Word: millers
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...sound like an obvious motivational tool, but not every beer boss is willing, as Miller Brewing CEO Norman Adami is, to tap a keg and chug a beer at a corporate gathering in front of several hundred cheering workers. There are probably even fewer at his level who are given to earthy battle cries like "If you want to run with the big dogs, you can't piss like a puppy" or "Never come to a gunfight with only a knife." But Adami surely needed all the fighting spirit he could muster when, almost 18 months ago, his longtime employer...
...spent the bulk of his career climbing the ladder at his native land's dominant brewer, Adami, 49, has quickly learned to relish the role of feisty American underdog. Since he took the helm in February 2003, eight months after SAB bought Miller for $5.6 billion, Adami and his team of transplanted South Africans have defied the skeptics by starting a remarkable turnaround at Miller. Over the past decade and a half, the company had been neglected, treated as an afterthought by its parent, food and tobacco giant Philip Morris. But thanks to an irreverent ad blitz that has presented...
...Miller's resurgence has injected a much needed dose of excitement into the $70 billion U.S. beer business, where growth and creativity had gone stale. It comes at a time when hard liquor and wine have captured the imagination (and wallets) of growing numbers of pub crawlers and partygoers. Although Anheuser-Busch's roughly 50% share of the U.S. market still vastly outweighs Miller's 18%--and A-B's sheer size affords it huge advantages in distribution and marketing--Miller is no longer being dismissed as a dinosaur destined to fade away like Schlitz, another once popular Milwaukee beer...
...heated as it is, the escalating battle between Miller and A-B in the U.S. is only one part of a much wider heavyweight fight for beer drinkers around the globe. For decades the beer business has been relatively fragmented, dominated by local tastes and brewers. In recent years, multinational players like Anheuser-Busch, SABMiller, Heineken and Interbrew have embarked on a wave of consolidation, buying up smaller brands in Eastern Europe, Latin America and Asia. In May, SABMiller and A-B briefly engaged in a bidding war for Harbin, the fourth largest brewery in China, which...
...future growth lies in China, the U.S. market remains easily the most profitable. Even in the down-and-dirty beer business, the recent skirmishes between Miller and Bud have been notable for their aggressiveness. With more and more Atkins-conscious beer drinkers watching their waistlines and Anheuser's Michelob Ultra low-carb beer taking off, Miller launched ads in late 2003 pointing out that Miller Lite had half the carbs of Bud Light. Then, in April, Adami upped the ante with the humorous President of Beers campaign. Once it became clear that Miller's well-crafted messages were having...