A-B New Product Assembly Line Keeps Churning

Near beer, "Battle Red lager," Belgian ale.

Anheuser-Busch has filed label applications in recent weeks for a variety of products that include a nonalcohol beer and "Battle Red lager."

A-B earlier this month filed a certificate of label approval application with the Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau for a product called “Maltbeer Near Beer.” The label has Michelob iconography.

Late last month A-B filed for a beer called Battle Red lager. It has 5 percent alcohol by volume.

Brew Blog last week reported that A-B had filed label applications for a Belgian style white ale called Shock Top. This week certificates were issued for bottle labels, which tell more about the beer.

Apparently Shock Top is a renamed version of A-B's seasonal Spring Heat Spiced Wheat. The label shows an orange slice that looks like the profile of a person’s face -- complete with sunglasses and what appears to be a Mohawk haircut made out of heads of wheat plants.

The neck ringer says it is brewed with orange, lemon and lime peels and coriander. It's unclear whether Shock Top will be a year-round incarnation of Spring Heat.

The Near Beer application can be seen here.

The Battle Red lager application can be seen here.

The Shock Top application can be seen here.

Miller Chill Third-Fastest Growing Beer in C-Stores This Summer

Miller High Life is No. 4.

Miller Chill was the third-fastest growing beer in convenience stores this summer, according to beer sales statistics from Nielsen.

For the 16 weeks ended September 8, Miller Chill racked up 0.3 volume share, according to Nielsen. It scored 0.4 dollar share.

Miller High Life, meanwhile, was the fourth-fastest growing brand, ranked by incremental case volume. During the 16 week period its case volume picked up 9 percent over the year-earlier period.

Five other Miller brands made the top 25 list in C-stores this summer: Steel Reserve (No. 8), Olde English (No. 11), Sparks Plus (No. 14), Miller Lite (No. 21) and Icehouse (No. 24).

Coors Light was the fastest growing beer in C-stores, with its volume up 5.3 percent. Other Coors brands on the top 25 were Keystone Light (No. 5) and Blue Moon (No. 19).

Anheuser-Busch had 10 brands on the top 25 list: Natural Ice (No. 6), Bud Light (No. 9), Bud Light & Clamato (No. 10), Hurricane High Gravity (No. 13), Bud Ice (No. 15), Michelob Ultra (No. 16), Budweiser & Clamato (No. 17), Tilt (No. 18), Bacardi Silver (No. 23) and Landshark (No. 25).

Three Mexican imports cracked the top 25: Modelo Especial (No. 7), Tecate (No. 12) and Dos Equis (No. 22).

Pabst Blue Ribbon came in at No. 20.

Smirnoff Ice came in at No. 2. However, that was driven by the use of previously used UPCs and the renaming of some products to fall into the Smirnoff Ice umbrella.

Management Changes At A-B

Peacock now top marketer.

Anheuser-Busch has made changes in upper management as two top executives switch jobs, according to a report in Beer Business Daily.

Citing an internal memo from August Busch IV, BBD reports that Dave Peacock is being named vice president of marketing, effective October 1.

From the report:

"Overseeing the "restructuring of the Marketing function" will be Dave Peacock as Vice President, Marketing, who will continue to report to me. "In this role, Dave will focus on the revitalization of our core brands while driving innovation across our increasingly diverse portfolio, says August."

Peacock, previously vice president of business operations, reports directly to August Busch IV. Peacock’s reports, according to BBD, include Tony Ponturo, A-B’s top media executive; Francine Katz, vice president of communications and consumers affairs; Marlene Coulis, vice president of consumer strategy and innovation (a new role); and Bob Lachky, executive vice president of global industry and creative development.

Mike Owens, previously vice president of marketing, has been named vice president of business operations, according to BBD. He also reports to Busch.

Meanwhile, Evan Athanas has been tapped as vice president of sales and wholesaler operations. He reports to Busch.

The Beer Business Daily home site is here.

