The first and largest market is the premium beer category. Anheuser Busch leads this segment with its Budweiser and Bud Light products. Other beer owned by Anheuser Busch in this category includes Bud Ice, and the line of Michelob beers. Bud Light has become the top selling beer in the United States through extensive marketing and advertising.

The second largest segment is sub-premium beer. Anheuser Busch covered its bases in this category fifty years ago by creating the Busch family of beer. This was followed by the Natural Light brand a few years later. Sub-premium beer usually has slightly different amount of ingredients and costs about 60%-75% of its premium counterparts.

The third and fastest growing segment of beer drinkers is the malt liquor beverage market. Anheuser Busch did not enter the malt liquor segment until 1984 when they introduced their King Cobra brand. This was followed by the Hurricane brand, w

hich was introduced into test markets in 1996. The recent boom in the malt liquor segment is due to the specialty flavored beverages. Anheuser Busch began to capitalize on this segment growth with the introduction of Tequiza in 1999. This was followed by “Doc’s” Hard Lemonade and Bacardi Silver. The specialty malt liquor segment has exploded with newcomers trying to catch up with Anheuser Busch in the last four years. Aggressive marketing campaigns are being used by all contenders in this segment.

Anheuser Busch has an extremely large and effective distribution system. Their distributions process begins with twelve breweries located throughout the United States. This helps t minimize delivery time and costs. Delivery time is also important for a quality product, being that the fresher the beer is the better the beer tastes. After the breweries, the beer goes to over six hundred wholesalers to further distribute their products. Many wholesalers distribute several different companies’ beer, but over half of Anheuser Busch’s wholesalers only distribute their brands. The high percentage of wholesalers who only distribute Anheuser Busch brands leads to a distribution channel that resembles vertical marketing systems. This system gives Anheuser Busch more control over where their beer is sold and the price of the beer.

Anheuser Busch also relies on the symbolic attributes associated with their products. The Budweiser Clydesdales marketing campaign has been one of the most successful symbolic marketing campaigns in the country. These massive and graceful horses are recognized all over the country as a symbol of Budweiser beer. Sporting events are used to establish ex

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