Word: brandings
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Dates: during 1980-1989
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...Once a brand is established and costs are met, each extra six-pack means more profits. Two weeks ago, Anheuser-Busch reported six-month profit gains of 24% over 1981 levels while selling only 10% more beer. That showed just how large profits can be once a firm is able to swallow the huge cost of launching a national product. As one beer executive points out, the drink's ingredients cost less than the bottle or can that it comes in and the advertising that is used to sell...
Busch's advertising clout has paid off. The company has been the No. 1 brewery for 25 years. Over the past decade, sales have soared 124%, from 24.3 million bbl. of beer in 1971 to 54.5 million bbl. last year. The firm's Budweiser brand is the largest-selling premium-priced beer in the U.S., with a typical retail price of $2.40 a sixpack, while Michelob, the company's "superpremium" offering, at about $2.90 a sixpack, leads that market segment as well...
...traditionally dominated the industry through its sheer size and muscle, Miller Brewing Co. has emerged as a hard-charging No. 2. Its tactics: canny marketing and nimble product development. Miller owner Philip Morris used rough-and-ready cowboy imagery during the 1950s and 1960s to propel its Marlboro brand to the lead in U.S. cigarette sales. Since it took over Miller in 1970, Philip Morris has used the same image-conscious advertising to promote beer. The master marketeers down-played the old Miller High Life slogan, "the champagne of bottled beers," and created a new image through "Miller time" television...
...reality, lower-calorie beer boils down to less brew for the money. Not only do most light brands carry premium-brand prices, they contain less grain and more water. In spite of the dilution, such beers are not all that much lower in calorie content than normal beers. Observes newspaper Beer Columnist Steve Byers of the Milwaukee Journal: "The calorie difference between a light beer and a premium beer is five potato chips. Why get a worse taste and flat beer for five potato chips...
...precarious for smaller competitors. Schlitz, a strong No. 2 ten years ago, slumped to a weak third after tampering with its brewing formula in the early 1970s. The company used cheaper ingredients and a faster brewing cycle to boost production. As drinkers tasted the difference, sales of the Schlitz brand plunged, from an estimated 17.4 million bbl. in 1975 to 6.2 million bbl. last year. Though the original beer recipe has now been largely restored, the damage has been done...