go-Digital Blog on Digital Marketing

Despite massive increases in advertising, the biggest beer brands see massive drops in sales

Beer is yet another commodity and category that is being decimated by better quality alternatives. The means of production and distribution are no longer controlled by a very small number of big companies. Consumers find attractive alternatives in micro-brew beers or local beers. They have the means to access them (online) and have the product shipped directly to their homes.  So no matter how much advertising the big companies do, if their product is just not that great, they will continue to lose customers to alternatives. The “lime” version of Bud Light was said to cannibalize sales of regular Bud Light. And rightly so, consumers are looking for a better product.

Source: http://adage.com/article?article_id=138141

Fourth of July Holiday: Bargain Brands Gain, but Big Spenders Bud, Miller Lite and Corona Tap Out

By Jeremy Mullman

Published: July 27, 2009

Despite a flurry of new and improved ad pushes for the country’s leading brews, the days leading up to Independence Day, usually the biggest-selling period of the year for the category, led to gruesome sales declines vs. the same period last year. Sales for Anheuser-Busch’s Bud Light and Budweiser plunged 7% and 14%, respectively, in grocery, convenience and drug stores during the two-week period ending July 5, according to scanner data from Information Resources Inc. Miller Lite suffered a 9% drop. The big importers were hurt badly too: Corona marketer Crown Imports watched sales decline 6% to 8%, while Heineken and Diageo each saw double-digit drops.

Tags: adage, Anheuser, anheuser busch, article article, article id, attractive alternatives, Bargain, Beer, Big, big spenders, Brands, Bud, Bud Light, bud miller, Budweiser, Busch, cannibalize, category, commodity, convenience, Corona, Corona Tap, country, Crown, day, decline, Diageo, distribution, drop, drug, flurry, fourth of july, Gain, grocery, Heineken, holiday, holiday bargain, importers, Inc, Independence, independence day, information, information resources inc, Jeremy Mullman, July, lime, Lite, marketer, matter, means of production, micro brew, Miller, number, online, period, Product, product source, production, quality, quality alternatives, sales declines, scanner, scanner data, Source, Spenders, version, year