It’s like deja vu all over again…

Miller 4Budweiser, The King of Beers, Schlitz, The Beer that made Milwaukee Famous, Miller, The Champagne of Bottle Beer, Coors, America’s Fine Light Beer, and Pabst Blue Ribbon Beer.  These were the five national premium brands that for many years dominated the US beer market.

The beginning of the end of these brands dominating the market started with the introduction and success of Miller Lite.  The success of Miller Lite was followed by both Coors Light and Bud Light.  We all know the story of how these three light beers became what they are today.

On the other hand, both Schlitz and Pabst, who also tried the light route, did not survive.  The demise of these two brands is also well documented.  After all these years, what is interesting is where these five brands are today and how they got there.

Budweiser, once the largest selling beer in the nation is the victim of Bud Light and the changing tastes of the American consumer, has moved to the third largest seller. Although it is still highly supported by ABI, Bud, however, remains in decline.  The brand is down -2.9% in volume in the July IRI report.  InBev, however, has taken Budweiser globally and it is doing well.  The brand seems to have found life outside the US and remains a viable brand.

Schlitz, once a strong number two brand, is no factor and has not been for years.  In spite of many attempts to revive the beer, little, if any success has been achieved.  With a retro bottle, Pabst, who now owns the Schlitz has targeted markets in south Florida, Chicago, and Milwaukee.  This targeted approach at first glance made sense, going after retirees who grew up with the brand along with two former key major markets.  Even with this marketing approach, however, the results were disappointing.  Schlitz today is mostly a memory.

Miller High Life, with the support of MC, continues today.  The brand is down 4.0% to date in the same IRI reports.  Looking at this brand, it has survived numerous attempts to reposition itself over the years.  At the Miller annual conventions, wholesalers did not know which direction the brewery was taking Miller.  Today the brand lives in the retro world with its heritage and distinctive clear bottle.

Coors has really seen ups and downs over the years.  Not unlike AB and Miller, Coors tried many times to turn Coors Banquet around.  The brand went through many package and liquid changes, but nothing stopped the sales downhill slide until recently, when Coors went back to brewing the beer close to the original liquid.  The next smart move happened with the design change which was more in line with a retro, clean look of the can from its heritage.  The brand responded with years of increases.  In fact, July numbers show it +8.1%.

Finally, Pabst, which for a reason unknown to the industry, began a complete turnaround some years ago as a retro, anti-establishment brand.  It was also priced in the popular or regional levels.  First starting in the Northwest than moving eastward, it has become somewhat of an enigma in the industry.  A number of craft only bars offer Pabst, many on draft.  With the rumored sale of Pabst Brewing Co., what happens to the brand will depend on who buys it and their marketing plans.

Pabst and Coors have shown that with the right message any beer can remain relevant.  Bud and Miller High Light, in spite of continued negative numbers, still remain nice brands to have, but need the right message.  Only Schlitz, has yet to be resurrected, but do not bet against that happening.  After all these years, in some way, it is like Deja vu all over again!

Beer Fodder;


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