Budweiser enjoys a cult status in the U.S, a liking and reputation it has developed over the past many decades. Till the very recent past, it was one of the top selling beer brands in the U.S along with the Bud Light. In 2015, however, Budweiser had to cede the 2nd spot to the competitor, Coors Light, with Bud Light holding the top post . It has also become worrisome for Anheuser-Busch that the total volume has declined by 0.6% in 2015 . In spite of this, the company remains the top beer seller in the U.S, with a combined market share of 46.4% in 2015 . This essay will focus on the history of Budweiser and Anheuser-Busch Company, the product line up and its distribution strategies.
History of Budweiser
The history of Budweiser can be traced back to the early 1800s, when a larger number of migrants from Germany arrived at St. Louis. Their migration was as a result of political unrest and anarchy back in Germany during those days and they brought along with them, the German way of brewing beer. Shortly, the lager beer was introduced to the Americans and the beer industry became one of the largest in the St. Louis area with around 50 breweries by the mid-1800s .
The early seeds of the brand Budweiser was sown when Eberhard Anheuser became the part owner and later in 1860 became the sole owner of the Bavarian Brewery Company. Upon acquiring the ownership, Anheuser changed the company’s name to E.Anheuser & Co.. Later, Adolphus Busch who married the daughter of Anheuser, became the part owner of the company and in 1876, he along with his friend Carl Conrad created the brand Budweiser that went on to become the synonym for beer in the U.S .
The company is also credited with bringing several ‘firsts’ to the brewing industry in the U.S. In the early 1870s, the company introduced pasteurization, which helped the company to transport beer to long distances without spoiling. During the early 1880s, the company introduced refrigerated transport systems, which helped the company to expand its network and establish its famed distribution landscape. The company was renamed as Anheuser-Busch Brewing Association in 1879 . The company got into product diversification and introduced non-alcoholic beverages to survive the national prohibition in 1920, which went on till 1933 during when the prohibition was abandoned.
The golden period of the company however was during the 1950s and 1960s during when the beer sales increased from just 3 million barrels to over 34 million barrels. It was during 1957 that the company became the largest beer retailer in the U.S, a position cemented and retained even till this date . Yet another star brand from the company, Bud Light was introduced in 1982 and is currently the top selling beer brand in the U.S . In 2008, Anheuser-Busch and InBev merged to become a new company Anheuser-Busch InBev which is now one of the top 5 consumer goods companies globally .
Products
This article will focus on product line up of Budweiser U.S, the flagship international brand of ABInBev. The product lineup of Budweiser include-
Budweiser: The flagship product of ABInBev, the Budweiser brand was introduced in 1876. This is a medium-bodied and flavorful American lager brewed with barley malt and premium hop varieties . The beer has 5% alcohol content by volume, contains 145 calories per 12 fl.oz., zero fat and 10.6 grams of carbs per 12 fl.oz..
Budweiser Black Crown: Black Crown is a lager beer brewed with toasted caramel malt, American hops and finished over beechwood to create a unique taste well appreciated by the beer lovers . Black Crown has 6% alcohol content by volume.
Budweiser & Clamato: Budweiser Chelada with Clamato is a classic American lager beer that combines the smoothness of American lager with the spiciness of Clamato combined with lime. The beer contains 5% alcohol by volume, 186 calories per 12 fl.oz and 20.3 grams of carbs per12 fl.oz .
Budweiser & Clamato Picante: This is a variant of Budweiser and Clamato with Picante flavor .
Budweiser Signature Draught: This is the Budweiser recipe served in a bowtie shaped tower providing colder and smoother draught experience. The tender serves the beer at a temperature set at 31 degree Fahrenheit, provides a 1.5 inch foam collar through a four step process that includes rinse, pull, push and crown .
Distribution Strategies
The distribution strategy adopted by Budweiser is a four tier system where the stakeholders include the producer, the wholesaler, the retailer and the consumer. At the wholesale channel structure, Budweiser deals with merchant wholesalers and manufacturer owned sales and distribution offices. Budweiser works with over 500 wholesalers across the U.S. In addition to this, the company also owns and operates 13 stockholding warehouses spread across the U.S. The retail chain of Budweiser includes more than 550,000 retail shops that include grocery stores, convenience stores, supermarkets, restaurants, bars, liquor stores, sporting stadiums etc. Any retailer with the license to sell liquor can sell Budweiser products as well. The wholesaler is responsible for on the ground marketing activities of the company and establishing relationships with retailers. They keep and maintain refrigerated warehouses and provide the Budweiser products to the retailers based on the pricing mechanism devised by Budweiser.
Works Cited
Anheuser Busch. 55 CALORIES.100% REFRESHING. 2015. Website. 11 April 2016.
—. ABOUT BUDWEISER CHELADA WITH CLAMATO. 2015. Website. 11 April 2016.
—. Budweiser Black Crown. 2015. Website. 11 April 2016.
—. History. 2016. Website. 10 April 2016.
—. WHAT IS BUDWEISER SIGNATURE DRAUGHT? 2015. Website. 11 April 2016.
Anheuser-Busch. About Budweiser. 2015. Website. 11 April 2016.
Brown, Lisa. Bud Light, Budweiser market share losses continue in U.S. 25 February 2016. Website. 10 April 2016.
Gunelius, Susan. Budweiser Loses #2 Spot in American Beer Market to Coors Light. 2016. Website. 10 April 2016.
