Skip to main content

Fan Fiction

Groupo Modelo write-offs cost AbInBev $6 billion this year.
It lost another $1 billion anyway, even with the Word Cup.
This is a tinfoil hat observation, but one that's fun to make. Like all kooky theories, it begins with demonstrable facts and descends into the gap between madness and unlikelihood. 
Craft beer now has 8 percent of the market and think they can make it to 20 over the next decade. Budweiser's parent company, even bolstered by the World Cup, reported losses of more than $1 billion already this year even though revenue increased. Much of that has to do with them purchasing companies that don't run at the famous AbInBev margins, but, to be fair, the revenue boost was because of Brazil.
There won't be a World Cup next year, but there also is no craft beer revolution in South America. Or in Africa. Or Russia. There also is no NFL advertising expense in those countries.
Last week, Budweiser made an uncharacteristically frank indictment of the NFL. It was a barely-veiled threat saying it wasn't happy with the NFL's domestic abuse problem.
These all are facts, now we can get to the kookiness. It begins with a question:
Since when does Budweiser give a shit about women?

The answer, of course, can be found in their objectifying ads over the last 60 years. What Budweiser probably does care about is revenues. They're not plummeting yet, but they are slipping. There's no world where they dump the NFL, but they are positioned to cut ad expenses and look good while doing it. There are emerging markets all over the world that are cheaper and a better source of revenue than the flagging American market. The NFL contract is an expense they would love to cut and, with this announcement, Budweiser probably reduced their ad bill for the 2015 season significantly.
I love watching corporations bully one another. While craft beer is making better connections with its local markets, Big Beer is counting American pennies it would be happier to spend elsewhere anyway. I don't know if it's fair to say it ceded the remaining 12 percent craft beer thinks it can capture, but the prospect of Bud reducing the amount it spends on the drinkiest game in the country only can help craft beer.

Comments

Popular posts from this blog

Into the past

Castle Haven Photo courtesy of the Choptank River Heritage Center I went to college as a 30-year-old and, as I made for the graduation finish line, my first marriage came apart. If I ever write that story it will read like the lamest version of the poor man's Fear and Loathing.  Come to think of it, Fear and Loathing in Delmar  would be an awesome title. Doing primary source, original research was a graduation requirement, so I combined my appreciation for a good tavern with the fact that I had to write about something. While researching taverns in colonial Maryland I discovered that there was such a place a Castle Haven. More than a decade later, that paper became the first chapter in my first book, and the second installment in my blog about writing the book. This is the story of our attempt to breach Castle Haven in search of photos.

Give the Gift of Brewing

I do a weekly podcast about homebrewing. It's my hobby. I'm not on anyone's payroll, but, because people are looking for gifts this season, we did a show about getting people started in homebrewing that I thought was worth promoting. So I apologize in advance if I sound a little pitchy. I blog a bit about the brewing industry, but think about the brewing culture way more often. Brewing is one of those endeavors where, once you get hooked, you just wanna brew beer and help people who aren't brewing cultivate the interest. I love talking to homebrewers about what they do and (believe me) they love talking about it. This week's guest didn't show, so instead, Doug at Xtreme Brewing  and I talked about what it took to get someone into beer. Sometimes, taking a class helps. Doug gives free brewing classes occasionally and lots of people go to a couple before making the plunge. But, more often than not, a person will come in, pick up a starter kit, and get to brewin

Beer makes great copy

Sure. Like you don't have a beer writing hat. When I was a reporter, and then when I was an editor, publishers would give me a hard time if I wrote too many brewery stories. I understood where they were coming from, but there were (and still are) few small-town business stories as compelling. The story about small batch breweries has always been a double-trend story. Opening and hiring people was bucking the employment and economic development trend of the time (2008-2012). Plus, there was the larger, new micro-brew revolution trend. Beyond the fact that the story was compelling was the fact that it included beer. No one believes spending an hour or so at the brewery counts as taking one for the team. It's funny but at the time I never considered how widespread that phenomenon was.  I wrote for a small paper in a small town. There were millions of guys like me, educated but barely employable in any other industry. We were all gravitating toward the local beer story,