Just a few short months after releasing a beer that was created to target millennials, MillerCoors has decided to take the beer off the market.
Through the creation of a new beer, Two Hats, the company was hoping to convince millennials to drink more beer. Described as a “light beer brand targeted at younger legal-age drinkers,” will be off the market by early 2019.
Two Hats debuted in February 2018, with the company utilizing social media brands such as College Humor, Snapchat, and YouTube to get the word around. Even with the use of catchphrases such as “Good cheap beer is coming—so stop your wine-ing,” the beer just did not take off as well as MillerCoors had planned.
The beer industry has been struggling when it comes to the millennial demographic. Looking at the market research, among consumers 21 to 24 beer consumption has fallen roughly 3% per year over the last 15 years. From 2006 to 2016 beer has lost 10% of its market share to wine and hard liquor.
Speculation is that, since there haven’t been any recent and new mainstream light beer options launched onto the market for this consumer group, it would seem that maybe they consider the concept as antiquated and lean more towards wine and spirits.
Justine Stauffer, the MillerCoors brand manager stated that with Two Hats, the hope had been to market to and build a rapport with the next generation of beer drinkers. As it appears now, that rapport will not be achieved with Two Hats.
MillerCoors executives Bryan Ferschinger and Kevin Doyle wrote in a recent note to employees and distributors: “..right now we simply cannot get to a profitable growth without significant improvement in Coors Light and without gaining a bigger piece of (the) above premium (segment)”