Harley-Davidson, Inc. (HOG), McDonald’s Corporation (MCD): 3 Companies Facing Demographic Challenges

Page 2 of 2

New beer drinkers are increasingly turning towards craft beer

The old jokes about bad American beer no longer apply. In last decade, the US has seen an explosion in the popularity of craft beer, as the number of breweries has grown to levels not seen since the 1880s.

Who’s drinking all that craft beer? New beer drinkers.

About a third of all craft beer sales come from people between the ages of 25 and 34, and the heaviest craft beer drinkers in this group don’t touch mainstream beers at all.

This is trend is obviously a threat to the big beer giants like Anheuser-Busch InBev NV (ADR) (NYSE:BUD), a company that primarily relies on just a handful of mass-produced beers.

Anheuser-Busch InBev NV (ADR) (NYSE:BUD) has fired back. The company launched Bud Light Platinum early last year, a higher quality version of its Bud Light intended to appeal to craft beer drinkers. This year, it rolled out Budweiser Black Crown — a more upscale version of Budweiser.

However, reception has been fairly poor. After an initially positive reception, sales began to slow, and Businessweek wrote “not even Justin Timberlake can save Bud Light Platinum.”

Investing in demographic trends

Companies that sell to consumers need to keep up with their preferences. Harley-Davidson, Inc. (NYSE:HOG), McDonald’s, and Anheuser-Busch are all facing demographic problems, to some extent.

Although these trends may not cripple their businesses overnight, investors interested in these companies should be aware of the challenges they face.

The article 3 Companies Facing Demographic Challenges originally appeared on Fool.com and is written by Salvatore “Sam” Mattera.

Joe Kurtz has no position in any stocks mentioned. The Motley Fool recommends McDonald’s. The Motley Fool owns shares of McDonald’s. Salvatore “Sam” is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2