Free beer, get your free beer here! Conditions have gotten so bad at the Budweiser brand that parent Anheuser-Busch InBev
Budweiser unit sales were down 9% last year and are off as much this year, but the biggest concern for Anheuser-Busch is the loss of the next generation of drinkers. Young drinkers have passed over the classic Budweiser brand for craft brews and new concoctions, helping drive Budweiser's rank in national product brands down from 16th to 220th in the last seven years.
For Anheuser-Busch and Molson Coors Brewing
This doesn't spell the end for the diversified Anheuser-Busch. Consumers have been "trading up" to its other products, such as Stella Artois, nearly tripling Stella's U.S. share in the import category since 2005. Similar to Molson Coors, Anheuser-Busch has a brand in nearly every category to satisfy the whims of consumers, so the relative underperformance of Budweiser may be an opportunity to coax consumers to trade up to one of its more premium offerings.
Overall, I don't see how this is a good sign at all for the King of Beers, Budweiser. As a beer connoisseur in the target market for this promotion, I think other bar aficionados will take the bait and try a Bud or two. I'll give the server a "hmmm ... that was interesting" and then order a round of my favorite local craft brew. A free beer just isn't enough to make Budweiser relevant to me again.
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Fool contributor Travis Hoium does not own any stock mentioned here. Boston Beer is a Motley Fool Stock Advisor selection. The Fool owns shares of Molson Coors Brewing. Try any of our Foolish newsletter services free for 30 days. True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Motley Fool has a disclosure policy.