I don't even know what to say about the 2 lines that I highlighted. The link to the article is at the bottom of the page.
Will you drink beer in a box?
Posted Jul 29 2009, 01:31 PM by James Dlugosch Rating: Filed under: Molson Coors Brewing, James Dlugosch
Imagine kicking back in the shade on a hot day and popping open an ice-cold box of beer.
Yes, you read that right: box.
The Wall Street Journal reports to that MillerCoors is testing beer in a box in several cities.
Now, like many people during this economic crisis, my wife and I are doing some personal belt-tightening of our own in order to save money. But there are some things I just won't do, including buying wine in a box.
Now, with beer, the box might be less objectionable since, in my opinion, the quality issue is not really in play.
Despite what the microbrewers will tell you, all beer is pretty much the same. Consumers who pay a premium do so more for the experience than the taste.
But for me, the issue is the bottle. I like drinking my suds from a cold bottle. Period.
Put it in a glass, and the experience just isn't the same. And no matter how cheap they make it, I just can't see myself drinking beer from a box. (The current boxes deliver draft beer; you don't drink from them. But box wines started this way, and you can now buy merlot by the six-box pack.)
Of course, I'm not the target market, and there are many who will see value in this product. The big brewers are under pressure from consumers trading down to cut-rate brands, and in this economy, getting more for less is going to be a selling point for the foreseeable future.
With sales volumes dropping, this "buy more at point of sale" model could be just the tonic for beer companies. Even though, the Journal says, an 18-pack is still cheaper.
Shares of Molson Coors (TAP) have recovered nicely since bottoming in March. But it still trades more like a defensive stock. Will the beer-in-a-box transition create growth?
If so, TAP could be a big winner with this marketing ploy. Perhaps I should have added the name to my list of "Red-Hot Summer Sizzlers." The stocks on this list have an aggregate return of 19% since publication on May 22.
Seems to me beer in a box may be a trigger for a bump in share price. Just don't expect me to drink the stuff.
Will you drink beer in a box? - Top Stocks Blog - MSN Money