Brewers Battle for Customers

With Americans consuming fewer beers, major beer makers go after customers with a vengeance.

June 02, 2010

CHICAGO - U.S. breweries are begging Americans to drink beer this summer, Advertising Age reports. The $100 million industry has seen sales for nearly a dozen of the largest brands drop during the four weeks ending May 16, according to SymphonyIRI. Only four of the top 30 brands ?" Keystone Light, Modelo Especial, Pabst Blue Ribbon and Yuengling ?" registered upticks.

Even with huge media campaigns, Miller Lite, Coors Light and Bud Light all had falling sales. The Beer Institute found industry shipments declined 4 percent for food, drug and convenience stores. "I??ve never seen so much red ink on a spreadsheet in all my years in this business," said Harry Schuhmacher, publisher of Beer Business Daily.

The recession has changed the way people drink, especially with unemployment remaining high among men between the ages of 21 and 35 ?" the key demographic of beer companies. Many times, that group opts for less expensive brews or splurges on special occasions with craft beers.

The premium light beers have been especially hit hard. For example, Anheuser-Busch??s Bud Light, the biggest U.S. brand, has fallen 5.3 percent year to date, compared to 2009, the brand??s first negative year. MillerCoors?? Coors Light and Miller Lite have declined 0.5 percent and 7.5 percent, respectively.

Both Anheuser-Busch and MillerCoors are countering those drops with massive media campaigns, ramping up efforts to entice more consumption this summer. Anheuser-Busch will soon debut its "Here We Go" Bud Light television ads, while MillerCoors will focus its marketing promotions on product innovations for Coors Light and Miller Lite.

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