James Wilmore

Analysis - Anheuser-Busch InBev steals wine, spirits share with high abv beers

By | 15 November 2013

A-B InBev is targetting Millennials

A-B InBev is targetting Millennials

Anheuser-Busch Inbev is stealing share from the US wine and spirits category with its new high alcohol premium products, the company has told analysts. 

During an investors day in New York yesterday (14 November), the brewer said that its 6% Budweiser Black Crown brand has sourced 40% of its volumes from US sprits and wine categories, CLSA reported. 

Analysts at JP Morgan said A-B InBev has created two new categories to target drinkers outside of beer. One is 'higher alcohol premium plus', with products such as Budweiser Light Platinum and Black Crown, the other is 'alco-fusion', with products such as Lime-a-Rita. 

Meanwhile, the company is continuing to target Millennials - 21-27-year-olds - to reinvigorate the Budweiser brand, JP Morgan said. A-B InBev's 'Made in America' music concerts have seen "outstanding results", the company reported. 

Key to targettting this demographic is having the "best digital strategy", the company reportedly said, which is its top priority. The group's marketing programmes will be developed on a "mobile first basis", ie, how it will look on a phone, Nomura reported. The company has also invested behind a new digital team with a "execution team" in St Louis and strategy team in Silicon Valley. 

Sport also remains a key marketing focus for the brewer, JP Morgan flagged. In the upcoming NFL Super Bowl, A-B InBev plans to create a 'Budweiser Hotel' by anchoring a cruise ship next to the aircraft carrier Intrepid in Manhattan. The company will sponsor concerts and parties during the Super Bowl. 

At the same conference yesterday, A-B InBev said it can play a bigger role in the US craft beer segment.

Sectors: Beer & cider

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