Posted on 08/17/2015 1:14:25 PM PDT by rickmichaels
MONTREAL -- A beer war is brewing in Canada as SABMiller seeks to grow its presence following its divorce from partner Molson Coors.
Just four months after forming a Canadian subsidiary, the world's second-largest brewer is targeting dominant rivals Molson Coors (and Inbev's Labatt).
"To say that we're going to overtake the two big boys would be a bit of stretch so I would be happy to settle in at No. 3," said general manager Paul Verdu.
To get there, SABMiller Canada hopes Miller Lite -- which used to be available in Ontario and Newfoundland but hasn't been sold in the country since 2010 -- will steal market share from dominant players Coors Light and Bud Light.
Miller Genuine Draft, previously sold for about 20 years through a partnership with Molson Coors Canada, and premium brands such as Peroni, Pilsner Urquell and Grolsch will also be sold in Canada, though primarily outside Quebec.
All of SABMiller's products will be imported from the United States or Europe.
Global demand for light beers has been growing. It accounts for about half of total beer sales in the U.S., but less than 30% in Canada.
Beer market specialist Plato Logic estimates light beers account for 20% of total beer volume and have been growing 2.1% annually over the past five years.
Verdu sees opportunities for the "original" light beer -- Miller Lite -- if only the beermaker can convince Canadian drinkers to give it a try.
The company plans to spend heavily to promote its brands and hopes to get help by not charging Ontario bars and restaurants the hefty premium they face from all other brewers except Brick Brewing's Waterloo brand.
The move, which will amount to establishments paying the same amount that consumers fork out at the Beer Store, is an incentive for bars and restaurants to carry more SABMiller brands, says James Rilett, Ontario vice-president of industry association Restaurants Canada.
"Miller sees themselves as a new player so they are trying to get market share and if that's how they want to do it -- give our members a fair price -- then more power to them," he said in an interview.
He added bars and restaurants will save an average of $10 per case of beer, or almost $75 million annually.
Rilett hopes other brewers will follow SABMiller's lead, but there is no sign yet of change.
Labatt and Molson Coors said they don't discuss pricing or marketing strategies.
Verdu said SABMiller is also trying to appeal to Canadian consumers by promoting the taste and features of its products instead of "gimmick marketing" that focuses on lifestyle advertising.
Analyst Brittany Weissman of Edward Jones doesn't expect Canada's large brewers will sit back quietly.
Molson Coors recently said it would aggressively step up its advertising efforts as it looks to reverse market share losses and spur volume growth.
Weissman warns that spending alone won't necessarily offset the loyalty consumers have for their favourite brands.
"Just because Miller has a message out there doesn't mean that consumers are necessarily going to listen to it," she said from St. Louis. "But it does increase the competition."
Tyler Chamberlin, associate professor at University of Ottawa's Telfer School of Management, said the brewing industry faces global challenges as consumers flock to micro, craft and local brewers and reject "generic flavours" promoted by mega-brewers.
"SABMiller's focus on flavour would seem to fit better with the current consumer tastes, though whether a mass producer can actually convince the public that this is their authentic approach to business remains to be seen," he wrote in an e-mail.
The last big battle was Maple Syrup. I tell you what, war in Canada is a tasty treat. Watch out, ice cream and brats are next.
Kokanee is about as light a beer as I want to go. It's excellent on hot days.
Of course, I've been known to have a cold Coors on days I'm not in the mood for beer.
I’m not opposed to any good micro brew. However, if you’re anywhere with Bud or Coors on tap, a bottle of Guinness is a good response.
“Miller? Molson? Coors?
I thought this thread was going to be about beer.”
What’s worse is that it’s ‘light’ beer.
I hope they all lose. All flavorless beer.
I'm hip. I change from Shiner Bock to Shiner Blonde in the Summertime.
Octoberfest ... it's back to Bock.
Seemingly, they're also making a feeble attempt at comedy.
It does, and in fact there's a ton of 'em. Liquor control is a provincial concern, so I'm really only familiar with Ontario's situation, far more so than other provinces.
Here in Ontario, the Beer Store has a government-granted near-monopoly on beer sales. It's also owned nearly entirely by the two major national breweries, Molson and Labatt, which meant that it was considerably more difficult for craft brewers to get any exposure. (Apparently that changed somewhat this year).
Nonetheless, you can also buy craft beer at the breweries' on-site stores, or at the provincial liquor stores where it is usually stocked alongside the imports.
That quote is from a mid-80s magazine article on how to survive your visit to a Texas honky-tonk.
Certainly a lot better than the beers mentioned in this article.....
“Light beer is for weight-conscious women and homosexuals.”
I love it. Great and so very true.
I recall them being called a Brewers Outlet, but that was about 40 years ago. I used to drive across the Whirlpool Bridge to buy cases of Canadian beers that were never sold in the states.
Brewers Retail. They started rebranding to The Beer Store in the mid-1980s. That's what everyone called it anyway; it's not like they had a competing beer store, or something.
Have to disagree there. It's kind of nice to be able to have a bunch of beers on hot days like these without getting loaded or feeling bloated. I drank regular beer for years, then switched to light about 7 or 8 years ago. No regrets.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.