
I’m a big fan of beer and for some reason I ditched all the micro brews over time in favor of Budweiser. Call it a Bud, Redcoat, or Fatweiser, whatever. I like it and I don’t care. Forget all the other snooty beer, give me something that tastes good.
BTW, Miss Budweiser was one of my childhood obsessions. I traded her in for a new Miss Budweiser, but still dream of driving that damn boat.
Miss Budweiser obsession age 9-12:

Miss Budweiser obsession age 13 – present:

Anyway, I write this because every time I see a Budweiser add on TV I’m a little sad these days.
I don’t care about Clydesdale horses, frogs or idiots going “whazzzup?” I care about the recent spot showing a guy trying to decide what beer to take home from the store. (I’d pull it from YouTube but I can’t find it.) The customer is overwhelmed by the beer category with all the choices and a clean cut, friendly, subtlety cool, average Joe Bystander starts rolling off a list of good beer qualities and what a hard choice it is. The customer thinks it over and makes the decision on his own – ah! Budweiser. In the parting shot, the customer says, “somebody should pay you for this.” Joe Bystander turns, smiles, waives goodbye, and a Budweiser logo becomes visible on his shirt. (Brilliant advertising!)
I tell you this because years ago I delivered beer for a summer and know what kind of stand up people these everyday folks are. That commercial is not far off the mark. I again find myself working in the CPG business and know that these hardworking people are what make this country a great place. The Coke guy, the Bud guy, the Fedex carrier, the Mayfield Milk man, the Frito-Lay woman, and all the other delivery people are a part of what makes this country a what it is and I respect the hell out of all of them. Their friendly competition, dedication, humor, and especially their hard work is extremely admirable.
Here’s the rub: You probably heard that America’s largest brewer, Anheuser-Busch (A-B), was acquired by hostile bid by Belgium’s InBev to the tune of $52 billion. The real stink of the deal is that InBev CEO/Axeman Carlos Brito & club borrowed $45B of the $52B needed. The debt burden is estimated at 12.4 times A-B’s combined cash flow. Simple translation: the massive amount of debt is 12.4 times larger than the net amount of cash taken in over the entire year less all the cash spent. Ouch-Hard to pay that kind of loan off. Times are going to get tough as the belt gets tightened. A-B was terribly mismanaged for years and now they are paying the price. Efficient markets…bla, bla, bla, I get it. This happens.
I don’t have any love lost for the top fatcats who will lose their cushy jobs doing basically nothing with a product that sells itself due to a) it being a great product b) having incredible customer loyalty and c) serious brand equity. Yes, that was all built on the back of great marketing & sales, but the fatcats will get a “package” giving them a solid chunk of coin and ample time to take a Mediterranean cruise for a year or two before looking for the next company to mismanage.
The common folk of A-B will be hit the hardest. I’m talking about all the worker bees at HQ, all the production plants, and especially the sales reps and drivers. These are all hard working folks who are going to be facing tough times ahead due to consolidation in an already terrible economy. I feel for these people because they are the good guys. They represent what is good about America to me, and now for them, it is going to get even harder.