- Targeting young U.S. consumers, MillerCoors introduced a new light beer called Two Hats, reported FoodBev Media. The beer, which is expected to cost about $5 per pack, will launch with two fruit flavors, lime and pineapple.
- The mild beer taste and low price are intended to appeal to young adult drinkers who may not think beer tastes great or is affordable, Two Hat brand manager, Justine Stauffer, told FoodBev Media.
- Two Hats is part of a campaign to attract drinkers who have been switching over to wines and more expensive craft beers, reports AdAge.
Traditional beer, once a staple at stadiums and bars, has lost its place as consumers seek healthier and trendier options. MillerCoors hopes Two Hats can help make up for the trend.
Young people are still drinking beer — just not the traditional ones. Volume sales of domestic beers, including Budweiser, Bud Light, Miller Lite and Coors Light declined 3.9% in 2017, while sales of super premium beers like Michelob Ultra grew 9.2% and craft beer sales volume increased 3.6%. When millennials aren't drinking super premium and craft beer, they're drinking wine. A lot of wine. According to Wine Spectator, millennials drink 42% of all the wine imbibed in the U.S., although they make up only a quarter of all adults over 21.
The 21-24 age group, part of the youngest millennials, tends to seek new experiences and adventures, even in eating and drinking habits. They're willing to spend more for craft beer, up to $9 per six pack. Another aspect in the changing drinking habits is an interest in healthier eating and drinking. Wine may appeal to health conscious young adult drinkers because it typically has fewer calories than the traditional beer.
MillerCoors is banking on changing that impression with its ads for Two Hats. Touting a tagline of "Good, Cheap Beer," Two Hats is hoping its quirky ads will appeal to the millennial drinker who is less status conscious and more budget conscious.
MillerCoors isn't the only brand trying to change impressions of its product to reach more customers. Even beer companies that are doing well are looking at new ways to capture an elusive audience. Michelob Ultra has increasing sales, but is still fighting to retain its audience by promoting the idea that it's a better choice for the health conscious consumer, with 55% fewer carbs than a glass of wine.
Other brands are diversifying their portfolio. Molson Coors acquired a nearly 300-year-old cider to add to its arsenal. Likewise, Constellation Brands, which owns Corona, invested in a Canadian marijuana business, with the intention of creating a pot-infused, non-alcoholic drink.