The beer industry is in a weird place at the moment.
Gen Z has bucked another seemingly permanent trend, as fewer of them consume alcohol compared to previous generations.
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Alcohol consumption as a whole has been declining since its peak in the 1970s, when about 70% of adults drank, compared to just 60% today.
But Gen Z stands out even more.
Only between 18% and 20% of Americans between drinking age and under 28 years old said they drank beer, wine, or spirits regularly, according to a 2023 Statista study.
Meanwhile, among boozy Millennials born between 1980 and 1984, 30% drink beer and 31% drink wine.
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Beer manufacturers are feeling the effects of this societal shift.
Overall sales fell 4% in the first quarter to about $15.8 billion in the U.S., according to the latest data report from the National Beer Wholesalers Association and Finech.
In this environment, American mainstay Budweiser is committing to manufacturing in the U.S.
Budweiser is investing a lot of money in the U.S.
Image source: Rob Carr/Getty Images
Budweiser to spend $300 million on U.S. manufacturing
Anheuser-Busch (BUD) is an iconic American brand, despite being purchased by Belgian brewing conglomerate InBev in 2008 for $52 billion.
The company has proven its allegiance over the years by investing heavily in U.S. manufacturing. This week, it announced yet another nine-figure investment.
Anheuser-Busch said it will spend $300 million in 2025 to bolster its U.S. manufacturing base, making a new commitment to local communities and facilities.
“Anheuser-Busch has been a shining example of what ‘Made in America’ means, and their latest investment of $300 million builds on their longtime commitment to grow our workforce and expand U.S. manufacturing,” U.S. Labor Secretary Lori Chavez-DeRemer said.
“They are demonstrating exactly what it means to put American workers first, setting a standard for other companies to follow,” she added.
Over the past five years, Anheuser-Busch has invested nearly $2 billion in the 100 facilities across the country where its 65,000 employees brew, bottle, transport, and sell its products.
Budweiser puts past mistakes in the rearview
Budweiser has been bolstering its image the best way it knows how: advertising.
Budweiser and Bud Light have always had some of the most innovative and memorable marketing campaigns. Whether it was with the Budweiser Frogs or the “Wazzup” campaigns from the ’90s or the more recent Dilly Dilly campaign, Anheuser-Busch earned its title as the King of Beers through advertising.
So it was ironic in 2023 when an ill-fated ad campaign featuring transgender social media influencer Dylan Mulvaney sank Budweiser and Bud Light’s decades-long run as the top-selling beer in the U.S.
The subsequent boycott (led mainly by right-wing social media influencers) was one of the most successful in modern history, forcing the company to issue numerous mea culpas in the process.
However, Anheuser-Busch also made it a priority to get back to its marketing basics. The company announced a new partnership with the UFC to become the mixed martial arts league’s “official beer partner.”
It featured comedian Shane Gillis — a hero in some circles for his candid takes on politically incorrect topics — prominently in its Super Bowl ad, which is the crown jewel of Budweiser’s ad campaigns every year.
It also spent nearly $24 million to air a 90-second ad featuring its iconic Budweiser Clydesdales during the Super Bowl, paying homage to its historic past.
And it paid off.
The Budweiser First Delivery Super Bowl commercial was ranked No. 1 in the USA Today Ad Meter, the first time Budweiser grabbed the top ranking since 2015.
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