Bud.TV Not Fading Away

A-B sticking with online channel despite lackluster traffic.

Anheuser-Busch is sticking with its online channel Bud.TV for at least another year, A-B’s top media executive said Monday.

There’s been a great deal of speculation about the future of Bud.TV given it’s drawing fewer visits than A-B had hoped. But Tony Ponturo, vice president of global media and sports/entertainment marketing, said it’s viewing 2008 as a “sort of soft new launch,” according to a story in the Hollywood Reporter.

From the story:

"We wanted to get through the step of, 'OK, should we continue into '08 as we build our marketing plans?' and that was the decision," he said. "I think it (Bud.TV) is something that could have an ending someday, but I think if we keep learning from it and if we keep seeing assets from it ... then it makes sense to continue the site."

Ponturo said A-B is in talks with Hollywood producers for new content, according to the story. A-B also will subject programs to more consumer testing.

From the story:

"We have to keep evolving it," Ponturo said. "We need to work better on getting traffic and relatable content. We're also trying to find ways to create a dialogue with the consumer so there's a chance for chat and text. We need to build that platform out a little bit more."

The Hollywood Reporter story can be seen here.

Coors Gets Nascar Sponsorship

Replaces A-B.

Coors Brewing Company's Coors Light is the official beer sponsor of Nascar effective starting with the 2008 season.

The deal gives Coors Light exclusive rights to Nascar logos in advertising, packaging and promotion as well a the right to name the pole award. It’s a five-year deal.

Anheuser-Busch's Budweiser has been the Nascar beer sponsor since 1999 and it made an offer to extend its relationship, according to a report in Bloomberg.

An industry expert quoted by Bloomberg speculated that Coors spent as much as $25 million.

Stifel Nicolaus analyst Mark Swartzberg said: "Return potential may be unclear, but we think it is difficult not to view NASCAR sponsorship as an exceptionally powerful asset."

The Coors release can be seen here.

The Bloomberg story can be seen here.

Miller’s “Stoke, Protect, Exploit” On Target

Bumping up medium term volume guidance.

Miller Brewing Company’s “stoke, protect, exploit” strategy is working as the brewer’s brand segments are a performing at, or ahead of, target, Miller President and CEO Tom Long said Monday at a meeting of analysts, investors and journalists.

“We are moving in the right direction with a sense of urgency and conviction,” he said, presenting in New York at SABMiller plc’s investor day. “And our confidence is growing.”

Miller’s flagship Miller Lite grew at a 1.7 percent rate for the first five months of the fiscal year through August 31, in line with its target of low-to-mid single digits. Long said the brand’s volume is expected to grow by 3 percent for the second quarter.

He credited the brand’s improved performance to a “hard right turn” to marketing that focuses on brand attributes such as taste, calories and carbs.

The “protect” portfolio declined by 2 percent during the period, dragged down by Miller Genuine Draft and Milwaukee’s Best Light. Other brands in the portfolio -- including Miller High Life, Icehouse and Mickey’s -- are actually growing.

Long credited Miller High Life’s 1.2 percent year-to-date increase to the brand’s marketing, which positions it as an unpretentious, common-sense beer. “The brand is sustainable,” he said.

Meanwhile, the “exploit” portfolio grew at a 52 percent clip, in line with a growth target of the high teens. Long called out the performance of Miller Chill, which is ahead of volume expectations, and said Miller will be increasing ad spending to drive awareness.

He also highlighted the expansion and double-digit growth of Peroni Nastro Azzurro and Leinenkugel’s.

Beyond reporting volume growth, Miller over the past six months has led the big three brewers on net revenue per barrel increases, Long said.

In light of this performance, Long said Miller’s margins should improve by more than a half point this fiscal year, compared to a target range of a quarter point to half point.

He also said Miller was increasing guidance for its medium-term volume compound annual growth rate. The range is now flat to 2 percent growth. Previously it was flat to 1 percent gowth.

An audiocast and presentations from investor day can be seen at SABMiller's web site here.

Miller Sales to Retailers Up

Miller’s net revenue per barrel up 4 percent.

Miller Brewing Company’s domestic sales to retailers increased by 1.3 percent for the five months ended August 31, the brewer’s parent company reported Monday.

The increase was driven in part by a 1.7 percent increase in Miller Lite STRs during the period, SABMiller said.

Net revenue per barrel was up 4 percent during the period, SABMiller reported.

The increase in per barrel revenue was driven by factors including the growth of Miller Lite; double-digit increases by Peroni Nastro Azzurro and Leinenkugel’s; and the success of newly launched Miller Chill. Miller Chill has sold nearly 300,000 barrels and is on track to exceed its target of 400,000 barrels for the year.

Due to volume performance, improving sales mix and cost efficiencies, Miller expects to see margin improvements in excess of 0.5 points in the current fiscal year.

The SABMiller release can be seen here.

Miller Chill Fastest Growing Beer of the Summer

Miller Lite also cracks top 10 list.

Miller Chill was the fastest-growing beer of the summer in supermarkets, according to beer sales statistics from Nielsen.

Miller Chill, which was launched in test markets in February and launched nationally over the course of the summer, moved 896,968 cases in supermarkets during the 13 weeks ended September 8, according to Nielsen.

That amount exceeds the incremental gain of No. 2 Smirnoff Ice by more than 100,000 cases (though there are caveats to Smirnoff Ice’s ranking; see below). Miller Chill’s volume exceeded Bud Light’s incremental gain by more than 370,000 cases, according to Nielsen.

Miller Lite was the 10th fastest growing brand of the summer, in order of incremental volume increase. Its case volume was up 0.9 percent.

Anheuser-Busch had three brands in the top 10: Bud Light at No. 3, Michelob Ultra at No. 4 and Bacardi Silver at No. 9.

Coors Brewing Company also had three brands in the top 10: Coors Light at No. 5, Keystone Light at No. 6, and Blue Moon Belgian White Ale at No. 8.

Femsa’s Tecate was the only import to crack the top 10 list. It came in seventh.

The second-fastest growing brand of the summer was Smirnoff Ice, but that was driven in part by re-issued UPCs and the renaming of some existing products.

Heineken USA Shakeup

CEO Andy Thomas resigns.

Andy Thomas, the CEO of Heineken USA who oversaw the recent launch of Heineken Premium Light, is leaving the company effective October 5, the brewer disclosed today.

He will be replaced by Don Blaustein, Heineken USA’s senior vice president of sales.

Massimo von Wunster, regional president of Heineken Americas said in a release:

"Andy's decision was clearly not easy, but we both agree it is the right one. Over 12 years with Heineken, Andy has made a valuable contribution in each of his roles. In his most recent two years with Heineken USA, his leadership of the Heineken Premium Light launch and the negotiation of the ten-year agreement with FEMSA are important milestones for the business. He leaves Heineken USA performing strongly and with a great platform for future growth."

Thomas commented in the release:

"This decision has been difficult for me. However, it has gradually become apparent that the company and I do not share exactly the same perspectives on the business. We have therefore mutually and amicably concluded that this is the best way forward. I know that Heineken USA will continue to enjoy success and I look forward to starting a new stage in my career."

The release quoted Blaustein:

"It will be a genuine privilege to lead the Heineken USA organisation. We have a great team, strong plans and the right strategy. When you combine this with the strength of our brand portfolio and our positive partnership with FEMSA, I believe we are well on the way to unlocking the true potential of our business. I look forward to continuing to build on the Heineken USA success story."

