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A brawl between the two biggest American brewers jeopardizes a "Got Milk?" Campaign proposal designed to help struggling brewers win back drinkers who have abandoned wine and spirits.
But the campaign may not be in the water after MillerCoors, Molson's US unit, pulls out of a meeting scheduled for next month and believes the initiative should be suspended following a public clash with AB InBev, maker of Bud Light.
The break began when AB InBev posted three television ads in the Super Bowl earlier this month, highlighting MillerCoors' use of corn syrup in Coors Light and Miller Lite. MillerCoors responded on Twitter and on a newspaper advertisement page addressed to "Beer Drinkers of America" which advocates the use of corn syrup in the brewing process.
High fructose corn syrup, used as a sweetener, has attracted negative attention for its role in the national obesity epidemic. MillerCoors notes that it uses corn syrup, not high fructose corn syrup, only in the fermentation process for making beer, as does AB InBev for some other brands. MillerCoors says that corn syrup is not found in beer.
Pete Marino, Communications Manager at MillerCoors, described "working on the campaign" as "waste of time and money" as the industry's leading leader spends millions of dollars on demonizing the ingredients of beer".
Beer has been losing market share for two decades, leading brewers, after years of infighting, to agree recently on a rare rapprochement. The share of beer in the US alcohol market in terms of sales dropped to 45.5% last year, up from 56% in 1999, according to the Distilled Spirits Council. Spirits, on the other hand, had a 37.3% share, up 28.2%. Wine's share was 17.2%, up 15.8%. Alcohol manufacturers of all stripes also struggle with the propensity of young drinkers to drink less.
Marino said AB InBev's ads could be damaging to beer, as many brewers use corn syrup to brew. "ABI's misguided attempt to gain a competitive advantage is threatening the long-term health of our category," he said.
AB InBev says stressing that Bud Light avoids the use of corn syrup in Miller Lite and Coors Light, it's about transparency and should not hurt collaboration. "It's a fact and we think consumers should know when they decide to drink beer," a spokeswoman said.
Traditional lager brands such as Bud Light, Miller Lite and Coors Light have suffered the most as consumers refuse to make craft beer and other beverages, causing particularly fierce competition between their owners. MillerCoors, for example, has been advertising for years that Miller Lite has more taste than Bud Light.
Bud Light and Miller Lite volumes have dropped more than 25% over the past decade, while Coors Light volumes have dropped 13%, according to data from Beer Marketer's Insights, a trade publication.
Beer performed better in Europe, where brewers reported that campaigns across the sector, including "There's a beer for that" in the UK, had helped sales. But US officials say that the United States, where the four major brewers dominate 75% of the market, makes collaboration more difficult.
"The tone of the competition was as unpleasant as what I saw during the Super Bowl campaign," said Heineken general manager Jean-François van Boxmeer. "No wonder the category of beer does not rise."
Earlier this year, AB InBev, MillerCoors, Constellation and Heineken leaders gathered for five hours at the Westin Hotel in Crystal City, Va., To discuss beer issues and find a way to revive its growth.
A presentation showed photos of a glamorous woman drinking a glass of wine, Pierce Brosnan (James Bond) drinking a martini and an older man wearing a vest drinking a beer in smoking in his kitchen. "The beer should prosper, but we lose instead," he says.
The presentation recognized billions of dollars of lost revenue, the perception that other drinks are more sophisticated, and criticized the messy shelves of grocery stores and the use of generic glasses in bars to reduce the image of beer.
Among the ideas for boosting beer, we've helped drinkers find beer that's right for them, positioning beer as a reward at the end of hard work, and trying to convince consumers that beer is social. and sophisticated.
Other initiatives include a bartender education program highlighting beer's contribution to the US economy, and marketing targeted at young drinkers, according to reports from the Wall Street Journal and people attending the event. meetings.
Over the past year, brewers, retailers and distributors have met several times to discuss how to tackle beer problems, said one attendee. The leaders met in San Diego in September to hear the arguments of five marketing agencies. They decided to hire one and were ready to confirm this decision at a meeting next month in the Constellation offices in Chicago, according to someone familiar with the effort.
MillerCoors is categorical: it will not participate and raises questions about the financing of the project. A spokesman for Heineken said it was too early to comment on the future of the project, while Constellation did not respond.
A spokesman for AB InBev said his country is still committed to "strengthening the beer segment," but also said it would not give up its fight with MillerCoors, promising to "vigorously compete with the market." .
Write to Saabira Chaudhuri at [email protected]
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