A-B and MillerCoors raising prices on their "budget beers"

It seems that both Anheuser-Busch and MillerCoors are raising prices to try and drive consumers to purchase their "premium" beers. I threw a quick post up on my site (in my signature) for anyone interested, but since I don't want to get accused of trying to drive traffic to the site, here's another source http://adage.com/article/news/recovery-give-low-end-beers-keystone-a-hangover/226904/

What are everyone's thoughts on this? I was only able to find a couple of sources, so I don't really have any info beyond what is in the Advertising Age article. It seems like a rather dick move in my opinion, though it's admittedly smart from a business perspective.

So Miller lite is considered a premium beer? Don't drink that stuff anymore so it doesn't bother me.

I drank those beers before I turned 21. After that I was able to purchase my own beer and be more discerning, and slowly started exploring beer. Its lead me here, I really don't care what they do in regards to that style of beer. I'm not interested in it. Its probably a smart business move.

I think a more pertinent question is where is AB and Miller Coors getting all of their horse urine?

Large Clydesdales = big bladders.

I couldn't care less.

kapbrew13 said:

Large Clydesdales = big bladders.

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+1 for that one



I also agree, that I don't really get the Miller Lite and Bud Light being called "premium", but I suppose it's mostly to differentiate from the "budget" beers.

This really is funny stuff. I'm sure she is paid well, but how proud could Elina Vives be? LOL

Brand manager for Keystone Light, Elina Vives

There is a significant segment of the population that chooses to drink below premium, and those are the guys we really want," said Ms. Vives

To do that, Keystone is doubling down on a strategy that has made it one of the biggest ad spenders in the below-premium segment. The brand will become a sponsor of the WWE pro-wrestling franchise

the brand's target audience of men aged 21 to 34, who prefer T-shirts and worn-out hats to fancy clothes and who drink cheaper beer and are damn proud of it.

Keystone used to have the highest market share %/ad dollars spent. They never used to advertise that brand but it still sold pretty well for frat parties etc...

Zen_Brew said:

This really is funny stuff. I'm sure she is paid well, but how proud could Elina Vives be? LOL

Brand manager for Keystone Light, Elina Vives

There is a significant segment of the population that chooses to drink below premium, and those are the guys we really want," said Ms. Vives

To do that, Keystone is doubling down on a strategy that has made it one of the biggest ad spenders in the below-premium segment. The brand will become a sponsor of the WWE pro-wrestling franchise

the brand's target audience of men aged 21 to 34, who prefer T-shirts and worn-out hats to fancy clothes and who drink cheaper beer and are damn proud of it.

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No offense meant, but she forgot NASCAR too.

If I am going to drink a BMC beer I'm going to drink one of the sub-premium ones. They all taste like crap anyways, so why pay more? I don't drink bad beer often, so this doesn't really effect me, but it still looks like a dick move. I hope beer 30 kicks their asses.

Does this mean they fired Wendell, since now 90% of what he has said and stood for is now gone?

If I'm going to a party or just having an intended night to get smashed with a bunch of pals, I'm going to drink the cheapest stuff I can get. Is there really that much difference between Bud/Bud Light and Natural:Natural Light? Let's face it, it's all cheap and nasty ass tasting beer, why on earth would somebody pay more money for a beer that tastes "slightly less awful?"

I think BMC realized that a majority of their clientele is willing to spend $75 for a screen printed Ed Hardy/Affliction tshirt. You know, the same people that spend $50 for a super premium bottle of vodka and mix it with store brand grape soda. I guess they can't complain about a couple of bucks for the case a beer they drink before going out to the clubs. Natural light sales are going to skyrocket. Isn't it already the #1 sold beer? I just wish BMC would stop toting their light flagships as "premium".

I'm shocked that Bud light out sell's Bud 2-1. I actually like an occasional Budweiser, good stuff imo.

_

You mean it's now going to be more expensive to get easy college girls drunk and have casual s3x with them??

