Devoted to branding and building and protecting brands

Two venerable beer brands, Coors and Miller Lite, have formed their own coalition to try to slip banana peels under the hooves of the Clydesdales (read: compete with Anheuser-Busch).   Ain’t gonna happen, at least not in terms of market share.  This was desperation -- a move inspired by finance, not marketing.  And if it improves the numbers, great.  It’s unlikely to improve the revenue line, however.  So, presumably, some of that projected $500MM cost savings will fall to the bottom line, which Wall Street noticed today and rewarded Coors.  

As an inveterate Coors drinker who never did develop a taste for Bud but who always enjoyed the schmaltz of the holiday TV spots, I’ll raise a glass to the new combo and wish them well.  As for brand dilution?  I don’t think so.  Besides, more and more people are making purchase decisions based the prices they get at BevMo, etc.  But A-B still rules the market, which is shrinking for everybody, so the smaller suds need to do something.  It’s nothing new in business. If you can’t beat ‘em, join forces with a lesser competitor.  And I’ll drink to that.