Sharp analsyis of Heineken's margin preservation tactics through ABV reduction. The cigarette industry paralel is spot-on, both show how legacy brands manage decline by slowly eroding product value while maintaining pricing power. I worked with a regional brewery once and they refused to go below 4.2% even under tax pressure, believing brand integrity mattered more long term. Heineken's betting consumers won't notice or care, but at 3.4% Fosters becomes indistinguishable from near-beer territory.
Sharp analsyis of Heineken's margin preservation tactics through ABV reduction. The cigarette industry paralel is spot-on, both show how legacy brands manage decline by slowly eroding product value while maintaining pricing power. I worked with a regional brewery once and they refused to go below 4.2% even under tax pressure, believing brand integrity mattered more long term. Heineken's betting consumers won't notice or care, but at 3.4% Fosters becomes indistinguishable from near-beer territory.
Maybe this is an opportunity for a second wave of authentic craft beer?!? 🤞