Wednesday, February 27, 2008

You have questions, we have a brand positioning statement that positively correlates with your market segment's preferred product framing

I was just reading Stan Hieronymus's take on the Miller Lite Brewer's Collection. I should take pains to point out, as Stan does, that Miller does not expect me to look at or think twice about their beers, much less drink them.

However, that doesn't stop me from shaking my head with despair at his email interview with Miller:

First, it’s important to note that these are not intended to be craft beers and are not targeted at craft drinkers. These are craft-style light beers. Additionally, “all malt” is one, but not the only, criteria that defines craft beer. The Brewers Association describes craft as beers brewed with a traditional process using malted and specialty grains, hops, water and yeast to deliver the aroma, taste and appearance characteristics not typically found in mainstream beers. That’s what we’re delivering — a unique consumer taste experience not typically found in light beers and consistent with craft-style beer.


What Stan doesn't quite say outright, presumably out of courtesy (lucky I have none) is that the whole point of Miller introducing "Craft-style light beers" obviously has nothing to do with creating a quality product or convincing their fans to expand their taste in beer.

In the end, their internal justification for these products is no doubt to temporarily boost margin growth by slapping the trendy "craft" label onto a slightly more expensive container of the same old grain adjunct beverage -- see also the words "Ice" and "Red" back in the mid-90s.

But of course, I'm far too cynical to think that's their only goal.

In Miller's perfect world, each of the 85% of people who drink the standard macrobrews will walk into a beer store to buy Miller Lite and see the familiar Miller Lite label on one of those "craft beers" he's been hearing so much about. He'll remember how he didn't think that Sam Adams he had at his brother-in-law's party last year was half bad, so he'll pick up a six pack.

He'll drink a couple, and decide that they're pretty good, for dark beers -- but that they're not so much better than his Miller Lite that he needs to spend more money on them. In the end, the next time he's out with his buddies and has the chance to drink an Otter Creek or Allagash or Flying Dog or Lagunitas, he's going to say "Oh, yeah, I tried one of those 'craft' beers. They're alright but I think Miller Lite is just as good."

And the Miller Brew Marketing corporation smiles, as research shows they've watered down the "craft beer" label sufficiently to keep smaller breweries from pulling any decent portion of their market share. Soon enough, the "Brewer's Collection" vanishes from shelves and distributors everywhere as Miller decides to reinforce their core brands by investing an amount equal to the total annual revenue of five smaller breweries in a series of ads for "The High Life."

UPDATE: People who know more than me call these sorts of stories "conspiracy theories" and "wacky shit"; and granted, I don't see C-suite execs at Miller signing off on a business plan that comes down to "We want to make our upstart competition look bad by associating them with inferior product."

But on the other hand, if a doofus like me can identify "decreases consumer interest in craft brands" as a beneficial side-effect of following their usual strategy of slapping trendy labels on product barely discernable from their flagship brands, why wouldnt' they reach the same conclusion?

5 comments:

Unknown said...

You bring up a very valid point that I hadn't thought of. I did think it was odd to have the "Lite" logo on top of these six packs. Would they purposely put out flavors (I don't even call it beer) to contrast with Miller Lite to bring them back into the fold? Diabolical, if that's the case.

The only legitimate beer made by the Big Three is Blue Moon by Coors. It's nice to see the market share that it's getting and my only hope is it's cannibalizing sales from previous BudMillerCoors drinkers. Since I have about 500 other craft brews to drink ahead of Blue Moon, I won't ever buy it but it is nice to see something other than the watered down lager that gives beer a bad name.

This Miller Lite pseudo-craft scheme will fade with time along with their Chill product, as did Pepsi Clear and Zima, but one can only hope they don't turn off people who are on the edge of switching to beer that actually has taste. I've turned quite a few coworkers over time to the wonderful world of craft beer and I have yet to know anyone who has backslid to the Big Three once they realized how great beer can be (and is) when it's made by people who care.

JA3 said...

The plural of anecdote isn't data, but my experience is similar -- that taste in beer tends to move in a direction AWAY from corporate megabrew. And judging from sales numbers during the current economic slide/weakness/whatever-this-is, beer companies probably have to agree.

Just look at the numbers in the link above -- Given how much money is represented by even small slivers of market share, if it's a fact that anytime Corporate Macrobrew loses .1% of market share, they will NEVER regain those people, then be sure this fact factors into how they treat even their tiniest competitors.

Coors did such a good job with Blue Moon that one of my readers didn't even realize it was a corporate brand. Of the bigs, Coors seems to be the one willing to actually develop reasonable alternatives to their flagship brands beyond the usual DryIceRed Light -- Killian's comes to mind also.

Meanwhile, the premium brands from the other two bigs tend to be brands and breweries purchased, rather than developed from scratch, and then treated with less and less respect over time, e.g. Leinenkugel's, Rolling Rock.

It seems that whether you're talking about beers, brands or taste, "watering down" is their #1 goal...

Anonymous said...

So should I feel bad that I have Leinenkugel's Sunset Wheat in the fridge?

I've told the Third many times, I switched my best friend from a Miller Lite girl to a Craft Brew girl with one try -- Hoegaarden. She was hooked immediately (I had to pour her home), and now fears no beer (just as long as she can see through it, mostly. Porters and stouts still aren't her thing.

I only drink BudMillerCoors at the ballpark. Goes down nice and easy in that hot sun!

I will agree with James and say that this is a passing fad, that folks will figure it out and pass this crap by. If it was a better tasting alternative, perhaps folks would buy into it. But if it's the same old crap with a different label... not worth it, whatsoever.

D

JA3 said...

Don't feel bad about the Leinie's, or anything else you drink, sis -- this blog stands against bad beer, not decent beers that happen to be owned by companies who also make bad beer. More than anything I'm against snobbery -- but if you feel guilty about Leinie's, then don't ask yourself who owns Hoegaarden.

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