Anheuser-Busch, has announced that it will eliminate “1,400 U.S. salaried positions in its beer-related divisions, affecting about 6 percent of the company’s total U.S. workforce.” Plus, 250 vacant positions will not be filled and 415 independent contractors will also be cut. This is in addition to 1000+ employees who chose a voluntary enhanced early retirement. Merry Christmas everybody!!

From the press release (pdf):

Anheuser-Busch InBev (Euronext: ABI) today announced that, as part of its previously announced plans to effectively integrate Anheuser-Busch Inc., the U.S. business unit today communicated plans to cut approximately 1,400 U.S. salaried positions in its beer-related divisions, affecting about 6 percent of the company’s total U.S. workforce.

About 75 percent of the affected positions are based at the brewer’s corporate headquarters in St. Louis, at downtown offices or at its Sunset Hills campus, while other reductions will occur in field and brewery locations.  In addition, more than 250 U.S. positions that are currently open will not be filled.  An additional 415 contractor positions will be eliminated. Most of the reductions will occur by the end of this year, with the remainder taking effect next year.

“To keep the business strong and competitive, this is a necessary but difficult move for the company,” said David A. Peacock, president of Anheuser-Busch.  “We will assist in the transition for these employees as much as possible.  The people of Anheuser-Busch dedicate themselves to the business, and we appreciate all of their contributions.”

The company will provide employees severance pay and pension benefits based on age and years of service. Employees also will be offered additional benefits during the transition, including outplacement services.

The announced workforce reductions are in addition to the more than 1,000 U.S. salaried employees company-wide who accepted the company’s voluntary enhanced retirement program, which closed November 14 and provided special benefits for eligible employees retiring by the end of 2008.  The retirements were part of planned cost reductions of 1 billionUSD, called project Blue Ocean, announced by Anheuser-Busch in June 2008.  At that time, the company announced plans to reduce its company-wide U.S. full-time salaried workforce of 8,600 by 10 to 15 percent before the year end.  The company’s other Blue Ocean cost reductions remain on track.

Bargaining unit employees at the company’s 12 U.S. breweries are unaffected by the reductions announced today.

“Managing our costs is important in building and maintaining a successful business, especially in a challenging economy,” said Peacock.  “We are pleased with our U.S. beer sales, we will continue to invest in growing our brands and we will always look for ways to become more efficient.  Decisions like this are never easy, but they will ensure the long-term success for Anheuser-Busch and our employees.”

Popularity: 5% [?]

When Anheuser-Busch unleashed its Budweiser American Ale on the market, it caused quite a stir in the craft beer world. Some predicted the end of the microbrewery while some saw it as an opportunity to bring the American light lager drinkers into the fold. Regardless of what it means for the market, it seems that the big boys have decided to come play on our side of the playground and they aren’t likely to leave quietly.

A-B is so committed to the craft market that they have turned Michelob into a craft brand. “Craft beers are a key driver for the growth of the industry, and we feel that Budweiser American Ale and our Michelob craft line will allow consumers to explore beer styles with a name that America trusts,” said Keith Levy, vice president of brand management for A-B.

The big question is can the macro-breweries, which normally make beers with little taste, brew beers which can compete with traditional, full-flavored craft beers? seattlepi.com decided to find out by setting up a blind taste test with several styles of macro-craft beers and traditional craft brews. Here are the results:

Amber ale
Budweiser American Ale: 6/10
Alaskan Amber: 7/10

Pale Ale
Michelob Pale Ale: 5/10
Full Sail Pale Ale: 7/10

Belgian-style wheat ale
Michelob Shock Top Belgian White: 4/10
Blue Moon Belgian White (Molson Coors): 6/10
New Belgium Mothership Wit: 9/10

The testers “included casual beers drinkers who usually reach for a light lager, as well as typical craft-beer drinkers who enjoy a variety of styles from various brewers.” In other words, these were not trained beer judges but average beer drinkers. I assume, then, that they rated the beers based on personal taste and not a set of style guidelines. While this was not a very scientific taste test the results are still interesting.

