AB-InBev hopes to revamp Budweiser’s sales
In terms of overall market shares in the U.S., AB-InBev accounts for 48.9 percent of the market, while Miller Coors – a joint venture between SAB Miller and Molson Coors – has 29.5 percent, Beer Marketer’s Insights says.
For the past 22 years, Anheuser-Busch let Budweiser’s share of the U.S. market has declined because consumer tastes have shiftied towards lighter brews. Fortunately, for Anheuser-Busch, growth from its Bud Light brand more than compensated for lost sales of Budweiser.
In 1988, Budweiser’s share of the U.S. market peaked at about 26 percent, while its fledgling Bud Light brand was breaking through the 5 percent level, according to the company.
In 2009, Bud Light’s market share was 19.3 percent, according to Beer Marketer’s Insights, while Budweiser’s share had fallen to 9.3 percent.
In 2007 Budweiser lost 4.8 percent in volume over 2006. In 2008, the year InBev took over the company, sales dropped 6.4 percent and in 2009, they declined 9.5 percent. This was despite the fact that in 2007 the U.S. beer market grew 1.3 percent, and in 2008 went up 0.5 percent. True, in 2009, overall beer sales went down 2.2 percent. But what’s that compared to Budweiser losing 9.5 percent?
Not good – whichever way you look at it.
The old guard at Anheuser-Busch might have taken consolation in the fact that Budweiser and Bud light are still the largest selling beer brand in the United States.
However, at its current rate of erosion, Budweiser is perilously close to falling behind the next leading brand, Coors Light, which grew slightly to an 8.3 percent share.
Should the unimaginable really happen and Budweiser drop to the number three slot, the Brazilians will need to take shelter – as being pelted with empties by the analysts should be the least of their worries.
