• Coors Challenges Budweiser for Super Bowl Viewers

    January 17, 2013 Author: Scott
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    No Anheuser-Busch

    It seems Coors has found a loophole in Anheuser Busch’s $1 billion dollar exclusive rights as the NFL’s official beer sponsor.

    According to AdAge, MillerCoors bought up ad time in the Great Lakes and Southeast regions to tout its answer to Mike’s Hard Lemonade, Boston Beer Company‘s Twisted Tea brand and the growing hard cider market. While the MillerCoors spot doesn’t target its rivals at A-B, the mere fact that it’s airing is a big score in a year that saw Coors Light dethrone Budweiser’s “King Of Beers” as the nation’s No. 2 beer brand.

     

    Anheuser-Busch has long considered the Super Bowl strictly Budweiser territory and has poured $239 million into Super Bowl ads in the last decade, according to Kantar Media.

     

    While MillerCoors isn’t divulging what it is spending on regional Super Bowl ads, that nearly $67 million spent by Coca-Cola should give it an idea of just how hard it can be to dislodge a competitor from the big game.

     

    MillerCoors is pitching a niche product in spaces small enough to escape A-B’s notice. If its regional ads for Redd’s Apple Ale are successful, though, expect more opponents to exploit that weakness in Anheuser-Busch’s defense and direct fans’ attention to other, closer breweries.

    Source: http://money.msn.com/

  • Craft breweries represent more than 95% of the breweries in America, but make only 6% of the beer

    July 13, 2012 Author: Scott
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    A map of the states with the most breweries per capita.
    Source: Brewers Association
    Credit: Lam Thuy Vo / NPR

    In non-beer markets there are issues where the vast majority of the companies making a product are only producing a fraction of the actual product in the market place when compared to one or two major stake holders.  This issue, however, is most pronounced with beer.   It seems that while making up 95% of the market place, craft breweries only produce 6% of the beer.

    Three multinational corporations own most of the 20 gigantic, highly industrialized breweries that produce the vast majority of American beer. It’s been a great Wall Street bonanza, but the results are sobering. The largest brewer in the US, Anheuser-Busch, belongs to Brazilian multinational InBev, the largest brewer in the world. American number two, Miller, is part of SABMiller, headquartered in London, the second largest brewer in the world. Coors was acquired by Canadian brewer Molson, now the Molson Coors Brewing Company, fifth largest in the world. As if that weren’t enough deal-making, SABMiller and Molson Coors Brewing Company formed the joint venture MillerCoors. However, Pabst Brewing Company is still independent.

     

    But craft beer brewers operate in their own micro climate. In 2011, production jumped 13% to 11,468,152 barrels, for a 5.7% share of the US beer market in volume, according to the Brewers Association. With craft beers being more expensive, retail sales jumped 14.5% to a record $8.7 billion—for a 9.1% share of the $95.5 billion US beer market.

    Even with this relativity small market share, big beer is not happy.  They continue to exert their force in the market place pushing their nationally distributed craft beer brands into every corner of the market, forcing out locally brewed beers.

    Big beer knows that nationally produced and distributed beer representing the largest market share can easily be replaced by brewing your own beer or going down to your local brew pub for a beer that was brewed locally.  It is for this reason that they market their product so aggressively.

    That being said, you can make a difference.   Producing your own beer or buying local beer helps keeps money and jobs in a local economy.  So next time you’re out buying your beer remember, think globally, but act locally.

    Source: http://www.businessinsider.com/

  • Miller Time: Beer so Bad it’s Free

    June 28, 2012 Author: Scott
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    When all other marketing attempts fail, why not just give your product away for free?  That is the idea at Miller Brewing.  What’s the catch?  Legal-drinking-age consumers with the first, middle or last name Miller will receive a gift card equivalent to the cost of a case of Miller Lite.

