Passed By?


This post is by Jim Horton from Online Public Relations Thoughts


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Major brewers and packaged good marketers in the US are facing a conundrum.  Consumers are passing them by and buying other products off grocery shelves and from liquor stores. Sales of Budweiser, particularly, have stalled.  Anheuser-Busch is working frantically to turn around.  The company is being assaulted by thousands of craft breweries whose production is a fraction of what the A-B produces, but each one is a small slice into its sales and combined, a large cut.  It's facing "brutal facts" and developing beverages that might meet the demand of today's millennials.    The American consumer's tastes have changed, maybe for good, but A-B is configured to produce millions of gallons of high-quality beer a year.  It can't easily switch off bottling lines without sustaining huge losses.  The company is not nimble after decades of dominating beer sales.  The same is facing Kraft-Heinz.  Both companies have entered a marketing/PR hell, and it might take them years before they leave it, or like many retailers savaged by Amazon, they might just fade away.