Anheuser-Busch Responds To Millenials’ Shifting Drinking Habits

It appears that even the hit ‘Dilly Dilly’ commercial is not enough to persuade American youth to get a Budweiser.

In an announcement that was made on Thursday 7/26/18, Anheuser-Busch InBev, the makers of Bud Light and Budweiser, revealed that its US revenues have fallen by 3.1 percent over the second quarter. This is reflected by a continued decline in the market share of the beer giant’s two flagship brands.

Beer consumption has dropped due to the emerging trend where more and more millennials are choosing to take wines and spirits. Due to this, beer lost 10 percent of its market share to hard liquor and wine in the period between 2006 and 2016. According to data compiled by Nielsen, a market research company, the penetration of beer in the US market decreased by one percentage point while the figures for wines and spirits remained unchanged for the period between 2016 and 2017.

It seems like this development could be worsened by the incoming generation of drinkers. In a recent study, Berenberg Research reported that Generation Z members preferred more premium alcoholic beverages like wines and spirits to beer. In addition, they consumed fewer drinks when compared to previous generations.

AB InBev has responded by launching new flavors of premium and lighter beers like Bud Light Orange, the Budweiser Reserve series, and Michelob Ultra Pure Gold. These beers recorded increased growth in the company’s latest quarter.

When presenting its earnings report on Thursday, the company disclosed that it would establish an executive position to supervise its nonalcoholic-beverages division which will help to fast-track its growth.

Lucas Herscovici the current global marketing vice-president of strategic functions is set to be the new chief non-alcohol beverages officer.

The nonalcoholic-beverages division is responsible for over 10 percent of the company’s volumes, and it intends to increase that figure to 20 percent by the year 2025.