MillerCoors brings together two strong traditions of innovation. The summer of 2008 saw the biggest change in the U.S. beer business since Prohibition. The creation of MillerCoors the combination of Miller Brewing Company and Coors Brewing Company creates the strongest No. 2 player the industry has seen in three decades or more. Meanwhile, Anheuser-Busch is on the verge of being acquired by InBev to create the biggest brewer in the world. Add it up and the U.S. beer business is going to get a lot more competitive. And innovation no doubt will play a key role in that competitive fight. The latest issue of Brew Magazine takes a look at the changes taking place in the beer business and zeroed in on what competition means for the new MillerCoors. To receive a subscription to Brew Magazine, drop a line with your name and email address here . From the issue: The combination of Miller Brewing Company and Coors Brewing Company brings together two brewers with strong traditions of innovation. Miller brought modern marketing practices into the beer business, popularized light beer and last year rolled out Miller Chill. Coors perfected the cold filtering brewing process, introduced the first two-part aluminum can, and used packaging innovation to drive Coors Lights success. Recognizing that consumers are always looking for something new, MillerCoors is committed to making innovation a hallmark of the organization. Innovation in beer is really important because people like to try new things, says Leo Kiely, CEO of MillerCoors. New ideas, cleverly executed, whether good packaging ideas, marketing ideas or advertising ideas, all qualify as innovation. You need to attract a certain amount of trial in the category every year, and you need something new to pull those people in. MillerCoors will pursue innovation efforts and so will units within MillerCoors. The AC Golden Brewing Company, a subsidiary launched at Coors, and the Jacob Leinenkugel Brewing Company, which was a unit of Miller, both will continue to develop brands. A reason MillerCoors will be able to emphasize and invest in innovation is because it will find savings and synergies elsewhere in the organization, says MillerCoors President and Chief Commercial Officer Tom Long. Because were going to take cost out of the system, were going to have more options for investment, Long says. We have a nice combination of package and product innovation between the companies. I think that gives people confidence to stretch even farther as we come together. Read the whole issue here.  read more »

MillerCoors vs. Anheuser-Busch InBev means more competition. Whos best positioned to win? The summer of 2008 has seen momentous change in the beer business. The creation of MillerCoors establishes the strongest No. 2 player the industry has seen in many years. And No. 1 player Anheuser-Busch is slated to be acquired by InBev. Anheuser-Busch InBev would easily become the biggest brewer in the world and one of the largest consumer goods companies, period. But for all the change, its clear that competition in the beer business is going to become more intense. The latest issue of Brew Magazine takes a look at the changes taking place and how the new competitive situation is shaping up. To receive a subscription to Brew Magazine, please drop a line with your name and street mailing address here . Here's an excerpt from the lead story: Not since Prohibition has the U.S. beer industry changed as much as it has in 2008. For decades the U.S. beer industry looked the same: Anheuser-Busch sold half the beer in the country and dominated competitors that werent even half its size. But the creation of MillerCoors -- the combination of Miller Brewing Company and Coors Brewing Company -- creates the strongest No. 2 player the industry has seen in three decades or more. And it comes just as A-B, once the biggest brewer on the planet, is on the verge of being absorbed by InBev. Both of these heavyweights confront a beer business thats changed dramatically over the years. Both are grappling with the rapid increase in the cost of everything from fuel to commodities. No one harbors any real hope that the industry will return to the low-cost environment enjoyed just a few years ago. Theyre also contending with tough competition from wine and spirits, as well as a changing consumer environment. The trading up trend has fueled the growth of imports and crafts and the surge in wine and spirits. Latinization has driven the growth of Mexican imports. Consumers once stuck loyally to one beer; but today, most have a repertoire of four or five beers. MillerCoors and the soon-to-be created Anheuser-Busch InBev will race to see which can figure out and tap into the beer industrys many changes. The stakes are high and the competition is going to be intense. They face a fragmented consumer market, says Maureen Ogle, historian and author of the book Ambitious Brew: The Story of American Beer. Can they be nimble and quick and at the same time be steady and rooted?  read more »

