DAWGH8R
07-21-2007, 11:24 AM
I have heard that this is NASTY !! Anyone try it yet? Since I don't drink,....I'll never know !!
By DAVID KESMODEL
The Wall Street Journal
Miller Brewing Co., known for its conventional slate of American beers, is hoping a brew with a Mexican twist can help pull it out of a sales slump.
The Milwaukee brewer is launching Miller Chill, a 110-calorie beer flavored with lime and salt, throughout the U.S. this summer after a successful test run in Texas and other states.
Miller said Chill is expected to be available in the Kansas City area as early as this week.
Chill is Miller’s answer to the michelada, a drink popular at Mexican beach resorts usually consisting of beer, lime juice and ice in a salt-rimmed glass.
Miller, the North American arm of London-based SABMiller PLC, plans to spend more than $30 million this year on television and print advertising for Chill. TV ads in local markets included the slogan “Se habla Chill?” (“Do you speak Chill?”).
Miller is counting on Chill to help it reverse a sales decline in North America and regain market share in the face of brutal competition.
In the U.S., beer giants Miller, Anheuser-Busch Cos. and Molson Coors Brewing Co. are struggling to increase sales of their flagship domestic beers as beer drinkers increasingly reach for imports and small-batch “craft” brews. Miller’s prowess in the American beer industry has been gradually slipping since the 1980s, when Miller Lite held the lead in the light-beer wars with its famed “Tastes Great, Less Filling” ad campaign.
Last year, Miller Lite lost market share to the best-selling U.S. beer, Bud Light. Miller’s other brands, such as Miller High Life and Miller Genuine Draft, have stumbled for several years. In the year ending March 31, Miller’s earnings before interest, taxes and amortization slid 17 percent, making it the worst performing of SABMiller’s regional divisions. North American sales fell 1 percent to $4.9 billion.
The brewer hopes Chill, which it calls a premium light lager, will appeal to light-beer drinkers seeking more flavor. Miller is targeting 21- to 35-year-olds with the new brand, said Randy Ransom, Miller’s chief marketing officer.
“Consumers are looking for new and different ways to experience beer, and they’re willing to pay for it,” he said. “The core objective of this brand is to take share from competitive mainstream brands by giving light-beer drinkers a compelling reason to trade up.”
At stores, a six-pack of Chill, sold in lime-green long-neck bottles, sells for $6.50 to $7, about a dollar more than a six-pack of Miller Lite.
Miller isn’t positioning Chill as an alternative to Grupo Modelo SA’s Corona, the popular Mexican import often served with a wedge of lime, Ransom says, stressing that the two beers taste very different.
Beer industry analysts say the introduction of Chill is an important move for the company.
“They need a shot in the arm,” said Benj Steinman, editor of the industry newsletter Beer Marketer’s Insights. “This is a pretty big bet by Miller.”
Miller began researching the possibility of a michelada-style beer about 18 months ago. Its focus groups suggested American beer drinkers would be willing to try it.
“There’s clearly a move toward Latinization if you’ve been watching the American consumer,” said Ransom, citing hits such as the Mexican-food chain Chipotle Mexican Grill Inc.
Michelada ingredients can vary. They sometimes include hot sauce and Worcestershire sauce with a pinch of black pepper. Miller tested more than 20 recipes of Chill. It declined to discuss how the beer is made, citing competitive factors. The brewer began test-marketing Chill in March in San Diego, Texas, Arizona, New Mexico and Florida. The beer did so well that Miller decided after four weeks to launch it nationally — an unusually short trial period in the beer industry. Sales to retailers have been about 40 percent higher than the company’s goals, according to a recent memo sent to the company’s distributors.
However, U.S. brewers’ past efforts at Mexican-style drinks haven’t had big success.
In 1999, for instance, Anheuser introduced Tequiza, a “specialty malt beverage” flavored with lime, agave nectar and tequila.
