Businessweek Archives

Miller and Bud Begin a New Round in War of "Taste."


? Exclusive: Relaunch of McKids--It's Not About Selling Toys and Clothes. |

Main

| GM's "Employee Price" Ads Pay Off So Far ?

June 16, 2005

Miller and Bud Begin a New Round in War of "Taste."

David Kiley

Miller Brewing said it would run a new television spot this week called "The truth hurts", in which it depicts Bud Light drinkers "startled to learn that Miller Lite has more taste".

The ad is a reversal of trend. For the last few months, Miller has been laying off going after Anheuser-Busch's Bud in ads. But as Miller has been gaining share, while beer sales in general decline while legions of consumers awaken to the notion that spirits and wine have more taste than either Miller of Anheuser products, Bud has been cutting prices, thus putting more pressure on Miller sales.

Besides the snarky direct attack ads, Miller will be cutting prices in repsonse to Bud. "Doug Brodman, senior vice-president for sales, said, "we initially underestimated A-B's aggressiveness [when the began discounting at the start of the year], and were not able to move quickly enough to address their cuts".

I guess everyone's entitled to their taste in beer. But when I see two companies with products that are practically commodities in the way they are sold and taste, and they get into a price war at a time when costs are rising, I see a category with terrible upside for profit.

08:25 AM

brands in trouble

TrackBack URL for this entry:

http://blogs.businessweek.com/mt/mt-tb.cgi/

Since when did either of these brands have taste? Is that something new they added as a special promotion? Whatever happened to "real" advertising that focuses on dogs, cool cars, fast sports and Swedish bikini teams? That's why I drink beer!

Posted by: Kevin Stirtz at June 21, 2005 08:10 AM

I saw one of these commercials, I guess when it first aired: newly married couple driving off in the limo, wife tells husband "by the way there are some pictures of me that are going to be on the internet". Husband replies something like "really? that's cool". She's relieved, then says "by the way, miller has more taste than bud". In the commercial when I first saw it, they guy turns bright red, points out the car door and yells "GET OUT!!!!". Now a different version is airing, in which the guy just says "what?" and starts crying like a little girl. The first version was relatively effective, the second totally pointless. I wonder about the how, why and who of what caused that change. Did somebody complain? If so, why? Is it common for a commercial spot to be altered AFTER it has already hit the air?

Posted by: Joe at August 2, 2005 06:25 AM

No doubt that today's beer commericials are aimed at our younger folks. Yes, I am aware of the posted or printed precautionary health and safety data on every label or wall poster advertisement you see but as a concerned grandfather who has enjoyed the pleasure of an ice cold brew since I was handed my first from MY grandfather (my father was a tee-totaler)forty years ago, I would like to see one showing an older voice--perhaps a 'been there done that' from a peer in a non-patronizing yet attentive message to the amount of fun you can have but not to forget the enormous responsibility you will accept as you climb into your vehicle to drive. I can still hear my grandfathers' words 'BE CAREFUL SON' and my four sons' heard the words 'BE CAREFUL SON' the same beacon reminder, and I know my grandsons'will hear them too! It may sound corny to some in today's world but it WILL work---you that have read these words---JUST SEE IF YOU CAN FORGET THEM TODAY...try as you will see for yourself but thats a good thing...don't you agree?

Posted by: Paul at March 3, 2006 11:46 AM


Reviving Keynes
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus