Photo via Steffen Zahn
Much has been made of the growth of the craft beer and decline of big beer here in the U.S. A recent Businessweek article, "Light Beer Fights for Life as Craft Brews Invade Shelves", further highlights the obvious trend. The most striking statistic to me is that light beer is a $50 billion market, so big breweries are extremely dependent on it. Relevantly:
If the companies can’t revive the brand, “we’ve got big trouble ahead of us,” said Bump Williams, whose Stratford, Connecticut-based BWC Co. advises more than 100 beer retailers and distributors. “Light beer has become a commodity.”
I think an obvious solution is to develop more interesting beers that are doing well in the market and lessen their dependence on the light beer segment. However, the big breweries have decided to fight for market share in the same way they’ve been doing so since light beer’s inception.
Marketing.
The article then discusses taglines and packaging innovations of the past ten years. This year, Miller is switching back to “It’s Miller Time,” stating:
Miller Lite focused on its buddy theme after research revealed that sociability was high on beer drinkers’ minds. England said the campaign will go beyond Bud Light’s more generic “here we go” advertising, by focusing on close friends, not just acquaintances.
I’ve seen Superbowl ads - is this really that big of a change in their marketing? While advertising obviously works and I understand the significance of $50 billion, I can’t help but think the strategy a long term losing battle because consumer tastes are changing. Perhaps brewing more flavorful, interesting beers is either too expensive, too risky, too impossible on such an industrial level, or the market is too small to make up for the $50 billion.
Of course, you’ll probably see me drinking a Miller Lite watching a Cubs game very soon, so take my opinion for what it’s worth. And I’ll always have a soft spot for Miller Lite because of its glorious roots to Chicago and the Meister Brau brand.
Cheers my friends!
Bruce
If the companies can’t revive the brand, “we’ve got big trouble ahead of us,” said Bump Williams, whose Stratford, Connecticut-based BWC Co. advises more than 100 beer retailers and distributors. “Light beer has become a commodity.”
I think an obvious solution is to develop more interesting beers that are doing well in the market and lessen their dependence on the light beer segment. However, the big breweries have decided to fight for market share in the same way they’ve been doing so since light beer’s inception.
Marketing.
The article then discusses taglines and packaging innovations of the past ten years. This year, Miller is switching back to “It’s Miller Time,” stating:
Miller Lite focused on its buddy theme after research revealed that sociability was high on beer drinkers’ minds. England said the campaign will go beyond Bud Light’s more generic “here we go” advertising, by focusing on close friends, not just acquaintances.
I’ve seen Superbowl ads - is this really that big of a change in their marketing? While advertising obviously works and I understand the significance of $50 billion, I can’t help but think the strategy a long term losing battle because consumer tastes are changing. Perhaps brewing more flavorful, interesting beers is either too expensive, too risky, too impossible on such an industrial level, or the market is too small to make up for the $50 billion.
Of course, you’ll probably see me drinking a Miller Lite watching a Cubs game very soon, so take my opinion for what it’s worth. And I’ll always have a soft spot for Miller Lite because of its glorious roots to Chicago and the Meister Brau brand.
Cheers my friends!
Bruce
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