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These are the user uploaded subtitles that are being translated: 1 00:00:05,440 --> 00:00:07,137 Today, the global beer market 2 00:00:07,137 --> 00:00:10,488 is a growing 600 billion dollar industry. 3 00:00:10,575 --> 00:00:13,056 And a colossal 300 billion of that 4 00:00:13,056 --> 00:00:17,278 is for a beer that just 50 years ago didn't exist. 5 00:00:17,365 --> 00:00:18,714 Diet beer. 6 00:00:18,714 --> 00:00:20,498 Apparently tasted a lot like wet metal. 7 00:00:22,152 --> 00:00:23,632 Until a visionary who doesn't know 8 00:00:23,719 --> 00:00:26,983 the first thing about beer changes the industry forever. 9 00:00:26,983 --> 00:00:31,727 It's not diet beer, it's light beer. 10 00:00:31,727 --> 00:00:33,816 That was really the moment culture 11 00:00:33,816 --> 00:00:35,644 and marketing came together. 12 00:00:35,644 --> 00:00:37,472 Armies of men chanting- 13 00:00:37,472 --> 00:00:39,039 Less filling, tastes great! 14 00:00:39,126 --> 00:00:42,564 It's fearsome, and bloodthirsty, and it's incredible. 15 00:00:42,564 --> 00:00:45,132 It ignites a battle with the biggest beer brand 16 00:00:45,132 --> 00:00:45,871 on the planet. 17 00:00:47,612 --> 00:00:50,006 The rivalry wasn't something that started off playfully 18 00:00:50,006 --> 00:00:51,355 and then eventually got ugly. 19 00:00:51,355 --> 00:00:53,879 It got ugly off the rip. 20 00:00:53,966 --> 00:00:58,058 His big goal was to just annihilate Anheuser-Busch. 21 00:00:58,145 --> 00:01:00,930 He is ready to go to war. 22 00:01:02,366 --> 00:01:03,846 Forcing the king of beers 23 00:01:03,846 --> 00:01:06,414 to risk reinventing a classic. 24 00:01:06,414 --> 00:01:09,330 If you poke a bear, expect him to bite back. 25 00:01:09,417 --> 00:01:10,940 Okay? 26 00:01:10,940 --> 00:01:14,378 All he wants to do at this point is crush Miller. 27 00:01:14,378 --> 00:01:17,425 But it will take trailblazing innovations. 28 00:01:17,425 --> 00:01:19,992 He becomes the official sponsor 29 00:01:19,992 --> 00:01:21,777 of an upstart new network 30 00:01:21,907 --> 00:01:25,433 Da-da-net, da-da-net, heard of them? 31 00:01:25,433 --> 00:01:29,132 The amount of money pouring into this was money at a level 32 00:01:29,219 --> 00:01:31,830 that it just never been seen before. 33 00:01:31,830 --> 00:01:34,181 Bud really paved the way 34 00:01:34,181 --> 00:01:36,922 for what we think of as Super Bowl commercials. 35 00:01:37,009 --> 00:01:39,490 To introduce a new beer to the world. 36 00:01:39,577 --> 00:01:41,579 It's one of the pivotal moments 37 00:01:41,666 --> 00:01:43,799 in the history of American beer. 38 00:01:43,799 --> 00:01:46,628 Light beer did nothing short of revitalizing 39 00:01:46,715 --> 00:01:48,151 the American beer industry. 40 00:01:48,282 --> 00:01:50,849 It just blew everything else out of the water. 41 00:01:50,849 --> 00:01:52,286 And come out on top. 42 00:02:17,702 --> 00:02:21,315 There are more than 9,000 breweries in the US today, 43 00:02:21,315 --> 00:02:25,145 selling hundreds of styles from IPA to pale ale, 44 00:02:25,145 --> 00:02:27,451 pilsner, stout, porter, and wheat, 45 00:02:29,410 --> 00:02:31,368 but the thriving industry is a far cry 46 00:02:31,455 --> 00:02:33,849 from what it looked like just over 50 years ago, 47 00:02:33,936 --> 00:02:36,808 at the dawn of the 1970s. 48 00:02:36,808 --> 00:02:38,941 There just weren't that many breweries. 49 00:02:39,071 --> 00:02:41,248 Small breweries had gone out of business, 50 00:02:41,248 --> 00:02:43,989 because there just weren't many people drinking beer. 51 00:02:43,989 --> 00:02:47,079 And those who did stay afloat 52 00:02:47,167 --> 00:02:49,169 tended to be the larger breweries. 53 00:02:49,169 --> 00:02:52,172 And four really big breweries 54 00:02:52,172 --> 00:02:54,957 kind of took charge of the market. 55 00:02:55,044 --> 00:02:56,915 The country's four biggest breweries 56 00:02:56,915 --> 00:02:59,918 are Coors, Pabst, Schlitz, 57 00:03:00,005 --> 00:03:04,096 and at the top by a landslide Anheuser-Busch. 58 00:03:04,096 --> 00:03:05,924 Anheuser-Busch had a stronghold on the 59 00:03:05,924 --> 00:03:08,144 number one position in the United States 60 00:03:08,144 --> 00:03:10,581 producing beer roughly at a rate 61 00:03:10,581 --> 00:03:13,193 of two to one versus its next closest competitor. 62 00:03:15,064 --> 00:03:17,371 One of the reasons that large brew companies 63 00:03:17,458 --> 00:03:19,808 became so popular mirrored what was happening in food. 64 00:03:19,808 --> 00:03:21,070 People were very interested 65 00:03:21,157 --> 00:03:23,812 in large industrial scale products. 66 00:03:23,899 --> 00:03:25,248 So you've got your Wonder Bread 67 00:03:25,335 --> 00:03:26,641 and you've got your Velveeta Cheese, 68 00:03:26,771 --> 00:03:30,122 and you've got your Anheuser-Busch Budweiser beer. 69 00:03:30,122 --> 00:03:32,603 People liked the kind of space age modernity 70 00:03:32,603 --> 00:03:35,476 of these packages and the consistency of the products. 71 00:03:37,695 --> 00:03:39,262 The beer landscape becomes focused 72 00:03:39,262 --> 00:03:43,875 on this lightly flavored golden sparkling lager style beer. 73 00:03:43,875 --> 00:03:46,704 There was no double IPA, no sour beer, 74 00:03:46,704 --> 00:03:49,533 no oatmeal stouts, no light beer. 75 00:03:49,533 --> 00:03:52,536 Americans had a choice of brands 76 00:03:52,536 --> 00:03:55,626 from the handful of large companies 77 00:03:55,626 --> 00:03:58,977 of essentially the same kind of very light lager. 78 00:03:58,977 --> 00:04:03,591 The word L-I-G-H-T when applied to beer at that time 79 00:04:05,288 --> 00:04:09,031 meant a beer that was yellow, had a very light body, 80 00:04:09,118 --> 00:04:11,860 not much hops, not much malt. 81 00:04:11,947 --> 00:04:14,428 It didn't have any connotation with calories. 82 00:04:16,778 --> 00:04:19,563 Meanwhile, other realms of the booze industry 83 00:04:19,650 --> 00:04:20,216 have evolved. 84 00:04:22,044 --> 00:04:25,265 We start to see a real shift in the fifties and sixties. 85 00:04:25,265 --> 00:04:28,790 We started seeing the introduction of cocktails, 86 00:04:28,790 --> 00:04:31,140 with the martini, the margarita. 87 00:04:31,140 --> 00:04:35,753 James Bond said he wanted a martini shaken, but not stirred, 88 00:04:35,753 --> 00:04:38,582 and that changed everything. 89 00:04:38,669 --> 00:04:41,672 The liquor industry has found inventive new ways 90 00:04:41,672 --> 00:04:45,197 to increase their profits through cocktail culture, 91 00:04:45,197 --> 00:04:48,766 but the beer industry is kind of lacking in innovation. 92 00:04:48,766 --> 00:04:50,681 But nobody is even trying to take on 93 00:04:50,681 --> 00:04:53,945 the beer goliaths and revitalize the stagnant market, 94 00:04:55,207 --> 00:04:55,991 until now. 95 00:04:59,429 --> 00:05:02,040 It's not a brewery that starts the sea change, 96 00:05:02,040 --> 00:05:05,000 but a company that has no experience selling beer at all. 97 00:05:06,871 --> 00:05:10,135 In 1969, Philip Morris is an international powerhouse 98 00:05:10,135 --> 00:05:11,441 of the tobacco industry 99 00:05:13,182 --> 00:05:16,011 whose recent Marlborough Man campaign has skyrocketed them 100 00:05:16,011 --> 00:05:18,927 to a record breaking 1 billion dollars in sales. 101 00:05:20,668 --> 00:05:23,410 But now the government threatens to stop their growth. 102 00:05:24,889 --> 00:05:26,935 In 1969 Congress passes a law 103 00:05:27,065 --> 00:05:31,287 that eliminates advertising for cigarettes on radio and TV. 104 00:05:31,287 --> 00:05:33,463 And so companies like Philip Morris 105 00:05:33,463 --> 00:05:35,596 realize that they might be sitting on a industry 106 00:05:35,683 --> 00:05:37,598 that's shrinking and begins to diversify 107 00:05:37,685 --> 00:05:39,556 into other realms of the economy, 108 00:05:39,556 --> 00:05:42,603 and they settle on another vice, so to speak. 