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Miller brews up Lite versions of craft beers

14.12.2007 08:07 Home - Source: JS Online

Miller Brewing Co. will test market three new versions of Miller Lite as the brewer tries to cash in on a growing consumer preference for craft beers.

Miller is announcing today it will test market the Miller Lite Brewers Collection in Minneapolis; Charlotte, N.C.; San Diego and Baltimore beginning in February.

The three new versions of Miller Lite will be a blonde ale, an amber beer and a wheat beer - each with fewer calories and carbs than a typical beer for that style.

They could help establish a new beer industry category, what Miller Chief Marketing Officer Randy Ransom calls "craft-style-light."

"The brewer who can provide a more refreshing and drinkable craft style can stake out a whole new niche in the market," Ransom says in a statement.

"That's what we intend to do."

Miller said the three new beers will target mainstream drinkers and capitalize on trends that favor light beer, greater variety of beer styles and a willingness to pay more for higher-quality beers.

Light beer makes up roughly one-third of U.S. beer sales volume and is the dominant category in the beer industry.

Miller Lite is Miller's largest brand, accounting for 47% of the company's sales volume in 2006.

But craft beers, such as Samuel Adams Boston Lager and Sierra Nevada Pale Ale, are taking a growing share of sales.

That niche accounted for only around 3% of sales in 2006 but enjoyed an 11.7% sales volume increase over 2005.

That compares with industrywide growth of 2%.

Miller and other major brewers have been beefing up their craft portfolio.

Miller's main craft growth has come through its Jacob Leinenkugel Brewing Co. subsidiary, which has enjoyed strong sales over the past two years from its Sunset Wheat brand.

Only a few craft brewers have rolled out light beers.

The most notable has been Sam Adams Light, which has helped boost sales for its owner, Boston Beer Co.

Miller might be counting on Miller Lite's greater familiarity and broader distribution among mainstream drinkers to pull sales.

The company said the three styles selected for test marketing are popular among beer drinkers looking to experiment with craft brews.

The three beers will initially be available in six-pack bottles and priced between mainstream light beers and typical craft beers, the company said.

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