And this is, those of you who have been to the conference in previous years, there is a slide that I keep showing, actually first drew it in 1992. This is kind of my sort of simplified dump down to the level that you get after you have a beer understanding of what’s going on in the US beer industry and this is kind of, you could of think of these lines as 40 year moving average.
But if you go back to the US beer business in 1970, 99% of the beer sold in the United States was regular strength domestic beers from a much larger variety of producers than today that you had Pabst and Stroh and (inaudible) and Olympia and Lone Star and Old Style and Natty Boh etcetera.
But 99% of the beer was regular strength domestic beer. The import category was very small, less than 1% and there were no craft brewers. So that was little over 40 years ago. You fast forward today and that scene has changed dramatically. That 99% is down to 24%. The leading brand in the regular strength domestic beer is Budweiser, which may still be the largest brand in the world. In the U.S., they had their last year of growth for that brand, great brand run by a great company, great marketing, frogs, lizards, [wassup], all kind of cool stuff. Their last year growth despite all of that was 1987. Ronald Reagan was President.
They have had 25 consecutive years of decline and it's because of this dynamic, despite everything they’ve done, the consumer has gone away from what was 99% of the business and the consumers gone in two directions. They’ve gone in one direction to light beer and basically the consumer is pretty rational.Read the rest of this transcript for free on seekingalpha.com
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV