Millennials are drinking wine instead of beer and the industry is freaking out
Reuters
This trend is scaring major companies like Anheuser-Busch, MillerCoors, and Heineken, according to a recent report by Morgan Stanley.
"Overall beer consumption trends remain weak, and it appears millennials are increasingly turning to other alcoholic beverages," the analysts write.
And many millennials who do drink beer prefer craft varieties to traditional pale lagers like Budweiser.
In fact, a recent Budweiser study found that 44% of drinkers aged 21 to 27 have never tried the brand, reports Tripp Mickle at The Wall Street Journal.
At the brand's peak in 1988, it was selling 50 million barrels of beer a year. That number has declined to 16 million barrels.
Morgan Stanley
WSJ says that traditional beers have a reputation for being bland in taste.
Beer can also be difficult to keep cold, whereas wine and cocktails can be put on ice or drank at room temperature.
In order to attract younger customers, Anheuser-Busch has released spoofs on classic cocktails.
The Bud Light Mixxtails are canned and bottled versions of classic cocktails like the Hurricane and Long Island Iced Tea.
The brand also released Bud Light Ritas, which are flavored to taste like margaritas.
Bud Light
Morgan Stanley analysts are concerned that this strategy could backfire and Mixxtail and Rita customers will graduate to actual cocktails instead of buying to classic beers.
But Anheuser-Busch maintains the canned margaritas are a huge hit - especially with women.
- I got a $40K raise using this 30-second strategy. It made me realize loud work, not hard work, always wins.
- Qatar Airways' new CEO explains why it's sticking with the Airbus A380 as other airlines retire the costly superjumbo
- Prince Harry and Meghan found out about Kate Middleton's cancer diagnosis on TV like everyone else, report says
- BenQ Zowie EC2-CW review – Premium wireless mouse for gamers
- Banks' GNPAs set to improve further to 2.1 pc by FY25: Care Ratings
- FPIs make remarkable comeback, infuse ₹2 lakh cr in FY24
- PM Modi and Bill Gates discuss AI, climate change, millets and more
- Consuming excessive salt and inadequate potassium, protein is making North Indians prone to life-threatening diseases: Study