Chill to face rival in market niche
13.02.2008 03:00
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- Source: JS Online
Anheuser-Busch Cos., perhaps eager to emulate the success of Miller Brewing Co.'s Chill beer, is launching its own lime-infused beer. The nation's largest brewer plans to have its Bud Light Lime on store shelves by May 5, said Marlene Coulis, Anheuser-Busch vice president of consumer strategy and innovation. It will be backed with a $35 million national marketing campaign, according to a report in Beer Business Daily, an online trade publication. Bud Light Lime will have "a splash" of lime, and "the superior drinkability of Bud Light," Coulis said in a statement. Coulis said the new drink is part of Anheuser-Busch's approach to "offer consumers choices for every lifestyle and drinking occasion." She said Bud Light Lime has been in the works for over two years - a year ahead of Miller's 2007 launch of Chill, a light beer brewed with hints of lime and salt. The decision to launch Bud Light Lime comes after Anheuser-Busch recorded a 2% U.S. sales volume increase in 2007, led by a 1.9% increase in sales of Bud Light, the company's largest brand. That outpaced the overall U.S. beer market, which had a 1.4% sales volume increase, according to trade publication Beer Marketer's Insights. But sales of Budweiser, Anheuser-Busch's No. 2 brand, dropped by 4.7%. And the company's overall sales have dropped during the first few weeks of January. Meanwhile, Miller Brewing saw its 2007 sales increase by 5.5%, with No. 1 brand Miller Lite up 2.2%. Miller Brewing, like Anheuser-Busch, saw its sales boosted by some new brands, including Miller Chill. Last July, Anheuser-Busch took aim at Chill. At issue was Miller's claim that half of Chill's sales were from drinkers who previously avoided beer in favor of spirits and wine. That claim was used to entice supermarkets, liquor stores and other retailers into adding Chill to their shelves. Anheuser-Busch, in response, told retailers its data indicated that less than 5% of Chill's sales were coming from new beer drinkers. Anheuser-Busch said Chill sales were mainly shifting dollars away from other beers, including imports and specialty brews that provide higher profits for retailers. On Tuesday, Miller spokesman Pete Marino said Bud Light Lime is part of Anheuser-Busch's "long history of copycat innovation." "Imitation is always the sincerest form of flattery, but we have 'first mover' advantage in creating the segment and a unique product that is already a proven success with consumers," Marino's statement said.
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