Brewers get into the spirits of marketing By Theresa Howard, USA TODAY Style-minded drinkers' increased thirst for high-end spirits is killing the buzz for once-booming beer sales.
Drawing bar-bound young professionals to the hard stuff: upscale marketing, desire for change and a renewed cachet for cocktails thanks to help from shows like Sex and the City.
Now beleaguered brewers are fighting back with a chi-chi image makeover. Beer sales of $25.6 billion in 2004 were well ahead of spirits' $15.1 billion. But beer's share of the alcohol market fell to
52.9% from 56% in 1999, while spirits' grew to 31.2% from 28.2%, according to Distilled Spirits Council of the United States.
Even upscale imports are hurting. "More wines and spirits have moved into the territory that beer has traditionally owned. You're seeing a fundamental shift in consumer drinking patterns," says Andy Glaser, brand director for Heineken.
Among the strategies on tap to lure well-heeled 25- to 35-year-olds back to beer: new products, more sophisticated ads and classier packaging — all marketing staples of liquor brands.
"Spirits companies, particularly at the top end, are some of the best marketers in the world," says Frank Coleman, a spirits council spokesman. "It's all about image."
Brewers putting on the Ritz:
•Anheuser-Busch. The King of Beers is trying to stem a first-quarter, 6.7% drop in earnings with the addition of smooth, bold-colored aluminum bottles, clear labels for Bud and Bud Light and its upscale new brew, Bud Select. Since its February rollout, Bud Select has a 2% market share.
"It's an alternative to distilled spirits for sure. The clear label has given the brand upscale cues," says Bob Lachky, A-B's vice president, brand management.
•Coors. New ads show a sleek silver "Love Train" delivering Coors to upscale partiers (to the tune of The O'Jays' 1973 hit). Nowhere to be seen are the twin blond hotties of recent Coors ads.
"You have to give the spirits industry some credit," says Jim Sabia, vice president, marketing. "It's a strong competitor for share of stomach, and it's causing us to be smarter and better marketers."
•Miller. Taking a cue from winemakers, Miller Light is pairing its beer with fine food in TV ads and with on-site marketing teams in restaurants this week.
"About 65% of all beer occasions have food with them," says Erv Frederick, vice president, marketing. "We said what a great opportunity to further our message about taste advantage."
•Heineken. With an upscale import image, it has been "hit a little bit less," Glaser says. Nonetheless, more "sophisticated offerings" are due in June: Heineken Premium Light Lager and a new look for Amstel Light.