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1 year, 12 months ago

With lite "beer" sales declining, is there a chance one of the big two will try the "Domino's" strategy?

I wouldn't have done it but Eric Felten bravely tried a blind tasting of all the major labels and came up the suggestion after discussing the matter thoroughly:

http://online.wsj.com/article/SB10001424052748704875604575280522341919974.html?mod=WSJ_Opinion_LEFTThirdBucket
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balinesecat | 1 year, 12 months ago
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Love the idea of the Domino's strategy, but it doesn't seem like something Budweiser, Miller, etc. would do.

I think "lite" beers in general have lost a lot of the allure they once had in American culture. The caloric savings are not very significant at all, and any time one sees a "light" product there are questions in the mind about what might have been added and subtracted to strip it down. You can only push a beer so far before you have a hard time feeling like you've got a beverage that should be even referred to as beer. The day I saw a billboard advertising a new Miller Lite low carb (?!?!?!) beer, the thought of what might be in it kinda gave me a shiver.

In general, I think there's a greater interest now in healthiness and taste of the beer vs. possibility of a slight savings in calories and/or carbohydrates. A very revealing evidence of this is the fact that craft beer sales have continued to be strong, even in the current economy. The general vibe of things with contemporary beer drinkers is "if I'm going to drink a beer, it should be a quality beer." The love affair with craft beers has left many of us with mental pictures of Bud Lite, Miller Lite, etc. as something conceived in a science lab and brewed in a soulless factory.

I predict the major players will put more attention on emulating craft beers. Budweiser's already doing it with their "American Ale."

As for Miller products, I do think they could successfully play the Domino's card if they chose to. Given that their advertising so often seems to reveal a belief that American beer drinkers are stupid, a subtle "Whoops! We're stupid too!" might fit right in. But I don't think they'll play that card...they'll continue to try and dominate by big budget advertising featuring butts, boobs and stupid guys, and by high profile sponsorship of events.
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goatead1 | 1 year, 12 months ago
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This article is quite interesting, and a little funny. Does he write often? because i would really like to read more.

Well i never thought the beer companies could be capable of this, but i guess it just never registered with me. I would not be surprised in the slightest if miller/coors or busch tried this same technique. I dont expect it to happen in the near future, but as the beer market goes through the same trend the food market did, it could happen. The food market started focousing on healthy or more quality choices, as opposed to the cheapest and most popular. Beer and liqour really havent got to that point, but with the success of micro-brews and mid range craft beers, corporations are most likely going to try copying them.

Budwieser is already trying to create a more "quality" style beer with their american ale and bud light wheat, but i have no idea how these things will go over with the general public. I personally have no interest in trying them and imagine there is little difference between bud light and bud light wheat.

So yes, i think they may try the dominos technique. Will i try it out when it happens? No sir, companies that spend most their money on advertising do one thing well, advertise. The only real change is what they are telling you on television, not whats going in the bottle.

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goatead1 | 1 year, 12 months ago Report

also i like how you put lite "beer" in quotation marks. really its just not beer.

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