109 00:05:42,690 --> 00:05:44,431 And to lead the new venture, 110 00:05:44,431 --> 00:05:47,521 Philip Morris calls on one of their own rising stars. 111 00:05:47,521 --> 00:05:48,609 You wanted to see me? 112 00:05:51,263 --> 00:05:55,833 John Murphy started at Phillip Morris as a tax attorney 113 00:05:55,833 --> 00:05:57,748 and has worked his way 114 00:05:57,748 --> 00:05:59,663 out to the upper ranks of the business. 115 00:05:59,663 --> 00:06:02,318 John Murphy is a bit mischievous. 116 00:06:02,318 --> 00:06:06,801 He likes a good drink, a good joke, a bit of a banter, 117 00:06:06,801 --> 00:06:09,238 and he's also deeply ambitious. 118 00:06:10,544 --> 00:06:12,894 We're gonna need you in Milwaukee. 119 00:06:12,894 --> 00:06:14,635 Wisconsin, what's in Wisconsin? 120 00:06:18,421 --> 00:06:19,379 Miller. 121 00:06:21,119 --> 00:06:24,340 In 1969, Philip Morris buys out Miller Brewing, 122 00:06:24,340 --> 00:06:27,822 which at the time only has about 4% of the beer market. 123 00:06:28,866 --> 00:06:30,477 Never heard of it. 124 00:06:30,564 --> 00:06:33,697 Every large brewery in the country was run by a family. 125 00:06:33,784 --> 00:06:36,787 Philip Morris would be the first company coming in 126 00:06:36,787 --> 00:06:39,094 running a brewery that was not a family of brewers. 127 00:06:40,530 --> 00:06:43,403 Miller Brewing was founded in Milwaukee 128 00:06:43,403 --> 00:06:45,579 in the middle of the 19th century, 129 00:06:45,666 --> 00:06:47,668 owned by the Miller family. 130 00:06:47,668 --> 00:06:50,975 Miller's future looked incredibly bright 131 00:06:50,975 --> 00:06:52,847 in the early 1950s, 132 00:06:52,977 --> 00:06:55,719 it was becoming known as a national beer. 133 00:06:55,806 --> 00:06:59,549 And in late 1954, Fred Miller, 134 00:06:59,549 --> 00:07:02,117 the wonder kid who had done all this, 135 00:07:02,117 --> 00:07:05,076 and his son died in a plane crash. 136 00:07:05,076 --> 00:07:09,559 After that, the company just lost its way. 137 00:07:09,646 --> 00:07:12,606 And Miller was turned over to Philip Morris. 138 00:07:13,911 --> 00:07:15,347 While Anheuser-Busch 139 00:07:15,478 --> 00:07:18,525 offers brands like Michelob and Busch Bavarian, 140 00:07:18,525 --> 00:07:21,441 along with their flagship brand, Budweiser, 141 00:07:21,528 --> 00:07:24,922 Miller is scraping by with a single product offering. 142 00:07:24,922 --> 00:07:28,143 Miller High Life was introduced by the family in 143 00:07:28,143 --> 00:07:32,582 1903, and their advertising anchor for it 144 00:07:32,582 --> 00:07:36,630 was that this was a champagne like beer. 145 00:07:36,630 --> 00:07:39,633 When prohibition ended, that was the only beer they made, 146 00:07:39,633 --> 00:07:41,765 which was a very unusual decision 147 00:07:41,852 --> 00:07:43,419 for any brewery to make. 148 00:07:43,419 --> 00:07:46,335 They just threw all their eggs into this one basket. 149 00:07:48,076 --> 00:07:50,252 Philip Morris sees how much room there is for growth 150 00:07:50,252 --> 00:07:52,341 in the beer market. 151 00:07:52,341 --> 00:07:54,778 They see these breweries just kind of making 152 00:07:54,778 --> 00:07:56,780 and selling all the same lager product. 153 00:07:56,780 --> 00:07:59,957 Beer and cigarettes are both agricultural products, 154 00:08:00,044 --> 00:08:01,568 and they can be mass produced, 155 00:08:01,568 --> 00:08:03,744 and they're usually consumed by the same people. 156 00:08:03,744 --> 00:08:08,139 So having a brewery struck them as a great idea. 157 00:08:08,139 --> 00:08:11,491 So they sent John Murphy to Milwaukee 158 00:08:11,491 --> 00:08:13,667 to figure out how to run a beer company. 159 00:08:20,935 --> 00:08:23,285 When John Murphy arrives in Milwaukee, 160 00:08:23,285 --> 00:08:25,330 Miller High Life is fading. 161 00:08:25,330 --> 00:08:28,812 John Murphy didn't have any brewing experience at all. 162 00:08:30,510 --> 00:08:32,642 Here he is, he's gonna build up this brewing company, 163 00:08:34,078 --> 00:08:36,037 and all he's gotta do is figure out how to do it. 164 00:08:40,955 --> 00:08:43,305 The champagne of beers. 165 00:08:45,873 --> 00:08:48,484 What John Murphy puts into action 166 00:08:48,571 --> 00:08:52,619 will lead to the creation of a groundbreaking new product 167 00:08:52,619 --> 00:08:55,752 that will bring in over 2 billion dollars annually, 168 00:08:55,752 --> 00:08:58,494 and spearhead an entirely new global market 169 00:08:58,581 --> 00:09:00,670 worth over 300 billion dollars, 170 00:09:02,019 --> 00:09:04,065 forever changing the beer industry. 171 00:09:05,849 --> 00:09:08,896 But in 1970, the rookie brand fixer 172 00:09:08,983 --> 00:09:11,333 doesn't have a clue where to begin. 173 00:09:14,902 --> 00:09:16,817 Day's done, boys, it's time for beer. 174 00:09:21,343 --> 00:09:23,650 John Murphy really doesn't know very much about beer. 175 00:09:23,650 --> 00:09:26,087 What he does know is that he wants to eventually become 176 00:09:26,217 --> 00:09:28,002 president of Philip Morris, 177 00:09:28,002 --> 00:09:31,571 and he knows that if he succeeds in growing Miller 178 00:09:31,571 --> 00:09:34,312 into this juggernaut of a brand, 179 00:09:34,312 --> 00:09:36,184 the likelihood that he will become president 180 00:09:36,271 --> 00:09:38,534 of Philip Morris is exponentially greater. 181 00:09:47,935 --> 00:09:50,154 Gussie Bush has led the family operated 182 00:09:50,154 --> 00:09:53,680 Anheuser-Busch empire since the end of World War II, 183 00:09:53,680 --> 00:09:56,639 and has grown the business from one St. Louis brewery 184 00:09:56,639 --> 00:09:58,162 to nine nationwide. 185 00:09:58,162 --> 00:10:00,774 Gussie embodied the idea of being number one 186 00:10:00,774 --> 00:10:02,602 at everything he did. 187 00:10:02,602 --> 00:10:06,214 It was very important for him to have the aura of someone 188 00:10:06,214 --> 00:10:08,259 who has a number one brewery and a personality 189 00:10:08,259 --> 00:10:09,739 that people look to as someone 190 00:10:09,826 --> 00:10:11,611 who is successful and important. 191 00:10:11,698 --> 00:10:13,917 But Gussie was so focused on the beer of yesterday. 192 00:10:15,397 --> 00:10:18,313 Gussie has grown sales by over 400% 193 00:10:18,313 --> 00:10:21,490 without producing a new product in 15 years. 194 00:10:22,796 --> 00:10:24,624 And while their century old flagship, 195 00:10:24,624 --> 00:10:26,887 Budweiser, remains number one, 196 00:10:26,974 --> 00:10:30,151 profits are on the decline industry wide. 197 00:10:30,151 --> 00:10:32,327 Anheuser-Busch was struggling 198 00:10:32,327 --> 00:10:35,678 partly because every brewer was struggling. 199 00:10:35,678 --> 00:10:38,463 Breweries were all basically selling the same beer. 200 00:10:38,550 --> 00:10:40,117 And years of stagnation 201 00:10:40,117 --> 00:10:42,511 have stifled the industry's growth. 202 00:10:45,732 --> 00:10:46,820 We need to trim the fat. 203 00:10:49,561 --> 00:10:50,737 Fire the marketing department. 204 00:10:52,869 --> 00:10:56,307 No, no, our advertising's what's going to grow our brand, 205 00:10:56,394 --> 00:10:59,702 Please, our beer sells itself. 206 00:10:59,702 --> 00:11:04,533 His son August III is a relentless workaholic, 207 00:11:04,533 --> 00:11:07,362 hard-nosed man of the people kind of approach, 208 00:11:07,362 --> 00:11:10,191 but he also sees where the company can go. 209 00:11:10,191 --> 00:11:12,889 August III saw things happening in the market 210 00:11:12,976 --> 00:11:14,717 that Gussie wasn't paying attention to. 211 00:11:14,717 --> 00:11:17,067 He's still kind of in that older mindset. 