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Brewers Intensify Battle to Gain Young Drinkers
October 12, 2004

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News Summary

The beer industry is intensifying efforts to appeal to younger consumers who are increasingly turning to wine and spirits as their drinks of choice, the Milwaukee Journal Sentinel reported Oct. 10.

According to the New York-based consulting firm Beverage Marketing Corp., beer's share of the overall alcohol beverage market has steadily declined since 2000, while the share of wine and spirits has increased, especially among the 21-to-24 age group.

Part of the decline is attributed to aggressive marketing efforts by distilled spirits makers to attract consumers in their 20s. In addition, the new generation of drinkers has a greater preference for sweeter drinks, such as martinis and other fruit-flavored cocktails.

Although young men account for more than 80 percent of U.S. beer consumption, industry officials said they are not loyal drinkers. "They have a great thirst for variety," said Robert Lachky, Anheuser-Busch vice president of brand management. "People used to say, 'I am a Bud drinker.' They don't say that anymore. People now switch around with what they try."

To win back young drinkers, brewers have created a variety of flavored beer concoctions. For instance, Anheuser-Busch recently launched a new caffeine-infused beer flavored with ginseng and fruit flavors.

Adolph Coors Co. has come out with two new fruit-flavored versions of its Zima flavored malt beverage. The company is also test marketing slimmer, 8-ounce cans of Coors Light.

Miller, on the other hand, is focusing on its core brands, such as Miller Lite, by promoting it more aggressively in bars and clubs. "As a category, we must collectively convince retailers that we are worthy of more of their confidence," said Norman Adami, president of Miller.

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