Beverages

A-B to Launch Tequila-Flavored Beer

Also announces acquisition, holiday Bud promotions

ST. LOUIS -- Innovation is going in multiple directions at Anheuser-Busch recently, from a new flavored-beer brand to a craft-beer acquisition to unique promotional initiatives.

Budweiser holiday promotion crate

New Brand: Oculto

AB InBev NV is launching a tequila-flavored beer called Oculto in the United States next year, according to a Wall Street Journal report, hoping to attract younger consumers who increasingly choose liquor and Mexican beers.

Oculto, which will make its debut next spring, will be made with blue agave—the same plant used to make tequila—blended with beer aged with wood from tequila barrels.

The new lager won’t contain tequila, but it will have an alcohol content of 6%, more than the 4% to 5% typical of American beers.

The brew is A-B's second effort to capture a piece of the Mexican-beer pie, one of the most rapidly expanding parts of the beer industry. Earlier this year, the company began limited U.S. distribution of Montejo, a Mexican lager made by a Modelo subsidiary.

This year’s shipments of Mexican beer brands such as Modelo Especial and Dos Equis to the U.S. were up 17% through September, according to Beer Marketer’s Insights. Corona is the top-selling import.

10 Barrel Acquisition

Meanwhile, Anheuser-Busch has agreed to purchase 10 Barrel Brewing Co., located in Bend, Ore. A fast-growing and innovative brewery, 10 Barrel was one of only four U.S. breweries to win three medals and tied for most medals won at this year’s Great American Beer Festival, the largest beer competition in the world.

“We are excited to stay focused on brewing cool beers, get our beers in more hands, and make the most of the operational and distribution expertise of Anheuser-Busch,” said co-founder Jeremy Cox, who will continue to lead 10 Barrel along with his partners, co-founder and brother Chris Cox, and Garrett Wales.

10 Barrel expects to sell approximately 40,000 barrels of beer in 2014. Apocalypse IPA, the brewer’s most popular beer, accounts for nearly half of the company’s total volume.

“10 Barrel, its brewers, and their high-quality beers are an exciting addition to our high-end portfolio,” said Andy Goeler, CEO, craft, Anheuser-Busch. “The brewery is a major contender in the Northwest, an area with a large number of craft breweries. We see tremendous value in the brewery’s unique offerings and differentiated style, which 10 Barrel fans know and love.”

In addition to the Bend brewery, the acquisition will include the company’s existing brewpubs in Bend and Boise, Idaho; and a Portland brewpub scheduled to open in early 2015.

Bud Crates

Finally, Budweiser--perhaps taking a cue from Coca-Cola's Share a Coke promotion--is kicking off the holiday season with "Friendsgiving" by introducing a limited-edition, handmade wooden crate with 18 bottles of Budweiser and two pilsner glasses inside, all featuring authentic classic labels from 1918, 1933 and 1976.

Only 10,000 of the wooden crates, handmade by Vintage Editions in North Carolina, will be available, hitting shelves this month.

Budweiser, meanwhile, will do a full conversion of 1.6 million cases of 12-, 18- and 24-pack bottles to feature its classic labels, marking momentous occasions in the brand’s history:

  • 1918 – The last label before Prohibition
  • 1933 – The first label following the repeal of Prohibition
  • 1976 – The Budweiser brand’s 100th anniversary

Those lucky enough to find one of the 10,000 crates are encouraged to share images of their own holiday parties on social media, using the hashtag #HolidayBuds.

Also this month, a new Budweiser television spot, titled “Invitations,” will debut starring real people, answering the question: “If you could grab a Bud with any of your friends this holiday season, who would it be…and why?”

Budweiser will then take two lucky people from the spots and make those reunions happen with friends they haven’t seen in years. The real-life hometown reunions will be filmed as a sequel to the initial commercial, for new spots airing in early December.

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