The Homa Files

Among the Latest Innovations From Major Brewers Fighting for Business in a Jammed, Sluggish Market

MillerCoors  has begun testing the sale of $20 draft-beer systems for consumers to drink at home, part of a string of new products and package innovation from beer giants grappling for market share in a crowded, slow-growing industry.

The 1.5-gallon boxed product, which is designed to fit into refrigerators for drinkers to consume periodically, rather than for one-time party use.

Sales of major U.S. beer brands are struggling as some recession-weary consumers drink less or switch to cheaper brews.

Despite a new ad campaign this year aimed at revitalizing the brand, Miller Lite’s retail sales fell 7.5% by volume.

Sister brew Coors Light, on the other hand, continues to post sales gains. Analysts attribute its long-running success in part to innovations in packaging, such as “cold-activated bottles,” whose labels turn blue when the beer inside cools to a certain temperature.

MillerCoors’s new Home Draft systems are meant to be placed upright in a refrigerator, which will keep the beer fresh for about 30 days. The price per ounce is roughly 15% higher than for an 18-pack of the same beer.

The product, which is recyclable, is aimed at the 30% of beer drinkers who say they prefer draft beer to the bottled or canned variety.

“We’re really trying to meet that occasion when you just got back from work and want to reward yourself,” rather than “the party occasion,” he said.

Excerpted from WSJ, MillerCoors Tests a Draft-Beer Box for the Fridge, July 29, 2009
http://online.wsj.com/article/SB124882355717088341.html

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This entry was posted on August 10, 2009 at 7:44 am and is filed under Mktg - Product & Innovation. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.