The “King of Beers” is no more

The “King of Beers” is no more

Budweiser has fallen out of the top-selling beers in the U.S.

The times they are a-changing, that’s true in life and in business, and Budweiser knows that now all too well.

A decade ago, the top 10 brands made up nearly 66% of the beer industry. Their share has shrunk to 50% as craft beers have gained.

Since 2011, the auto-called “King of Beers” started losing spots in the list of America’s favorite beers, now, during the first quarter of 2018, it has dropped to number 4 according to the trade publication Beer Marketer’s Insights.

As Bud Light highlights itself as America’s most popular beer, Coors Light comes in second while Miller Lite lures into position 3 despite sales dipping in 2017. Corona Extra remains in spot 5 while Michelob Ultra and Modelo Especial are in 6 and 7.

Are millennials to blame?

Studies prove millennials are moving away from beer as they prefer other types of alcohol such as wines and spirits, a research from Goldman Sachs suggested.

However, it’s not just what millennials are wanting to drink, as a UBS data report shows millennials are just not willing to recommend Budweiser as a beer brand to others, contrary to Dos Equis XX and Stella Artois.

This has caused a major impact in the beer industry, as Bloomberg reported that AB InBev sold 14.4 million barrels of Budweiser in the US last year, that is less than one-third of the volume that Americans purchased during 1988.

The rise of craft beers

According to Richmond, craft beers have become a $23 billion-dollar industry, reaching a 41% gain during 2017, as beers like Belgium’s Dayblazer, Uinta’s Park Series Golden Ale and Green Flash’s GFB blonde have gained momentum.

While overall U.S. beer volume sales were static in 2016, craft beers reached 12.3% of the U.S. beer market.

The Brewers Association stated that retail dollar sales of craft beers increased 10%, up to $23.5 billion, accounting a total of 22% of the $107.6 billion U.S. beer market.

2018-05-24T16:24:37+00:00

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