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Macrobrewers to make cheap beer more expensive, push people to premium beer

Posted on April 12, 2011 in Business by Josh

From flickr user michaelallroy under a CC license

Beers like Natty Lite, Miller Lite, Bud Light, and PBR are getting a price increase to drive cheap-beer lovers toward more expensive brands.  Macrobrewers expect this will mean a transition to beers like Budweiser or other brands they own, but I can’t help but think it will also drive them to craft brewers.

I’d expect breweries like Sam Adams and Sierra Nevada to be beneficiaries of the move, mostly because they’re on many of the same shelves.  Also, in states where you can actually get it, Yuengling will probably also see a nice boost in sales.

From AdAge:

As brand manager for Keystone Light, Elina Vives would seem to be in a tough spot these days. The below-premium beer made big gains in the past few years as the economy tanked. But with trends improving, MillerCoors, along with Anheuser Busch, is raising prices on budget beers in a move to get drinkers to trade up to more-expensive brews such as Miller Lite and Bud Light, which struggled in the recession.

“What they’re really trying to do, both of them, is drive business to the premium brands where they make more money,” said Benj Steinman, president of Beer Marketer’s Insights. But for Keystone, which is owned by MillerCoors, that could mean losing momentum that made it one of the fastest share gainers in all of beer. So what’s a brand manager to do?

Also, as a side note, I had no idea Bud Light was so much more popular than Miller Lite.  It’s all bad, but when I’m somewhere and don’t have much of a choice, I always grab Miller Lite first.