From a March 2005 Modern Brewery Age story about Blaustein joining Heineken USA:

"We are extremely pleased and proud to welcome Don to Heineken USA," said Frans van der Minne, Heineken USA President. "His extensive industry experience and extraordinary track record, both in sales and management, convinced us that he is the one to lead our sales team as we continue to grow Heineken USA."Mr Blaustein said of his new job, "I have always admired the Heineken portfolio and Heineken's ability to protect the integrity of its flagship brand, while consistently growing its business." At Molson, Mr. Blaustein expanded the export presence of Molson's portfolio, including launches in the U.K., Australia and New Zealand. Mr. Blaustein spent 16 years at Diageo/Guinness. He held a number of posts including: managing director of Guinness Australasia; president, Guinness Caribbean & Latin America; president, Guinness Canada; and v.p., sales & marketing. He started his career in the beverage industry at Kraft. He is married to noted art historian Roni Feinstein, and has two children."

The release can be seen here.

Beer Pricing Strong for the Summer

Volume flattish in supermarkets.

Beer pricing showed strength in supermarkets during the summer selling season, according to beer sales statistics from Nielsen.

The national average weighted price for a case of beer in supermarkets increased by 3.6 percent for the 13 weeks ended September 8, according to figures from Nielsen.

Some of that increase was driven by crafts and imports, which boosted prices significantly -- 4.3 percent and 4.6 percent, respectively. Crafts gained 0.7 points of case share during the period while imports were down 0.2 points (due to a -0.3 point decline by Corona Extra).

The three leading domestic light beers saw higher pricing over the summer. The average weighted price for Bud Light was up 1.8 percent. Miller Lite was up 2.4 percent. Coors Light was up 2.5 percent.

Beer volume, meanwhile, grew by 0.1 percent during the period, according to Nielsen. That trend has accelerated recently. Volume was up 2.1 percent during the four weeks ended September 8 and up 1.9 percent for the two-week Labor Day period.

A-B Creating a Blue Moon Fighter?

Files label application for “Shock Top.”

Anheuser-Busch appears to be preparing a beer that it could potentially pit against Coors Brewing Company’s Blue Moon Belgian White Ale.

A-B earlier this month filed a label application with the federal government for Shock Top Belgian White. It’s described on the label as a “Belgian style wheat ale brewed with spices.”

In other words, it sounds similar to Coors’ Blue Moon.

It’s understandable that A-B would want to tap into the success of Blue Moon. The brand, which has gained popularity through word-of-mouth and discovery, has been one of the hottest brands in the beer business.

Rolling out a Belgian white ale would fit in with A-B’s strategy of providing its restricted distributor network with brands in popular niches.

Interestingly, via its arrangement with InBev, A-B also markets the Belgian brew Hoegaarden, billed as the “original white ale.”

(The Jacob Leinenkugel Brewing Company markets Leinie’s Sunset Wheat, which, while not positioned as a Belgian-style ale, is a spiced wheat ale. Miller also markets Henry Weinhard's Summer Wheat, which is being rebranded as Belgian Wheat as it moves from a summer seasonal to a year-round brand, due to popularity of the wheat-beer category.)

The application with the Treasury Department's Alcohol and Tobacco Trade Bureau can be seen here.

Miller, Coors Boost Dollar Share During Labor Day

A-B share slides on weak Bud Light showing.

Miller Brewing Company and Coors Brewing Company both managed to gain dollar share in supermarkets during a two-week Labor Day holiday period that showed solid volume and pricing, according to beer sales statistics from Nielsen.

Anheuser-Busch lost more than a point of dollar share as Bud Light slipped, according to Nielsen.

Overall, the category performed well during the two-week period ended September 8. Volume during the period was up 1.9 percent and weighted average prices were up 4.9 percent, according to Nielsen.

Miller’s dollar share increased by 0.3 points during the period, according to Nielsen. That was driven by the rollout of Miller Chill -- which achieved 1 percent dollar share -- and a 0.2 point gain by the Leinenkugel’s franchise.

While Miller’s dollar share increased, case share dipped by 0.1 points. Miller Lite’s case share slipped by 0.2 points but its average weighted case pricing -- up 4 percent -- was the strongest of the leading domestic lights.

