In mid November, AB Inv the world’s biggest brewer announced senior level personnel changes in an effort to stem a years long sales decline in the US. In a story by Reuters written by Philip Blenksinsop and Martine Geller – Budweiser is being shaken up.

Bud Light is still the number selling beer brand in the US, but US consumers are drinking wine and spirits move than beer. Budweiser has sold less beer and in the third quarter total beer sales were down 6.2%. The decline has been going on since 2014.

Craft beer – beer brewed by smaller brewers is no longer growing at double digit rates but it is estimated growth will continue at 6% according to analysts at Susquehanna.

One strategy AB Inv can do is buy craft brewers and they have acquired a dozen over the past couple of years. One must remember the brewery where Bud is brewed has economies of scale and access to all the distribution channels.

Linking to dividend paying stocks, on one hand it is good for society beer sales are down on the other hand large brewers having a beer is a good thing. All leaders of brands will experience market share increases and decreases. For Bud if it went up too much, the competition bureau would poke their noses into AB Inv business (as they are suppose to).  Market leaders have different challenges, in this case if Bud was to fall to number 2, then wholesale changes would be needed in the industry and it would be best to look to alternatives as you watch from the pub.

There are more questions than answers, till the next time – to raising questions.