Anheuser-Busch Spikes Your Drink
Back in the 70s, traditional bevvies lost their fizz, and healthier drinks became the in-trend. Bud Light was born to appease that new demand, but fifty years later, investors in the world’s biggest brewer fear their dominance could be on the rocks once more. They’re doing something about it, though! It’s seltzer time!
Consumer trends indicate that young drinkers are willing to pay for their health. However, as an alcoholic behemoth, AB-InBev is hardly in line to benefit. 0% beers are popping up, sugar’s become shameful, and according to a survey by University College London (UCL), 36% of students have quit booze altogether! Clearly, these are testing times for investors on the hard stuff. The only exception afforded in this Gen-Z healthy living lifestyle appears to be craft beer, the market for which has disrupted Anheuser-Busch by growing to almost a quarter of total US beer sales.
With the multinational’s stock price falling, desperate times call for desperate what? Yes, desperate $100-million-dollar seltzer investments. ‘Bud Light Seltzer’ is riding in to save the day for investors!
A seltzer is just carbonated water. However, spiked with 5% alcohol and some fruity flavors, AB-InBev hopes it can win over less disciplined quitters! The company already has two lines of the bubbling water available, Bon & Viv and Natty Light, but Bud Light Seltzer is expected to be the real mass appealer.
According to analyst Sean King at UBS, the seltzer market could grow 500% by the end of next year! Bud Light Seltzer, therefore, needs to stock bar cabinets before the likes of Heineken and Molson-Coors catch up. $100 million is a lot of money, though. Keep your eyes peeled for the pay-off!
