Here's the scoop on: Beer!

I figured for my first post I should write about something I'm pretty sure most all college kids are interested in- beer. Here's the scoop.

Americans are changing their minds

regarding beer. And, as a result, it's possible that you could see a meaningful decrease in the amount of your favorite, classic, American brews such as Budweiser, Miller and other light beers. No, this isn't because of crooked corporations wanting to mess with your mind and ever-dwindling wallet. It's simply a matter of economics.

The numbers prove that the American consumer is changing his/her preferences regarding this bubbly refreshment. While sales for Bud, Coors, and Miller Lite are declining, companies offering "fancier" craft beers are seeing large increases in sales (Meyersohn, 2017). Overall, it seems Americans are turning away from the classics, and turning to craft beers and more sophisticated brews.

Why does this matter? Well, when other firms and producers see the success (i.e. market share and profitability) of these craft beer companies, they want in on the action. In fact, 900 new craft beer breweries have started operating in the U.S. in just one year’s time. This means more firms in the market and more of this type of beer being produced. Plus, if the demand for craft beer continues to rise, or even stays relatively constant, and firms continue to enter the market, we will see not only an increase in quantity, but also a decrease in price. Good news if you like craft beers!

On the other hand, when producers of the classic beers that Americans are losing taste for realize their sales are decreasing period over period, they aren't going to be too happy. When they see that consumers aren’t buying as much (pay attention to the “born on date” of the beers you are buying) they’re not going to produce as much. In fact, if it gets to the point where they are making negative economic profits, they'll potentially leave the market all together- maybe start up a craft beer company. Budweiser has already announced they're switching things up by releasing a limited edition amber lager for the holidays. Yep... it's happening.

In reality, I don't think Budweiser or Miller lite are going to say "see ya never" to the American beer industry. So don't worry. However, assuming these preferences stay on track, over time it is likely to see more and more craft beers appear on the market and probably at a lower price.

Overall analysis: maybe give an IPA a try. Cheers!

Meyersohn, Nathaniel. “America Is Falling out of Love with Budweiser.” CNNMoney, Cable

News Network, 13 Nov. 2017, money.cnn.com/2017/11/13/news/companies/

budweiser-sales/index.html.