Lime-and-salt flavored beer leading a possible turnaround for Miller
9-11-2007
The rest of the beer category may feeling a chill—Miller Chill. The lime-and-salt flavored beer has been performing well enough that Miller is planning to raise its price as well as roll out a larger 22-oz. bottle this fall. 

Miller Chill launched nationally in June and roughly has market share similar to Sam Adams Light, Red Stripe and Bass Ale. It grabbed more than $22 million and 0.24% share of dollar sales in the category for the year ended Aug. 12, per Information Resources Inc. 

At least one analyst already views Chill as a factor that could lead to the company's resurgence. Thanks to gains by Chill and brands like Peroni Nastro Azzurro and Pilsner Urquell, the brewer "could become regarded, against all expectations, as a top-line revival story," Citigroup analyst Bonnie Herzog wrote in a recent industry report. 

Miller's retail sales growth increased more than 8% so far this year.

The rest of the beer category may feeling a chill—Miller Chill. The lime-and-salt flavored beer has been performing well enough that Miller is planning to raise its price as well as roll out a larger 22-oz. bottle this fall. 

Miller Chill launched nationally in June and roughly has market share similar to Sam Adams Light, Red Stripe and Bass Ale. It grabbed more than $22 million and 0.24% share of dollar sales in the category for the year ended Aug. 12, per Information Resources Inc. 

At least one analyst already views Chill as a factor that could lead to the company's resurgence. Thanks to gains by Chill and brands like Peroni Nastro Azzurro and Pilsner Urquell, the brewer "could become regarded, against all expectations, as a top-line revival story," Citigroup analyst Bonnie Herzog wrote in a recent industry report. 

Miller's retail sales growth increased more than 8% so far this year. 

Previously, flavored beers like Tequiza and others had a spotty track record. But Chill didn't position itself as a faux Mexican beverage or a Corona knockoff as Anheuser-Busch did with the 1999 launch of lime-and-tequila flavored Tequiza. Also, at a 110 calories, Chill is riding on the popularity of luxury lights which has been harnessed by Heineken Premium Light. 

"The time is different. Consumers today are more open to trying new flavors than they were when Tequiza came out," said Roman Shuster, research analyst at Euromonitor, Chicago. Advertising by Young & Rubicam, Chicago, positions Chill as "Viva Refreshment." 

Miller has successfully used Chill to lure wine and spirits fans. A rep previously noted about half of its sales are coming from outside the beer category. 

These sales will grow larger as the company is planning a 55 cents per case increase in some Midwest markets effective Oct. 1. 

The increase also could put Chill on par with a general price hike that the industry is anticipating this fall for craft and imported brands. Calls to Miller for confirmation of the pending moves were not returned. 

September 03, 2007

By Mike Beirne