Ha, I remember in the US (decades ago) I'd just got off the plane, headed to Hollywood, went to a bar, and asked for a Bud'. a bunch of guys simultaneously said "You don't want a Bud' you want a Coors."

Drink a Bud side by side with a Stella, I doubt you or anyone can tell the difference. Stella is a great example of a real schitty beer that has a lot of people fooled.

ITT: beer snobs try to figure out why cheap, mass-market beers sell.
You know... a lot of people just don't care for the hop delivery systems that are called "beer" these days.

Anyway, it's not like Bud is doing anything wrong. They are trying their best. The following quote is taken from an Anheuser-Busch advertisement earlier this year: "...the Anheuser-Busch logo is our ironclad guarantee that the beer in your hand is the best beer we know how to brew."

According to the NYT (Feb 2013) sales of Budweiser have been in decline for 25 years now. Which is probably why AB InBev owns ~200 different brands - including some that rate very highly. (Goose Island Bourbon County Stout gets a score of 100 on the Berr Advocate.)

My personal go-to beer is made by the worlds second largest conglomerate, SAB Miller.

I was stationed in Germany from 1990 to 1993. The young Germans in the clubs drank a lot of Miller Lite. It was more expensive than most of the local brews but I guess seen as trendy or something. They loved everything American. I would often give the parents of girls I dated Levis, Jack Daniels and Marlboros, they loved all that stuff. You could buy all of it on the German economy but for about 200% more than from the PX.

Perhaps you are right. Opinions on the internet are definitely worth the paper they are printed on.
Fresh and on tap it isn't bad when it is the only really cold beer in the pub and you are thirsty!

I don't drink beer so I can focus on the OP's question:D

The study is a long time ago but the essential % breakdown of the elements priced is good. I do bet the marketing budget is higher.

What the below points out, essentially, is that the price of beer is set by the market not by the cost of materials and production.

Interesting.

Edit: Good link: http://www.brewersfriend.com/2008/08/31/cost-breakdown-of-beer-home-brewing-vs-commercial/

From "The U.S. Brewing Industry" by Victor and Carol Horton Tremblay,
MIT Press, 2005.:
Average cost to brew one barrel of beer (in 1982 dollars)is
approximately $65 per barrel. (Graph interpretation)

In 2000, premium beer (like Budweiser and Coors) was priced at $15.15
per case.(in nominal dollars)

The price-cost breakdown of mass produced beer in 1996:(Consumer Reports, 1996)
Retail and distributor markup 36.4%
Taxes and Shipping 17.2%
Packaging 16.5%
Labor and Production 11.7%
Advertising and Management 8.2%
Brewer Profit 6%
Ingredients 4%

Cost breakdown for Mass-produced six-pack (in 1996):
Ingredients .16
Labor and production .47
Packaging .66
Advertising and Management .33
Brewer profit .24
Retail and distributor markup 1.46
Taxes and shipping .69
Total $4.01
A six pack is 72 oz by volume, a case is 2.25 gallons by volume, There
will be 13.7777 cases in a barrel, or 55.11 six packs.

This is all I've got...from this one book. Hope it helps.

I always thought it was you didn't buy beer... you only rent it.http://forums.pelicanparts.com/suppo...leys/pint1.gif

because Americans by and large, don't like the taste of beer.

i mean actual beer, not piss water.

When my friends from Germnay come visit they drink Rolling Rock or Corona.

Was at another German friends 50th b-day party this past Saturday. Some of her family and friends flew in from Germany. Those who were drinking beer where drinking Shiner Blond.

Not everyone enjoys an overly hoppy beer.

I'll drink them all but I drink what I'm in the mood for. Sometimes I love a Guinnes but other times I'll want a Hefeweizen.

And honestly, on a hot day after a couple hours of yard work sometimes there is nothing more refreshing to me than chugging an ice cold Bud.

Beer pricing is based primarily on branding and brand identity. You can charge a fortune for p.ss as long as you market it right.

I did some work for SAB (before the Miller hookup) in the early 90's that focused on production and distribution cost. At the time I was astonished by the actual numbers. Someone here mentioned the numbers of 5% product versus 95% marketing - not a bad approximation, although I would hesitate it is actually far less than 5% on product...

