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Miller Abandons Niche Drink; Brutal Fruit Shelved in Favor of Core Beverages

Posted on: Tuesday, 16 August 2005, 15:00 CDT

Miller Brewing Co. said Monday it's dropped test marketing of a fruit-flavored malt beverage, just one week after Miller's largest competitor said it would launch the latest in its own series of alternative drinks.

Miller's drink, Brutal Fruit, didn't pan out with consumers when it was tested this spring and summer in three cities: Richmond, Va., Tampa, Fla., and Seattle, said Miller spokesman Peter Marino.

Instead of pursuing an alternative beverage launch, Milwaukee- based Miller plans to continue focusing on its core brands, including Miller Lite, Marino said.

Brutal Fruit bills itself as fruit juice with 5% alcohol by volume, a level similar to beer. It comes in four flavors: strawberry, mango, litchi and kiwi.

The drink was launched in 2002 in South Africa by SABMiller Plc, Miller's corporate parent. Brutal Fruit has enjoyed strong sales in South Africa, and its main consumers are women between 24 and 35.

Brutal Fruit and other flavored malt beverages are aimed at consumers in their 20s who grew up drinking juice and soda and aren't wild about the taste of beer.

Many younger drinkers have been turning away from beer in recent years. Since 2000, beer's share of the overall alcohol beverage market has eroded, while the share held by wine and spirits has gained ground, according to New York-based consulting firm Beverage Marketing Corp.

Propelled by aggressive marketing, a new generation of drinkers is showing a growing preference for sweeter drinks, such as martinis and other cocktails.

In response, Anheuser-Busch Cos. last week announced the launch of Tilt, a new raspberry-flavored, caffeinated malt beverage.

St. Louis-based Anheuser-Busch, the nation's largest brewer, last November launched B-to-the-E, a beer infused with caffeine, ginseng and fruit flavors. Both Tilt and B-to-the-E are niche products.

Miller is in the second year of its turnaround, which has happened mainly because its largest brand, Miller Lite, continues to record growing sales. With Lite performing well, Miller is now working on new marketing campaigns for Miller High Life and Miller Genuine Draft, Marino said.

"We will aggressively look at products that have had success in other parts of the world for SABMiller," Marino said. "But we're going to be very disciplined in what we ask our system to focus on and support."

Miller, the nation's second-largest brewer, spent $16 million to launch alternative drinks Skyy Blue, Stolichnaya Citrona, Sauza Diablo and Jack Daniel's Original Hard Cola in 2002. But demand for flavored malt beverages faded, and all four drinks were dropped after Miller was sold to South African Breweries Plc, now known as SABMiller.

Copyright 2005, Journal Sentinel Inc. All rights reserved. (Note: This notice does not apply to those news items already copyrighted and received through wire services or other media.)

Source: Milwaukee Journal Sentinel

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