Coors, meanwhile, increased dollar share by 0.5 points during the period. Coors Light and Blue Moon each increased share by 0.2 points. Keystone Light increased share by 0.1 points.

Coors’ case share increased by 0.7 points. That was driven primarily by Coors Light, up 0.3 points.

A-B’s dollar share slid by 1.4 points, according to Nielsen. The Bud franchise slid by 1.4 points, with Budweiser down 0.8 points, Bud Light down 0.4 points, and Bud Select down 0.3 points.

The brewer’s case share slid by a full point, according to Nielsen.

Craft beer continued its run, with case share up 0.8 points and dollar share up by 1.1 points.

Imports showed renewed strength, with case share up 0.5 points and dollar share up 0.6 points.

Fortune Makes Case for Absolut

CEO goes to Sweden to meet “broad constituency” of “interested parties.”

Fortune Brands, which markets Jim Beam bourbon and other spirits brands, last week took its case for acquiring Absolut vodka to Sweden.

CEO Norm Wesley and others met with “a ‘broad constituency’ of interested parties” to discuss the sale of distiller Vin & Sprit, according to news reports. From a Reuters report last week:

At a news conference on Wednesday where he extolled the virtues of a merger, Fortune Brands Chief Executive Norman Wesley declined to say if executives had met officials handling the V&S sale, which analysts say could fetch about $6 billion.

"It's owned by the state and parliament controls the process and we have not come here to try to influence them to do anything but to try to anticipate what might happen," Wesley told reporters.

Wesley said Fortune would expand production in Sweden, the article says.

He also characterized Fortune as the best buyer, given it -- unlike other interested parties including Diageo and Bacardi -- doesn’t market a vodka.

Moreover, Fortune has a distribution deal to handle Absolut.

From the story:

Wesley said a Fortune Brands-V&S [VSG.UL] merger would be a "natural extension" of their current relationship, which includes distribution deals for Absolut.

These agreements, which carry hefty fees for premature termination, could serve as an effective poison pill
by deterring other suitors, industry analysts have said.

The Reuters story can be seen here.

A-B to Buy Budvar?

A-B is talking to Czech government about deal, report says.

Could the battle of the Buds be coming to an end?

Press reports say that Anheuser-Busch is talking to the Czech government about acquiring state-owned Budejovicky Budvar.

Budvar and A-B both have trademark rights to the name “Budweiser” and have fought legal battles around the world over who can use the name in different markets.

In the U.S., Budvar’s brew is marketed as Czechvar. Earlier this year, the two companies inked a deal so A-B would distribute it.

Thomson Financial, citing the newspaper Euro am Sonntag, related word of the talks. From the Thomson item:

"Anheuser-Busch has a strong interest in Budvar, its master brewer Josef Tolar said according to the article."

The Financial Times last week suggested that A-B would be the most likely buyer, as it was a way A-B could finally end its longrunning legal battles with Budvar.

From the FT:

"Trademark issues surrounding the Budweiser name, the first banker said, constitute grounds for A-B to pay a premium for the Èeské Budìjovice-based company. A-B, he said, would resolve the issue and save the company some USD 25m in legal costs per year: “more than the net income of [Budejovicky Budvar].”

The Thomson brief can be seen here.

The FT story can be seen here.

Beer Business Daily has more.

A-B to Create Miller Chill Knockoff?

Appears to be dusting off “denigrate, replicate” playbook.

Anheuser-Busch appears set on creating a brand to fight Miller Chill, according to Beer Business Daily.

BBD reports that A-B appears to be conducting Internet market research surveys to gauge consumer interest in brands with Latin influences. These bear more than passing resemblances to Miller Chill.

One of concepts is Bud Light with lime, which BBD says is described as having “a hint of citrus for your perfect summer refreshment.” BBD notes that “it is depicted in a clear bottle with a yellow citrusy label.