I seem to remeber reading a thread about this last year, and the year before that, and the year before that. One thing is certain, prices will always go up.

I have noticed the prices going up. I think its mostly due to gas prices. It takes a lot of BLs to get faded on and it takes a lot of gas to keep the shelves stocked with 99% BMC in AZ stores.

Also, I'm no fan of Bud or BL but yes there is a HUGE difference in the taste of it VS. Natural Light. Its like saying would you want to be stabbed with a knife or a rusty knife...its still going to hurt. I will take the clean knife, thanks.

At first I was wondering how this could possibly positively effect the craft beer market. If prices of BMC rose, that would be a good thing for craft beer, as some people might be more willing to try something different. It looks like the price raise is so small that it probably won't have an effect on craft beer. However, their goal is to move people to the "premium" beers, so maybe there is a possibility that they could move a person or two to craft beer? Any thoughts about that?

dantheman13 said:

At first I was wondering how this could possibly positively effect the craft beer market. If prices of BMC rose, that would be a good thing for craft beer, as some people might be more willing to try something different. It looks like the price raise is so small that it probably won't have an effect on craft beer. However, their goal is to move people to the "premium" beers, so maybe there is a possibility that they could move a person or two to craft beer? Any thoughts about that?

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That was my exact thought. If they're gonna raise the prices on their "premium" beer, assuming craft beer prices hold steady, in theory that would lead some to try good beer.

dantheman13 said:

At first I was wondering how this could possibly positively effect the craft beer market. If prices of BMC rose, that would be a good thing for craft beer, as some people might be more willing to try something different. It looks like the price raise is so small that it probably won't have an effect on craft beer. However, their goal is to move people to the "premium" beers, so maybe there is a possibility that they could move a person or two to craft beer? Any thoughts about that?

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I on occasion will buy Natty Light if we are having a party or just to keep in the back of the fridge for those "lose it" nights. I can get a 30 rack for anywhere from $12-$16 per case. They would have to raise the price of this beer pretty significantly for me to jump to $30/case craft beer (or SA, for example).

I don't think that increasing the cost by a buck or two is going to make much of a difference, other than as intended: push the drunken frat boys, nascar and WWE fans up to Miller Lite/Bud Light. If I can have Bud Light for 5 cents more per can than Busch, Im picking Bud.

kpr121 said:

I don't think that increasing the cost by a buck or two is going to make much of a difference, other than as intended: push the drunken frat boys, nascar and WWE fans up to Miller Lite/Bud Light. If I can have Bud Light for 5 cents more per can than Busch, Im picking Bud.

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Good point.

kpr121 said:

If I can have Bud Light for 5 cents more per can than Busch, Im picking Bud.

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i can see your point, but why not just drop the "sub-premium" stuff to begin with.

This is probably a bad move. People drink that stuff because it's cheap. If the price gets too close for some people then they'll just quit drinking BMC entirely. This just seems like an ill-advised business move.

Homebrewtastic said:

I think a more pertinent question is where is AB and Miller Coors getting all of their horse urine?

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You won the Internet. Quote going into my signature immediately.

MeatyPortion said:

This is probably a bad move. People drink that stuff because it's cheap. If the price gets too close for some people then they'll just quit drinking BMC entirely. This just seems like an ill-advised business move.

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Meaty, you are thinking along the lines I was thinking. If they raise the price too much, some people could start looking at the other beers on the shelf and think, "Why not?" :fro:

l1ranger said:

i can see your point, but why not just drop the "sub-premium" stuff to begin with.

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Well my cheap beer of choice is PBR, but some of my guests won't even drink that (I know, find better guests you say). Natty light is sometimes on sale for 11 bucks a case, and those same guests actually like it. Like I said, I only drink it when I am in one of those moods (while shooting basketball, just want to hammer beer, feeling nostalgic about college day, etc.)

jbrookeiv said:

You won the Internet. Quote going into my signature immediately.

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Glad I could help. I'm here to ask the tough questions.