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Malternatives.(OTHER BEVERAGES)

Publication: Beer Handbook

Publication Date: 01-JAN-05
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COPYRIGHT 2005 Bev-AL Communications, Inc.

The flavored malt beverage sector continued its decline in 2004 losing another 1.3% to end the year at just over 66 million 2.25-gallon cases. This category has been declining on an annual basis since its peak of 77.6 million cases in 2002. The face of the segment has changed over the years with faddish products quickly waning in popularity following successful launches.

The new category leader, Smirnoff Twisted V, spent $10.3 million on advertising last year. That figure is up from $737,200 in 2003. This increase in spending mirrored the increase in case sales for the brand. Twisted V climbed from 1.3 million cases in 2003 to 12.1 million in 2004. The other two Diageo-Guinness flavored malt beverage brands, Smirnoff Ice and Smirnoff Ice Triple Black, spent $2.4 million and $7.2 million, respectively on advertising last year. Advertising budgets for the latter two brands decreased significantly last year, with advertising dollars going to the relatively newer Twisted V brand. The dip in advertising was mirrored by case declines for both brands. Smirnoff Ice fell 23.9% and Smirnoff Ice Triple Black declined 30.4% in 2004.

The third-largest brand in the category, the Mike's Hard Beverage line, reversed its...

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