E-Malt.com News article: USA: MillerCoors focusing on Redd’s ale franchise to compete against wine and spirits

The Redd’s ale franchise is the apple of MillerCoors’ chief executive officer Tom Long’s eye right now, Milwaukee Business Journal reported on May 9.

The fruit-flavored ales — Redd’s Apple Ale and Redd’s Strawberry Ale — have more than doubled in volume in the first quarter of 2014 compared with the same period last year. The franchise is bigger than Mike’s Hard brands. And it continues to outpace share growth versus Budweiser’s ‘Rita franchise, according to Nielsen.

These offerings are part of Chicago-based MillerCoors LLC's new product strategy: to compete against wine and spirits.

Long told analysts during an earnings call on May 7 that the strategy is working since Redd’s Apple Ale continues to be one of the fastest-growing brands in the category.

“Best of all, much of Redd’s success is incremental to beer as 40 percent of Redd’s volume comes from white wine and vodka,” Long said.

So the company expects to continue capitalizing on the success of the franchise by introducing the Redd’s variety pack, which will feature its newest offering Redd’s Hard Iced Tea.

The company also plans to introduce a higher alcohol by volume ale called Redd’s Wicked Apple, which will be available in 10- and 20-ounce cans in August.

In April, MillerCoors also introduced Smith & Forge, a hard apple cider.

“The cider is still gaining distribution, but it’s off to a very promising start,” Long said.


14 May, 2014