Anheuser-Busch Competitive Advantage

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Anheuser-Busch had seen a drop in sales among young adults ages 21-30. The young adults were no longer interested in drinking domestic beers such as Budweiser. More young adults were drinking cocktails and club drinks. Anheuser-Busch had to come up with a product that would cater to these younger adults. The solutions the company came up with were a 1.7 ounces bottle or a 2 ounces bottle of caffeinated malt liquor that contained 12 percent alcohol called Spykes (Bethel, 2017). Spykes was made to appeal to the 21-30-year-old adults as an alternative to energy drinks mixed with alcohol. They came in a shot forms for a quick shot or a to add to other drinks or beers. They can even be mixed together. The shots were responsibly prices at $0.75 …show more content…

The watch groups claimed Anheuser-Busch did this my making Spykes in fruity flavors, the fact that there was no age verification to purchase it, making the websites appealing to teens, and the fact that it had caffeine in it, much like the energy drinks that teenagers drinks (Bethel, 2017). In 2008, 11 different states went after Anheuser-Busch, claiming they did not properly disclose the health risks with two of their caffeine drinks. Anheuser-Busch removed the caffeine from these drinks. MillerCoors and Constellation Brands were next on their hit list. Also claiming that they illegally promoted to teenagers and did not disclosure the health risks. MillerCoors responded by removed the caffeine and the Constellations Brands chose to stop production (Bethel, 2017). After a three-year battle, the Federal Trade Communication ruled that the caffeine that was added to Spykes was unsafe. In doing this the Federal Trade Communication was able to suggest that Food and Drug Administration ban caffeinated alcohol brands, such as Spykes. The decisions ahs not been made as of today but it could happen in the near future (Bethel,

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