4beans4me
Tue, Dec-21-04, 07:05
Half full? Half empty?
Coors, whose late entry for diet-minded drinkers is falling flat in a declining market, believes Aspen Edge has staying power.
By Julie Dunn
Denver Post Staff Writer
Tuesday, December 21, 2004 -
Adolph Coors Co. bellied up to the bar late with its low-carb beer, Aspen Edge, spending millions of dollars to launch the brand just as the low-carb diet craze was slowing. Aspen Edge has become No. 2 in the low-carb beer category, which is a small part of overall beer sales.
Coors isn't willing to say whether Aspen Edge, which launched nationally in May, is profitable. But sales of Aspen Edge have slipped in recent months, as have sales of the leading low-carb beer, Anheuser- Busch's Michelob Ultra.
Some of that decline is seasonal - Americans drink more beer during the summer months - but evidence shows fewer people are cutting out carbohydrates. The percentage of Americans who follow low-carb diets such as Atkins and South Beach has fallen from a high of 9 percent in January to 3.6 percent in November, according to market research firm NPD Group.
But the Golden brewer believes Aspen Edge has staying power.
"That's a healthy segment in the beer industry," said Coors spokeswoman Kabira Hatland, talking about the 3.6 percent. "We definitely see an opportunity there for Aspen Edge. Even after people go off (a low-carb) diet, they do remain carb-conscious."
During the four-week period ending Nov. 28, Coors sold 56,522 cases of Aspen Edge, according to Information Resources Inc., which tracks sales at supermarkets, drugstores and mass merchandisers excluding Wal-Mart. That's down from a high of 146,870 cases sold during the four-week period ending June 13. Total retail numbers are not available.
Michelob Ultra sold 900,344 cases during the four-week period ending Nov. 28, down from an all-time high of 1.29 million cases sold during the four-week period ending July 11.
For the 26-week period ending Nov. 30, 2003, Michelob Ultra sales held pretty steady, declining only 0.6 percent, according to Information Resources. For the same 26-week time period ending Nov. 28, 2004, Michelob Ultra sales dropped 28.6 percent.
"The decline with the low-carb phenomenon began several months ago, and it has picked up fairly quickly," said Tom Pirko, president of Santa Barbara beverage consulting firm Bevmark. "We were fairly certain from the very beginning that it was primarily a fad."
Industry analysts said Aspen Edge was introduced too late to capture significant market share away from Michelob Ultra, which essentially created the low-carb beer category when it was launched in September 2002.
"Coors in this case was a follower," Pirko said. "They waited too long, until the trend had passed and the hype was really fading. What you have now is too little, too late."
Aspen Edge has been a costly endeavor for Coors. The brewery declined to disclose how much it spent launching the brand, but it spent approximately $11 million during the second quarter of 2004 to market Aspen Edge, according to trade publication Beer Marketer's Insights.
"I'd say it's going to be difficult for Aspen Edge to be profitable," said Benj Steinman, president of Beer Marketer's Insights. "They've spent quite a bit on the marketing of it."
Aspen Edge accounted for slightly more than 1 percent of Coors' total retail sales in the third quarter of 2004, according to the company.
Even some Coors executives question the staying power of the low-carb beer segment.
"Key indicators now point toward a flattening of the low-carb trend," Coors chief financial officer Timothy Wolf said during an October conference call with analysts.
Another problem for Coors is that Aspen Edge has stolen some drinkers away from Coors Light, its flagship brand, Pirko said.
"I think it has cannibalized on Coors Light to some extent," he said. "And I don't think they'll be able to take share away from competitors. I don't think Edge gives them an edge."
Sales of Coors Light have been declining for more than a year. In contrast, Milwaukee-based Miller Brewing Co. decided to reposition its marketing of Miller Lite instead of launching a separate low-carb brand. Miller Lite has seen double- digit growth this year.
"All we did with Miller Lite was begin calling attention to the fact that we had half the carbs of Bud Light," Miller spokesman Scott Bussen said. "And it has worked out well for us."
Weak sales of Aspen Edge have little effect on Coors' plan to merge with Montreal-based Molson Inc. early next year, analysts said.
"It was never conceived as a positive about Coors," said Michael Palmer, an industry analyst with Veritas Investment Research Corp. in Toronto. "But it's just like the ice-beer category of 10 years ago - it came and it went. The low-carb category will come and go."
Staff writer Julie Dunn can be reached at 303-820-1592 or jdunn~denverpost.com (jdunn~denverpost.com) .
http://media.mnginteractive.com/media/paper36/losingtheirheadGFX21.jpg Drinking and dieting
What you drink is critical in dieting because liquid requires little digestion and goes more directly into your bloodstream, according to "South Beach Diet" author Arthur Agatston. Sugar (simple carbohydrates) speeds into the bloodstream, prompting a burst of insulin that stimulates hunger and encourages the storage of fat around the midsection. Food will slow the absorption of alcohol into the bloodstream and keep blood-sugar levels steadier.
Red wine
Has low alcohol content and contains resveratrol, from grape skins, which protects against heart disease.
White wine
Although it doesn't have the same cardiac benefits, it has low alcohol content similar to red wine's.
Hard liquor
Some - including vodka, champagne, gin, rum and bourbon - have few carbohydrates but can still raise blood sugar levels. Brandy, port wine, flavored liqueurs, sherry and wine coolers contain more natural and added sugars.
Beer
Worst alcoholic beverage for dieters. Its main component, maltose, increases blood sugar levels faster than table sugar.
http://www.denverpost.com/Stories/0,1413,36~33~2609747,00.html#
Coors, whose late entry for diet-minded drinkers is falling flat in a declining market, believes Aspen Edge has staying power.
