ed its market share and its sales decline. Miller relies on most of its sales and profits from domestic sales. Together with South African Breweries (SAB), the new company is known as SABMiller and the acquisition makes the merged company the world’s second largest brewer behind Anheuser Busch. Anheuser Busch has outspent Miller on advertising for years, and experts argue that SABMiller must fashion Miller’s marketing campaign in order to revitalize sales of signature brands. SAB also plans to market its beers like Pilsner Urquell in the US while simultaneously pumping up Miller’s international sales.
Annual sales of Miller beer are approximately $4 billion, mainly from its signature brands: Miller High Life, Miller Lite, Miller Genuine Draft, Icehouse and Foster’s, (Miller merger 3). The company also plans to develop “malternative” beverages through its recently announced partnership with global spirits producer Allied Domecq PLC. Currently plans to produce and market two malt beverages flavored with vodka and tequila are in the works. Greater emphasis on marketing campaigns, production of malt beverages, increased international growth, and the introduction of foreign brands to the US market are all strategies for growth at SABMiller.
Despite these strategies, Miller’s sales have been declining, in part fueled by the loss of sales on Miller Lite in the brand’s biggest market, Texas. According to one executive; “A brewery closing could occur if Miller doesn’t experience a sales volume increase of at least 2% among its core brands” (Miller merger 6). More than any aspect of the business, increasing sales and market share in the US is a primary goal of SABMiller. Long behind the advertising campaign budget of Anheuser Busch, even though Miller was first to use TV advertising to sell beer, SABMiller CEO Graham MacKay argues increased marketing efforts are a must to achieve these goals: “The fortunes ...