Last week I pointed you in the direction of the overproduction of turkeys and cranberries and how the government seemed to be getting involved in who may produce what and how much of a specific thing (See here in case you missed it:

http://premiumsteelsales.com/pass-the-cranberry-relish-please/). This relates to our steel industry especially when we talk tariffs and Section 232 action.

This time, we need to chase that turkey dinner with a choice beverage – so see here:

https://www.cnbc.com/2017/11/13/anheuser-busch-inbev-taps-new-us-chief-to-turn-around-sluggish-sales.html

Anheuser-Busch has tapped a new CEO to attempt to compete with everyone else who is eating their lunch (and drinking someone else’s beer to go along with it – 🙂 ). Slumping sales seems to be due primarily to the fact that that people are turning more to craft beers and international choices rather than the old standby staple: Budweiser. See this:

https://www.forbes.com/sites/greatspeculations/2015/06/29/does-the-declining-u-s-beer-trend-spell-doom-for-brewers/#26cbdb23189e

Maybe we can look to this witticism for some guidance: Drinking beer doesn’t make you fat, It makes you lean…. Against bars, tables, chairs, and poles.

Well, Anheuser-Busch seems to be leaning against anything that it can find to prop up their market share I guess. I must admit that I have long held a very pronounced preference for craft beers (I think it goes back to the days when Killian’s first came out on the market, followed by Blue Moon….). The reason why I bring this up is to make the following, very basic observation: We are all competing in the market place and we are always faced with the following two choices:

1) Be ahead of the curve by offering cutting edge options to our customers. This involves embracing change in the form of new trends, technology, and consumer tastes – even if they did not exist for a long period before the here and now.

2) Wait until the competitors walk off with the prize by appealing to customers’ tastes and then attempt to play catch up afterwards.

Now, it is very difficult for a very large corporation to be that nimble and shift direction and focus on a shoestring, BUT having said that, we MUST constantly keep our eyes and ears open to the happenings in the street in a very proactive way, to ensure that we are well aware of what is trending and what appeals to our customer base and act accordingly.

On the flip side of the coin, Budweiser is targeting a market that does not even exist yet (and may never exist at all):

https://www.washingtonpost.com/news/food/wp/2017/11/27/when-man-reaches-mars-budweiser-wants-to-make-sure-there-will-be-beer/?utm_term=.ba88dbea974e

Hey “Bud”!! Let me give you a small piece of free advice: Maybe focus your attention on getting people on earth interested in your beer (how about a few craft beer offerings? Eh?) BEFORE you chase an idea that is pie in the sky out in Mars???

(By the way, in case you are bored and have nothing better to do, you may want to look at this history of the craft brewing segment of the industry here in the U.S. I found it a very interesting and informative read.

https://firstwefeast.com/features/illustrated-history-of-craft-beer-in-america )

Ben.

ben@premiumsteelsales.com