Please ensure Javascript is enabled for purposes of website accessibility

America's Favorite Beer May Surprise You

By Steve Symington - Updated Mar 5, 2017 at 12:50AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Hint: It's not the self-proclaimed "King of Beers." And it's not named for an American patriot.

If there's one industry that has consistently demonstrated its staying power over the years, it's the brewing business. After all, good, consistent beer always keeps consumers coming back for more. And brewing companies are more than happy to oblige.

But it's also no mystery all beers are not created equal. And when it comes to the question of America's favorite beer, the answer might surprise you.

Coors brand barrels

That's right; Coors has won the hearts of the most Americans. IMAGE SOURCE: MillerCoors

According to the recently released 2017 Customer Loyalty Engagement Index from Brand Keys, a New York-based brand engagement and customer loyalty research consultancy, America's favorite beer is Coors.

Here's what's at stake

To be fair, "favorite" is a subjective term. So to better quantify what Coors' victory here means, note that the index looks at "brand engagement" -- something Brand Keys president Robert Passikoff describes as a "measure of how well a brand meets expectations consumers hold for the path-to-purchase drivers in a given category."

And in fact, keeping in mind that the index examined 740 total brands across 83 categories, Coors was one of only 15 companies to show up for the first time in its respective category as a brand engagement champion.

Passikoff elaborated, "These drivers and expectations can be measured against a category Ideal (100%), with brands best meeting consumers' expectations generating greater loyalty and profits. Brands that cannot meet expectations lose customers and market share." (Emphasis mine.)

And you can bet that Coors brand owner Molson Coors Brewing Company (TAP -0.70%) will do everything in its power to sustain this momentum. Last month, Molson Coors pledged to continue investing heavily in its legacy brands by bolstering sales capabilities and further improving execution as a supplier, including a suite of cutting-edge sales technologies and tools rolled out across all of its markets.

The timing of Coors' win is also impeccable considering Molson Coors only just closed on its $12 billion acquisition of SABMiller's 58% stake in MillerCoors last October -- a transaction SABMiller was required to facilitate to receive regulatory approval for its own megamerger with fellow industry giant Anheuser-Busch InBev (BUD 0.26%) last year.

Molson Coors emerged as the world's third-largest global brewer by enterprise value in the process, and it can look forward to even greater economies of scale, cost synergies, and wider distribution opportunities for its brands as a result.

Competition is still steep

But you can also be sure other brewers will continue their own relentless quests to fill the bellies of thirsty consumers.

For example, AB InBev confirmed last week that it now boasts an incredible 18 beer brands that each generate at least $1 billion in annual sales, and outlined its own path to generate more than $2 billion in post-merger synergies as it continues its integration with SABMiller. Incidentally, AB InBev also commanded six beers on Brand Keys' top-10 list, including Corona (No. 2), Michelob (No. 4), Budweiser (No. 5), Busch (No. 7), and Stella Artois and Miller (tied for No. 9).

Meanwhile, Yeungling and Boston Beer's Samuel Adams tied for third place, Heineken's Dos Equis brand and its namesake lager took sixth and eighth, respectively, and Pabst rounded out the list at No. 10.

If one thing is clear in the end, it's that this impressive slate of brewing industry leaders will only continue to jostle for higher sales and greater market share going forward. But for at least a little while, Coors can stand tall as America's favorite beer. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Molson Coors Beverage Company Stock Quote
Molson Coors Beverage Company
TAP
$55.38 (-0.70%) $0.39
Anheuser-Busch InBev SA/NV Stock Quote
Anheuser-Busch InBev SA/NV
BUD
$54.08 (0.26%) $0.14
The Boston Beer Company, Inc. Stock Quote
The Boston Beer Company, Inc.
SAM
$333.99 (-2.14%) $-7.30
Heineken N.V. Stock Quote
Heineken N.V.
HEINY
$46.98 (-0.53%) $0.25

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
332%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.