Beer drinkers, especially in the States, could find themselves short of the favourite tipple this summer, all because of the Bud Light boycott..Beer Business Daily reported Bud Light sales plummeted 28.4% from May 6 to 13, following a 27.7% drop the week before, reports The Daily Caller..Additionally, Investor's Business Daily reported the market value of Anheuser-Busch InBev, Bud Light’s parent company, dropped US$15.7 billion since April 1, based on data from S&P Global Market Intelligence..While Anheuser-Busch is enveloped in the whirlwind, its competitors are enjoying a windfall, with Blaze News reporting they added US$3.2 billion in market value as they fill the void created by the Bud Light boycott..Sales of light beers in the US make up about half of the market there, generating US$118 billion last year..Reuters reported Heineken is making forays into the light beer market, with plans to spend US$100 million to promote Heineken Silver in the US. .The marketing plans include giving away more than two million free samples at upcoming events, including the US Open tennis tournament this summer and the Las Vegas Formula One Grand Prix in November..The boycott's biggest winner is reportedly Molson Coors Beverage, which has seen its shares jump up more than 20% since April 1, adding roughly US$2.2 billion in market value to the stock, reports Blaze, which adds “JPMorgan figures the boycott will continue to serve as a fiscal reminder to Anheuser-Busch that the American people don't care much for its politics, suggesting its beer volumes will drop by 12% this year.”.It’s good news for the competitors, but there could be drier days ahead for beer consumers, particularly in the US, as one industry watcher warns of supply shortages this summer..Beer Business Daily editor and publisher Harry Schuhmacher told Fox News Digital the increased demand for light lagers that aren’t owned by Anheuser-Busch could result in a trickle-down effect on the industry. ."You can't just flip a switch and make beer. You know, beer is brewed. It takes, you know, at least a couple of weeks to make. So, they haven't had major supply issues yet, but we're about to hit Memorial Day and we could probably see some supply shortages there," said Schuhmacher. ."Keep in mind, this is the beginning of the beer-selling season. We sell beer in the third quarter, and we're about to hit Memorial Day. With these trends, it's starting to be material for (Anheuser-Busch's) bottom line, at least in the United States and North America.".Schuhmacher believes Anheuser-Busch’s parent company, InBev, kept a low profile during the saga, hoping it ‘blows over’ while at the same time increasing marketing budgets and offering discounts at retail. ."Their experience tells them you don't want to add to the conversation and add to the noise, because then it just repeats the news cycle," he said. "Boycotts like this usually do blow over fairly quickly, within a couple of weeks or so. So, this is really unusual to go into two months." .Schuhmacher also believes backlash will eventually die down and Bud Light will stay on top, but wear long-lasting scars. ."I think there is probably a degree of permanent damage to the brand. But in the long term, things usually revert back to the mean," he said. .The interest in analysis of the Bud Light debacle is strong, and Beer Business Daily, which focuses on the North American commercial beer industry, exploded in popularity, said Schumacher. ."We haven't really seen it since 2008 when Miller bought Coors, or they merged and InBev bought Anheuser-Busch. So, yeah, there's tremendous interest in this and our traffic on our website is blowing up," he said. "It's a story that just won't die.". Schuhmacher said he knows why Bud Light is under such pressure.."In the public psyche, Bud Light has always been considered so much of a deep Americana, middle America, working man and woman's beer. And when you just flip that completely on its end, it's hard for the consumer to swallow," he said.
Beer drinkers, especially in the States, could find themselves short of the favourite tipple this summer, all because of the Bud Light boycott..Beer Business Daily reported Bud Light sales plummeted 28.4% from May 6 to 13, following a 27.7% drop the week before, reports The Daily Caller..Additionally, Investor's Business Daily reported the market value of Anheuser-Busch InBev, Bud Light’s parent company, dropped US$15.7 billion since April 1, based on data from S&P Global Market Intelligence..While Anheuser-Busch is enveloped in the whirlwind, its competitors are enjoying a windfall, with Blaze News reporting they added US$3.2 billion in market value as they fill the void created by the Bud Light boycott..Sales of light beers in the US make up about half of the market there, generating US$118 billion last year..Reuters reported Heineken is making forays into the light beer market, with plans to spend US$100 million to promote Heineken Silver in the US. .The marketing plans include giving away more than two million free samples at upcoming events, including the US Open tennis tournament this summer and the Las Vegas Formula One Grand Prix in November..The boycott's biggest winner is reportedly Molson Coors Beverage, which has seen its shares jump up more than 20% since April 1, adding roughly US$2.2 billion in market value to the stock, reports Blaze, which adds “JPMorgan figures the boycott will continue to serve as a fiscal reminder to Anheuser-Busch that the American people don't care much for its politics, suggesting its beer volumes will drop by 12% this year.”.It’s good news for the competitors, but there could be drier days ahead for beer consumers, particularly in the US, as one industry watcher warns of supply shortages this summer..Beer Business Daily editor and publisher Harry Schuhmacher told Fox News Digital the increased demand for light lagers that aren’t owned by Anheuser-Busch could result in a trickle-down effect on the industry. ."You can't just flip a switch and make beer. You know, beer is brewed. It takes, you know, at least a couple of weeks to make. So, they haven't had major supply issues yet, but we're about to hit Memorial Day and we could probably see some supply shortages there," said Schuhmacher. ."Keep in mind, this is the beginning of the beer-selling season. We sell beer in the third quarter, and we're about to hit Memorial Day. With these trends, it's starting to be material for (Anheuser-Busch's) bottom line, at least in the United States and North America.".Schuhmacher believes Anheuser-Busch’s parent company, InBev, kept a low profile during the saga, hoping it ‘blows over’ while at the same time increasing marketing budgets and offering discounts at retail. ."Their experience tells them you don't want to add to the conversation and add to the noise, because then it just repeats the news cycle," he said. "Boycotts like this usually do blow over fairly quickly, within a couple of weeks or so. So, this is really unusual to go into two months." .Schuhmacher also believes backlash will eventually die down and Bud Light will stay on top, but wear long-lasting scars. ."I think there is probably a degree of permanent damage to the brand. But in the long term, things usually revert back to the mean," he said. .The interest in analysis of the Bud Light debacle is strong, and Beer Business Daily, which focuses on the North American commercial beer industry, exploded in popularity, said Schumacher. ."We haven't really seen it since 2008 when Miller bought Coors, or they merged and InBev bought Anheuser-Busch. So, yeah, there's tremendous interest in this and our traffic on our website is blowing up," he said. "It's a story that just won't die.". Schuhmacher said he knows why Bud Light is under such pressure.."In the public psyche, Bud Light has always been considered so much of a deep Americana, middle America, working man and woman's beer. And when you just flip that completely on its end, it's hard for the consumer to swallow," he said.
