The brewing venture between SABMiller and Molson Coors in the US, MillerCoors, is investing heavily in its new craft and import beer business as it anticipates niche beers will continue to outpace mainstream brands in the next few years.
MillerCoors is trialling its standalone craft and import business, Tenth & Blake, in half a dozen areas of the US as it seeks to tap into strong consumer demand for high-end, smaller-scale beers in the country.
Go deeper with GlobalData
Distributors, at least, have taken well to the new operation, according to the brewer. “The early reception has been really terrific,” MillerCoors’ president of sales and distribution, Ed McBrien, told analysts in London yesterday (30 November).
Craft beers have strongly outperformed established brands at both MillerCoors and Anheuser-Busch InBev in the economic downturn and the Coors Light brewer expects the trend to continue. It predicts that craft beer volumes will increase in mid-single digits annually in the US over the next three years, while the overall beer market will only expand by between 0.5% and 1%.
McBrien told analysts that MillerCoors is “deeply committed” to Tenth & Blake, which counts Peroni Nastro Azzurro and Blue Moon as flagship brands. “We are investing at a disproportionate rate behind our above-premium brands, our craft and import brands,” he said.
“Tenth & Blake will have a fully dedicated field organisation responsible for selling those brands and we’ve not operated with a model like that in the past. [We’ve got] people whose only objective is to grow brands like Peroni at a disporoptionate rate,” he said.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataDemand for imported beers in the US fell sharply in 2009, but the category has since returned to growth and is set to slightly outperform the market up to 2013.
MillerCoors saw beer volume sales fall for the three months to the end of September by 2.7% to to 17.9m barrels compared to the same period of 2009 and by 3.76% on Q3 2008. Profits were boosted by beer price rises and cost savings.
Stay informed for just £1! *
Subscribe to Just Drinks for unbiased coverage of the global drinks industry, offering insights into the corporate strategies of beverage manufacturers and brands worldwide.
What’s included in your subscription:
- Unlimited access to Just Drinks content including daily global news, in-depth analysis, and interviews with C-suite executives
- Unbeatable coverage of categories from beer, wine and spirits to soft drinks and hot beverages
- Unrivalled drinks industry comment from leading sector specialists
Ready to stay informed? Subscribe now and gain access to exclusive content.
Have a subscription? Sign in
For further details on subscribing, click here. Need multi-user access? Explore our corporate subscriptions now.
*After your 1-month trial, your subscription will continue at £315 per year.
