“The reality is although the beer market's been challenged in some of our markets, the overall alcohol market is actually growing. Consumers are actually finding occasions where beer doesn't satisfy them” said Swinburn. “We need to understand what those occasions are and develop beers that actually satisfy those occasions. By and large, beer is still very much the alcohol drink of choice.”
Molson Coors is not alone in turning to other products to spur growth. According to Ad Age, Anheuser Busch Inbev will also be entering the hard tea category with an extension of its Michelob Ultra line, called Michelob Ultra 19th Hole Light Tea and Lemonade. Anheuser Busch is also expected to introduce Michelob Ultra Light Cider in May.
Meanwhile, Miller Coors, the U.S. joint venture of Molson Coors and SABMiller, announced in February its craft division, Tenth and Blake, was buying Minneapolis-based Crispin Cider. Both moves are looking to cash in on growth in the cider category, sales of which grew 26 percent in 2011.
Beyond consumers turning away from beer, another problem for the larger brewers is that when people are turning to beer they are turning away from the mass-produced products and turning to craft. According to the latest statistics from the Craft Brewer Association, sales of craft beer were up 15 percent in the first half of 2011.Page 2 of 3 | Prev Page | Next Page