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THE BEER WAR
Shaikh Tabish & Pulkit Mehra
Amity University Noida
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What is Beer?
centurys old process of converting sugaredwater to fermented liquid
some of the oldest recipes ever found havebeen beer recipes
beer was a necessity in ancient times
poor water quality
social and medical contributions
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Whats in a Beer?
BARLEY the body & soul of beer
YEAST the life of beer
HOPS the spice of beer
WATER the integrity & purity of beer
ADJUNCTS Additive grains like rice or corn,fruit or spices
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Why Beer?
Beer is a $91.6 billion dollar category and accounts for overhalf of beverage alcohol dollar sales.
Beer has a 52% share of alcohol retail dollar sales and is 85%of alcohol consumption.
Share of Total BeverageShare of Total BeverageAlcoholAlcohol
Retail Dollar SalesRetail Dollar Sales
Wine
9%
Beer
85%
Liquor
6%
Share of Total BeverageShare of Total BeverageAlcoholAlcohol ConsumptionConsumption
(Gallons)(Gallons)
Wine
15%
Beer
52% Liquor33%
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The beer war
The conception place of Anheuser-Buschs
marketing efforts is the conference room on the 9th
floor at the headquarters which is known as
..The War Room
No wonder its the beer war.
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Breakthrough by budweiser No. 1 brand was Schlitz after the war
1951-52 Schlitz on top, 53-54 Budweiser and 55-56 Schlitz again.
whats the roi or how much do we spend to ensure victory
In 1957 Budweiser grabbed lead again and today outsells 20 to 1
The reason was an inflection point and that was Schlitz built highly
efficient breweries and cutting the brewing cycle which hurt thetaste of the beer.
V/s
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Assault by Heineken
First major imported beer in U.S. A typical flanking attack against nil defense
Outspent its imported rivals year after year
Major hit war born by Lowenbrau and due to its own blunder
if they run out of Lowenbrauorder champagne
Miller bought the rights for Lowenbrau and started brewing in US
Anheusers Michelob struck back struck Lowenbrau by charging
that it was deceptively advertised priced
V/s
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What could have been done
Comparing beer with champagne could have been ok for Heineken
Its problem was not size of market
An offensive attack should have been a better strategy to own the
market first
Could have attacked its weakness which was Holland
Should have launched an attack on as narrow a front as possible
with asking customers to just try and judge for themselves weather
German brand was better rather than telling about 400 yr old and
quality of hops. grains etc.
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Anheusers counterattack
In 1963 they finally made a move to counter Heineken
Launched first high price American beer.
Gave it high price name, high price bottle
Called it MICHELOB
First class is Michelob
It not only outsold Heineken but twice as much beer as all imports
combined
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The rise of miller
The game changer 1970
7th place and running because of 2 things
Phillip morris money
Consistent strategy
Target was Budweiser
Struck at the middle of the line (Napoleons favourite strategy)
Welcome to Miller Time which struck the masses i.e. the blue
collar category
Took 3 years even though spent twice on advertising
Initially miller high life was the brand the champagne of beers
but blue collar appealed
Budweiser countered For all You do, this Buds for you.
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The launch of Lite..
An uncontested area
Tactical surprise
The Pursuit
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Industry feels Lite.
Line extension strategy
First player Schlitz with first movers advantage
Challenged by Anheuser-Busch Natural light
Ask for natural. Dont get misconscrewed
Adolph Coors COORS
Was leader in 9 out of 12 states
Worlds largest brewery with spring water
the most chick brew in the country, The new york times
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Colorado kool-Aid
Made fun of Coors by asking for Colorado Kool-Aid Arrival of light created once in a lifetime opportunity
Pressure created by national brands on regional ones to make it
National
Were 786 brewers in America, about 40 left
New york had 121 today there is 1 Chicago had 40 now none
Launched Coors light which was carbon copy of other 23 brands
available
Reasoned that people couldnt relate to coors as already being
light beer
Now it had two brands for national distribution
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What could have been done
Had the opportunity to switch from guerrilla to offensive strategy
Coors had all the weapons in place the pioneer in light beer and
all the other factors favouring its image
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The weakness of Lite
Print and broadcast world fortunately or otherwise
Never mind, make it a Miller.
Miller high life has a tough time now
This lite mistake had to be paid heavily by Millers High Life
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The fall of High Life
In 1979 high life was only 21% behind Budweiser.
In 1984 it was 68% down i.e. 3 to 1 millers
Miller tackles beer mystery The new york times
Miller flanked itself, we have met the enemy and they is us
Flanking yourself has 2 outcomes which are no-win situations
Line extensions long term effect is totally the opposite of short-
term effect similar toAlcohol .. whose long term effectis known to all but its short term effect makes people forgetits long term effect quite literally.
Those who cannot remember the past, are doomed to repeat it.
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What is a Specialty/Craft Beer?
all Malt Brewing Process
no filler adjuncts to lighten beer
tend to be non-pasteurized, using additionalfiltration for clarity if desired
small Batch Production
tend to produce beer in smaller vessels
regional based
between 15,000 and 2 million BEs
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Whats the Difference?
Imports = brewer supplied products for outside USA
import Companies or holding/distribution companies
Crown Imports, Heineken USA, Anheuser-Busch, Inc.
Craft /Specialty beers = regional / national Brewers independent or regional distribution networks
Sam Adams, Leinenkugels, Redhook
Micro beers = Local/Regional Brewers
independent distribution networks or self distribution
Summit, Surly, Flat Earth Brewing. Co.
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Why Import & Specialties?
changing Consumers
boomer market
gen Xers coming of age
discretionary income evolving marketplace
consumers are demanding broaderselection, unique and interesting products
profitability
higher perceived value
higher margins / profit generators
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Bottle Beer Dos & Donts
Always pour bottle beer into a glass
drinking from the bottle traps carbonation andflavor which can leave you feeling bloated
pouring into a glass releases carbonation,
flavor and aroma of the beer
pour beer down the center of glass to releasecarbonation and flavor
pouring down the side of the glass minimizesfoam and traps carbonation leaving the beer
flat looking and gassy tasting.
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How about a beer?
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