Monday, November 10, 2008

Despite Recession- Glass is Still Half Full for Anheuser-Busch

When times are tough, people turn to a variety of sources for comfort.
In the midst of economic hardship, some respond by devoting more of their focus on the important things in life,such as family, or their faith. During the Great Depression, many others opt for an unhealthy distraction- alcohol- for their coping mechanism.

Elizabeth Gibson of The Patriot News wrote an article titled "Alcohol sales thrive in bad economy.", which included an interesting quote from Danny Brager, a vice president in client service and beverage alcohol for Nielsen's polling service. Brager said that alcoholic beverages are withstanding the economic slowdown very well, compared to other categories that might be considered indulgent or luxury items. More than 80 percent of consumers polled by Nielsen in the spring said they are spending the same amount or more on beer, wine and spirits compared with a year ago.
(*Update: From Fox Business: InBev announced that a majority of Anheuser-Busch Cos. Inc. shares have voted to approve the proposed combination of InBev and Anheuser-Busch during a special shareholder meeting held today in Secaucus, New Jersey.)

Molson Coors Brewing Co (nyse: TAP) posted higher profits and shares rose 8.3 percent while Anheuser-Busch had 6% profit drop this third quarter,but its revenue rose and it's gained market share. (On a creepy note, Busch claimed to earn $666.million this quarter.) One of Anheuser-Busch's notoriously cheap beers,Natural Ice,(NYSE:BUD could be one of the more popular selections for the frugral drinker.

Natural Ice connects with its customers in a unique and humorous way that should strengthen the brand name over time.Natural Ice's advertising series "Nattyisms",By creating its own vocabulary created a new vocabulary for its loyal customers. Humorous new phrases and terms include: "Nata-pult" , "Natio-Furniture" and "Nat-tas-tro-phe". I noticed a Na-tas-trophe billboard in Tallahassee,Florida, which read. "Na-tas-tro-phe: the unfortunate loss or destruction of natty light."

I've always considered beer commercials among the funniest on television. Regardless of my our opinions about drinking, one thing we can all agree on is that we could all use a good laugh during these tough times.

Posted By Matt O'Hern at 04:35 PM
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