Is it really 'Miller Time'?
Lackluster beer sales give investors a hangover.
MillerCoors, a joint venture between Molson Coors Brewing Co. (TAP) and SABMiller PLC, has decided to revive the slogan, which had been retired in 2002, in an effort to revive Miller Lite's lackluster sales. That won't be cheap. As Dow Jones Newswires noted, Andy England is raising Miller Lite's media budget by 50% for TV, print and online sites such as Facebook, Pandora (P) and Yahoo's (YHOO) fantasy sports service.
According to Beer Marketer's Insights, Miller Lite's market share slumped from 8.1% in 2008 to 7.5% in 2010. Beer Business Daily ranks the Miller Lite brand fourth, behind Bud Light, Coors Light, and Budweiser -- with about a 7% market share. This is bad, especially since about 25% of MillerCoors' total volume comes from Miller Lite.
"Miller Lite is a little bit victimized by our significant success in Coors Light, but that's no excuse," MillerCoors CEO Tim Long told The Wall Street Journal. "We've got a job to do on Miller Lite."
Yeah, but is nostalgia really the answer?
People who remember the classic Miller Lite commercials don't drink beer as much as they used to. Seeing the old "It's Miller Time" slogan may unleash the floodgates of their memories, but not necessarily lead them to pry open their wallets. Younger drinkers who avoid Miller Lite now have little incentive to drink the brew that their dads and granddads enjoyed.
MilllerCoors has a tough road ahead. Beer sales have been flat for years. The reasons are many, ranging from a crackdown on drunk driving to the growth in popularity of distilled spirits. Beer drinkers these days are increasingly willing to shell out big bucks for premium craft beers. During the first half of 2011, dollar sales at small and independent craft brewers were up 15%.
Miller Lite is a brand that's past its prime. Bringing back a slogan from its glory days makes that fact plain.
Jonathan Berr enjoys a beer about once a quarter. He owns no shares of the companies listed here.
Is it a surprise beer sales are down..?
Look at all the prices going up in the grocery store...
Fuel cost drives up ALL cost of living expenses...
Millions of American families are hurting...
Buy only what we need, cut travel, eating out, movies, you name it...
All while oil companies report RECORD profits..?
In the hot sun, I don't want a heavy full body beer with a high ABV.
Just something to cool me off.
don't get me wrong, I love to drink Spaten optimator double bock or a Warsteiner dunkel.
Some beers are just meant for certain events
Smaller Gap At The Tap,
I primarliy enjoy wine these days, but when having an occassional beer I have noticed that the price gap between the formerly 'cheap' American standards like Bud, Miller, Coors etc and the trendy craft beers and micro brews has closed somewhat. There used to be nearly a four dollar difference between the top and bottom prices for a six-pack, but the cost differential seems to be closing ranks. It seems the big commercial brewers have gotten too greedy with their price-point for the mundane products they are offering.
He still wears an 80s mullet, he once broke a man's hand with his face, then broke a man's foot with his crotch. He is, the least interesting man in the world.
"I can't always afford beer, but when I can, I prefer miller swill".
People can't afford to enjoy a barley pop when gas is approaching 5$ a gallon. Great leaders we have in this country, way to go - prohibition through attrition. Before you know it people will be home brewing just to watch a baseball game in their own living room because they can't afford to leave the house! Socialism at it's finest people!
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Serious issues like drought and the deterioration of the developed world spell opportunity for this industry leader.
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