Dive Brief:
- Anheuser-Busch, a division of AB InBev, is bringing back a pre-Prohibition era beer for a limited time, according to the company. The 1933 Repeal Reserve Amber Lager uses a recipe Adolphus Busch used to create a special brew for friends and his local community in 1920, but never had the chance to distribute beyond the St. Louis area due to the start of Prohibition.
- The brew has a light, hoppy aroma and a rich caramel-malt taste. In recognition of its history, the 1933 Repeal Reserve has a higher ABV of 6.1%, and comes packaged in a vintage Budweiser stubby bottle.
- “We are excited to mark the upcoming holiday season and the anniversary of the repeal of Prohibition with this new brew based on a forgotten recipe,” Ricardo Marques, vice-president of Budweiser for Anheuser-Busch in a statement. “While Budweiser Repeal Reserve is a great tasting Amber Lager, it also tells the story of an important part of our history and gives reason for celebration.”
Dive Insight:
AB InBev has been attempting to regain market share, which has slipped from 19% to 16% since 2010 — a challenge facing the big breweries as consumers flock to other alcohol varieties or craft beers with interesting flavors and clever names. The beer giant reported strong profits following its acquisition of SABMiller last year, but overall beer consumption is down while sales of wine and spirit sales are growing.
The decline in beer sales accelerated in 2016, dropping 1.8% compared with a five-year decline rate of 0.6%, according to IWSR, which tracks the alcohol industry. At the same time, sales of hard alcohol — such as gin, tequila and whiskey — rose 0.04%. Mixed drinks, like pre-made cocktails, surged 1.6%.
Now, AB InBev is hoping the introduction of 1933 Repeal Reserve may help win back some of those missed customers. Launching a vintage recipe appears to be a good idea. Millennials, who are often drawn to craft brews, will likely respond positively to its history, higher ABV and old school bottle.
Beer makers are trying several new tactics to win back customers. Heineken is launching a lager named H41 made with a recently discovered "wild" yeast found growing on trees in the mountains of Patagonia, Argentina. The Boston Beer Company is introducing an Angry Orchard pear cider that is a blend of both apples and pears.
This isn’t AB InBev’s first move to win back beer drinkers. AB InBev closed its purchase of craft brewery Devils Backbone last September, and two months later, announced it would buy Texas-based craft brewer Karbach Brewing, one of the fastest-growing U.S. craft beer brands. If this latest launch is a success, expect AB InBev to look within for more clever ideas to capture consumer’s interest.
The beer maker is wise to make 1933 Repeal Reserve a limited-edition release. Millennials are known for enjoying limited-edition items and being early adopters. They could quickly respond to this new product and help spread the word via social media. In addition, it's limited-time allure will create buzz around consumers who are eager to try the historic brew before it disappears off of store shelves.
If this new beer is popular, AB InBev may consider making it a permanent addition to its lineup. Other drink makers have made this transition successfully, and it could be a worthwhile strategy for the beer giant. PepsiCo introduced Pepsi Throwback and Mountain Dew Throwback in 2009, offering consumers a taste of naturally sugar-sweetened soft drinks. The reformulated, limited-time only drinks were such a hit the company decided to make them a permanent part of its product lineup.
The 1933 Repeal Reserve has a great deal of potential to help AB InBev get beer drinkers back. The question now is if it will live up to those lofty expectations.