    Consumers located in, or willing to travel to, any of nine cities hosting special “It’s Miller Time On Us” events across the country can show their legal state ID with their first, middle or last name of Miller to pick up their $25 It’s Miller Time gift card. “It’s Miller Time On Us” kicks off this week in Philadelphia and then continues in Charlotte, Las Vegas, Pittsburgh, Chicago, Cincinnati, Indianapolis, Milwaukee and Phoenix throughout June and July. Gift cards are limited to one per person and must be collected within the designated hours for the event.

    If you’re really interested in going here are the “It’s Miller Time on Us” events that are scheduled (all times local):

    • Las Vegas – June 29, 1-5 p.m., poolside at The Palms
    • Charlotte – July 11, 5-8 p.m., EpiCentre
    • Milwaukee – July 13, 3-6 p.m., Miller Visitor Center
    • Cincinnati – July 17, 5-8 p.m., Holy Grail Tavern & Grille
    • Chicago – July 20, 4-7 p.m., location TBD (watch Facebook.com/MillerLite for updates)
    • Philadelphia – July 24, 4-7 p.m., XFINITY Live! Philadelphia
    • Pittsburgh – July 24, 4-7 p.m., Station Square
    • Phoenix – July 27, 3-6 p.m., Coach & Willie’s
    • Indianapolis – July 28, 1-4 p.m., Georgia Street (Pennsylvania Street to Capitol Avenue)

    I’ll pass, but if you go, take some pictures and share them with us.  I’d love to see the marketing behind this event because we all know it’s marketing that sells this beer, not flavor.

    Source: http://www.marketwatch.com/

  • Yuengling now America’s Largest Brewer

    January 16, 2012 Author: Scott
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    I’m not a big fan of Yuengling beer, but I’ll drink it any day of the week over the swill produced by Anheuser Busch, Miller, or Coors.  Yuengling is now the largest American owned brewery in the United States.

    According to new estimates from Beer Marketer’s Insights, Yuengling surged last year with shipments up 16.9% to 2.5 million barrels, placing it eighth in overall U.S. market share, at 1.2%. That was good enough to nose by Boston, which grew by 8% to 2.4 million barrels, dropping to ninth place. Boston owns the Sam Adams brand.

    I’m very happy to see that the top largest American owned breweries are independent.  Further down the list, however, there is some room for improvement:

    Yuengling’s ranking as the top American-owned brewer comes with some caveats. Pabst Brewing Co., which ranks fifth overall, is U.S.-owned, but outsources its brewing. Sixth-place North American Breweries, which sells brands such as Genesee and Magic Hat, is also U.S.-owned, but a chunk of its volume comes from the imported Labatt brand.

    If you haven’t had Yuengling, it’s worth a try, and it’s better for the US economy, too!!!

    Source:  adage.com

  • Miller, it’s Australian for Cheap Beer

    October 25, 2011 Author: Scott
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    So we all know the SABMiller may soon take over Foster’s, but it doesn’t seem like the shareholders were too happy:

    Foster’s executives were forced to defend the takeover before around 200 shareholders at what is likely to be the brewer’s last annual meeting, saying the deal offered the certainty of cash in a volatile global environment.

     

    “You are now presenting us with a bright future for Foster’s and you are turning around and getting rid of this company. It is disgraceful of the board,” said one small shareholder, Douglas Fleming, to widespread applause.

    I’m not one for sentimental value of a big company, especially one like Foster’s, but it seems like SABMiller could care less about the beer.  At least the recognize where the problem lies:

    The company has been struggling with declining volumes as demand for traditional beers falls, and its market share has fallen to 50 percent from 55 percent. But it said there has been some improvement in consumer confidence in recent months.

     

    “We believe that once Australia moves through this period of economic uncertainty, the beer category will return to the long-term trend of moderate growth,” Pollaers said.

    Of course, now Australian’s have to work that much harder to find a good craft beer:

    After SABMiller, the London-based brewer of Peroni, Miller Lite and Grolsch, takes control of Foster’s, about 90 percent of Australian brewing will be in offshore hands. The remaining 10 percent is mainly with small craft breweries.

    Here’s to hoping our mates down under can see to it to join the growing chorus that is the craft beer movement.

    [edited to correct inconsistent information regarding current ownership]

    Source: reuters.com