As many people know Annheuser-Busch merged with a Brazilian company named In-BEV, now known as AB InBev and people are starting to question the beer industry. AB InBev now controls 48% of the beer market and 68% in Brazil alone. So what is the issue? The distinct taste of American beer is now being produced with many foreign beers. Since the merger Ab InBev has moved production of many beer plants to right here in the U.S. That is good for workers here in the states but not necessarily for the avid Budweiser drinkers. Many people have complained that the beers are becoming more bland and not as tasty. In the article a Beck drinker for 25 years went and bought a 12 pack and said the beer just didn’t taste the same. After further inspection the German beer “Becks” was now manufactured in St. Louis, Mo. AB InBev has seen beer sales drop for many of their beers but they are still profiting as a company. The new manager of the firm, Brito, is making all sorts of cut backs in the company and as well as in the production of Budweiser. Budweiser has always boasted about using whole grains of rice in their beer and now the quality in the rice is the most important part and it doesn’t matter if it is whole or broken grains. He is also cutting off suppliers which have been used for over 25 years. These cutbacks are shutting down businesses and changing the beer industry as well as the beer itself. I understand making cuts to make a profit but is it truly ok to modify the beer which has been loved by the public for decades?
I do not believe it is ok, unless the public is made aware of the changes taking place in many of these breweries. If the customers continue to buy Ab InBev’s products and taste a difference should they not be informed? These modifications may not be noticeable to the once in awhile drinker… but it definitely will be to the loyal consumers of Budweiser. Modifications to this beer will also mean modifications to other American beers will occur as well, eventually altering the American beer market forever. Brito, the managing director of the company, will not comment on any of the changes and refuses to give any interviews.
To add insult to injury Brito has also raised the price of Budweiser and Bud Light, seeing how they are the most popular American beers right now. The price increase has slowed sales in 2011 by 3% and Bud slipped by 13%. Many researchers said it is not unconstitutional to make a profit in any company and Brito has done a great job of doing that, but it maybe un-american to modify a beer that has been iconic in the American culture for years now.
The original Budweiser is a Czech beer. Brito has a right to increase the price of his product as much as he would like just as we, as consumers, have the right not to buy it. If people are unhappy with the increase in beer prices they should no longer buy Budweiser; this would force Annheuser-Busch to rethink their prices and the recipe.
This will all come down to consumer preference, if the buyer does not enjoy the beer they will simply not purchase the product. Once sales drop and customers complain at a high rate AB InBev will know it is time to bring the old taste back or pursue a new formula with different grains. Also, cut backs are a part of the management process, if they see a drop in quality or in market share AB InBev will correct the situation by picking up new retailers for their beer and reformulate the product. All products need to change to keep interest with in the market for old and new users.
I agree with edelmoni, if a consumer doesnt like the beer, the beer will not have a high demand. Im an avid exotic beer drinker and I find it harder to find new beers that have great taste and quality in them. I have never been a big fan of change for the beers that I like, I would personally stop purchasing Blue Moon if they changed the taste or the quality. And I dont agree with them raising prices because regular consumers are not going to be a big fan of that. Beer is ultimately a luxury in anyones life, if they make it harder to get, people will stop purchasing.
AB InBev has the right to modify the taste and price of Budweiser. If avid Budweiser consumers are no longer pleased with the new product then they should not purchase it. Once AB InBev see a decline in their profits, perhaps they will return to Budweiser to its original taste. I personally feel the increase in the price of Budweiser has no affect on consumer consumption, as long as the product is the same loyal consumers are willing to pay more for quality.