business news in context, analysis with attitude

The Wall Street Journal reports that "after years of developing advertising and marketing that appeals to all ages," Anheuser Busch InBev "plans to concentrate future Budweiser promotions exclusively" on the 21-27 age bracket. "That means it will not trot out the traditional Budweiser Clydesdales for this year’s holiday advertising. It means February’s Super Bowl ads will feature something more current than last year’s Fleetwood Mac. It means less baseball and more raves with DJ group Cash Cash."

The company wants to address the fact that "the self-proclaimed King of Beers is more of an afterthought among young consumers at Jake’s and bars across the U.S.: Some 44% of 21- to 27-year-old drinkers today have never tried Budweiser," the company acknowledges. And, "Budweiser has a 7.6% share of the $100 billion U.S. beer market, down from 10% five years ago, and 14.4% a decade ago, according to Beer Marketer’s Insights."
KC's View:
AB InBev needs to find ways to compete more effectively with the craft beers that have captured the imaginations of many consumers, especially younger people … if young people don't develop the Bud habit when they're young, the concern is that they never will develop a taste for the brew, and market share will continue to decline.

The story suggests that the theory is that "if Levi’s and Converse can end years of sales declines by winning over young consumers, so can Bud." I'm not sure they are the same thing at all, especially because I think that Budweiser simply may not be as good a beer as some of the craft brews.

But I have a bias here, I must admit. I cannot imagine any circumstance in which I'd order a Bud at a bar, and I almost always scan the taps to see what is local and interesting. There are a lot of people like me … and that's an enormous and growing problem for AB.