Who knew there was such a thing as "premium" light beer? Or, more precisely, who knew that Miller Lite is considered a "premium" anything?! But, it's still an interesting question.
Given the economic downturn, and beer's status (particularly craft beer's) as a luxury item, will people start turning to beers like Busch Light, Old Milwaukee and Milwaukee's Best instead of drinking Dogfish Head 120 by the case? According to Miller Brewing's henchman over at Ye Olde Brew Blog, "wide price gaps can encourage people to trade down."
Currently, the going price for a six of New Glarus Seasonal seems to be around $7.99; a case of the stuff will set you back a cool $32. Compare that with $17.49 for a 30-pack of Busch Light. A price gap of $14.50. The price gap between Miller Lite, a "premium light beer," and Busch Light, presumably not a "premium light beer," is $4.33, up from only $3.94 a year ago; and Miller is worried about defectors.
So, is a widening a price gap going to make you change your beer drinking habits? If not, what price reducing tactics, if any, do you intend to take?
Here at MBR we're hoping to get more free beer.
By the way, who determines whether a beer is, or is not, a "premium" light beer? (That's a serious question. If you know the answer or have a marketing data sheet breaking down beer into such categories, I'd love to see them.)