212 00:11:17,067 --> 00:11:19,679 Technology was growing at a rapid speed 213 00:11:19,766 --> 00:11:21,637 at the start of the 1970s, 214 00:11:21,637 --> 00:11:24,858 and automation promises to improve not only manufacturing, 215 00:11:24,858 --> 00:11:27,077 but also to cut costs. 216 00:11:27,077 --> 00:11:30,559 August wants Anheuser-Busch to evolve with the times 217 00:11:30,559 --> 00:11:33,301 by modernizing with the latest technology 218 00:11:33,301 --> 00:11:34,694 to develop new products. 219 00:11:36,260 --> 00:11:38,262 Rather than looking behind him at tradition, 220 00:11:38,349 --> 00:11:40,308 he was thinking about how will the company grow? 221 00:11:40,308 --> 00:11:42,832 How will the country grow and where will he sit in that? 222 00:11:44,965 --> 00:11:46,662 That'll be all. 223 00:11:46,662 --> 00:11:49,230 August is very forward thinking values 224 00:11:49,230 --> 00:11:53,060 really rubbed Gussie's traditional quality standard, 225 00:11:53,147 --> 00:11:54,844 family values the wrong way. 226 00:11:56,541 --> 00:11:58,152 Gussie says that beer isn't a computer business, 227 00:11:58,152 --> 00:12:00,154 that beer is about people. 228 00:12:00,154 --> 00:12:03,070 August will one day bring the company into the future 229 00:12:03,070 --> 00:12:05,637 with a legendary new product that will surpass 230 00:12:05,637 --> 00:12:08,205 even his family's own Budweiser 231 00:12:08,205 --> 00:12:11,034 to become America's favorite beer, 232 00:12:11,034 --> 00:12:14,559 recognized around the globe and leading the way 233 00:12:14,646 --> 00:12:17,606 for dozens of new varieties of beer beyond lager. 234 00:12:20,043 --> 00:12:23,003 But first, he'll have to defeat an aggressive rival 235 00:12:23,090 --> 00:12:26,180 coming for him, even if it means going to war 236 00:12:26,267 --> 00:12:27,355 with his own father. 237 00:12:29,009 --> 00:12:33,013 August, don't ever question me again. 238 00:12:45,721 --> 00:12:47,549 John Murphy, a rising star 239 00:12:47,636 --> 00:12:49,029 of the Philip Morris company, 240 00:12:49,116 --> 00:12:51,466 has been sent to Milwaukee to try and save 241 00:12:51,466 --> 00:12:54,861 a struggling brewery called Miller. 242 00:12:54,861 --> 00:12:56,993 Philip Morris has charged John Murphy 243 00:12:57,080 --> 00:12:59,517 with creating a success with a product 244 00:12:59,517 --> 00:13:01,302 he really doesn't know very much about 245 00:13:01,302 --> 00:13:03,304 in a highly competitive market 246 00:13:03,304 --> 00:13:06,046 with one of the most fearsome, 247 00:13:06,046 --> 00:13:07,961 ruthless competitors out there. 248 00:13:09,963 --> 00:13:12,704 But even against the Anheuser-Busch behemoth, 249 00:13:12,792 --> 00:13:15,490 Miller has an ace up their sleeve. 250 00:13:15,490 --> 00:13:18,798 Miller had a lot of money to spend 251 00:13:18,885 --> 00:13:20,495 because of Philip Morris, 252 00:13:20,495 --> 00:13:22,802 far more even than Anheuser-Busch. 253 00:13:22,802 --> 00:13:25,108 They had bajillions of dollars. 254 00:13:25,108 --> 00:13:27,328 Now that Philip Morris can't advertise cigarettes 255 00:13:27,328 --> 00:13:30,026 on TV anymore, they have a ton of ad money 256 00:13:30,026 --> 00:13:31,941 sitting around and they're ready to burn it. 257 00:13:33,682 --> 00:13:35,945 Murphy's first step is to tackle the marketing 258 00:13:36,032 --> 00:13:38,687 that's been used since before World War I. 259 00:13:38,774 --> 00:13:40,515 At the start of the 20th century, 260 00:13:40,515 --> 00:13:43,213 beer was hardly sold in bottles. 261 00:13:43,213 --> 00:13:46,129 It was served at saloons or maybe carried home 262 00:13:46,129 --> 00:13:49,611 from the bar in a bucket, hence the luxury of bottled beer, 263 00:13:49,698 --> 00:13:51,352 the champagne of bottled beer. 264 00:13:53,267 --> 00:13:56,487 But by the 1970s, this is common stuff. 265 00:13:56,487 --> 00:13:58,533 People have been drinking out of bottles for decades now, 266 00:13:58,620 --> 00:13:59,708 and it's very affordable. 267 00:14:03,146 --> 00:14:07,542 It's time for beer! 268 00:14:09,892 --> 00:14:12,112 The notion of the luxury of bottled beer 269 00:14:12,112 --> 00:14:15,463 no longer resonates with the drinkers of bottled beer. 270 00:14:15,463 --> 00:14:18,031 Those guys drinking Miller after work. 271 00:14:18,118 --> 00:14:20,990 The first thing John Murphy did was to take the beer 272 00:14:20,990 --> 00:14:22,731 out of the champaign bucket 273 00:14:22,731 --> 00:14:25,212 and put it into the workman's lunch bucket. 274 00:14:26,343 --> 00:14:27,736 Miller time. 275 00:14:30,565 --> 00:14:33,133 So he tossed out the whole thing about it 276 00:14:33,133 --> 00:14:34,786 being a champagne of beer, 277 00:14:34,874 --> 00:14:36,963 and they developed the ad campaign 278 00:14:36,963 --> 00:14:39,182 based on working people. 279 00:14:39,269 --> 00:14:41,010 It's Miller time. 280 00:14:41,010 --> 00:14:44,884 Time to head for the best tasting beer you can find. 281 00:14:44,884 --> 00:14:48,278 Murphy's idea to make the Miller Time advertising campaign 282 00:14:48,278 --> 00:14:50,628 all about the hardworking blue collar men 283 00:14:50,715 --> 00:14:53,675 is a way to distinguish Miller High Life 284 00:14:53,675 --> 00:14:57,113 from the industry's biggest competitor, Budweiser, 285 00:14:57,113 --> 00:14:59,159 whose marketing is all about tradition. 286 00:15:00,900 --> 00:15:04,991 Launching in 1971, Murphy hasn't changed the beer itself, 287 00:15:04,991 --> 00:15:07,907 but the campaign quadruples Miller High Life sales 288 00:15:07,994 --> 00:15:09,778 to over 20 million barrels. 289 00:15:09,865 --> 00:15:11,475 Philip Morris knew how to market. 290 00:15:11,475 --> 00:15:13,564 They had already become the top of the cigarette market. 291 00:15:13,564 --> 00:15:15,827 They've proven that they know how to get a brand out there 292 00:15:15,827 --> 00:15:17,699 and make American people loyal to it. 293 00:15:17,699 --> 00:15:19,788 So they were a huge threat to Anheuser-Busch. 294 00:15:26,534 --> 00:15:28,014 At Anheuser-Busch, 295 00:15:28,014 --> 00:15:30,538 there was a Shakespearean power struggle 296 00:15:30,625 --> 00:15:34,672 between Auggie Bush and his father Gus Bush. 297 00:15:34,672 --> 00:15:37,632 And John Murphy was a guy who understood 298 00:15:37,632 --> 00:15:39,634 how to take advantage of a moment. 299 00:15:41,418 --> 00:15:44,334 August III sees Miller coming for Anheuser-Busch, 300 00:15:44,421 --> 00:15:46,728 and immediately saw that was a threat. 301 00:15:46,815 --> 00:15:49,122 He knows that it's time to start making changes 302 00:15:49,122 --> 00:15:52,125 in marketing. 303 00:15:53,561 --> 00:15:55,128 Gussie doesn't care about them at all. 304 00:15:56,825 --> 00:16:00,089 Miller Brewing was just this company in Milwaukee, 305 00:16:00,176 --> 00:16:03,614 and Gus Bush just did not take it seriously. 306 00:16:03,614 --> 00:16:06,443 He thought, "Here's a cigarette company. 307 00:16:06,530 --> 00:16:08,968 They're buying a beer company, what do they know?" 308 00:16:11,753 --> 00:16:14,582 In the 1970s, technology is moving fast. 309 00:16:14,669 --> 00:16:17,802 August sees it as the time that he can't wait any longer. 310 00:16:17,802 --> 00:16:21,589 He can't quietly wait for Gussie to either quit or die. 311 00:16:26,072 --> 00:16:27,595 Behind his father's back, 312 00:16:27,682 --> 00:16:29,771 August makes deals with members of the board 313 00:16:29,858 --> 00:16:30,946 for their allegiance. 314 00:16:32,687 --> 00:16:34,776 He was laying the grounds for a future thinking company 315 00:16:34,776 --> 00:16:36,821 that would eventually exist. 316 00:16:36,908 --> 00:16:38,998 Many of the board members actually agree with him, 317 00:16:41,391 --> 00:16:44,351 and decide that it might be the time to have a transition 318 00:16:44,351 --> 00:16:46,614 of who is at the helm of the business, 319 00:16:46,614 --> 00:16:48,007 and make sure the company 320 00:16:48,007 --> 00:16:49,530 stays at the top of the beer market. 