New brews from Bud, Miller hike the alcohol
They're trying to regain ground lost to stronger craft beers and shed the 'watery' reputation of their light beers.
According to Advertising Age, MillerCoors, which is a joint venture between SABMiller and Molson Coors (TAP), plans to introduce Miller Fortune next year, which has 6.9% alcohol by volume (ABV). A-B InBev recently began selling Bud Light Platinum and Budweiser Black Crown, which each have about 6% ABV. Most light beers have 4.2% ABV.
The premium-price potent brews helped boost sales at AB-InBev in the most recent quarter even though volumes fell. The brewers are betting that increasing ABV will help blunt the impact of the surging popularity of craft beers and other types of alcoholic drinks that have flattened sales of light beer in recent years.
As I recently noted on moneyNOW, market research by Consumer Edge cited by CNBC found out that 40% of drinkers in the 21-27 age group have grown "tired of the taste" of premium light beers, and 37% described them as "watery."
Miller Fortune will broadly appeal to men born in the 1980s-2000s, "but it's got a sweet spot with Hispanics and African-Americans," MillerCoors VP-innovation David Kroll told Ad Age. That concerns activist groups such as Alcohol Justice, which are worried that brewers are targeting more potent beverages to minorities.
Booze's harm to the U.S., such as crime and disease, is about $94 billion annually, according to the activists, which works out to about 80 cents per drink. David Jernigan, a professor at the Johns Hopkins Bloomberg School of Public Health, told Ad Age that brewers used code words such as "edge" to get around legal prohibitions against touting the alcoholic strength of their products.
Shares of A-B InBev now trade around $97.50, having surged more than 23% over the past year. Molson Coors is just over $50, rising by 17.5% so far in 2013.
Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr.
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"The brewers are betting that increasing ABV will help blunt the impact of the surging popularity of craft beers and other types of alcoholic drinks that have flattened sales of light beer in recent years."
Why don't they try making craft beer themselves. How about increasing the taste instead of the alcohol.
They can crank up the ABV all they want, if it still tastes like pss water, it isn't going to sell.
Good beer isn't good because of a high ab\v, but because it is made with thought and creativity.
The old business model of macro-brewing no longer works.
"To beer. The cause of, and solution to, all the worlds problems"
Take a hint BudCoorsMillerMolson Brewing Co.
USE MALTED BARLEY, HOPS, YEAST, and WATER toi make a better tasting beer!
Google it! live it, love it!
Bud and Miller are essentially wasting precious natural resources
and should stop brewing. Nobody wants corporation beers.
Beer should never be m****duced boys. That's why they're seeing a tremendous drop in sales year to year. Microbrews got it right and make a better product. Why in the world anybody would want to drink m****duced swill is beyond me? And I love the die-hard, dedicated morons who just won't give up Bud and Miller. Bud isn't even owned by an American company anymore. I have to laugh when I see people waste their money on that garbage.
I grew up drinking Fullers London Pride which is fairly low Alcohol.
Due to the fact people in the UK like a "Drinking" beer not high octane. Now I drink Stone's IPA or
WHO CARES I'M STILL BOYCOTTING THEM SINCE THEY CONTROL TOO MUCH OF THE
MARKET AND MAKING THEIR NASTY HORSE PISS BEER STRONGER WON'T HELP! I'M
SUPPORTING SAMUEL ADAMS AND MICRO BREWERIES AND IMPORTS! F BUD AND MILLER.
I GUESS THOSE NEW BOTTLES DIDN'T HELP MILLER LITE'S TASTE AND SALES AND BUD
WITH THEIR BUD LIGHT AND BUD LIGHT LIME TO GET THE LATINO AND COLLEGE DRINKERS!
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