The survey also sought responses to Rolling Rock with lime. It’s described as having a “hint of natural lime that gives a tart refreshing balance to Rolling Rock’s signature sweet finish."

Other concepts include Bud and Bud Light Chelada, characterized as a “chelada style beer … Bud Light with a hint of natural lime and salt for more flavorful refreshment.” BBD says this “would be even closer to Miller Chill’s profile.”

The report also notes that A-B also is gauging reaction to an extension of its Bud Clamato, set to go national next year, that has a hint of chili pepper.

If A-B’s moves seem familiar, it’s because it appears to be acting out of an old playbook. As described in Philip Van Munching’s “Beer Blast,” a common A-B response to new products was to “denigrate” them and then “replicate” them. That was how it responded to light beer, for instance. And Bud Select, with it carb profile, was somewhat of an imitation of Miller Lite.

Recall that earlier this summer, A-B issued a deck to retailers, citing proprietary numbers, claiming that Miller Chill was a bad deal for retailers. Miller countered.

Having failed so far to stifle the growth of Miller Chill, A-B now seems intent on creating a brand that resembles it.

While it’s too early to say that Miller Chill is a success, it’s clearly gotten A-B’s attention.

The Beer Business Daily home page is here.

Tequila Tussle

Patron founder, Bacardi battle for control of company.

This week’s issue of BusinessWeek has an interesting story about how Bacardi Ltd., which wants to broaden its spirits portfolio, is engaged in a legal fight for control of Patron Spirits Co., the distiller of the red-hot Patron tequila brand.

From the story:

“Last year, sales of liquor priced under $12 a bottle inched up just 0.3%, according to the Distilled Spirits Council trade group. Sales of brands priced $40 and up jumped 23%. Bacardi wants to add a 50% stake in Patrón to its liquor cabinet, especially if it can enforce a three-year-old contract to buy it at what now seems like a bargain price.”

Acquiring Patron would broaden the spirits portfolio of Bacardi, which since 2004 has acquired the Grey Goose and 42 Below vodkas and has made plain its desire to add additional brands. It has said it wants to deepen its presence in “brown” spirits and has expressed interest in Absolut vodka.

Its gambit for Patron, as the BusinessWeek story makes clear, is complicated.

Patron was founded nearly 20 years ago by entrepreneur John Paul DeJoria and architect Michael Crowley. When Crowley died in 2003, he left his estate to a trust that seeks to educate poor children around the world, the story said.

Bacardi, which had recently purchased Grey Goose for $2 billion, in September 2004 offered the trustees $175 million for their stake, according to the story. They agreed.

But DeJoria, who had been seeking the trustees’ half-interest, subsequently offered the trustees $755 million – an offer they accepted.

Bacardi has obtained an injunction, the story says.

The BusinessWeek story is here.

Is Coors Preparing an Import?

Files label application for new brew Maclachlan’s.

Is Coors Brewing Company preparing an import as part of its announced push into higher-end brands?

Coors European Properties GmbH, a related company, earlier this summer filed a trademark application with the U.S. Patent and Trademark Office for a beer called Maclachlan’s.

That brew was launched this past May in Scotland by Coors’ sibling Carling. It’s a dark beer that goes head to head with the likes of John Smith’s.

The trademark application was submitted under a filing basis that means “the applicant declares it has a bona fide intention to use or use through the applicant’s related company or licensee the mark in commerce or in connection with the identified goods and/or services.”

Just because a company files a trademark application doesn’t mean it will launch a new product. But an import such as Maclachlan’s would fit in with Coors’ recently announced high-end beer incubation group. The goal of that group is to introduce new brews through a slow build -- similar to the approach used to grow Blue Moon.

Apart from the Molson brands, Coors currently doesn’t market a true import in the U.S. Its Killian’s Irish Red is brewed in the U.S.

Coverage from the newspaper the Scotsman about Maclachlan’s can be seen here.

The trademark application can be seen here.