321 00:16:54,665 --> 00:16:56,667 Since the launch of the Miller Time campaign, 322 00:16:56,667 --> 00:16:59,801 Miller's become the fifth biggest brewery in the country, 323 00:16:59,888 --> 00:17:02,151 but with just 5% market share, 324 00:17:02,151 --> 00:17:04,588 they still have a long way to catch up to Anheuser-Busch's 325 00:17:04,675 --> 00:17:06,547 leading 21%. 326 00:17:08,375 --> 00:17:10,768 John Murphy decided to conquer the brewing world 327 00:17:10,855 --> 00:17:13,380 and turn Miller Brewing into the biggest brewery 328 00:17:13,380 --> 00:17:14,990 in the country. 329 00:17:15,077 --> 00:17:19,038 His big goal was to just annihilate Anheuser-Busch. 330 00:17:19,951 --> 00:17:21,301 Let's try some. 331 00:17:21,301 --> 00:17:23,042 Murphy was coming from Philip Morris 332 00:17:23,129 --> 00:17:25,609 and you know they didn't just rely on one cigarette brand. 333 00:17:25,609 --> 00:17:28,656 In addition to Marlboro, they had Parliaments, 334 00:17:28,743 --> 00:17:30,005 they had Benson and Hedges. 335 00:17:30,092 --> 00:17:32,703 They even had Philip Morris brand cigarettes. 336 00:17:32,703 --> 00:17:34,357 In an attempt to diversify, 337 00:17:34,444 --> 00:17:37,839 Miller buys a recently bankrupt Chicago based brewery, 338 00:17:37,839 --> 00:17:40,320 Meister Br äu, which also comes with a collection 339 00:17:40,450 --> 00:17:41,973 of unsuccessful brands. 340 00:17:41,973 --> 00:17:42,757 What's that one? 341 00:17:44,237 --> 00:17:47,588 Some low caloried beer. 342 00:17:49,024 --> 00:17:50,069 Diet beer. 343 00:17:51,853 --> 00:17:53,376 Low calorie beer was this very obscure product 344 00:17:53,376 --> 00:17:55,030 that most Americans had never heard of. 345 00:17:55,117 --> 00:17:57,554 It was launched in 1967 and was marketed 346 00:17:57,554 --> 00:17:59,817 mostly towards people on a diet, 347 00:17:59,817 --> 00:18:02,385 mainly women before it finally went bankrupt. 348 00:18:02,385 --> 00:18:04,083 Apparently tasted a lot like wet metal. 349 00:18:06,563 --> 00:18:08,565 Meister Br äu's attempt at diet beer 350 00:18:08,652 --> 00:18:10,393 was a result of a growing trend 351 00:18:10,393 --> 00:18:12,482 towards health consciousness. 352 00:18:12,482 --> 00:18:14,484 In the 1960s, scientists begin to determine 353 00:18:14,484 --> 00:18:17,096 that we have way too much sugar in the American diet , 354 00:18:17,096 --> 00:18:19,837 and it is causing all kinds of medical problems. 355 00:18:19,924 --> 00:18:21,535 This increased awareness in health 356 00:18:21,622 --> 00:18:24,625 absolutely spurs changes in the food industry. 357 00:18:24,625 --> 00:18:26,975 This is when you have Crystal Light, and low fat, 358 00:18:26,975 --> 00:18:29,760 and diet, and shakes instead of food. 359 00:18:29,760 --> 00:18:35,375 Americans went crazy for diet foods and beer was seen as, 360 00:18:35,375 --> 00:18:37,986 "Ugh, you're gonna diet, you can not drink this stuff." 361 00:18:39,857 --> 00:18:44,079 Beer had always had a reputation of being fattening. 362 00:18:44,079 --> 00:18:47,343 The real caloric impact from beer comes from sugar. 363 00:18:47,343 --> 00:18:50,520 Sugar takes a lot of calories to burn, 364 00:18:50,520 --> 00:18:54,698 and that's why it normally stays on your body as fat, 365 00:18:54,698 --> 00:18:56,483 as a beer belly. 366 00:18:56,570 --> 00:18:59,181 In 1967, the recipe for Meister Br äu's 367 00:18:59,181 --> 00:19:02,053 low calorie beer was invented by scientist, 368 00:19:02,053 --> 00:19:04,186 Dr. Joseph Owades. 369 00:19:04,186 --> 00:19:07,015 Dr. Joseph Owades process in developing 370 00:19:07,015 --> 00:19:09,931 a light caloried beer involved the use of enzymes 371 00:19:10,018 --> 00:19:12,673 known as glucoamylase in the brewing process. 372 00:19:12,673 --> 00:19:15,284 This enzyme breaks down a lot of the sugars 373 00:19:15,371 --> 00:19:18,809 that are in the beer that contribute to body, mouth feel. 374 00:19:18,809 --> 00:19:22,726 Certainly a little bit of flavor and definitely calories. 375 00:19:22,726 --> 00:19:26,165 Meister Br äu is inherently less fattening, 376 00:19:26,165 --> 00:19:29,472 but the flavor is not like a real beer, 377 00:19:29,559 --> 00:19:31,735 and it failed miserably. 378 00:19:31,735 --> 00:19:34,303 And the taste wasn't the only problem. 379 00:19:34,303 --> 00:19:37,132 Diet beer was basically a poisonous concept 380 00:19:37,132 --> 00:19:39,526 to many American males because diet, that's for women. 381 00:19:42,529 --> 00:19:44,966 Despite its failure on the regional level, 382 00:19:44,966 --> 00:19:47,925 Murphy sees potential in taking diet beer national 383 00:19:47,925 --> 00:19:49,362 for the first time. 384 00:19:49,362 --> 00:19:51,320 It's something Anheuser-Busch doesn't have. 385 00:19:51,451 --> 00:19:53,017 The nation's top brewers believe 386 00:19:53,017 --> 00:19:55,933 diet beer could alienate their core market. 387 00:19:55,933 --> 00:19:57,413 The other top breweries, 388 00:19:57,413 --> 00:19:59,285 they're too nervous to put their brand's name 389 00:19:59,285 --> 00:20:00,634 onto diet beer. 390 00:20:00,721 --> 00:20:03,724 Brewing companies objected to diet beers, 391 00:20:03,724 --> 00:20:06,683 because if you're trying to sell a diet beer, 392 00:20:06,683 --> 00:20:10,339 then you're conceding the point that beer is fattening. 393 00:20:10,339 --> 00:20:13,342 And if this beer bond it was just better 394 00:20:13,429 --> 00:20:15,736 to not be associated with it. 395 00:20:15,823 --> 00:20:17,955 But Murphy sees it as an opportunity 396 00:20:17,955 --> 00:20:19,827 to expand Miller's market. 397 00:20:19,827 --> 00:20:22,308 John Murphy was a company guy 398 00:20:22,308 --> 00:20:26,573 and he absorbed the Philip Morris ethos. 399 00:20:26,573 --> 00:20:29,228 He understood that you need to find markets. 400 00:20:29,315 --> 00:20:30,925 From Murphy's point of view, 401 00:20:30,925 --> 00:20:33,884 there's an entire audience out there for diet beer 402 00:20:33,884 --> 00:20:36,060 that no one's even coming near. 403 00:20:36,147 --> 00:20:38,672 But first, he'll need to improve the flavor. 404 00:20:38,672 --> 00:20:40,326 It's a massive risk. 405 00:20:40,326 --> 00:20:42,110 You stop and you think about, my gosh, 406 00:20:42,197 --> 00:20:46,593 you know that is your life, your career on the line. 407 00:20:46,680 --> 00:20:48,812 You only took the Miller job 408 00:20:48,812 --> 00:20:53,513 to become president of Philip Morris, and if you blow this, 409 00:20:55,341 --> 00:20:58,779 I mean they gonna bury you under the conveyor belt, buddy. 410 00:21:10,834 --> 00:21:12,532 The team at Miller has been working 411 00:21:12,619 --> 00:21:16,057 for nearly a year trying to improve the taste 412 00:21:16,057 --> 00:21:17,624 of their new diet beer. 413 00:21:19,582 --> 00:21:21,410 They fiddled around with it, 414 00:21:21,410 --> 00:21:23,978 trying to come up with the right formula, 415 00:21:23,978 --> 00:21:26,328 'cause they wanted to taste like beer. 416 00:21:26,328 --> 00:21:28,896 They definitely wanted to taste like beer, 417 00:21:28,983 --> 00:21:31,812 and that's not something you can do in a week. 418 00:21:31,812 --> 00:21:34,380 Up to 80% of a beer's flavor 419 00:21:34,380 --> 00:21:37,165 comes from the strain of yeast that's used. 420 00:21:37,165 --> 00:21:39,210 So in order to improve the flavor, 421 00:21:39,210 --> 00:21:42,213 they decided to use the exact strain of yeast 422 00:21:42,301 --> 00:21:44,825 that the founder of Miller, Frederick Miller, 423 00:21:44,825 --> 00:21:47,567 brought with him from Germany in the 1850s. 424 00:21:49,046 --> 00:21:51,048 The unique yeast provides the beer 425 00:21:51,048 --> 00:21:54,487 with an aroma and taste that maintains a lager's flavor. 