Despite some initial success, Tequiza was unable to make a dent in sales of Corona, its main target.
By DAVID KESMODEL
The Wall Street Journal
Miller Brewing Co., known for its conventional slate of American beers, is hoping a brew with a Mexican twist can help pull it out of a sales slump.
The Milwaukee brewer is launching Miller Chill, a 110-calorie beer flavored with lime and salt, throughout the U.S. this summer after a successful test run in Texas and other states.
Miller said Chill is expected to be available in the Kansas City area as early as this week.
Chill is Miller’s answer to the michelada, a drink popular at Mexican beach resorts usually consisting of beer, lime juice and ice in a salt-rimmed glass.
Miller, the North American arm of London-based SABMiller PLC, plans to spend more than $30 million this year on television and print advertising for Chill. TV ads in local markets included the slogan “Se habla Chill?” (“Do you speak Chill?”).
Miller is counting on Chill to help it reverse a sales decline in North America and regain market share in the face of brutal competition.
In the U.S., beer giants Miller, Anheuser-Busch Cos. and Molson Coors Brewing Co. are struggling to increase sales of their flagship domestic beers as beer drinkers increasingly reach for imports and small-batch “craft” brews. Miller’s prowess in the American beer industry has been gradually slipping since the 1980s, when Miller Lite held the lead in the light-beer wars with its famed “Tastes Great, Less Filling” ad campaign.
Last year, Miller Lite lost market share to the best-selling U.S. beer, Bud Light. Miller’s other brands, such as Miller High Life and Miller Genuine Draft, have stumbled for several years. In the year ending March 31, Miller’s earnings before interest, taxes and amortization slid 17 percent, making it the worst performing of SABMiller’s regional divisions. North American sales fell 1 percent to $4.9 billion.
The brewer hopes Chill, which it calls a premium light lager, will appeal to light-beer drinkers seeking more flavor. Miller is targeting 21- to 35-year-olds with the new brand, said Randy Ransom, Miller’s chief marketing officer.
“Consumers are looking for new and different ways to experience beer, and they’re willing to pay for it,” he said. “The core objective of this brand is to take share from competitive mainstream brands by giving light-beer drinkers a compelling reason to trade up.”
At stores, a six-pack of Chill, sold in lime-green long-neck bottles, sells for $6.50 to $7, about a dollar more than a six-pack of Miller Lite.
Miller isn’t positioning Chill as an alternative to Grupo Modelo SA’s Corona, the popular Mexican import often served with a wedge of lime, Ransom says, stressing that the two beers taste very different.
Beer industry analysts say the introduction of Chill is an important move for the company.
“They need a shot in the arm,” said Benj Steinman, editor of the industry newsletter Beer Marketer’s Insights. “This is a pretty big bet by Miller.”
Miller began researching the possibility of a michelada-style beer about 18 months ago. Its focus groups suggested American beer drinkers would be willing to try it.
“There’s clearly a move toward Latinization if you’ve been watching the American consumer,” said Ransom, citing hits such as the Mexican-food chain Chipotle Mexican Grill Inc.
Michelada ingredients can vary. They sometimes include hot sauce and Worcestershire sauce with a pinch of black pepper. Miller tested more than 20 recipes of Chill. It declined to discuss how the beer is made, citing competitive factors. The brewer began test-marketing Chill in March in San Diego, Texas, Arizona, New Mexico and Florida. The beer did so well that Miller decided after four weeks to launch it nationally — an unusually short trial period in the beer industry. Sales to retailers have been about 40 percent higher than the company’s goals, according to a recent memo sent to the company’s distributors.
However, U.S. brewers’ past efforts at Mexican-style drinks haven’t had big success.
In 1999, for instance, Anheuser introduced Tequiza, a “specialty malt beverage” flavored with lime, agave nectar and tequila.
Despite some initial success, Tequiza was unable to make a dent in sales of Corona, its main target.