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As economy flounders, people still drink beer

I see it most on Friday afternoons, no matter what the weather: people dressed in uniforms from blue-collar jobs, or dirty overalls, trudging down the street towards their homes, carrying a case of beer, in cans. Sometimes there will be another item in a plastic bag from the corner convenience store: a bag of potato chips, maybe. But the beer never changes.

Even more of it than last year, says MillerCoors, the U.S. combination of Molson Coors Brewing Company (NYSE: TAP) and SABMiller Plc (OTC: SBMRY). According to MillerCoors Chief Commercial Officer Tom Long, growth is slowing but, despite a recession, is slowing less than wine or spirits growth; down to 0.6% for 2009-2012 compared to 0.9% between 2004-2008. Among Miller and Coors brands showing market share growth are Miller Lite, Coors Light, Miller Genuine Draft 64, Blue Moon Beer (a craft beer), Miller High Life and Keystone Light. First quarter sales for the company were up 3.8% for profit of $68.5 million.

Continue reading As economy flounders, people still drink beer

The beer wars ramp up as Miller defames Anheuser-Busch Clydesdales

In the competitive brewing business, sometimes it's just hard to play nice. Over the weekend, Miller Brewing Co. -- a subsidiary of SAB Miller -- launched what appears to be a potential salvo in a ramped-up version of the "beer wars" of yesteryear.

A new commercial for Miller Lite, which debuted during football games and NASCAR events, uses the iconic Dalmatian-and-Clydesdale image -- used for decades by Anheuser-Busch (NYSE: BUD) -- to pay tribute to its own number-two product. The Clydesdale-drawn wagon features a sign advertising "Miller Lite. Half the carbs of Bud Light." At the end of the commercial, the dog exits the wagon for a Miller truck, which speeds away.

BUD advertising officials were quick to respond, taking out a full-page-ad in yesterday's USA Today, imploring Miller to "keep up the bad work." Launching back, Miller representatives revealed plans to continue hammering home the facts that Miller Lite has "fewer carbs and more taste."

Continue reading The beer wars ramp up as Miller defames Anheuser-Busch Clydesdales

Molson Coors (TAP) takes over NASCAR beer sponsorship

Molson Coors (NYSE: TAP) NASCARMolson Coors Brewing Co. (NYSE: TAP) has reached agreement to replace Anheuser Busch's (NYSE: BUD) Busch with Coors Light as the official brew of NASCAR. The five-year deal is worth a reported $20 million, according to AutoRacingReport.com.

Anheuser-Busch has pulled back on its involvement with NASCAR, including dropping out as title sponsor of the Busch series, the Beta version of NASCAR, after the race organizers signed an eight-year deal with ESPN and upped the title sponsorship price from $10 million to $40 million. Given that most of the company's recent success has come in upscale/imported beers and other beverages, it makes sense that they would cut back on marketing more mature products such as Bud Light and Busch.

While the Molson Coors deal gives it the right to use the logo, etc. as the official beer of NASCAR, it does not include title sponsorship of the formeer Busch series, according to a NASCAR spokeperson I talked to. She told me that this title sponsorship is still up for sale. Recently, one of the rumored front runners for this sponsorship, Doctor's Associates Inc.'s Subway , dropped out of the running.

The deal does not preclude Anheuser-Busch's ongoing sponsorship of a team, which has been roiled by controversy as legendary driver Dale Earnhardt Jr. jumped ship to drive for Hendrick Motorsports next year. In his place the team has hired driver Kasey Kahne.

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DJIA-89.2312,801.23
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S&P 500-9.311,342.64

Last updated: February 11, 2012: 02:20 PM

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