ProBrewer.com

An Online Resource Serving The Beer Industry

  • News
    • News From The Breweries
    • Specialty Industry News
    • Major Brand News
    • Legislative & Regulatory
    • Distribution & Retail
    • Quarterly Financial Reports
    • International
    • Commentary
    • General News
  • Events
    • All Events
    • Essential Virtual Resources for the Brewing Industry
    • Virtual Brewing Conference Guide
  • Classified Ads
    • Latest Ads
    • Ads By Category
    • Help Wanted / For Hire
    • Search Ads
    • Post Classified Ad
    • Post Catalog Ad
    • About Classified Ads
  • Jobs
  • Discussion
  • Library
    • Archives
    • Brewery Floors
    • Brewstillery
    • Distilling
    • Distribution
    • ‘DIY’ floor coating
    • Electric Brewing
    • Filtration
    • Hops
    • Kegs
    • Keg Washers
    • Malt
    • Malt handling
    • Nano Breweries
    • Packaging
    • Pumps
    • Refrigeration
    • Shipping
    • Stupid Stuff
    • Turnkey
    • Used Tanks
    • Water
    • Yeast
  • Tools
    • IBU Calculator
    • Beer Specifications
    • Water Chemistry
  • Advertise
    • Advertise & Sponsorship on ProBrewer
    • ProBrewer Advertisers
  • Allied Trade Directory
    • Search Allied Trade Directory
    • Your Companies
    • Submit New Allied Trade Company
  • Login / Register
    • Login to ProBrewer
    • Discussions Login
    • Register
    • Password Reset
You are here: Home / Major Brand News / Price Wars?

Price Wars?

May 11, 2009

Conditions may be ripe for major brand price wars this summer

The escalating competition for marketshare among the newly merged MillerCoors and Anheuser-Busch may trigger a price war this summer according to many industry sources. Fueled by price cuts by imported brands, falling commodity prices and aggressive budget cuts give the companies more flexibility to drop prices.

A price war battered the industry in 2005, and large discounts carry the risk of lower profits without significant sales gains. Beer executives typically want to avoid heavy discounting, but competitive forces could get the best of them.

“I can see a price war breaking out if MillerCoors starts to gain share from Budweiser,” says Roman Shuster, a research analyst in Chicago with Euromonitor International PLC. “InBev is known to push back, and what they do will have a huge impact on the market.”

Summer is the key season for the beer business, and this year will be especially crucial coming on the heels of the deals that created MillerCoors and AB-InBev.

MillerCoors, which is moving its headquarters to Chicago this summer, must find a way to get beer drinkers to switch from industry leader Bud Light to Coors Light or Miller Lite. Coors Light has posted strong growth thanks to a persistent marketing blitz touting the brew’s “cold taste,” while Miller Lite has struggled from lack of a clear message. MillerCoors hopes to turn around Miller Lite with a consistent focus on taste in its advertising.

Harry Schuhmacher, editor of Beer Business Daily says struggling imports such as Corona have started to lower prices, and light beers could be forced to follow suit.

“You see the early signs of a price war, and pricing was pretty aggressive over Easter,” Schuhmacher said. “It reduces profitability, but you don’t want to lose marketshare, especially this year.”

Attached files

Share this:

  • Facebook
  • LinkedIn
  • Reddit
  • Twitter
  • Pocket
  • Email
pbrewadmin

Posted by pbrewadmin

Comments

  1. South County says

    May 12, 2009 at 4:57 pm

    It reduces profitability, but you don’t want to lose marketshare, especially this year.

    I know that is definitely the attitude for many area bars around here. Flat is still the new up, 80 cent bottles and dollar drafts are common place now.

Search

Promoted
Precision Fermentation, Inc. logo
Precision Fermentation, Inc.
Creator's of the BrewMonitor System
Jinan NFE Machinery Co logo
Jinan NFE Machinery Co
We Focus On Making High Quality Brewing Systems
Two Track Malting Company logo
Two Track Malting Company
Great craft beer comes from great craft malt.
American Keg Company • Standard Kegs & Equipment

Subscribe to ProBrewer Daily

ProBrewer Subscriptions

View previous newsletters.

Connect With @ProBrewerPage

 Instagram    Facebook    Twitter

 

 

 

Join the ProBrewer mailing list

Privacy & Cookies: This site uses cookies. By continuing to use this website, you agree to their use.
To find out more, including how to control cookies, see here: Privacy Policy and Cookie Policy

Connect With @ProBrewerPage

 Instagram    Facebook    Twitter

Go Somewhere Else

News • Classifieds • Help Wanted / For Hire • Discussion • Library • Contact • Advertise • Contact Details • Help

Copyright © 2021 · RealBeer Media · Privacy Policy · Terms and Conditions

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.