Brand differentiation pays off for Molson Coors

A long-term approach to brand differentiation has helped brewer Molson Coors enhance the performance of Coors Light and Miller Lite, two major brands that compete in the same category.

The background

• Net sales of Coors Light rose by 4% in 2021, compared with a decline in the mid-single digits in 2018.
• On its part, Miller Lite logged 7% growth last year, compared with a 0.5% decline in 2018.
• “These two brands compete in the same segment. For years, it seemed virtually impossible to get them both moving in the right direction at the same time,” Gavin Hattersley, president/CEO of Molson Coors, told investors on an earnings call.

The strategy

• Overcoming this problem, Hattersley explained, has relied on a “multi-year approach” to differentiating Coors Light and Miller Lite.
• In 2019, Michelle St. Jacques, CMO of Molson Coors, introduced a new strategy to “bifurcate” the marketing of these brands.
• This approach effectively made “them unique in the marketplace and how they show up in ads,” said Hattersley.

The details

• Coors Light’s “Made to Chill” campaign sought to recruit younger drinkers who wanted to find ways to relax in an always-on world.
• This initiative “generated an immediate improvement in brand health in 2019, and that improvement has held since,” said Hattersley.
• Miller Lite has focused on how beer can serve as a valuable element of social occasions between friends.

The big idea

“ROI [return on investment] on the marketing campaigns for our premium light brands has significantly grown.” – Gavin Hattersley, president/CEO, Molson Coors.

Sourced from AlphaStreet