With the whispers growing louder in the beverage corridors, the question on everyone’s lips is, “Is Anheuser Busch going out of business?” Such speculation might seem surprising for a brand that’s been an integral part of our social fabric for decades.
However, in a rapidly changing market landscape, even giants aren’t immune to challenges. Recently, the giant beer maker has been in the spotlight, facing challenging times due to various factors, making many wonder if it’s heading towards an untimely exit.
So, in this article, we will be taking a dive into the recent operations of Anheuser-Busch, and we will help you find an answer to the question, “Is Anheuser Busch going out of business?” Just keep reading!
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Is Anheuser Busch Going Out of Business?
At the center of the current discourse surrounding Anheuser-Busch is the question: “Is Anheuser Busch going out of business?” But is this really true?
Well, there has not been any official statement from the company concerning this, and to address this, one must look at several factors at the same time.
Firstly, let’s debunk the myth. Anheuser-Busch is not shutting down. A company of its magnitude, with a legacy spanning decades and a global footprint, doesn’t simply close its doors based on a few turbulent months or even years.
Yes, the company has lost its position as one of the leading beer brands in the U.S. and presently laying off a large number of its employees. Presently, the company is restructuring and still boasts a robust international presence.
So, is Anheuser Busch going out of business? The answer is no. The company is still strong and it doesn’t look like it will be closing its doors permanently soon.
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Why is Anheuser-Busch Laying Off Its Employees?
Now that you know that Anheuser-Busch isn’t going out of business, the next question that will likely be on your mind is why the company is presently laying off so many employees.
Yes, Anheuser-Busch recently announced layoffs, impacting less than 2% of its US corporate staff. While these numbers seem relatively low, they equate to about 380 positions.
Brendan Whitworth, the CEO, mentioned that while these decisions are challenging, they are geared towards ensuring the company’s long-term success. It’s a restructuring effort aiming to streamline the corporate structure. The emphasis is on sustaining and building the brand’s future.
But really, this is one of the reasons many people are assuming Anheuser-Busch may be going out of business soon. However, according to Whitworth, the decision to lay off some of their employees is to help the company weather the present storm rather than a sign that the company is going out of business.
Is Anheuser-Busch Selling Off Its Brand?
There hasn’t been any information suggesting that Anheuser-Busch is looking to sell its brand. However, the brand did face setbacks due to a controversial partnership with transgender influencer Dylan Mulvaney, which resulted in a decline in sales and led to Modelo Especial taking over Bud Light’s top-selling spot.
Bud Light Loses Its Spot as Top-Selling US Beer
Bud Light, a name synonymous with American beer for decades, faced a setback in sales after partnering with Mulvaney. The partnership stirred controversy and backlash, with prominent figures calling for boycotts.
Adding salt to the wound, the company’s initial response was perceived as inadequate by both LGBTQ+ advocates and conservatives, driving sales down even further. The aftershock was felt when Modelo Especial dethroned Bud Light as the top-selling beer in the US.
Bud Light is one of the company’s flagship products and its fall from the top has had a strong effect on Anheuser-Busch.
In just three months ending in June, Anheuser-Busch’s U.S. sales fell by more than 10% compared to the same period in the previous year. The core profit in the U.S. plummeted by over 28%. In fact, it is one of the major setbacks the company is presently facing now!
Who Is Anheuser-Busch’s Biggest Competitor?
While Anheuser-Busch is a titan in the beer industry, it does not operate in a vacuum. Its primary competitors include Reckitt Benckiser, The Kraft Group, and Gerber Products. In terms of sheer employee count, Reckitt Benckiser takes the lead with 43,000 employees.
Is Anheuser-Busch Facing Financial Challenges?
The last few months have indeed been rocky. Anheuser-Busch’s sales in the US fell by more than 10%, and the core profit also witnessed a decline of over 28%. The primary reason for this decline was the drop in Bud Light’s sales volume.
However, on the brighter side, Anheuser-Busch reported worldwide revenue growth of over 7% compared to the same period the previous year. This growth indicates that while they might be facing challenges in the US, their international markets are still performing well.
What Beers Are Anheuser-Busch Discontinuing?
Recently, Anheuser-Busch had to discontinue some of its products to continually innovate and adapt their product lines to cater to evolving consumer tastes. They said many of these beers were discontinued either due to declining popularity or strategic business decisions.
Let’s take a quick look at some Anheuser-Busch’s beers that have been retired in recent years.
- Bud Light Lime Pome-Granate-Rita
This malt liquor with a twist of pomegranate made its last appearance on shelves in 2018. Infused with a unique blend of Bud Light Lime and the rich flavors of pomegranate, this drink was a part of the ‘Rita’ series, which brought together beer and fruity flavors. Its last active date was on August 5, 2018.
- Bud Light Lime Raz-Ber-Rita
Bud Light Lime Raz-Ber-Rita is another member of the ‘Rita’ family. This malt liquor combined Bud Light Lime with the tangy notes of raspberry. However, its journey came to an end February 2023.
- Bud Light Mixxtail Firewalker
Introduced as a part of the Mixxtail series, Firewalker brought a spicy twist to the malt liquor realm. It’s a bold choice for those looking to turn up the heat. However, this beer was discontinued December 31st 2022.
- Bud Light Mixxtail Hurricane
This is a malt liquor with a blend of flavors that gives the feeling of a tropical storm in a bottle. The Hurricane variant of the Mixxtail series also said its goodbyes on the 31st of December, 2022.
What Are Some Popular Products of Anheuser-Busch?
If you are a lover of beer, you definitely must have one of your favorites among the several products of Anheuser-Busch. Now that we have answered the question, ‘Is Anheuser Busch going out of business,’ let’s see some of their popular beers in the market.
- Budweiser: Often referred to as “The King of Beers,” Budweiser is one of the best-selling beers globally and has long been synonymous with American beer culture.
- Bud Light: This is a lighter version of Budweiser and has been among the top-selling beers in the U.S. for many years. It’s recognized for its light and crisp taste.
- Michelob Ultra: Marketed as a low-carb, low-calorie beer, Michelob Ultra has grown in popularity, especially among health-conscious consumers.
- Busch and Busch Light: These beers are known for their affordability and have a loyal following, especially in certain parts of the U.S.
- Stella Artois: Originating from Belgium, Stella Artois is a premium lager known for its distinct taste and elegant branding.
- Corona (Outside of the U.S.): While many associate Corona with its Mexican roots, Anheuser-Busch InBev handles the brand outside of the U.S.
- Modelo (Outside of the U.S.): Similarly, while Modelo is intrinsically linked to Mexican culture, its distribution outside of the U.S. is managed by Anheuser-Busch InBev.
- Shock Top: A Belgian-style wheat ale, Shock Top is recognized for its distinct orange slice logo and has various flavors, including lemon, raspberry, and apple.
Is Anheuser Busch going out of business – Final Note
In the business world, challenges are inevitable, especially for giants like Anheuser-Busch. While recent events have certainly impacted the brand, it’s essential to see the bigger picture.
Although the company is presently laying off its employees and have lost its position at the top, it is not going out of business. We have explained some factors contributing to this rumor and while all of them are mere speculation.