A-B Rolling out Chill Knockoff?

Following “denigrate, replicate” playbook.

Is Anheuser-Busch poised to introduce a Miller Chill clone?

There have been rumblings from the field that the No. 1 brewer is getting ready to do exactly that. According to industry sources, A-B has been quietly laying the groundwork for a lime-flavored version of Bud Light.

The brand, to be sold in six packs, is priced above Bud Light, the sources said. Refreshment will be a key selling point.

In other words, the taste profile, price point and positioning all bear a striking resemblance to Miller Chill.

Rumors of the brand's appearance come six months after reports that A-B was testing a variety of concepts -- all apparently aimed at Miller Chill.

From Brew Blog's coverage of consumer surveys A-B was conducting:

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.

If this approach sounds familiar, it's because it's a tried-and-true strategy for A-B.

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

Now that Miller Chill has shown it has legs, A-B appears poised to move on to the next stage -- "replicate" -- and introduce a brand that resembles Miller Chill. The brewer already has introduced two brands, Bud/Bud Light Chelada and Land Shark Lager, that compete in a similar space.

The exact timing and scope of the introduction couldn't be determined. But Brew Blog plans to monitor the situation.

Brew Blog's previous coverage can be seen here.

Comments

[Jim Arndorfer, Brew Blogger]

Don:

Thanks for the comment (see http://www.brewblog.com/brew/2007/09/a-b-to-create-m.html): .

A few points:

1. I’m not privy to when A-B started working on Land Shark Lager. But Miller Chill was in development for more than a year before its rollout was announced in February. It hit test markets in March. Its performance was so strong that Miller decided to roll it out nationally that summer – and it became one of the fastest-selling brands of the summer.

2.Miller Chill is priced as a worthmore, not a “regular brand.”

3. Miller expected the brand would experience some seasonality – which it has. That said, volume trends have been picking up significantly in recent weeks.

Thanks,

Jim Arndorfer

Brew Blogger