Miller is merging with Bud… effect on Miller Park?

[brewmann04]

Will the name have to change?

[Bikeage77]

The companies merging won't affect naming beers. I can't imagine they will get rid of Miller Lite or Miller High Life as names.

[jerichoholicninja]

Ya, Miller merging with Coors had no effect on either park.

[LouisEly]

Merger is only for international purposes. A-B InBev will never own Miller or Coors brands in the US.

 

You'd be surprised how many beers are owned by different companies outside the U.S. vs. inside the U.S. Labatt's (which is owned by A-B InBev outside of the U.S. but not inside) just purchased the rights to Mike's Hard Lemonade (and that company's other brands) in Canada, but does not own Mike's Hard Lemonade (or their other brands) in the U.S.

 

It's all about international distribution. The wife of one of my good friends is from Colombia, and there they only have Miller brands. In many countries outside the U.S. you can "pay to play", but not inside the U.S.

[FVBrewerFan]

It's nothing more than repositioning the deck chairs on the titanic in the colored water industry.

[CheezWizHed]

The Cardinals will now consider us classy!

[BrewersSuperCollector]

Budweiser wants Africa and Asia. Miller Coors will be sold. Miller has a beer that's a monster in China with the younger generation.

[LouisEly]

It's nothing more than repositioning the deck chairs on the titanic in the colored water industry.

How so?

[Baldkin]

It's nothing more than repositioning the deck chairs on the titanic in the colored water industry.

How so?

 

I'd imagine that FV is referring to the "big boys" slowly and steadily losing chunks of their market share to the craft beer market.

[FVBrewerFan]

Correct. This merger was always going to happen at some point. The more people are exposed to beer that has....well.. taste, market share for the big boy will continue to decline.

[LouisEly]

A vast majority of the world's beer drinkers are middle-class or less in income, and a vast majority of the time they will choose a 12-pack for $11 (or a case for $18) over a 6-pack for $9 or a 23-oz. bomber for $8. A vast majority of beer drinkers view craft as a "treat" or a "reward", and choose macro brews most of the time. Also remember that the United States accounts for about 4% of the world's population, and even if you exclude the half of the world's population that lives in poverty the US accounts for less than 10% of the world's population that can economically afford beer.

 

Craft is growing, but don't confuse growth for share. Craft holds less than 15% of the beer market, and 70% of that is by national brands (Sam Adams, Sierra Nevada, Leinenkugel's, Shock Top, Goose Island, etc.), many of which are owned by the big boys. Craft also has fairly low brand loyalty and lot of switching/trial, which doesn't bode well for sustaining a brand. There is also the marketing phenomena of choice overload; the more choices a person is presented with, the less likely they are to buy. And with so many different craft beers out there it just makes it harder for consumers to choose them.

 

Yes, their share is down from their heyday, but it is nowhere near a Titanic metaphorical reference. And personally, I think that a Busch Light or Miller High Life tastes better (to me) than any type of pale ale.

[jerichoholicninja]

It all tastes terrible. I can't stand beer.

[Baldkin]

A vast majority of the world's beer drinkers are middle-class or less in income, and a vast majority of the time they will choose a 12-pack for $11 (or a case for $18) over a 6-pack for $9 or a 23-oz. bomber for $8. A vast majority of beer drinkers view craft as a "treat" or a "reward", and choose macro brews most of the time. Also remember that the United States accounts for about 4% of the world's population, and even if you exclude the half of the world's population that lives in poverty the US accounts for less than 10% of the world's population that can economically afford beer.

 

Craft is growing, but don't confuse growth for share. Craft holds less than 15% of the beer market, and 70% of that is by national brands (Sam Adams, Sierra Nevada, Leinenkugel's, Shock Top, Goose Island, etc.), many of which are owned by the big boys. Craft also has fairly low brand loyalty and lot of switching/trial, which doesn't bode well for sustaining a brand. There is also the marketing phenomena of choice overload; the more choices a person is presented with, the less likely they are to buy. And with so many different craft beers out there it just makes it harder for consumers to choose them.

 

Yes, their share is down from their heyday, but it is nowhere near a Titanic metaphorical reference. And personally, I think that a Busch Light or Miller High Life tastes better (to me) than any type of pale ale.

 

https://www.brewersassociation.org/industry-updates/2014-craft-beer-data-infographic/

 

Craft breweries have more than doubled their volume market share since 2010, and are at nearly 20% of the dollar share in the market. Everyone has their own taste, and to each their own... I am not a beer snob and I love a High Life in the Molitor lot as much as anyone.

 

No one brewery is going to take down the giants, and you're right, brand loyalty is not a huge thing among craft beer drinkers -- but a change is happening.

[LouisEly]

I have access to quite a bit of industry data. That infographic is just for the U.S., and as mentioned, the U.S. is but a fraction of the global population and beer business.

 

If craft has 20% of the market, then imports and macro have 80%. If you read the industry blogs, right now craft brewers are "blowing up the phones" of the big brewers looking to be sold. You have 3000+ craft brewers (but not all have packaging capability) competing for, on average, less than 200 slots in grocery (where the most off-premise beer is purchased) and, on average, less than 40 total slots (tap and bottle) on-premise. (Yes, there are grocery stores with >200 slots and restaurants/bars with >40 slots, but it's well less than 10%.) It's extremely hard for craft to expand beyond their local geography because they will run into other local competition if they try to expand. Denver now has 60 breweries; good luck expanding into that market. Once they lose the "local" card, their sales pitch runs dry.

 

And big brewers are buying craft breweries. Craft needs ownership by big breweries to get beyond local distribution, and distribution is the #1 driver of sales. The industry is changing, but if the market is shifting to craft then big brewers will simply buy craft breweries, and the big brewers will do just fine. And, as mentioned, right now craft breweries are desperate to be sold to big brewers.

[logan82]

It is tough to distribute as a craft brewer. Especially when you are starting out. Wisconsin law changed a few years back to make it even tougher.

[bork]

Busch Coors Miller Field Park Stadium North, South and West?