YumSugar

Beer Prices on the Rise; Budweiser Goes Global

YumSugar — Fri, 28 Aug 2009 03:30:45 -0700

In the mood for a brew? Be forewarned, a cold one could cost you. Anheuser-Busch InBev and MillerCoors have both announced plans to hike beer prices. Falling sales and higher costs of commodities like barley and hops have forced them to compensate by raising prices. In a statement Tuesday, US-Belgian company Anheuser-Busch InBev said it will raise stickers "across different price tiers" in "a majority of markets this Fall" to cover "input costs." Likewise, InBev's biggest competitor, MillerCoors, intends to increase prices this season. Higher prices from the two conglomerates - which together comprise more than 80 percent of the market - will impact the beer industry during a time when beer drinkers are reaching for the cheapest selections.

In a New York Times commentary, "Rising Beer Prices Hint at Oligopoly," the op-ed's writers lament that the two companies' abilities to raise prices while customers are hurting "highlights the pricing power that has accompanied industry consolidation" and "begs for an antitrust review."

Anheuser-Busch isn't stopping there. The beer overlord has aggressive plans to transform Budweiser into a global player, using Coca-Cola as a marketing model. The corporation hopes to introduce the "King of Beers" into dozens of new markets, including parts of Africa. Have you noticed rising beer prices? Could Budweiser eventually become an international symbol like Coke? Should Anheuser-Busch and MillerCoors face antitrust allegations?

Tough Times Boosting Budget Beers

YumSugar — Mon, 03 Nov 2008 11:22:34 -0800

Americans may love kicking back with beer, but times are tough. That's why an increasing number of beer drinkers are swapping their microbrews for what are called "subpremium" beers in the beverage industry.

Anheuser-Busch has reported that its brands Busch and Natural Light have seen upticks in sales. Other beers - from Miller High Life to Milwaukee's Best to Hamm's to Keystone - have also been attracting a larger percentage of consumers.

To the beer industry's dismay, the increase in subpremium beer sales is happening at the expense of its higher-end beers, such as Budweiser and Miller Genuine Draft. Said one MillerCoors wholesaler: "I'm selling way more economy brands than I'm comfortable with . . . consumers are trading down."

Is this the case for you? Have you also been purchasing less costly beer options?

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Goodbye, Zima

YumSugar — Tue, 21 Oct 2008 11:15:53 -0700

MillerCoors announced yesterday that production of the malt-liquor beverage Zima has been discontinued.

The product was part of the 1990s clear-drink craze that included Crystal Pepsi and Tab Clear. Zima proclaimed to be "Zomething different" from beer, wine, or hard liquor, but in recent years, the drink - which had been repackaged and reformulated into citrus, tangerine, and pineapple citrus flavors - was outsold by competitor Smirnoff Ice. The decision, MillerCoors says, was due to declining consumer interest and weakness in the "malternative" segment.

If you're having a hard time parting ways, don't worry: There's still time to stock up, as distributors can most likely get remaining inventories of Zima through December.

Are you sad to see this drink become a thing of the past?

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