426 00:21:56,489 --> 00:21:58,404 Now they've got a diet beer 427 00:21:58,491 --> 00:22:01,276 that's reminiscent of a beer people know and love. 428 00:22:02,625 --> 00:22:04,627 It's not dissimilar to what Coke will do 429 00:22:04,627 --> 00:22:06,325 a few years later with Diet Coke. 430 00:22:06,325 --> 00:22:08,414 Maybe not the same flavor exactly, 431 00:22:08,414 --> 00:22:10,198 but it gives you the same satisfaction. 432 00:22:23,864 --> 00:22:25,692 To John Murphy, the new formula 433 00:22:25,779 --> 00:22:29,130 tastes just as good, if not better than the original Miller. 434 00:22:29,217 --> 00:22:30,958 The fact that they were able to make it taste 435 00:22:31,045 --> 00:22:33,482 like regular beer, it was a big innovation. 436 00:22:33,482 --> 00:22:35,049 The other breweries, 437 00:22:35,049 --> 00:22:37,921 they didn't know quite how they pulled it off. 438 00:22:37,921 --> 00:22:39,314 Now he needs to find a way 439 00:22:39,401 --> 00:22:42,361 to convince customers to try it. 440 00:22:47,278 --> 00:22:49,629 What they're trying to do is with low calorie beer 441 00:22:49,629 --> 00:22:53,241 was to come up with the perfect advertising campaign. 442 00:22:54,938 --> 00:22:57,724 He commissions a comprehensive study of beer drinkers, 443 00:22:59,421 --> 00:23:01,510 and the results narrow down the demographic 444 00:23:01,597 --> 00:23:02,903 drinking the most beer. 445 00:23:05,296 --> 00:23:07,647 Sports fans are beer drinkers. 446 00:23:09,126 --> 00:23:12,303 Sports reflect this uber macho male culture, 447 00:23:12,303 --> 00:23:16,917 and beer has just always been an integral part 448 00:23:16,917 --> 00:23:19,485 to the gathering of guys. 449 00:23:19,485 --> 00:23:24,098 And this notion of beer being unhealthy, 450 00:23:24,185 --> 00:23:27,014 or beer leading to a perhaps 451 00:23:27,101 --> 00:23:29,451 less than aesthetically pleasing physique, 452 00:23:29,451 --> 00:23:31,322 that wasn't what guys really thought about. 453 00:23:31,410 --> 00:23:34,848 So it wasn't about being healthy. 454 00:23:36,676 --> 00:23:38,417 Miller realized we need to sell this to the same people 455 00:23:38,417 --> 00:23:40,114 who are drinking our regular beer. 456 00:23:42,682 --> 00:23:44,597 What they did was they set out 457 00:23:44,597 --> 00:23:46,294 to make this thing seem macho. 458 00:23:46,294 --> 00:23:48,688 Philip Morris had been one of the leaders 459 00:23:48,818 --> 00:23:51,952 in making low tar, low nicotine cigarettes, 460 00:23:51,952 --> 00:23:53,519 because during the health craze, 461 00:23:53,606 --> 00:23:56,783 cigarette manufacturers are trying to figure out 462 00:23:56,783 --> 00:24:00,047 ways to convince the public that they can smoke a cigarette 463 00:24:00,134 --> 00:24:03,050 that's light in tobacco. 464 00:24:03,137 --> 00:24:07,010 So this was an idea that John Murphy grasped. 465 00:24:07,010 --> 00:24:08,795 Murphy needs the perfect message 466 00:24:08,795 --> 00:24:11,711 to sell lower calories to a wider audience, 467 00:24:11,711 --> 00:24:14,888 and make sure that everyone in his target demo will hear it. 468 00:24:14,975 --> 00:24:19,240 John Murphy realizes that it's gonna require him 469 00:24:19,327 --> 00:24:22,548 being very creative and spending more money 470 00:24:22,635 --> 00:24:26,029 than Philip Morris has ever spent before. 471 00:24:32,427 --> 00:24:34,603 400 Miles south of Miller 472 00:24:34,603 --> 00:24:37,998 seismic shifts are in motion at Anheuser-Busch. 473 00:24:38,955 --> 00:24:39,956 What is this? 474 00:24:42,176 --> 00:24:45,614 Gussie has to watch as board members say that they think 475 00:24:45,614 --> 00:24:48,008 Gussie should be replaced as the head of the company. 476 00:24:48,138 --> 00:24:48,835 With who? 477 00:24:50,750 --> 00:24:51,490 Me. 478 00:24:53,622 --> 00:24:55,668 Gussie was blindsided. 479 00:24:55,755 --> 00:24:59,280 He saw himself as the person who took Anheuser-Busch 480 00:24:59,280 --> 00:25:01,500 to number one, and he couldn't believe that people 481 00:25:01,587 --> 00:25:03,545 would not be loyal to him and respect 482 00:25:03,632 --> 00:25:06,156 all he had done for this company. 483 00:25:15,296 --> 00:25:16,863 August III was in charge now. 484 00:25:16,863 --> 00:25:18,778 It was time to automate whatever they could 485 00:25:18,865 --> 00:25:20,606 and you know, do what the computer model 486 00:25:20,606 --> 00:25:22,346 said to cut costs, 487 00:25:22,433 --> 00:25:25,524 and that would be this new modern bottling machinery. 488 00:25:27,526 --> 00:25:29,005 He is going to be the first person 489 00:25:29,092 --> 00:25:30,964 with the most forward thinking, 490 00:25:31,051 --> 00:25:33,923 most futuristic tools on his bottling line. 491 00:25:33,923 --> 00:25:36,273 But for all his focus on the future, 492 00:25:36,360 --> 00:25:38,406 August is unaware of the innovations 493 00:25:38,493 --> 00:25:40,974 underway by his newest competition. 494 00:25:41,104 --> 00:25:44,064 Miller is mounting a light beer revolution. 495 00:25:45,892 --> 00:25:48,372 August was definitely missing the boat as it's taking off. 496 00:25:52,420 --> 00:25:54,465 Meanwhile, John Murphy 497 00:25:54,465 --> 00:25:57,077 needs Philip Morris's buy-in to get funding 498 00:25:57,077 --> 00:25:59,514 to market his new diet beer concept. 499 00:26:01,429 --> 00:26:05,999 It's not about being healthy or counting calories. 500 00:26:06,086 --> 00:26:08,044 It's not diet beer. 501 00:26:10,569 --> 00:26:12,483 It's light beer. 502 00:26:12,483 --> 00:26:18,315 Introducing Lite Beer by Miller. 503 00:26:18,664 --> 00:26:21,405 The genius of the new ad campaign 504 00:26:21,492 --> 00:26:24,583 was that they just side stepped the whole diet thing. 505 00:26:24,670 --> 00:26:27,411 It's more you can drink more of this, 506 00:26:27,411 --> 00:26:29,109 because you're not going get as full. 507 00:26:29,109 --> 00:26:31,764 Same great taste, less filling. 508 00:26:35,594 --> 00:26:37,639 Murphy's asking for enough to fund 509 00:26:37,726 --> 00:26:40,555 one of the biggest ad campaigns in history. 510 00:26:40,555 --> 00:26:43,602 The ad spend on this will cost us a billion dollars. 511 00:26:45,212 --> 00:26:47,040 It's gonna make us number one. 512 00:26:47,127 --> 00:26:50,086 Now John Murphy will have to make good on the promise 513 00:26:50,086 --> 00:26:54,221 that Miller's Lite Beer can take down the king of beers. 514 00:26:54,351 --> 00:26:56,397 We're gonna be bigger than Anheuser-Busch. 515 00:27:03,883 --> 00:27:07,756 August Busch's rise to power in 1975 516 00:27:07,756 --> 00:27:10,759 sends a shockwave through Anheuser-Busch. 517 00:27:10,759 --> 00:27:13,327 August immediately begins modernizing the company, 518 00:27:13,327 --> 00:27:16,373 replacing many workers for automated machines. 519 00:27:16,373 --> 00:27:17,984 The union workers are infuriated. 520 00:27:20,377 --> 00:27:22,336 The company were starting to eliminate people 521 00:27:22,336 --> 00:27:24,730 who are hand bottling things for machines 522 00:27:24,730 --> 00:27:26,166 that are bottling things. 523 00:27:26,166 --> 00:27:27,646 The people who are managing the bottling lines 524 00:27:27,733 --> 00:27:31,388 asked to have full approval of any new automation 525 00:27:31,388 --> 00:27:33,477 within the bottling processes in the company. 526 00:27:33,564 --> 00:27:37,307 But August is not going to budge on modernizing his company. 527 00:27:39,440 --> 00:27:41,529 But when the teamsters call a strike, 528 00:27:41,529 --> 00:27:44,750 it forces Anheuser-Busch's production to stop down 529 00:27:44,750 --> 00:27:46,447 and their stock to plummet. 