America is falling out of love with Budweiser
Budweiser is in danger of losing its "King of Beers" crown in the United States.
Posted — UpdatedAmericans' beer tastes are changing. They are opting for fancier craft beers, microbrews and wines and spirits instead of old classics.
That trend is taking a particular toll on Bud Light and Budweiser, whose share of the American beer market keeps shrinking. Parent company Anheuser-Busch InBev reported in October that its beer sales in the U.S. dropped more than 5% in the last quarter.
"Budweiser has been declining for a long time," said Eric Shepard, an industry tracker at Beer Marketer's Insights. "Premium light [beer] doesn't have the popularity it once did."
That's particularly true for younger drinkers, Shepard added.
The drop-off in domestic beers isn't confined to just Budweiser and Bud Light: Molson Coors Brewing Co., the maker of Coors Light and Miller Lite, announced last month that U.S. sales dipped nearly 3% last quarter.
Budweiser is betting on a management shakeup to help turn sales around.
AB-InBev's announced on Monday that Michel Doukeris, A-B InBev's current chief sales officer, will replace João Castro Neves on January 1 as head of the company's North America division.
The U.S. is AB-InBev's "most important market," CEO Carlos Brito said in a news release.
Aside from the sales slump, Budweiser missed its last attempt to rebrand itself. A-B InBev's highly-marketed campaign to brand Budweiser as "America" on bottles and cans during the summer failed to catch on with beer lovers.
Budweiser is now turning to its old Prohibition-era lager to return the brew to past glory. A-B InBev announced last month that it was releasing a limited-edition "1933 Repeal and Reserve Amber Lager" with a higher alcohol content than the regular beer for the holidays.
Doukeris and the Prohibition-style bud will also have to compete with rising popularity of Corona and Modelo.
Constellation Brands, the owner of the two Mexican imported beers, reported that sales increased 13% last quarter. Constellation is up 43% this year compared to A-B InBev's 11% gain.
-- CNNMoney's Paul R. La Monica contributed to this story.
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