Miller to launch craft-style Lite

updated 9:22 a.m. ET April 4, 2008

MILWAUKEE - Craft beer by its definition is small, both in batches and distribution. So, what does it mean when the nation's second biggest brewer takes its most popular beer and does it up, craft-style?

It's confusing, analysts say, but it makes sense for a company like Miller Brewing Co. as it woos today's drinker, who wants more flavorful brews. It also makes sense from a money standpoint because craft beers are growing faster than the overall beer segment, and they command higher prices.

Miller, hoping to latch on to part of that growth, announced this week it's introducing a trio of different styles of Miller Lite, which it hopes will lure new drinkers to the craft segment.

The Miller Lite Brewing Collection, which will be nationwide by September, features variations on the brewer's biggest brand: wheat, amber and blonde ale styles, all popular among craft brewers.

Tests in February in four markets _ Baltimore, Charlotte, N.C., Minneapolis and San Diego _ were so well received the Milwaukee-based unit of SABMiller PLC decided to go national.

The goal, Miller spokesman Julian Green said Thursday, is to bank on the popularity of low-calorie Miller Lite to create a new market called "craft-style light." The collection's tag line: "Craft Beer. Done Lite."

But is it? It's not clear how drinkers will perceive this new twist on Miller Lite, said Eric Shepard, executive editor of trade publication Beer Marketer's Insights.

"The point of craft beer is more flavorful, so light craft doesn't make a whole lot of intuitive sense to me," he said.

But he's quick to point out that craft beers continue to outpace domestic ones, growing 12 percent the past two years compared with domestics' growth of about 2 percent. That means brewers are looking for a niche and new flavors, plus craft styles command higher prices, which means more money for brewers.

"Everybody's trying to get their arms around and their hands on the more money you can make if you sell beer at a higher price," he said.

Green said Miller hopes the collection gets Miller Lite drinkers to trade up to the new styles.

"Some may be intimidated by the heavy flavor profile and full calories," Green said of regular craft beers. "So we're providing a new beer that can give you craft-style taste with significantly fewer calories and carbs."

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