530 00:27:53,584 --> 00:27:55,891 Meanwhile, John Murphy prepares to launch 531 00:27:55,978 --> 00:27:58,285 Lite Beer by Miller with Philip Morris 532 00:27:58,285 --> 00:28:00,504 supplying hundreds of millions of dollars 533 00:28:00,504 --> 00:28:02,898 for an advertising onslaught. 534 00:28:02,898 --> 00:28:05,727 The amount of money that Philip Morris 535 00:28:05,727 --> 00:28:08,991 was pouring into this was money at a level 536 00:28:08,991 --> 00:28:12,342 that it just never been seen before. 537 00:28:12,342 --> 00:28:13,822 He decides to create a campaign 538 00:28:13,909 --> 00:28:16,259 that will hit Americans, 539 00:28:16,259 --> 00:28:20,829 specifically American men, right in the feels. 540 00:28:20,829 --> 00:28:24,790 So he recruits people they'll listen to. 541 00:28:24,790 --> 00:28:28,532 Sports heroes, New York Jets player Matt Snell, 542 00:28:28,532 --> 00:28:32,667 the Yankee icon, the Mick himself, Mickey Mantle. 543 00:28:32,667 --> 00:28:35,061 He brings in smoking Joe Frazier, 544 00:28:35,061 --> 00:28:38,891 and of course former coach John Madden. 545 00:28:38,891 --> 00:28:42,372 He dubs them all the Lite All Stars. 546 00:28:42,372 --> 00:28:46,420 In 1975, Miller launches Lite Beer nationwide 547 00:28:46,420 --> 00:28:50,076 with an advertising blitz featuring their All Stars. 548 00:28:50,076 --> 00:28:52,339 The best thing about it, it tastes great. 549 00:28:52,339 --> 00:28:53,775 No, Horny, it's less filling. 550 00:28:53,775 --> 00:28:55,124 Says who? 551 00:28:55,124 --> 00:28:56,169 They had this great marketing idea 552 00:28:56,169 --> 00:28:57,910 to create the great debate. 553 00:28:57,910 --> 00:29:00,434 Is Miller Lite less filling or does it taste great? 554 00:29:00,521 --> 00:29:01,696 That was kind of the mantra. 555 00:29:01,696 --> 00:29:02,392 - Tastes great! - Less filling! 556 00:29:03,393 --> 00:29:05,047 Tastes great! 557 00:29:05,047 --> 00:29:07,615 Armies of men chanting, not like it's a slogan, 558 00:29:07,615 --> 00:29:10,226 but like it's almost a battle cry. 559 00:29:10,313 --> 00:29:13,882 It's fearsome, and it's blood thirsty and it's incredible. 560 00:29:13,969 --> 00:29:15,884 Less filling is a great way to put a spin 561 00:29:15,971 --> 00:29:17,407 on something being diet, 562 00:29:17,407 --> 00:29:19,192 'cause that could turn a lot of guys off. 563 00:29:19,192 --> 00:29:21,237 The idea of being, it's not gonna fill you up 564 00:29:21,237 --> 00:29:22,761 because of low calories, so man, 565 00:29:22,848 --> 00:29:24,327 when you're in at the bar after work, 566 00:29:24,327 --> 00:29:26,721 you can drink a whole bunch of these if you want to. 567 00:29:26,808 --> 00:29:28,592 It was genius. 568 00:29:28,592 --> 00:29:31,595 Veteran beer marketers are just, 569 00:29:31,682 --> 00:29:33,597 their jaws are hanging open. 570 00:29:33,684 --> 00:29:36,949 That was really the moment culture and marketing 571 00:29:36,949 --> 00:29:39,778 came together and light beer just took off like a rocket. 572 00:29:39,778 --> 00:29:40,953 Over the next decade, 573 00:29:40,953 --> 00:29:42,824 Miller will shoot more than 80 commercials 574 00:29:42,824 --> 00:29:45,609 with dozens of celebrities and sports icons. 575 00:29:45,609 --> 00:29:47,394 It goes back to the old saying, 576 00:29:47,394 --> 00:29:49,613 people don't know what they want until you show them. 577 00:29:49,613 --> 00:29:51,485 And that's exactly what they did. 578 00:29:51,485 --> 00:29:54,270 Almost every commercial in every game 579 00:29:54,270 --> 00:29:56,185 was a Lite Beer commercial. 580 00:29:56,272 --> 00:29:58,622 Is still regarded 50 years later 581 00:29:58,622 --> 00:30:01,277 as one of the pivotal moments 582 00:30:01,277 --> 00:30:03,671 in the history of American beer. 583 00:30:03,671 --> 00:30:07,631 Everybody in the industry was flabbergasted 584 00:30:07,631 --> 00:30:12,506 that Americans really wanted a diet beer, especially men. 585 00:30:12,593 --> 00:30:15,596 By 1977, just two years 586 00:30:15,596 --> 00:30:18,033 since launching the only light beer on the market, 587 00:30:18,033 --> 00:30:21,167 Miller is making 76 million dollars in profit, 588 00:30:21,167 --> 00:30:24,039 almost three times what it made the previous year, 589 00:30:24,039 --> 00:30:26,999 and has become the second largest brewer in America. 590 00:30:28,827 --> 00:30:31,481 And it completely caught Anheuser-Busch off guard. 591 00:30:33,832 --> 00:30:35,616 The strike at Anheuser-Busch 592 00:30:35,616 --> 00:30:38,575 ends after 14 weeks. 593 00:30:38,575 --> 00:30:40,360 The union finally gives into August 594 00:30:40,360 --> 00:30:43,929 and ends up basically getting nothing that they asked for. 595 00:30:43,929 --> 00:30:47,193 But now August finds the strike pales in comparison 596 00:30:47,193 --> 00:30:49,456 to a far greater threat. 597 00:30:49,456 --> 00:30:51,719 Not only does August III 598 00:30:53,068 --> 00:30:55,375 truly have competition on his hands, 599 00:30:55,375 --> 00:30:57,856 he's gonna start playing catch up. 600 00:30:57,856 --> 00:31:01,990 John Murphy fully intended to knock AB 601 00:31:01,990 --> 00:31:03,426 out of the number one spot, 602 00:31:03,426 --> 00:31:05,515 which it had held for decades at that point, 603 00:31:07,213 --> 00:31:09,998 not while Auggie Busch was in charge. 604 00:31:09,998 --> 00:31:12,000 August tasks his brewers 605 00:31:12,000 --> 00:31:15,438 with creating a low calorie beer of their own. 606 00:31:15,438 --> 00:31:17,223 Miller has a year or two advantage, 607 00:31:17,223 --> 00:31:19,268 but once they realized that light beer 608 00:31:19,355 --> 00:31:20,791 is starting to eat away at the market, 609 00:31:20,879 --> 00:31:22,402 they were able to move quickly, 610 00:31:22,402 --> 00:31:24,317 because they weren't going to have any new chemicals 611 00:31:24,317 --> 00:31:26,536 coming in, they didn't have to test stabilizers, 612 00:31:26,536 --> 00:31:27,886 none of that. 613 00:31:27,886 --> 00:31:30,758 They only used longer mashing times. 614 00:31:30,758 --> 00:31:32,891 So they were had less carbs and sugar 615 00:31:32,891 --> 00:31:34,109 that can end up in the final beer. 616 00:31:34,240 --> 00:31:36,024 It was a small tweak to the brewing process. 617 00:31:37,765 --> 00:31:38,984 With a century of brewing experience 618 00:31:38,984 --> 00:31:41,029 passed down in his family, 619 00:31:41,029 --> 00:31:43,118 August plans to obliterate Miller 620 00:31:43,118 --> 00:31:45,207 with an even better tasting light beer. 621 00:31:48,384 --> 00:31:50,125 Okay. 622 00:31:50,125 --> 00:31:53,215 August's new beer has only 97 calories, 623 00:31:53,302 --> 00:31:55,435 33% less than Budweiser, 624 00:31:55,435 --> 00:31:58,177 making it the lightest offering Anheuser-Busch 625 00:31:58,177 --> 00:32:01,920 has produced to date, exactly one calorie more than Miller. 626 00:32:03,312 --> 00:32:04,835 He calls it- 627 00:32:04,835 --> 00:32:06,098 Natural Light. 628 00:32:08,013 --> 00:32:10,145 Yep, Natty Light was Anheuser-Busch's 629 00:32:10,145 --> 00:32:11,364 first light beer. 630 00:32:15,107 --> 00:32:17,239 music] 631 00:32:17,326 --> 00:32:19,067 In 1977, 632 00:32:19,154 --> 00:32:22,375 Budweiser is still the most popular beer on the market, 633 00:32:22,462 --> 00:32:25,291 but now with Miller's Lite Beer in second place, 634 00:32:25,291 --> 00:32:27,293 Anheuser-Busch rushes to introduce 635 00:32:27,423 --> 00:32:29,077 their own version of light beer. 636 00:32:30,861 --> 00:32:32,820 The name Natural Light comes from Anheuser-Busch's 637 00:32:32,820 --> 00:32:34,909 absolute commitment to a natural product, 638 00:32:34,996 --> 00:32:37,303 both natural ingredients and natural process. 639 00:32:37,303 --> 00:32:39,870 August sees that light beer has potential, 640 00:32:39,870 --> 00:32:41,698 but it's still a novelty and for all he knows, 641 00:32:41,698 --> 00:32:44,266 it's just a fad, so he's not willing to put the name 642 00:32:44,266 --> 00:32:47,574 Budweiser on a diet beer and risk damaging the brand. 