On a side note:

Absolute kings of the whole marketing game are however the energy drinks crowd - notably Red Bull. I recall a study that looked at it from an energy drink science perspective and it basically boils down to a drink that is high in caffeine and pseudo science, is an "acquired" taste, but has phenomenal marketing behind it.

They price the beer by the barrel, but it all depends on various factors as to what the bottom price is. The distributor has to weigh costs associated with the manufacturing and taxation levels, the wholesaler also has certain taxation and transportation responsibilities that factor into the pricing structure. Retail stores obviously have to collect sales taxes in respective states.

It's not the same everywhere. We have a 3 tier system, taxation is $6 per barrel, or about 33.5 gallons, IIRC.

Who considers Bud and Coors "premium beer"?

And IPA isn't the only alternative to Bud/Coors/Miller pisswater. Brown Ales, Porters, Stouts, and dozens of other varieties. There is so much good beer in the world, I may never complete my mission of enjoying it all... but I'll keep trying!

Jimmy Carter didn't get much good done during his presidency. The economy was in the tank and inflation was rampant. He did one thing of note: He removed federal restrictions on home and craft beer brewing. Remember Billy Beer? At that time there were maybe 30 mega-breweries? AB, Miller, Coors had the lion's share of beer business in the US. People wanted dry, slightly hopped, highly carbonated pilsner style lagers...or at least that's what they told us. In the end, that's what sold.

Enter craft brewing. The numbers of breweries has risen steadily since the 70's. IIRC, by the late 90's, there were fifteen hundred. Heck, within 40 miles of me, 4 niche breweries have opened their doors within the past several years. The numbers are well past 2600 now.

Now, local beer and wine stores have a lot more selection thanks to craft brewing. One of my faves, Schlafly Brewing in St Louis, has a steady stream of new, seasonal, and specialty beers every few months. Boston Brewing’s Sam Adams Boston Lager actually has taste! Craft beers have pushed the Busch, Bud, Coors, and Miller displays back a little. That's a whole different battle: See Netflix - Beer Wars.

Now, I know there are at least a few home brewers like me on this board. For me to brew 5 gallons (~2 cases) probably cost slightly more for ingredients than it would to buy it. Don’t tell my wife that. It's an economy of scale. If I could do more per batch and buy in ingredients in bulk, I could run the price down. Craft breweries can't match InBev's scale and are necessarily more expensive in general. Fortunately, folks are fed up with the tasteless, bodiless swill of American Lagers and are willing to pay a bit more for the craft beers.

Big breweries are fighting back. I used to buy Grolsch by the case in the Bitburg A.B. beer store, returnable bottles! Now, Inbev bought Grolsch and market it themselves, turning out mass produced Grolsch that bears little resemblance to the original. Once a craft brewery grows large enough to really bite into the market, the big guys try to buy them out, leverage lawmakers to create restrictions or apply other strong-arm tactics to slow them down. Big beer also brings out crafty looking labels. Miller makes Blue Moon and Leinenkugel. Shock Top? Inbev. But, their labels seldom indicate the true source.


A couple links:
US News Article
Beer Judge Style Guide

For maximum profits that's how.

I live in Portland. You'd think PBR was champagne based on all the advertising.

I like the real Budweiser. Good stuff

http://forums.pelicanparts.com/uploa...1368553710.jpg

Way back in my teen years, I gave my buddy making a beer run money for a case of Bud Light. He came back with Budweiser. I consumed the case over the course of a long New Years Eve, and simply wanted to kill myself the next day. Skull splitting is the understatement of the century. I'm pretty sure I haven't touched Bud again.

A Brit co-worker (and Guiness devotee) has a favorite joke: how is American beer like having sex in a canoe? They are both effing close to water.

Hate to tell you... InBev keeps winning against Budvar for the use if the name. I didn't like Budvar...

I don't know what all this talk is about flavors in your beer.. the only thing you need in a beer is alcohol.

Steel Reserve is where it's at, my friends.

Budvar is the best there is. I toured the brewery a year ago. Pure heaven on Earth.

I can ask my friend. He might not know how Bud comes up with pricing but he works for Coors and is studying to be a brewmaster...