whole acquisition is that Europeans routinely trash Budweiser and there assumption that all Americans love to drink it. It looks like the blood is on their hands now. I can’t wait until my next trip to the Old Country.
At least every other commercial in the All Star is “Budweiser… the American Lager.”
oops.
Holy F*cking Sh*t Batman!
I can’t believe it. Another family owned American legend bites the dust. Granted it’s piss water that would rather give to the dog but I never thought I would see the day that Budweiser sold.
It certainly defines sell-out.
Well, that’s definitly reflects a new mood of the American consumer. From what I know, many people here developed an elegant flavor for imported beers. Go check your small town breweries; instead of stuggeling with their own production, they became sole-importer for very spceific kind of beers.
I love beers, and be very happy to see a change in flavors around here:)
I have never liked Budweiser, but I think it would be ironic if this change of ownership spawned a new better tasting beer. I’d always give it the ol’ college try.
I hope they don’t change the commercials! I have always liked their commercials from the clydesdales to the frogs to everything else that was mentioned up to this point on the blog.
Being a Canadian, I can understand why this ‘Bud’ beer doesn’t sell well – have you tasted Canadian beers lately? Here in Canada the micro-brewery has challenged the big brands. I love fresh, well brewed beer from a local micro-brewery and now I find my palate has adjusted to the yeasty, full bodied ales of my British ancestors and I try to avoid big company bottled beer at all costs because it is a poor imitation of the real thing.
I am also of the opinion that micro-brewed beer is much much better. I have tried a few Canadian beers and I definitely like Labatt beer. I don’t like Molson too much though. As for American beers go, I am a fan of Yuengling and Sam Adams. But for good micro brews, I have frequented Harvest Moon (located in New Brunswick, NJ) and Triumphs (located in Princeton, NJ). Good bottled Micro-brews, in my humble opinion, are Dogfish and Magic Hat.
I sure have tasted Canadian beers and the only difference is the alcohol content. Mass-produced Canadian beers are every bit as much garbage as Budweiser.
Micros are the way to go if you are looking to actually taste your beer, no matter what country it hails from.
Don’t forget Victory Brewing Company. Excellent micro that distributes their bottles. They just did a major overhaul to the brewery and it is phenomenal.
Victory rocks! And Golden Monkey definitely gets the Gold for the beer competition.
This truely is the end of the USA as we have know it. I can’t stop from crying.
No family owned business will survive now.