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Today, the global beer market
is a growing 600 billion dollar industry.
And a colossal 300 billion of that
is for a beer that just 50 years ago didn't exist.
Diet beer.
Apparently tasted a lot like wet metal.
Until a visionary who doesn't know
the first thing about beer changes the industry forever.
It's not diet beer, it's light beer.
That was really the moment culture
and marketing came together.
Armies of men chanting-
Less filling, tastes great!
It's fearsome, and bloodthirsty, and it's incredible.
It ignites a battle with the biggest beer brand
on the planet.
The rivalry wasn't something that started off playfully
and then eventually got ugly.
It got ugly off the rip.
His big goal was to just annihilate Anheuser-Busch.
He is ready to go to war.
Forcing the king of beers
to risk reinventing a classic.
If you poke a bear, expect him to bite back.
Okay?
All he wants to do at this point is crush Miller.
But it will take trailblazing innovations.
He becomes the official sponsor
of an upstart new network
Da-da-net, da-da-net, heard of them?
The amount of money pouring into this was money at a level
that it just never been seen before.
Bud really paved the way
for what we think of as Super Bowl commercials.
To introduce a new beer to the world.
It's one of the pivotal moments
in the history of American beer.
Light beer did nothing short of revitalizing
the American beer industry.
It just blew everything else out of the water.
And come out on top.
There are more than 9,000 breweries in the US today,
selling hundreds of styles from IPA to pale ale,
pilsner, stout, porter, and wheat,
but the thriving industry is a far cry
from what it looked like just over 50 years ago,
at the dawn of the 1970s.
There just weren't that many breweries.
Small breweries had gone out of business,
because there just weren't many people drinking beer.
And those who did stay afloat
tended to be the larger breweries.
And four really big breweries
kind of took charge of the market.
The country's four biggest breweries
are Coors, Pabst, Schlitz,
and at the top by a landslide Anheuser-Busch.
Anheuser-Busch had a stronghold on the
number one position in the United States
producing beer roughly at a rate
of two to one versus its next closest competitor.
One of the reasons that large brew companies
became so popular mirrored what was happening in food.
People were very interested
in large industrial scale products.
So you've got your Wonder Bread
and you've got your Velveeta Cheese,
and you've got your Anheuser-Busch Budweiser beer.
People liked the kind of space age modernity
of these packages and the consistency of the products.
The beer landscape becomes focused
on this lightly flavored golden sparkling lager style beer.
There was no double IPA, no sour beer,
no oatmeal stouts, no light beer.
Americans had a choice of brands
from the handful of large companies
of essentially the same kind of very light lager.
The word L-I-G-H-T when applied to beer at that time
meant a beer that was yellow, had a very light body,
not much hops, not much malt.
It didn't have any connotation with calories.
Meanwhile, other realms of the booze industry
have evolved.
We start to see a real shift in the fifties and sixties.
We started seeing the introduction of cocktails,
with the martini, the margarita.
James Bond said he wanted a martini shaken, but not stirred,
and that changed everything.
The liquor industry has found inventive new ways
to increase their profits through cocktail culture,
but the beer industry is kind of lacking in innovation.
But nobody is even trying to take on
the beer goliaths and revitalize the stagnant market,
until now.
It's not a brewery that starts the sea change,
but a company that has no experience selling beer at all.
In 1969, Philip Morris is an international powerhouse
of the tobacco industry
whose recent Marlborough Man campaign has skyrocketed them
to a record breaking 1 billion dollars in sales.
But now the government threatens to stop their growth.
In 1969 Congress passes a law
that eliminates advertising for cigarettes on radio and TV.
And so companies like Philip Morris
realize that they might be sitting on a industry
that's shrinking and begins to diversify
into other realms of the economy,
and they settle on another vice, so to speak.
And to lead the new venture,
Philip Morris calls on one of their own rising stars.
You wanted to see me?
John Murphy started at Phillip Morris as a tax attorney
and has worked his way
out to the upper ranks of the business.
John Murphy is a bit mischievous.
