--MillerCoors launching two new bottles this summer for Coors
Banquet, Miller Lite
--Boston Beer is now selling Sam Adams in a can for the first
time
--Brewers are latest to develop new bottles or cans for their
beers
By John Kell
Prohibition may have been a bleak time for alcoholic beverage
makers, but MillerCoors LLC is finding some inspiration from the
past with the launch of a new bottle design for Coors Banquet
beer.
MillerCoors--the U.S. joint venture between SABMiller PLC
(SBMRY, SAB.LN) and Molson Coors Brewing Co. (TAP)--in June is
introducing a new 12-ounce "stubby" shaped bottle that is modeled
on the shape of a bottle used in 1936. Back then, Coors Brewing Co.
developed a shorter, stubbier bottle after Prohibition ended to
save on glass and shipping.
The new bottle is about 2 1/2 inches shorter and a quarter inch
wider in diameter than a traditional long-neck lager bottle.
MillerCoors is planning to mostly sell the new, stubbier bottles at
so-called "on premise" locations, industry lingo for bars and
restaurants.
The move to target bars and restaurants with a new, trendier
bottle comes as MillerCoors aims to expand the brand's presence at
those locations. Only 10% of Coors Banquet's volume comes from on
premise locations today, with the rest sold at retail stores.
"We want to get new consumers into the brand, and on premise is
where brands are built," said Coors Banquet brand manager Briton
Groppa.
The Prohibition-era bottle is one of two bottles MillerCoors
pulled from the company's vault. The other bottle tested was from
the 1960s, though the older bottle had a more favorable consumer
response during testing. MillerCoors said it still will sell Coors
Banquet in cans and traditional bottle styles.
Though some of MillerCoors' brands have seen their volumes ebb
as consumers turn to pricier craft beer options, Coors Banquet is
still growing. Sales for the beer have climbed for six straight
years through 2012, according to MillerCoors, after a two decade
slump. The brand's sales are also higher so far this year.
The company this summer is also bottling Miller Lite in a new
bottle, the first considerable makeover for that brand's bottling
since 1989 when Miller Lite was sold in a long-neck bottle. The new
bottle--thinner and with a contoured grip--will only be available
in bars and restaurants this summer.
MillerCoors isn't alone in testing new bottles for its beers.
Dutch brewer Heineken NV (HEIA.AE) recently gave its green bottle a
face-lift in the U.S., selling the beer in a slimmer green bottle
and moving away from the recognizable squat version.
The introduction of the new bottle and a marketing push
surrounding the launch has helped Heineken lager sales jump 3.7% in
the four-week period ended May 18, according to the latest Nielsen
data.
Even beer makers in the smaller craft world are getting in on
the action. Boston Beer Co. (SAM), after long resisting selling its
Samuel Adams beers in cans, began to package some of its beers in
aluminum this summer. Boston Beer founder and Chairman Jim Koch
said selling Sam Adams in a can would open up opportunities for
consumers to enjoy the company's beers in places where bottles
either aren't allowed or are impractical--like on a boat, at a
sports venue or on airplanes.
But Mr. Koch long feared his beer wouldn't taste as good out of
a can as it does out of a bottle. Though liner technology for cans
in recent years has led to fewer flavor issues, Boston Beer has
said the opening of a standard can restricts the aromas and flavors
of a beer.
Boston Beer spent two years working with a design firm to
develop a can with a flared lip and wider top. Though it costs more
to produce than a standard can utilized for sodas, energy drinks
and other beers, Boston Beer believes it allows for a better
tasting experience.
"The top of the Sam Adams can stretches your mouth more
horizontally from the bigger lid and vertically for the hourglass
shape," Mr. Koch said. "Your mouth is slightly more open, and that
enables the beer to breathe in your mouth."
Boston Beer began to ship the canned version of its beer about a
month ago, with more expansion planned in June. The company has
tempered expectations around the launch, saying it won't result in
a huge jump in volume. For craft brands offered in both a bottle
and a can, less than 10% of sales are derived from the latter
version.
"The glass remains the 'gold standard' of drinking, but we were
looking for a more open mouth to replicate that sensation," Mr.
Koch said about the can's design.
Casual-dining restaurant chain Red Robin Gourmet Burgers Inc.
(RRBG) is also aiming to transform the way consumers enjoy beer.
Red Robin, which last year hired a master mixologist in a bid to
bolster its bar business, in June will begin promoting two beer
cocktails--one with a Coors Light base and the other with Blue
Moon.
The beverages, marketed as "Can-Crafted Cocktails," will be
featured in newly designed beer can cups--a reusable can, branded
to look like a beer can, but with an open top. Red Robin says the
aluminum material used for the cup is sturdier than a beer can, and
more consistent with a lot of cocktail glasses.
Donna Ruch, Red Robin's master mixologist, said the company
began to test the new cocktails late in 2012, and found as the
weather got warmer in certain markets, the drinks became more
popular.
Red Robin, which operates 475 locations across the U.S., is
hopeful the promotion will help bolster sales at the bar. About
7.5% of the chain's sales are tied to alcohol, as much as half of
what many of Red Robin's competitors derive from booze.
Denny Marie Post, chief menu and marketing officer, said the
drinks will be featured on some television ads Red Robin will be
running as part of a broader burger campaign. That represents a
shift for Red Robin, which has shown beers on the table in past
campaigns, but hasn't advertised in-house drink specials in recent
years.
Write to John Kell at john.kell@dowjones.com
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