Brew Blog's picks of news from the beer business and beyond.August Busch IV, CEO of Anheuser-Busch, on Friday urged employees and distributors to stay focused amid reports that InBev is preparing to make a run at A-B. Beer Business Daily got ahold of the memo. Here are excerpts, as reported by BBD: We can't control rumors or speculation. But we DO control our growth strategies and how we operate our business. Its our job to conduct our business in ways that will keep the company strong, profitable and growing. All indications are that our launch of Bud Light Lime might be the most successful product launch since Mich Ultra..... " ... Some of our competitors would like nothing better than to see Anheuser-Busch get distracted by the rumors over the holiday. They underestimate us.  read more »

Board members named. SABMiller plc and Molson Coors Brewing Company today announced the closing of the transaction to create MillerCoors.MillerCoors, which combines their U.S. and Puerto Rico operations, begins operating as a combined entity on July 1.As a unified company with a world-class board and leadership team in place, MillerCoors will be able to create tremendous opportunities for innovations in products and services that will allow us to drive profitable growth, Pete Coors, Chairman of MillerCoors, said in a release announcing the closing.  read more »

Substantial operations, investment in hometowns.MillerCoors announced today that it is placing its headquarters in Chicago even as it maintains substantial operations in Golden, Colo., and Milwaukee.MillerCoors picked Chicago for a variety of reasons. One of them: Picking a neutral site reflects the 50-50 governance structure agreed to by SABMiller plc and Molson Coors Brewing Company.  read more »

Pale ale in the pipeline. After successfully adding a full portfolio of Blue Moon seasonals, Coors Brewing Company is poised to add another line extension. Coors is getting ready to add a pale ale -- called Pale Moon -- to the family. From Beer Business Daily, which was covering Coors distributor conference: Lastly, Blue Moon is getting a baby brother, Pale Moon (a pale ale). Pale Moon will launch in several test cities next month and rollout nationally in 2009 if all goes well. According to a label approved by federal regulators, Pale Moon is billed as a "Belgian-style pale ale." "Pale Moon is a drinkable pale ale that has a distinctive hop aroma, without the lingering aftertaste," the label says. "This Belgian-Style Pale Ale is brewed with European malts, cascade hops and a touch of hibiscus and orange peel. Thse ingredients create a rich copper colored ale with a flavor complexity that one would expect from the Blue Moon Brewing Company." In other news from the conference, BBD reported that Chief Marketing Officer Andy England said Coors anticipates selling more than 1 million barrels of Blue Moon in 2008. It also will add 22-ounce bottles and 12-packs of seasonals. Also at the conference, Coors CEO Peter Swinburn laid out aggressive plans for Coors Light in 2008. New packaging innovation is on tap with vented cans. From the story: One of Coors biggest goals is to help Coors Light improve in the on-premise in 2008, and grow 5%. "Nothing is more important to us than on-premise success with Coors Light...we plan to do better on 2008," said Andy. BBDs home page is here . The Pale Moon label image can be seen here . The label application can be seen here . A press release discussing Coors new advertising is here .  read more »

Brew Blog's picks of news from the beer business and beyond. Beer volume in supermarkets slipped by 1.8 percent during the four weeks ended May 24, according to beer sales statistics from Nielsen. National weighted average prices increased by 2.7..."Brew" Blog

Brew Blog's picks of news from the beer business and beyond. A strong incremental volume gain drove total beer sales in supermarkets up 0.5 percent for the four weeks ended May 3, according to beer sales statistics from Nielsen. Pricing..."Brew" Blog

Executives highlight scale, brands, talent.The leadership team of MillerCoors highlighted the new companys scale, brands and talent as reasons it can win in the U.S. beer market.MillerCoors, which brings together the U.S.  read more »

We are a brand-driven industry, Long says.Brewers must remain committed to investing in brands even as they grapple with rising costs, MillerCoors President and Chief Commercial Officer Tom Long said Wednesday. Investing in brands is critical as the consumer market continues to fragment and wine and spirits present formidable competition, he said during a speech at the Beer Institutes annual meeting in White Plains, N.Y.Indeed, increased investment behind brands -- along with driving efficiency -- is a key presumption shaping the thinking of MillerCoors executives.There has never been a more critical time to invest, Long, the incoming chairman of the Beer Institute, said in his prepared remarks. We are a brand-driven industry.  read more »