As I’ve said before, I think the big boys are going to play it safe and make beers that appeal to as many people as possible. They can’t afford not to. The smaller breweries can take a bolder, more experimental approach without fear of alienating a large number of customers.

What do you think? Can the macros compete in the craft market?

Popularity: 8% [?]

Subscribe in iTunes

Popularity: 9% [?]

Product shot of Budweiser American Ale provided by Anheuser-Busch

Budweiser’s first ale officially rolls into stores today, Monday, September 29, although I spotted it in my local beer store on Saturday. The significance of this beer goes beyond a brewer introducing a new product. This is America’s largest brewer introducing a craft beer.

The reactions to this ale have run the gamut in the beer community. Some think it will be the downfall of craft beer. Some think it will ultimately be a failure for Anheuser-Busch.  We tasted the American Ale and it is decent, if not outstanding. Microbreweries can make small batches of experimental beer to test how their customers will receive it. A-B doesn’t have that luxury. They need this beer to appeal to as many people as possible in order for it to be a success. I think that is why this ale is sort of a middle-of-the-road amber but it could tun out to be a “gateway ale” that introduces the masses to craft beer.

Only time will tell if A-B’s marketing muscle can convince their customer base to try something different or convince craft beer drinkers to try something with a Bud label. Calling it an “American” ale and a “new style of ale” is transparent marketing chicanery that reveals how they hope to position this beer in the market. However, A-B’s new owner, InBev, is not known for its patience or willingness to experiment so I think that if American Ale isn’t a hit out of the gate, it will disappear quickly.

A six-pack of American Ale is supposed to be about $1.50 more than a six-pack of Bud. The price I saw was $6.99 for a six-pack which is only slightly less than your average craft beer. This could be a problem for Bud since regular craft drinkers, who are used to paying a premium for good beer, won’t see much of a savings over their normal beer and regular Bud drinkers may not be willing to pay a premium for a Bud ale when a Bud lager is what they are used to purchasing and drinking.

[Update 10/7] I found American Ale for $5.77 for a six-pack which is a little cheaper than other national craft beers, like Sam Adams.

Whether this beer succeeds or fails, I think it is a validation of the craft beer industry. When the big boys start to copy your product, it means your product is worth something. Craft beer sales make up only 4.5 percent of the total US beer market but are growing faster than the overall market at about 7 percent compared to around 1 percent. Craft beers sell for higher prices as well, which is obviously something the macro-brewers would like to duplicate.

What do you think? Is this the end of the craft world as we know it or will this ultimately help the craft industry?

Popularity: 10% [?]

Budweiser is exploring new ground with their first ale which will hit stores in one week on September 29. It is already available in draught.

Appearance:
Nice copper color as you would expect from an amber ale. Huge head that lingers for several minutes after the pour.

Smell:
I don’t know if it was because of the size of the head or the temperature of the beer, but the first fragrance I got was… Budweiser. This is weird because this beer has little in common with a Bud. Once the head went down a bit and the beer warmed up, I got definite caramel and some light grassy hops scents.

Taste:
The taste was true to the smell. It’s fairly malty at the front, with caramel being what I tasted most with some subtle biscuit flavors mixed in. The hops hit at the back of the palette and are nicely balanced with the malt. The hops linger after you swallow, a bit much for my taste, but the bitterness is not overpowering.

Mouthfeel:
I would call this beer is medium-bodied and smooth.

Drinkability:
I wasn’t sure what to expect from an amber ale made by Budweiser. I was pleasantly surprised. It is well-balanced and hoppier than I expected, though not overwhelmingly so. I think this would make a decent session beer and maybe a good “gateway” beer to the world of craft brews for those who are usually Bud drinkers.

5.3% ABV

Popularity: 11% [?]

Popularity: 5% [?]