- July 12, 2017
Hot New Flavors, Blueberry & Raspberry, Reignite Interest in This “Crisp like an Apple” MillerCoors Game Changer.
In 2015 MillerCoors knocked it out of the park with the debut of Redd’s Apple Ale. Nielsen proclaimed it a “Breakthrough Innovation Winner” and it quickly became the nation’s best-selling six-pack in grocery and convenience stores like Harris Teeter and Seven-Eleven. The brewery couldn’t make it fast enough.
Marketing Director Daniel Warhaftig riffs on Redd’s renewed success and explains why it raises the ring at your register by 14%.
We set out to make something different for beer drinkers who grew up with lots of flavor choices,” explains Warhaftig. “The beer drinkers we are talking about are the men and women who enjoy American light lagers. It had to be sessionable [5% ABV or less], and not as sweet as an FMB [Flavored Malt Beverage].We worked really hard on the liquid. Nobody was doing apple in the beer aisle. And we knew that apple is a favorite, even nostalgic, flavor for consumers. Who didn’t drink apple juice as a kid?”
Perfecting the liquid really paid off. Redd’s is a golden ale (not a cider) with a crisp apple flavor and clean, refreshing finish. The flavor captured the attention of millennial American light lager drinkers who are always looking for something new, usually with a touch of sweetness, but not so sweet that they can’t enjoy more than one. But Redd’s Apple Ale found fans among non-beer drinkers as well. Warhaftig explains, “We took a close look at who was drinking Redd’s and found out that non-beer drinkers were big fans too… folks who identify themselves as wine & spirits drinkers and others who enjoy shandies, teas and FMBs. Men and women drink Redd’s and it’s popular in Hispanic and LGBT communities. The big take-away here is that Redd’s appeals to everyone at the party. And best of all, consumers buy Redd’s in addition to – not instead of, their usual light lager. Since Redd’s sells at above premium pricing, the ring at the register goes up by about 14%.”
But even “Breakthrough Innovation Winners” like Redd’s have to keep the lineup fresh. The new flavors, Redd’s Blueberry Ale and Redd’s Raspberry Ale, have sparked consumer interest in original Redd’s Apple Ale and driving trial across the entire portfolio. “The new flavors have absolutely reignited interest in Redd’s,” says Warhaftg. “Blueberry is a hot flavor now and the feedback we get on the taste of the Raspberry has been tremendous. Consumers love it. The new flavors are doing very well, but original Redd’s Apple remains the best-selling flavor.”
There is no doubt that the introduction of new flavors improves sales. But even the sales professionals at MillerCoors were surprised by the huge lift in sales when all three flavors of Redd’s (in any package configuration) are grouped together. “We know that Redd’s six-packs displayed together rev up sales by 19%." That is an amazing statistic. Warhaftig commented, “It proves that shelf sets matter and have a dramatic effect on sales.”
MillerCoors has breathed new life into Redd’s. But the company isn’t banking on new flavors alone to win back customers. This fall, Redd’s returns to TV with “wicked” funny commercials on TBS, FX, NBC and other networks. These commercials and corresponding social media campaigns reach 84% of men ages 21 to 34.All the advertising connects with millennial men where they are spending their time digitally.
Sounds like Redd’s is going to hit it out of the park again.
Warhaftig on Redd’s Wicked (ABV 8%)
“With just the right amount of wrong to jump start the night for a killer good time, Redd’s Wicked, available in Apple, Mango, Black Cherry and Blood Orange (the fall seasonal available September 1st), gives flavor-seeking millennials the ‘beer + fruit’ choice they are looking for. And Redd’s Wicked makes double the margin of Bud Light Lime-a-Ritas in half the space.
The power of the perfect facing. Sales velocity doubles when two Redd’s flavors in 24 oz. single-serve cans are sold together. By adding a third flavor to the facing, sales increase by 54%.
How about a revenue raiser? Customers who buy Redd’s Wicked in 24 oz. single-serve cans buy about 1.5 packages per trip. You can drive more sales by offering a “2-for” price, where permitted by law.
Redd's Apple Ale
Redd’s Apple Ale now comes in a new, re-sealable aluminum pint bottle, a package consumers really love.
Redd's Blueberry and Rasberry Ales
Hot, new flavors Blueberry and Raspberry are permanent additions to the redd's family.
Redd's Black Cherry Ale
Fall’s “Limited Pick” is Redd’s Black Cherry. Redd’s offers millennials the variety they crave without subjecting you to SKU-mageddon.