Superior Beverage Group, Columbus, Ohio, has been selected to be one of seven test markets in the country for the new Home Draft package, it said on its website. The product allows consumers at-home consumption of Miller Lite and Coors Light draft beer in a 5.7-liter self-contained unit. [image-nocss] This package offers the convenience to consumers to enjoy draft beer served upright in the fridge that keeps beer fresh for 30 days. The Home Draft unit has a CO2 tap system attached to each unit that provides a crisp clean taste after every pour.
MillerCoors, the second-largest U.S. brewer by revenue, has begun testing the Home Draft for its biggest brandsMiller Lite and Coors Lightin about a half-dozen cities, including Dallas, Phoenix and San Diego. The boxed product, which is designed to fit into refrigerators for drinkers to consume periodically, rather than for one-time party use, comes amid packaging overhauls by the U.S. units of Heineken NV and Anheuser-Busch InBev NV, the report said.
Sales of major U.S. beer brands are struggling, said the Journal, as some recession-weary consumers drink less or switch to cheaper brews. Many of the top-selling brands showed declining sales volume at retailers in the 13 weeks through July 12 compared with a year earlier, according to market tracker Information Resources Inc. Anheuser's Bud Light, the No. 1 brand, saw its sales volume slide 5.5%, while Heineken, the No. 9 seller, fell 15%.
"In this economy, we are seeing an increase in packaging innovation" in consumer-goods industries, Kara Gruver, head of the North America consumer-products practice at consulting firm Bain & Co., told the newspaper "In many cases, it can be less costly [than creating a new product] and a very effective form of innovation."
Chicago-based Miller Coors, a U.S. joint venture of SABMiller PLC and Molson Coors Brewing Co., is testing home-draft packages at a time when one of its major brands, Miller Lite, is mired in a prolonged slump, the report said. Despite a new ad campaign this year aimed at revitalizing the brand, Miller Lite's retail sales fell 7.5% by volume in the recent period tracked by IRI.
Sister brew Coors Light, on the other hand, continues to post sales gains. Analysts attribute its long-running success in part to innovations in packaging, such as "cold-activated bottles," with labels that turn blue when the beer inside cools to a certain temperature.
MillerCoors's new Home Draft systems are meant to be placed upright in a refrigerator, which will keep the beer fresh for about 30 days. The price per ounce is roughly 15% higher than for an 18-pack of the same beer, MillerCoors said.
The product, which is recyclable, is aimed at the 30% of beer drinkers who say they prefer draft beer to the bottled or canned variety, Andy England, chief marketing officer at MillerCoors, told the paper. "We're really trying to meet that occasion when you just got back from work and want to reward yourself," rather than "the party occasion," he said.
Home Draft, which carries about 5.7 liters, bears some similarities to Heineken's five-liter DraughtKeg, which the Amsterdam-based brewer introduced in the United States in 2005. But the DraughtKeg generally is designed to be consumed all at once, unless drinkers buy an optional BeerTender countertop chilling system, which is sold at retailers for about $200.
The performance of the DraughtKeg may hint at the challenge MillerCoors could face to woo consumers. The DraughtKeg enjoyed an explosive start in the United Statres, but Heineken pulled back on distribution as sales cooled and the company learned the product is most popular around holidays, the football season and other social occasions.
Heineken this month began testing the sale of Newcastle Brown Ale in the DraughtKeg format, for about $20 at retailers, in Chicago, Minneapolis and Southern California. The company continues to focus on innovation in packaging "in a way that reinforces the premium nature of" its brands, Christian McMahan, chief marketing officer at Heineken USA, told the paper.
The U.S. unit of Leuven, Belgium-based Anheuser plans to unveil new can and box designs for brands such as Bud Light when the football season gets under way next month, said the report. As part of the shift, the company says it intends to better leverage its sponsorship of the majority of National Football League teams by creating packages showing the colors or logos of teams. Meanwhile, it also will roll out packages with generic colors tailored to college teams in specific regions.
"It's an opportunity to tap into the passion people have for their teams," Dave Peacock, president of Anheuser's U.S. arm, told the Journal. The company's research has shown that the most loyal consumers of its light beers "associate with sports in a dramatic way."
Brewers including Anheuser also plan some new beers in addition to new packaging, said the report. Anheuser intends to test Budweiser Select 55 a brew with 55 caloriesin several markets later this year, as it tries to compete better with MillerCoors's MGD 64, a 64-calorie brew that is off to a strong start.
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