The great American beer crisis
May 9th 2005, 3:26 pm
#1
Illinois Rapscallion
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Location: In a one bar town
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The great American beer crisis
It would seem that despite the constant advertising beer sales for the major brewers in the USA are falling ...
I was amazed to note that nobody mentioned the real reason that sales are falling ...... the beers made by the major brewers are insepid.
full article ... HERE
The great American beer crisis.
By Daniel Gross
Posted Monday, May 2, 2005, at 1:06 PM PT
When the economy is booming, we pound a six-pack of Bud with our buddies and watch the game. When the economy is lousy, we pound a six-pack of Coors with our buddies and watch the game. When the economy is flat, we pound a six-pack of Miller with our buddies and watch the game. This is why companies that make beer—like those that make diapers, electricity, and cereal—have countercyclical stocks. When the economy hits a soft patch, investors take refuge in them.
But now there's a fear in our beer. Last week, two leading beer companies reported disappointing results. Anheuser-Busch, which claims more than half the U.S. beer market, announced it was suffering from falling demand and rising costs. The volume of Bud and Michelob sold in the U.S. fell 2.7 percent from the year-ago quarter. Newly merged cross-border beer powerhouse Molson Coors reported a loss, with net sales in the U.S. down 2 percent, and U.S. operating income off by nearly one-third. The most recent trading statement of Miller, the No. 2 U.S. beer brand now owned by SABMiller, showed marginal growth. In the past two years, according to Gary Hemphill, managing director of Beverage Marketing Corp., beer volume has risen at a meager 0.5 percent annual rate.
Why are brewers crying in their beers? In part, they're facing the same difficulties as other manufacturers. Costs for raw materials and energy are rising, and they're having difficulty passing costs along to consumers. But beer companies are also butting up against some powerful demographic and cultural trends that may flatten sales for years to come.
By Daniel Gross
Posted Monday, May 2, 2005, at 1:06 PM PT
When the economy is booming, we pound a six-pack of Bud with our buddies and watch the game. When the economy is lousy, we pound a six-pack of Coors with our buddies and watch the game. When the economy is flat, we pound a six-pack of Miller with our buddies and watch the game. This is why companies that make beer—like those that make diapers, electricity, and cereal—have countercyclical stocks. When the economy hits a soft patch, investors take refuge in them.
But now there's a fear in our beer. Last week, two leading beer companies reported disappointing results. Anheuser-Busch, which claims more than half the U.S. beer market, announced it was suffering from falling demand and rising costs. The volume of Bud and Michelob sold in the U.S. fell 2.7 percent from the year-ago quarter. Newly merged cross-border beer powerhouse Molson Coors reported a loss, with net sales in the U.S. down 2 percent, and U.S. operating income off by nearly one-third. The most recent trading statement of Miller, the No. 2 U.S. beer brand now owned by SABMiller, showed marginal growth. In the past two years, according to Gary Hemphill, managing director of Beverage Marketing Corp., beer volume has risen at a meager 0.5 percent annual rate.
Why are brewers crying in their beers? In part, they're facing the same difficulties as other manufacturers. Costs for raw materials and energy are rising, and they're having difficulty passing costs along to consumers. But beer companies are also butting up against some powerful demographic and cultural trends that may flatten sales for years to come.
full article ... HERE
May 9th 2005, 4:01 pm
#2
Forum Regular
Joined: Jun 2003
Location: Gilbert, Arizona
Posts: 292
Re: The great American beer crisis
Originally Posted by Circus-of-Power
It would seem that despite the constant advertising beer sales for the major brewers in the USA are falling ...
I was amazed to note that nobody mentioned the real reason that sales are falling ...... the beers made by the major brewers are insepid.
full article ... HERE
I was amazed to note that nobody mentioned the real reason that sales are falling ...... the beers made by the major brewers are insepid.
full article ... HERE
May 9th 2005, 4:04 pm
#3
Powder Maggot
Joined: Nov 2004
Location: Nuevo Mexico
Posts: 4,452
Re: The great American beer crisis
Originally Posted by edwords
Why is American beer like making love in a boat?
May 9th 2005, 4:13 pm
#4
Forum Regular
Joined: Mar 2004
Location: Folkestone in Kent to Chicago
Posts: 147
Re: The great American beer crisis
Originally Posted by edwords
Why is American beer like making love in a boat?
May 9th 2005, 5:15 pm
#5
Illinois Rapscallion
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Re: The great American beer crisis
But surely there is some enjoyment to be had making love in a boat ....
May 9th 2005, 7:39 pm
#6
BE Forum Addict
Joined: Jul 2002
Location: Arizona
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Re: The great American beer crisis
Originally Posted by Circus-of-Power
But surely there is some enjoyment to be had making love in a boat ....
May 9th 2005, 7:40 pm
#7
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Joined: Jul 2002
Location: Arizona
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Re: The great American beer crisis
Isn't Bud the only American owned major beer in the U.S. now?. How anyone drinks that crap is beyond me.
May 9th 2005, 7:49 pm
#8
Powder Maggot
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Re: The great American beer crisis
Originally Posted by Pimpbot
Isn't Bud the only American owned major beer in the U.S. now?. How anyone drinks that crap is beyond me.
May 9th 2005, 8:22 pm
#9
Just Joined
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Location: CT, USA
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Re: The great American beer crisis
Originally Posted by AdobePinon
Maybe so. I believe that Miller is owned by South African Breweries, or some such company.
May 9th 2005, 8:46 pm
#10
@matthewb76
Joined: Jul 2003
Location: Missouri
Posts: 21,886
Re: The great American beer crisis
Originally Posted by Feezy
Bud Light really IS water.
Natural Ice Light or Busch Light then.
May 9th 2005, 8:51 pm
#11
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Location: Folkestone in Kent to Chicago
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Re: The great American beer crisis
Originally Posted by Manc
you obviously haven't sampled
Natural Ice Light or Busch Light then.
Natural Ice Light or Busch Light then.
May 9th 2005, 8:52 pm
#12
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Re: The great American beer crisis
Originally Posted by AdobePinon
Maybe so. I believe that Miller is owned by South African Breweries, or some such company.
May 10th 2005, 12:11 am
#13
Illinois Rapscallion
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Re: The great American beer crisis
I'm back in dear old Blighty for a period ... and I really do cringe when stood at the bar ( I really have only popped in for a swift half ) and some idiot proudly asks for a "Bottle of Bud" .... WTF!!!!!!!! I have been in plenty of dusty bars in podunk towns where its the only beer to be had .... any port in a storm !!! ....... but when givern the choice surely people have the good sense to realise that Budweiser or any of the beers made by the big brewers is nothing short of coloured water ...
May 10th 2005, 2:15 pm
#14
Forum Regular
Joined: Mar 2004
Location: Folkestone in Kent to Chicago
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Re: The great American beer crisis
Originally Posted by Circus-of-Power
I'm back in dear old Blighty for a period ... and I really do cringe when stood at the bar ( I really have only popped in for a swift half ) and some idiot proudly asks for a "Bottle of Bud" .... WTF!!!!!!!! I have been in plenty of dusty bars in podunk towns where its the only beer to be had .... any port in a storm !!! ....... but when givern the choice surely people have the good sense to realise that Budweiser or any of the beers made by the big brewers is nothing short of coloured water ...
May 10th 2005, 2:16 pm
#15
Maño-Americano
Joined: Apr 2003
Location: In the heart of the Ozarks
Posts: 10,216
Re: The great American beer crisis
Originally Posted by AdobePinon
Maybe so. I believe that Miller is owned by South African Breweries, or some such company.
Amazing whas an additive noxious weed can do.