Anheuser-Busch pushes higher-alcohol beers
The brewer is betting big on its new Black Crown brand.
Early next year, the beer maker plans to introduce Budweiser Black Crown, which Advertising Age describes as a "golden amber lager" that is "distinctively smooth and beechwood finished."
Shares of Anheuser-Busch, which is based in Belgium, have soared more than 36% this year, as the brewer benefited from strong sales of Michelob Ultra and Stella Artois, as well as new products like Bud Light Lime-a-Rita. One area of disappointment is the flagship Budweiser brand, which the company said "did not meet our expectations." Lackluster U.S. sales resulted in Anheuser-Busch InBev recently reporting disappointing quarterly earnings. That's why Wall Street will be closely watching how the new brand is received.
Black Crown will have 6% alcohol by volume (ABV), matching the content of in Bud Light Platinum, a brand introduced in January that is selling well. It will surpass the 5% ABV in Budweiser and the 4.2% of regular Bud Light.
"I am sure that they will put some serious effort into it," said Eric Shepherd, executive editor of Beer Marketer's INSIGHTS, in an interview. "The wine and spirits industries have done a better job in marketing their products."
The road ahead for Black Crown won't be easy, however. The brand will have to be a hit with young males, the prime market for brewers, and there are already plenty of other brews to whet their whistles, along with other types of libations. Fewer and fewer people are drinking beer, even though some argue that it's healthier than milk, according to CNBC.
Beer made up 53% of alcoholic drinks last year, down from 61% in 1995, according to the U.S. Distilled Spirits Council. During that same time, wine's share rose from 11.8% to 15% and spirits jumped to 31.8% from 27.2%. Data from the Brewers Association shows that the market share for craft beers has climbed from 3.8% in 2007 to 5.68% in 2011.
Being the King of Beers ain't what it used to be.
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The solid report comes a month after the retailer closed all of its Canadian operations.
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