643 00:32:47,661 --> 00:32:50,490 All he wants to do at this point is crush Miller. 644 00:32:53,101 --> 00:32:54,755 August Busch poaches several 645 00:32:54,885 --> 00:32:57,845 of the Miller All Stars for his own ad campaign. 646 00:33:00,543 --> 00:33:01,718 Lite Beer, Mick? 647 00:33:01,718 --> 00:33:03,459 Nah, I switched to Natural Light. 648 00:33:03,546 --> 00:33:05,766 Their initial marketing campaign for Natural Light 649 00:33:05,766 --> 00:33:07,942 was all about switching. 650 00:33:07,942 --> 00:33:10,249 No questions about it, that they weren't just creating 651 00:33:10,336 --> 00:33:11,815 this new light beer and putting it in the market. 652 00:33:11,815 --> 00:33:14,253 They created it to take share from Miller. 653 00:33:14,383 --> 00:33:17,256 But there is still a massive roadblock. 654 00:33:17,343 --> 00:33:19,823 Miller has exclusive contracts during sporting events. 655 00:33:21,477 --> 00:33:22,174 Which ones? 656 00:33:24,176 --> 00:33:25,351 All of them. 657 00:33:27,918 --> 00:33:32,314 Miller had bought up every single bit of airtime 658 00:33:32,314 --> 00:33:34,882 at every single major sporting event. 659 00:33:36,536 --> 00:33:40,844 The World Series, the Indy 500, the Moscow Olympics. 660 00:33:40,844 --> 00:33:43,282 Basically everything had already been purchased 661 00:33:43,369 --> 00:33:45,023 to the point that they were having a hard time 662 00:33:45,023 --> 00:33:47,764 finding anything to purchase for Natural Light. 663 00:33:47,764 --> 00:33:50,332 While Philip Morris has a pretty big budget, 664 00:33:50,332 --> 00:33:53,640 so does Anheuser-Busch, and while they can't buy airtime, 665 00:33:53,640 --> 00:33:57,948 they do something aggressive and unprecedented. 666 00:33:58,036 --> 00:33:59,646 August is not giving up easily. 667 00:33:59,646 --> 00:34:03,824 He is ready to go to war. 668 00:34:03,911 --> 00:34:06,740 If we can't buy the ad time, we'll get the teams. 669 00:34:09,221 --> 00:34:12,789 So leveraging 70% of AB's 400 million dollar 670 00:34:12,789 --> 00:34:15,879 advertising budget, August decides to sponsor 671 00:34:15,879 --> 00:34:19,187 all 24 US based MLB baseball teams, 672 00:34:19,274 --> 00:34:22,930 20 of the 28 NFL football teams, 673 00:34:22,930 --> 00:34:25,889 23 out of 24 NBA basketball teams, 674 00:34:25,889 --> 00:34:28,936 and 13 or 14 domestic NHL hockey teams. 675 00:34:30,068 --> 00:34:31,678 It was absolutely competitive 676 00:34:31,678 --> 00:34:33,723 between August and John Murphy. 677 00:34:33,723 --> 00:34:37,075 It was both a fight in the media and at the tap handles. 678 00:34:38,859 --> 00:34:41,035 The rivalry between Anheuser-Busch and Miller 679 00:34:41,122 --> 00:34:43,429 wasn't something that started off playfully, 680 00:34:43,516 --> 00:34:46,910 and then eventually got ugly, it got ugly off the rip. 681 00:34:46,910 --> 00:34:49,304 At the height of Miller's battle with Anheuser-Busch, 682 00:34:49,391 --> 00:34:52,002 John Murphy was said to have a rug in his office 683 00:34:52,002 --> 00:34:53,613 with the Anheuser-Busch logo, 684 00:34:53,613 --> 00:34:55,919 so that he could wipe his feet on it. 685 00:34:55,919 --> 00:34:57,921 He would even pull out a voodoo doll 686 00:34:57,921 --> 00:35:00,185 that he called August 687 00:35:00,185 --> 00:35:02,491 that bore a striking resemblance to August III himself, 688 00:35:02,578 --> 00:35:06,713 and he would stick pins in it and it had the desired effect. 689 00:35:06,713 --> 00:35:08,454 It pissed August III off. 690 00:35:10,238 --> 00:35:12,066 And August is ready to pour as much money 691 00:35:12,066 --> 00:35:14,460 as necessary to fend off Miller. 692 00:35:16,288 --> 00:35:19,639 Though he was late to the game in creating a light beer, 693 00:35:19,639 --> 00:35:23,251 he is way ahead of the game when he decides 694 00:35:23,251 --> 00:35:27,212 to become the official sponsor of an upstart new network 695 00:35:27,212 --> 00:35:28,909 out of Bristol, Connecticut, 696 00:35:28,909 --> 00:35:33,305 called The Entertainment and Sports Programming Network. 697 00:35:33,305 --> 00:35:34,436 Heard of them? 698 00:35:34,523 --> 00:35:37,135 Da-da-net, da-da-net, me too. 699 00:35:38,788 --> 00:35:40,094 Off the strength of Anheuser-Busch's 700 00:35:40,094 --> 00:35:42,966 exclusive ad buys, this new network 701 00:35:43,053 --> 00:35:47,145 grows to reach 28 million homes in just four years. 702 00:35:47,145 --> 00:35:51,149 And in 1983, ESPN becomes the largest network on cable. 703 00:35:52,933 --> 00:35:55,022 And the war between Anheuser-Busch and Miller 704 00:35:55,022 --> 00:35:57,155 makes it clear to the rest of the industry 705 00:35:57,155 --> 00:35:59,157 that there's big money in light beer. 706 00:36:00,506 --> 00:36:02,160 While the light beer wars raged, 707 00:36:02,247 --> 00:36:06,425 right behind them was Coors Light, released in 1978. 708 00:36:06,425 --> 00:36:08,557 Schlitz made an attempt when it brought out 709 00:36:08,557 --> 00:36:10,646 its light beer in the late seventies. 710 00:36:10,733 --> 00:36:13,475 There were all kinds of low calorie beers to choose from. 711 00:36:13,475 --> 00:36:16,826 But Lite Beer by Miller holds the number one spot. 712 00:36:22,049 --> 00:36:25,966 Now, August Busch is readying a new secret weapon. 713 00:36:26,053 --> 00:36:28,490 It was just obvious that Natural was apparently 714 00:36:28,621 --> 00:36:30,884 only gonna get Anheuser-Busch so far. 715 00:36:32,277 --> 00:36:34,322 August says to one of his confidants, 716 00:36:34,322 --> 00:36:36,846 "If this doesn't go well, if people don't like this beer. 717 00:36:36,846 --> 00:36:38,283 If they don't drink it, 718 00:36:38,283 --> 00:36:41,286 I am out and my family is out of this company." 719 00:36:41,286 --> 00:36:43,288 If he's gonna hold onto it as the head of the family, 720 00:36:43,288 --> 00:36:44,985 it needs to be bulletproof. 721 00:36:44,985 --> 00:36:46,813 He cannot fail on this one. 722 00:36:46,813 --> 00:36:49,032 This is a company that has been making Budweiser beer 723 00:36:49,119 --> 00:36:52,166 for over 100 years, it's synonymous with the brewery. 724 00:36:52,253 --> 00:36:55,735 And to extend that line was a really risky thing. 725 00:36:55,735 --> 00:36:59,086 It has to be better than any other light beer on the market. 726 00:37:01,219 --> 00:37:03,003 If it's going to be the next great American beer, 727 00:37:03,003 --> 00:37:04,352 it has to say Budweiser. 728 00:37:12,142 --> 00:37:13,666 With Lite Beer by Miller 729 00:37:13,753 --> 00:37:15,711 getting closer and closer to toppling the number one beer 730 00:37:15,711 --> 00:37:17,409 in the world, Budweiser, 731 00:37:17,409 --> 00:37:20,107 August Busch finally unleashes a light beer 732 00:37:20,107 --> 00:37:22,283 emblazoned with the Budweiser name. 733 00:37:22,370 --> 00:37:24,459 The branding of Budweiser Light 734 00:37:24,459 --> 00:37:26,635 was an incredibly risky move for the company, 735 00:37:26,635 --> 00:37:28,811 because it was pulling from the goodwill 736 00:37:28,811 --> 00:37:31,423 and brand recognition of their flagship beer, 737 00:37:31,423 --> 00:37:33,468 which had pretty much been their workhouse 738 00:37:33,468 --> 00:37:35,949 throughout the entire course of their history. 739 00:37:35,949 --> 00:37:40,127 In 1982, Budweiser Light hits store shelves 740 00:37:40,127 --> 00:37:43,043 backed by a 57 million dollar ad campaign. 741 00:37:43,043 --> 00:37:44,566 Their tagline is, 742 00:37:44,697 --> 00:37:47,569 "Finally a light beer worthy of the Budweiser name." 743 00:37:47,569 --> 00:37:49,615 So they basically tell everyone, 744 00:37:49,615 --> 00:37:52,270 this took a while because it is so good. 745 00:37:52,270 --> 00:37:53,967 But in its first two years, 746 00:37:53,967 --> 00:37:57,231 the lower calorie version of America's favorite beer fails 747 00:37:57,318 --> 00:37:59,451 to beat out Lite Beer by Miller. 