| The US Beer Market | | | | Budweiser because of the brand and not because of |
| The discussion on the U.S. beer market inevitably | | | | the product. "Beachwood Aged" simply does not |
| turns to Budweiser and its corner on the American | | | | matter. |
| suds market, no matter which segment is discussed. | | | | Interestingly, when you look at the mass of |
| After all, how many other crowded consumer | | | | commercials and advertising that comes out of St. |
| categories can boast a market leader with a 50 | | | | Louis, you might even believe that Bud was the |
| percent share? | | | | providence of the "cool" crowd. Young, hip, |
| Stealing Share has investigated the beer market in | | | | irreverent, self deprecating and hooked on MTV and |
| the U.S. many times, and our brand work has carved | | | | Comedy Central. After all, some of the best comedy |
| out plenty of opportunity for some of America's | | | | seen on television in years can be traced to the |
| most successful micro-brews and we have delved | | | | Budweiser franchise commercial messages. You find a |
| deeply into the reasons why beer drinkers choose | | | | different profile, however, when you look deeper |
| the beer they prefer. | | | | into values, beliefs, precepts and brand attachments. |
| Taste has nothing to do with it. | | | | The most loyal Budweiser drinkers, in general, are |
| How we can possibly say that when we have heard | | | | middle-aged men with potbellies who live for |
| plenty of Bud drinkers, for example, proclaim that the | | | | NASCAR and the NFL season. They have |
| only way Coors would cross their lips is when they | | | | conservative values and are more apt to be flying |
| are cold and dead because of its taste? You see, in | | | | "old glory" on Memorial Day than their neighbors. |
| our own blind taste tests, not a single beer drinker | | | | So why the ferocious preference? |
| could tell which beer was Bud, Coors or Miller. What | | | | Well, we won't give away what our clients have paid |
| this means is that there is something else going on in | | | | us to uncover, but it suffices to say that Bud taps |
| beer brand preference and it is not about taste. | | | | into what it means to be American mainstream. That |
| Change is Ahead | | | | is why it seems timely for Budweiser to be launching |
| Research demonstrates that it is all about brand and, | | | | is newest addition - American Ale - in an effort to |
| thus far, Budweiser has owned the leading brand. | | | | grab part of the micro craze without having to buy |
| However, market forces are changing and the | | | | another franchise like they did with the Widmer |
| opportunity for the rest of the market to take | | | | acquisition. |
| advantage is finally here. | | | | But the strategy might finally backfire on the |
| Before we get to that, let's examine taste vs. brand. | | | | 800-pound gorilla, and the first one to take |
| If you are foolish enough to ask beer drinker why | | | | advantage will find itself stealing market share. |
| they prefer the brand of beer they buy, they will | | | | Selling "American" is beginning to feel a bit like |
| emphatically tell you because they love the taste. | | | | Madison Avenue-speak for Budweiser because the |
| (Which helps explain why Boston Beer is trying so | | | | takeover by Belgium headquartered InBev has |
| hard to convince us its beer "tastes better"). The | | | | changed the brand landscape. To those of us who |
| problem is we have already established that taste is | | | | watch pop culture closely for its brand implications, |
| not the primary driver in beer preference even | | | | this sale is akin to Disneyworld being purchased by |
| though we are yet to find a beer drinker who did not | | | | North Korea. It just does not sit well. |
| tell us they liked the taste of their preferred brand. | | | | The Fall of The King |
| Therefore, trying to get beer drinkers to switch | | | | Here's a prediction, and Budweiser's competitors |
| brands based on taste is an exercise in futility. It | | | | should take note. Bud will begin to lose market share |
| might gain you trial, but it won't get you preference. | | | | to other competitors because its loyal drinkers will |
| How To Build Preference | | | | start to assert Bud does not taste the same |
| To create that preference, you have to delve into | | | | anymore. Because InBev has taken over Budweiser, |
| the anthropology of brand preference and | | | | something has changed. |
| subsequent switching triggers. Why? Because, more | | | | And those drinkers will be right, although not for the |
| than any other category, beer preference is an | | | | reasons they think. It's not taste. Rather, it will be |
| emotional connection and not a rational one - or even | | | | the promise of the "American" brand and the broken |
| a "taste" provable reality. Bud drinkers prefer | | | | hearts of those who believed in it. |