Previous Brew Blog coverage about Coors’ high end incubation unit can be seen here.

Seasonal Crafts are Hot

Gaining volume, share at supersmarkets.

It’s the time of the seasonal crafts.

Seasonals, limited release brands with flavor profiles and names tied to a particular time of year, have been the fastest growing slice of the craft beer segment in supermarkets this summer, according to beer sales statistics from Nielsen.

For the 12 weeks ended August 25, seasonal crafts saw volume jump 58.5 percent, or by 278,871 cases. That’s almost twice as big as the incremental volume gain by any other craft segment.

Seasonal crafts have increased share as well, picking up 3.2 points of share in the craft segment.

What’s driving this?

Novelty, for one thing. Today’s consumer increasingly likes to experiment with new brands. Seasonals, with their limited availability and often distinctive flavors, fit perfectly with this consumer trend.

Suppliers also increasingly are paying attention to seasonals. Coors Brewing Company, for instance, has introduced seasonal varieties of its popular Blue Moon Belgian White Ale.

Retailers clearly see an opportunity: During the 12-week period, the average number of craft items stocked per store increased by 0.9 to 2.7.

The Jacob Leinenkugel Brewing Company managed to capitalize on this trend with it’s Leinenkugel’s Summer Shandy. The brand's sales tripled estimates and, despite limited distribution, carved out a 0.1 share within the national beer market.

Beer Innovation: The Rifle Versus the Shotgun

Miller Chill three times bigger than 10 new A-B brands.

All the major brewers are innovating. They’re just doing it in different ways.

Anheuser-Busch is leveraging its scale and resources by rolling out dozens of new products in a variety of niches. Some have called this a “shotgun” approach.

Miller Brewing Company, meanwhile, is taking a more focused approach in bringing to market high-potential brands. Miller Chill is an example of this so-called “rifle” approach.

Which is working? So far the rifle would have to get the nod.

For the four weeks ended August 11, Miller Chill had 0.9 case share in supermarkets. That’s more than three times the combined 0.268 share held by 10 new A-B brands. (The A-B brands include Michelob Ultra flavors; Landshark lager; the chelada (both Bud and Bud Light versions); A-B seasonal ale; Redbridge; Michelob wheat ale; and Chinese import Harbin.) Not all of the A-B brands have national distribution.

Also, according to Nielsen, Miller Chill has brought $9.5 million more beer dollars to the category than the A-B brands.

(Interestingly, Miller Chill’s dollar share for the four weeks ended August 25 exceeded that of Bud Select, 1.2 percent versus 1.0 percent, according to Nielsen.)

Beer Marketer’s Insights touched on new product performance in the August 27 orange sheet edition.

"(A-B) has 9 of top 15 new brands in supers, according to IRI, led by Landshark Lager. But collectively they’re smaller than Miller Chill and just 0.26 of AB volume yr-to-date in supers. Bud Chelada and maybe Landshark Lager going national in Jan 08."

It will be worth watching how these two strategies compare as time passes, particularly as A-B expands distribution of its chelada product and Landshark lager.

A-B Wants to Regain “Global Beer Leadership”

“Strategic studies underway,” CEO says.

The CEO of Anheuser-Busch on Thursday said the brewer wants to regain its global leadership position.

“We do have aspirations to regain our global beer leadership position,” August Busch IV said during the question-and-answer period of a presentation at the Lehman Brothers Consumer Conference. “We need to look to diversify our global footprint in the years ahead.”

He added that “there are numerous strategic studies underway.”

A-B is the dominant industry leader in the U.S. beer business with nearly 50 share and until recent years was the biggest player in the global beer business.

But its international presence lags those of competitors InBev and SABMiller plc (the parent of Miller Brewing Company).

Indeed, A-B’s relatively small international presence is one factor driving speculation that it might someday combine with InBev.

During the conference, A-B said sales trends in the second half of the year were stronger than in the first half as core brands grew. It said it expects earnings per share growth for the year to exceed its long-term objective of seven percent to 10 percent.

