Comeback of the couch potato
At Miller Brewing, they were considered the savvier marketers. After all, did they not invent light beers? At Coors, marketing and advertising has often resembled a potluck affair – sometimes they got it right, sometimes they did not.
No, we have not forgotten those cringingly-tacky Coors light beer commercials which were aired some years ago, in which a pair of blue-eyed blonde bimbos (sorry, no sexism intended) dressed in cheerleader outfits to show off their curvaceous bods and porcelain-enhanced smiles, toasted Coors’ "Here’s to Football."
Nevertheless, Coors must have gotten something right: While in 2008, Miller Lite’s sales totalled 17.7 million barrels, down from 18.35 million barrels in 2007, according to estimates by the trade publication Beer Marketer’s Insights, Coors Light’s sales increased 2.6 percent, to 17.75 million barrels compared to 17.3 million barrels in 2007.
Coors Light and Miller Lite are the nation’s number three and number four brands. The top selling brands are Bud Light, at 42 million barrels, up 0.1 percent, and Budweiser, at 23.1 million barrels, down 6.1 percent, according to Beer Marketer’s Insights.
Rounding out the top 10 are Natural Light, Corona Extra, Busch Light, Busch, High Life and Heineken.
Alcoholic drinks have seen slower growth rates as consumers have cut spending. But beer may be gaining a slight edge in the downturn because of its perception as a drink that can be downed at home watching a game or kicking back with friends.
In recent years, beer has lost market share to spirits and wines in the U.S. as younger people turned to wine from beer. This trend has not been reversed. But faced with hard times and leaner wallets, consumers may be more willing to reach for a cold brew.
So far, beer companies have reported robust profits.
In November 2008, MillerCoors, the North American joint venture of SABMiller and Molson Coors, posted a 13 percent jump in its third-quarter profit and said revenue growth outlook for the rest of the year was strong.
Anheuser-Busch, which in November announced its last earnings report as an independent company, reported a 6.5 percent jump in net sales and an expansion in gross margins. Anheuser-Busch has since merged with InBev.
According to ACNielsen, dollar volumes for beer grew 2.9 percent in 2008, compared with about 3.2 percent in 2007. Dollar volume for wine rose 4.7 percent for 2008 as of mid December, compared with a 6.1 percent rise in the previous year. The ACNielsen data reflects sales at food, drug, liquor and convenience stores, but excludes restaurant sales of alcohol and sales at some big-box retailers like Wal-Mart.