He likes a good drink, a good joke, a bit of a banter,
and he's also deeply ambitious.
We're gonna need you in Milwaukee.
Wisconsin, what's in Wisconsin?
Miller.
In 1969, Philip Morris buys out Miller Brewing,
which at the time only has about 4% of the beer market.
Never heard of it.
Every large brewery in the country was run by a family.
Philip Morris would be the first company coming in
running a brewery that was not a family of brewers.
Miller Brewing was founded in Milwaukee
in the middle of the 19th century,
owned by the Miller family.
Miller's future looked incredibly bright
in the early 1950s,
it was becoming known as a national beer.
And in late 1954, Fred Miller,
the wonder kid who had done all this,
and his son died in a plane crash.
After that, the company just lost its way.
And Miller was turned over to Philip Morris.
While Anheuser-Busch
offers brands like Michelob and Busch Bavarian,
along with their flagship brand, Budweiser,
Miller is scraping by with a single product offering.
Miller High Life was introduced by the family in
1903, and their advertising anchor for it
was that this was a champagne like beer.
When prohibition ended, that was the only beer they made,
which was a very unusual decision
for any brewery to make.
They just threw all their eggs into this one basket.
Philip Morris sees how much room there is for growth
in the beer market.
They see these breweries just kind of making
and selling all the same lager product.
Beer and cigarettes are both agricultural products,
and they can be mass produced,
and they're usually consumed by the same people.
So having a brewery struck them as a great idea.
So they sent John Murphy to Milwaukee
to figure out how to run a beer company.
When John Murphy arrives in Milwaukee,
Miller High Life is fading.
John Murphy didn't have any brewing experience at all.
Here he is, he's gonna build up this brewing company,
and all he's gotta do is figure out how to do it.
The champagne of beers.
What John Murphy puts into action
will lead to the creation of a groundbreaking new product
that will bring in over 2 billion dollars annually,
and spearhead an entirely new global market
worth over 300 billion dollars,
forever changing the beer industry.
But in 1970, the rookie brand fixer
doesn't have a clue where to begin.
Day's done, boys, it's time for beer.
John Murphy really doesn't know very much about beer.
What he does know is that he wants to eventually become
president of Philip Morris,
and he knows that if he succeeds in growing Miller
into this juggernaut of a brand,
the likelihood that he will become president
of Philip Morris is exponentially greater.
Gussie Bush has led the family operated
Anheuser-Busch empire since the end of World War II,
and has grown the business from one St. Louis brewery
to nine nationwide.
Gussie embodied the idea of being number one
at everything he did.
It was very important for him to have the aura of someone
who has a number one brewery and a personality
that people look to as someone
who is successful and important.
But Gussie was so focused on the beer of yesterday.
Gussie has grown sales by over 400%
without producing a new product in 15 years.
And while their century old flagship,
Budweiser, remains number one,
profits are on the decline industry wide.
Anheuser-Busch was struggling
partly because every brewer was struggling.
Breweries were all basically selling the same beer.
And years of stagnation
have stifled the industry's growth.
We need to trim the fat.
Fire the marketing department.
No, no, our advertising's what's going to grow our brand,
Please, our beer sells itself.
His son August III is a relentless workaholic,
hard-nosed man of the people kind of approach,
but he also sees where the company can go.
August III saw things happening in the market
that Gussie wasn't paying attention to.
He's still kind of in that older mindset.
Technology was growing at a rapid speed
at the start of the 1970s,
and automation promises to improve not only manufacturing,
but also to cut costs.
August wants Anheuser-Busch to evolve with the times
by modernizing with the latest technology
to develop new products.
Rather than looking behind him at tradition,
he was thinking about how will the company grow?
How will the country grow and where will he sit in that?
That'll be all.
August is very forward thinking values
really rubbed Gussie's traditional quality standard,
family values the wrong way.
Gussie says that beer isn't a computer business,
that beer is about people.
August will one day bring the company into the future
with a legendary new product that will surpass
even his family's own Budweiser
to become America's favorite beer,
recognized around the globe and leading the way
for dozens of new varieties of beer beyond lager.