From a MarketWatch story:

"Indeed, Anheuser-Busch noted that U.S. beer sales-to-retailers were below expectations in the first half of the year, although volume trends have shown some improvement in the second half. At the same time, pricing has been relatively favorable as a dearth of deep discounting -- and some new higher-end brands -- helped it push revenue per barrel up 2.7% in the first half. And it is planning to raise prices on most of its volume by early next year."

Morgan Stanley analyst Bill Pecoriello wrote:

"A-B released that quarter to date STR (sales to retailers) were up 2.4% reported and +0.8% organic vs. our full 3Q forecast for 2.8% reported volume growth and roughly 1.5% organic growth. A-B also indicated that net revenue / barrel was anticipated to accelerate in 2H, which is consistent with our forecasts (1H trend of 2.7% vs. 2H MS forecast of 4% which is bolstered by acquisition mix)."

The MarketWatch story can be seen here.

The A-B release can be seen here.

What Next at Coors?

CEO van Paaschen’s resignation raises questions.

Frits van Paasschen successfully got Coors Brewing Company back on track after several year of declining sales and marketing drift.

Now that he’s left the company to take the top post at Starwood Hotels, some obvious questions pop up.

1. Will Coors replace him – and how long will that take?

2. Will Coors lead to any change in Coors’ overall strategy of focusing on three brands?

3. Will Coors change its brand strategies?

Beer Marketer’s Insights Express on Tuesday, in exploring “what’s next,” raised this point:

"Leo retakes reins as Coors prexy on interim basis, while also retaining Molson Coors ceo role. Tho Coors has momentum right now and Leo already ran Coors for many yrs, the more time he devotes to running Coors now, the less he has for Molson Coors and vice versa. Filling this position has to be key priority as does succession planning."

Beer Business Daily on Wednesday got distributor feedback to van Paasschen’s departure. BBD said: “Most are sorry to see Frits go, but are confident in Leo’s proven abilities.”

Here was the reaction of one Coors distributor, as told to BBD:

“He will be missed but hopefully they will find somebody to fill the role that Frits had done such a good job at!”

As with other questions, time will tell.

The Beer Marketer's Insights home page is here.

The Beer Business Daily home page is here.

Coors Loses Change Agent

van Paasschen helped get Coors back on track.

Frits van Paasschen heated up Coors Brewing Company’s performance by focusing on cold.

Van Paasschen, who resigned as CEO of Coors last week to take the top job at Starwood Hotels, faced a tough job when he joined the country’s third-largest brewer in March 2005.

Coors Light, the brewer’s biggest brand, had been posting sluggish growth or declining since 2001. The brewer’s low-carb beer Aspen Edge fizzled. Wholesalers were unhappy about the performance of Coors Light and inconsistent marketing.

Coors “has their work cut out for them” one beverage industry consultant told Advertising Age when it was first reported in May 2004 that Coors was searching for someone to lead its U.S. business.

Under Van Paasschen Coors brought a disciplined focus to the company’s sales and marketing strategy. It focused on three core brands and created specific positioning for each of them.

“Cold refreshment,” expressed through advertising and packaging innovation, became the theme for Coors Light (Coors had started down this path in September 2004, before Van Paasschen’s arrival). The brewer focused on “smooth” messaging for Keystone Light. And it developed its craft-style brand, Blue Moon Belgian White Ale.

After suffering declines in 2003 and 2004, Coors Light posted sales increases in 2005 and 2006.

Says analyst Kaumil Gajrawala, an analyst for UBS:

We view Frits van Paasschen’s departure as an incremental negative for TAP, but are maintaining our Buy rating. Van Paasschen’s arrival at Coors shortly after the merger marked the beginning of a multi-year turnaround, resulting in nine straight quarters of growth and share gains. We believe the business can sustain its momentum, predicated on its salesforce/GM structure and consistent marketing message.