Bud bets on stronger beers
Anheuser-Busch InBev (BUD -1.62%), the world's largest brewer, is making a big bet on higher-alcohol beers.
Early next year, the beer maker plans to introduce Budweiser Black Crown, which Advertising Age describes as a "golden amber lager" that is "distinctively smooth and beechwood finished."
Black Crown will receive significant marketing attention, including a possible Super Bowl ad, the trade publication says. A spokesperson for the corporate parent of Bud Light and Stella Artois couldn't be reached for comment.
Shares of Anheuser-Busch, which is based in Belgium, have soared more than 36% this year, as the brewer benefited from strong sales of Michelob Ultra and Stella Artois, as well as new products like Bud Light Lime-a-Rita. One area of disappointment is the flagship Budweiser brand, which the company said "did not meet our expectations." Lackluster U.S. sales resulted in Anheuser-Busch InBev recently reporting disappointing quarterly earnings. That's why Wall Street will be closely watching how the new brand is received.
Black Crown will have 6% alcohol by volume (ABV), matching the content of in Bud Light Platinum, a brand introduced in January that is selling well. It will surpass the 5% ABV in Budweiser and the 4.2% of regular Bud Light.
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