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Millennials are sharp when it comes to beer...


KingRevolver
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I follow the beer trends pretty closely since I have a significant portion of InBev (Budweiser) stock.

 

Yes, beer sales are down.  In particular, the macro brands.  However, InBev/Bud has bought up a significant portion of the microbrews (think Stella, Goose Island, Lagunitas, etc.) and those brands have higher margins and lower marketing budgets.

 

The trend for millenials is more towards cocktails and spirits currently but as they age and as the economy goes up and down (hint: alcohol can be a good recession trend- people drink in really good times as well as really bad times) so will the supply and demand for various spirits.

 

BUD made the wise move last year to cut their dividend and chop away at their debt.  While this hurt them in the short-term, it is likely a strategy that will pay off in the long-term.   If you look at their market share worldwide, they have a monstrous portfolio of brands that will keep their cash flow rolling for the forseeable future.

 

 

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I follow the beer trends pretty closely since I have a significant portion of InBev (Budweiser) stock.

 

Yes, beer sales are down.  In particular, the macro brands.  However, InBev/Bud has bought up a significant portion of the microbrews (think Stella, Goose Island, Lagunitas, etc.) and those brands have higher margins and lower marketing budgets.

 

The trend for millenials is more towards cocktails and spirits currently but as they age and as the economy goes up and down (hint: alcohol can be a good recession trend- people drink in really good times as well as really bad times) so will the supply and demand for various spirits.

 

BUD made the wise move last year to cut their dividend and chop away at their debt.  While this hurt them in the short-term, it is likely a strategy that will pay off in the long-term.   If you look at their market share worldwide, they have a monstrous portfolio of brands that will keep their cash flow rolling for the forseeable future.

 

but they are heavily promoting those products, which is never a good sign

 

stella is buy 1 (12 pk) get 1 half price all the time... and i just bought a bunch of goose island (6 pks) buy 1 get 1 free

 

so now am i ever gonna buy stella or goose island at full price again?  or am i gonna wait to get a big discount

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but they are heavily promoting those products, which is never a good sign

 

stella is buy 1 (12 pk) get 1 half price all the time... and i just bought a bunch of goose island (6 pks) buy 1 get 1 free

 

so now am i ever gonna buy stella or goose island at full price again?  or am i gonna wait to get a big discount

They are heavily promoting them to squeeze the little guy out.   When the big chains like WalMart and Meijer in the Midwest look at product placements, they run movement reports (how much the sell).  ImBev and Coors/Miller will run some of their craft beers at near cost to gain space and less exposure for local/regional brands.

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