Why MillerCoors Will Continue to Target Bud Light for Share Growth
When InBev acquired Anheuser-Busch 10 years ago, we noted that InBev had proven to be effective at mergers and acquisitions and slashing costs. What it hadn’t done, we noted, is prove it could grow beer sales. Unlike mutual funds, when it comes to consumer brands, past performance really does matter.
Here we are 10 years later, and Bud Light and Budweiser have been losing share consistently since then. Now A-B’s chief, Michel Doukeris, told an industry conference that A-B has looked “too much” to Bud and Bud Light. A-B needs to “to shift focus on how the industry will evolve “so you know where growth is going to be,” he added. Translation: Shift money from Bed and Bud Light to Michelob Ultra and other high-end brands.
American light lagers are still huge brands that consumers crave — to the tune of 50 million barrels every year, says MillerCoors Chief Communications Officer Pete Marino. “I don’t think light lagers are the problem,” he adds. “Brands that don’t stand for something unique are a problem,” he said at the same Nov. 5 event. The challenge and opportunity then is for marketers to ensure brands are interesting, differentiated and relevant for drinkers, he said.
That’s why Miller Lite advertising directly challenges Bud Light, resulting in Miller Lite gaining share. And it’s why Coors Light has changed advertising to emphasize its position as the “World’s Most Refreshing Beer.”
MillerCoors says it has a balanced portfolio strategy, and is focused on holding market share with its economy portfolio with brands like Keystone, Hamm’s Miller High Life; and accelerating growth in the above-premium segment. (MillerCoors’ Behind the Beer News)