By Julie Dunn
Denver Post Staff Writer
Tuesday, December 21, 2004 -
Adolph Coors Co. bellied up to the bar late with its low-carb beer, Aspen Edge, spending millions of dollars to launch the brand just as the low-carb diet craze was slowing. Aspen Edge has become No. 2 in the low-carb beer category, which is a small part of overall beer sales.
Coors isn't willing to say whether Aspen Edge, which launched nationally in May, is profitable. But sales of Aspen Edge have slipped in recent months, as have sales of the leading low-carb beer, Anheuser- Busch's Michelob Ultra.
Some of that decline is seasonal - Americans drink more beer during the summer months - but evidence shows fewer people are cutting out carbohydrates. The percentage of Americans who follow low-carb diets such as Atkins and South Beach has fallen from a high of 9 percent in January to 3.6 percent in November, according to market research firm NPD Group.
But the Golden brewer believes Aspen Edge has staying power.
"That's a healthy segment in the beer industry," said Coors spokeswoman Kabira Hatland, talking about the 3.6 percent. "We definitely see an opportunity there for Aspen Edge. Even after people go off (a low-carb) diet, they do remain carb-conscious."
During the four-week period ending Nov. 28, Coors sold 56,522 cases of Aspen Edge, according to Information Resources Inc., which tracks sales at supermarkets, drugstores and mass merchandisers excluding Wal-Mart. That's down from a high of 146,870 cases sold during the four-week period ending June 13. Total retail numbers are not available.
Michelob Ultra sold 900,344 cases during the four-week period ending Nov. 28, down from an all-time high of 1.29 million cases sold during the four-week period ending July 11.
For the 26-week period ending Nov. 30, 2003, Michelob Ultra sales held pretty steady, declining only 0.6 percent, according to Information Resources. For the same 26-week time period ending Nov. 28, 2004, Michelob Ultra sales dropped 28.6 percent.
"The decline with the low-carb phenomenon began several months ago, and it has picked up fairly quickly," said Tom Pirko, president of Santa Barbara beverage consulting firm Bevmark. "We were fairly certain from the very beginning that it was primarily a fad."
Industry analysts said Aspen Edge was introduced too late to capture significant market share away from Michelob Ultra, which essentially created the low-carb beer category when it was launched in September 2002.
"Coors in this case was a follower," Pirko said. "They waited too long, until the trend had passed and the hype was really fading. What you have now is too little, too late."
Aspen Edge has been a costly endeavor for Coors. The brewery declined to disclose how much it spent launching the brand, but it spent approximately $11 million during the second quarter of 2004 to market Aspen Edge, according to trade publication Beer Marketer's Insights.
"I'd say it's going to be difficult for Aspen Edge to be profitable," said Benj Steinman, president of Beer Marketer's Insights. "They've spent quite a bit on the marketing of it."
Aspen Edge accounted for slightly more than 1 percent of Coors' total retail sales in the third quarter of 2004, according to the company.
Even some Coors executives question the staying power of the low-carb beer segment.
"Key indicators now point toward a flattening of the low-carb trend," Coors chief financial officer Timothy Wolf said during an October conference call with analysts.
Another problem for Coors is that Aspen Edge has stolen some drinkers away from Coors Light, its flagship brand, Pirko said.
"I think it has cannibalized on Coors Light to some extent," he said. "And I don't think they'll be able to take share away from competitors. I don't think Edge gives them an edge."
Sales of Coors Light have been declining for more than a year. In contrast, Milwaukee-based Miller Brewing Co. decided to reposition its marketing of Miller Lite instead of launching a separate low-carb brand. Miller Lite has seen double- digit growth this year.
"All we did with Miller Lite was begin calling attention to the fact that we had half the carbs of Bud Light," Miller spokesman Scott Bussen said. "And it has worked out well for us."
Weak sales of Aspen Edge have little effect on Coors' plan to merge with Montreal-based Molson Inc. early next year, analysts said.
"It was never conceived as a positive about Coors," said Michael Palmer, an industry analyst with Veritas Investment Research Corp. in Toronto. "But it's just like the ice-beer category of 10 years ago - it came and it went. The low-carb category will come and go."
Staff writer Julie Dunn can be reached at 303-820-1592 or jdunn~denverpost.com (jdunn~denverpost.com) .
http://media.mnginteractive.com/media/paper36/losingtheirheadGFX21.jpg Drinking and dieting
What you drink is critical in dieting because liquid requires little digestion and goes more directly into your bloodstream, according to "South Beach Diet" author Arthur Agatston. Sugar (simple carbohydrates) speeds into the bloodstream, prompting a burst of insulin that stimulates hunger and encourages the storage of fat around the midsection. Food will slow the absorption of alcohol into the bloodstream and keep blood-sugar levels steadier.
Red wine
Has low alcohol content and contains resveratrol, from grape skins, which protects against heart disease.
White wine
Although it doesn't have the same cardiac benefits, it has low alcohol content similar to red wine's.
Hard liquor
Some - including vodka, champagne, gin, rum and bourbon - have few carbohydrates but can still raise blood sugar levels. Brandy, port wine, flavored liqueurs, sherry and wine coolers contain more natural and added sugars.
Beer
Worst alcoholic beverage for dieters. Its main component, maltose, increases blood sugar levels faster than table sugar.
http://www.denverpost.com/Stories/0,1413,36~33~2609747,00.html#