748 00:37:59,538 --> 00:38:01,496 When Budweiser Light was first introduced, 749 00:38:01,583 --> 00:38:03,063 the idea was to closely align that 750 00:38:03,063 --> 00:38:04,369 with their flagship product, 751 00:38:04,369 --> 00:38:05,674 and that was the approach that failed. 752 00:38:05,674 --> 00:38:07,850 And so the company took a different approach. 753 00:38:07,850 --> 00:38:11,376 In 1984, 2 years after Budweiser Light 754 00:38:11,376 --> 00:38:13,943 hit the store shelves, they want to differentiate it 755 00:38:13,943 --> 00:38:15,858 from the original, make it cool. 756 00:38:15,858 --> 00:38:17,382 You know, something to drink at parties. 757 00:38:17,382 --> 00:38:19,471 It's not just your grandfather's Budweiser, 758 00:38:19,471 --> 00:38:21,864 but it's also a huge risk for them 759 00:38:21,951 --> 00:38:23,562 to deviate from the brand they've 760 00:38:23,562 --> 00:38:25,259 had so much success with. 761 00:38:25,259 --> 00:38:29,176 Beautiful name, right to the point, Bud Light. 762 00:38:31,178 --> 00:38:33,267 And so they had a series of ad campaigns 763 00:38:33,267 --> 00:38:37,227 to repackage Light beer as a young person's drink. 764 00:38:37,227 --> 00:38:40,100 You're trying to create an image of the kind of person 765 00:38:40,187 --> 00:38:41,928 the drinker wants to be. 766 00:38:41,928 --> 00:38:45,410 In 1987, Bud Light uses the Super Bowl, 767 00:38:45,410 --> 00:38:47,586 the most watched sporting event of the year 768 00:38:47,586 --> 00:38:50,545 to introduce a new face for the brand. 769 00:38:50,545 --> 00:38:53,374 He's Spuds MacKenzie, Bud Light's original party animal. 770 00:38:53,374 --> 00:38:55,811 ♪ Go Spuds go 771 00:38:55,811 --> 00:38:58,379 When the Spuds MacKenzie ad came out, you start to see, 772 00:38:58,379 --> 00:39:00,860 Okay, we're not pitching this at middle-aged guys 773 00:39:00,860 --> 00:39:02,470 with bellies with bellies anymore. 774 00:39:02,470 --> 00:39:03,732 We're gonna have young people 775 00:39:03,819 --> 00:39:05,430 who look really good in swimsuits, 776 00:39:05,430 --> 00:39:08,041 and that's the people who should be drinking Bud Light. 777 00:39:10,086 --> 00:39:13,655 Ladies and gentlemen, Mr. Spuds MacKenzie. 778 00:39:13,655 --> 00:39:16,397 I don't think the Super Bowl would be what it is 779 00:39:16,484 --> 00:39:19,792 without the Anheuser-Busch ad campaigns 780 00:39:19,792 --> 00:39:22,142 that it put forth for Bud Light. 781 00:39:22,229 --> 00:39:25,101 We watched the Super Bowl for the commercials 782 00:39:25,101 --> 00:39:26,712 as much as the game. 783 00:39:26,712 --> 00:39:29,889 Bud really paved the way for what we think of 784 00:39:29,976 --> 00:39:31,456 as Super Bowl commercials. 785 00:39:31,456 --> 00:39:33,936 They were wackier, funnier, more irreverent, 786 00:39:33,936 --> 00:39:36,722 and they are as indelible to the Super Bowl 787 00:39:36,722 --> 00:39:40,639 at this point as anything, Bud Light is the Super Bowl beer. 788 00:39:40,726 --> 00:39:43,598 Bud Light became the go-to party beer. 789 00:39:43,598 --> 00:39:46,949 Anheuser-Busch had gotten its mojo back 790 00:39:47,036 --> 00:39:49,430 and it was going full steam ahead. 791 00:39:49,430 --> 00:39:52,215 In 1994, after a 17 year battle 792 00:39:52,215 --> 00:39:54,000 between Anheuser-Busch and Miller, 793 00:39:54,087 --> 00:39:56,872 Bud Light finally overtakes Lite Beer by Miller. 794 00:39:56,872 --> 00:39:58,918 We can certainly thank Miller Lite 795 00:39:58,918 --> 00:40:01,181 for introducing light beer to the mass market 796 00:40:01,181 --> 00:40:03,923 in the United States, but we have Bud Light to thank 797 00:40:04,010 --> 00:40:05,272 for pushing it to boundaries 798 00:40:05,272 --> 00:40:06,578 that we've never seen in the past. 799 00:40:08,580 --> 00:40:11,496 August III definitely deserves a lot of credit. 800 00:40:11,496 --> 00:40:14,281 He saw the future coming, wasn't afraid to respond to that. 801 00:40:14,368 --> 00:40:16,762 He knew the brand was strong enough to stand 802 00:40:16,762 --> 00:40:18,241 splitting into light beer as well. 803 00:40:18,241 --> 00:40:20,330 So without him and his foresight, 804 00:40:20,330 --> 00:40:21,854 Bud Light and light beer in general 805 00:40:21,941 --> 00:40:23,595 just might not be as big as it is today. 806 00:40:25,379 --> 00:40:29,035 In 1998, off of Bud Light's rapid success, 807 00:40:29,035 --> 00:40:31,690 Miller changes the name of its best-selling brand, 808 00:40:31,690 --> 00:40:34,910 Lite Beer by Miller to the shorter catchier version 809 00:40:34,910 --> 00:40:36,782 we know today, Miller Lite. 810 00:40:38,218 --> 00:40:40,481 Following Miller's astronomical success, 811 00:40:40,481 --> 00:40:43,571 Murphy is promoted to president of Philip Morris. 812 00:40:43,702 --> 00:40:46,748 Murphy had no fear, he just plowed forward 813 00:40:46,748 --> 00:40:49,621 without stopping and the momentum that 814 00:40:49,708 --> 00:40:52,711 light beer created, it became a thing unto itself. 815 00:40:52,711 --> 00:40:55,540 If you look at the top 10 brands today, 816 00:40:55,540 --> 00:40:57,933 almost all of them are either low carb, 817 00:40:57,933 --> 00:40:59,718 or low calorie, or both. 818 00:40:59,718 --> 00:41:02,372 In 2001, Murphy witnessed the unimaginable. 819 00:41:02,460 --> 00:41:04,897 A light beer finally beat out Budweiser 820 00:41:05,027 --> 00:41:06,551 for the number one spot. 821 00:41:06,551 --> 00:41:09,467 However, it wasn't Miller Lite as he hoped. 822 00:41:09,554 --> 00:41:11,381 Bud light is such a force. 823 00:41:11,381 --> 00:41:14,689 Nobody realizes or remembers what actually happened, 824 00:41:14,776 --> 00:41:17,387 that Miller pioneered light beer. 825 00:41:17,387 --> 00:41:20,521 Miller Lite might not be as big as Bud Light now, 826 00:41:20,521 --> 00:41:22,088 but they're the reason that we have it 827 00:41:22,088 --> 00:41:23,829 and any other light beer. 828 00:41:23,829 --> 00:41:27,006 And in 2002, nearly 30 years after ushering in 829 00:41:27,006 --> 00:41:30,052 the light beer craze, Murphy passes away. 830 00:41:30,052 --> 00:41:33,839 Today, Bud Light remains the number one beer in America, 831 00:41:33,839 --> 00:41:37,146 and 20,000 Bud Lights are sold every minute. 832 00:41:37,233 --> 00:41:41,977 Bud Light may be king, but Miller Lite paved the way. 833 00:41:41,977 --> 00:41:43,762 Not only is light beer 834 00:41:43,762 --> 00:41:46,591 the best selling domestic beer category in America, 835 00:41:46,591 --> 00:41:49,419 it's spearheaded the growth of the global beer market 836 00:41:49,419 --> 00:41:52,727 to become a 600 billion dollar industry. 837 00:41:52,727 --> 00:41:55,556 While there were barely 100 breweries in the US 838 00:41:55,643 --> 00:41:57,732 when Murphy invented Miller Lite, 839 00:41:57,732 --> 00:42:01,475 there are now more than 9,000 across America. 840 00:42:01,562 --> 00:42:04,434 The rivalry between Miller and Anheuser-Busch 841 00:42:04,522 --> 00:42:06,828 did nothing short of revitalizing 842 00:42:06,828 --> 00:42:08,351 the American beer industry. 843 00:42:08,482 --> 00:42:12,181 And it opened us up to whole new categories of beer, 844 00:42:12,268 --> 00:42:16,882 things like ice beer, red beers, wheat beers, draft beers, 845 00:42:16,969 --> 00:42:19,667 the embracing of foreign and craft beers. 846 00:42:19,754 --> 00:42:21,843 None of that could have happened 847 00:42:21,843 --> 00:42:24,498 unless John Murphy and August III 848 00:42:24,498 --> 00:42:27,414 upset the apple cart for the betterment of all of us. 67625

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