But first, he'll have to defeat an aggressive rival
coming for him, even if it means going to war
with his own father.
August, don't ever question me again.
John Murphy, a rising star
of the Philip Morris company,
has been sent to Milwaukee to try and save
a struggling brewery called Miller.
Philip Morris has charged John Murphy
with creating a success with a product
he really doesn't know very much about
in a highly competitive market
with one of the most fearsome,
ruthless competitors out there.
But even against the Anheuser-Busch behemoth,
Miller has an ace up their sleeve.
Miller had a lot of money to spend
because of Philip Morris,
far more even than Anheuser-Busch.
They had bajillions of dollars.
Now that Philip Morris can't advertise cigarettes
on TV anymore, they have a ton of ad money
sitting around and they're ready to burn it.
Murphy's first step is to tackle the marketing
that's been used since before World War I.
At the start of the 20th century,
beer was hardly sold in bottles.
It was served at saloons or maybe carried home
from the bar in a bucket, hence the luxury of bottled beer,
the champagne of bottled beer.
But by the 1970s, this is common stuff.
People have been drinking out of bottles for decades now,
and it's very affordable.
It's time for beer!
The notion of the luxury of bottled beer
no longer resonates with the drinkers of bottled beer.
Those guys drinking Miller after work.
The first thing John Murphy did was to take the beer
out of the champaign bucket
and put it into the workman's lunch bucket.
Miller time.
So he tossed out the whole thing about it
being a champagne of beer,
and they developed the ad campaign
based on working people.
It's Miller time.
Time to head for the best tasting beer you can find.
Murphy's idea to make the Miller Time advertising campaign
all about the hardworking blue collar men
is a way to distinguish Miller High Life
from the industry's biggest competitor, Budweiser,
whose marketing is all about tradition.
Launching in 1971, Murphy hasn't changed the beer itself,
but the campaign quadruples Miller High Life sales
to over 20 million barrels.
Philip Morris knew how to market.
They had already become the top of the cigarette market.
They've proven that they know how to get a brand out there
and make American people loyal to it.
So they were a huge threat to Anheuser-Busch.
At Anheuser-Busch,
there was a Shakespearean power struggle
between Auggie Bush and his father Gus Bush.
And John Murphy was a guy who understood
how to take advantage of a moment.
August III sees Miller coming for Anheuser-Busch,
and immediately saw that was a threat.
He knows that it's time to start making changes
in marketing.
Gussie doesn't care about them at all.
Miller Brewing was just this company in Milwaukee,
and Gus Bush just did not take it seriously.
He thought, "Here's a cigarette company.
They're buying a beer company, what do they know?"
In the 1970s, technology is moving fast.
August sees it as the time that he can't wait any longer.
He can't quietly wait for Gussie to either quit or die.
Behind his father's back,
August makes deals with members of the board
for their allegiance.
He was laying the grounds for a future thinking company
that would eventually exist.
Many of the board members actually agree with him,
and decide that it might be the time to have a transition
of who is at the helm of the business,
and make sure the company
stays at the top of the beer market.
Since the launch of the Miller Time campaign,
Miller's become the fifth biggest brewery in the country,
but with just 5% market share,
they still have a long way to catch up to Anheuser-Busch's
leading 21%.
John Murphy decided to conquer the brewing world
and turn Miller Brewing into the biggest brewery
in the country.
His big goal was to just annihilate Anheuser-Busch.
Let's try some.
Murphy was coming from Philip Morris
and you know they didn't just rely on one cigarette brand.
In addition to Marlboro, they had Parliaments,
they had Benson and Hedges.
They even had Philip Morris brand cigarettes.
In an attempt to diversify,
Miller buys a recently bankrupt Chicago based brewery,
Meister Br äu, which also comes with a collection
of unsuccessful brands.
What's that one?
Some low caloried beer.
Diet beer.
Low calorie beer was this very obscure product
that most Americans had never heard of.
It was launched in 1967 and was marketed
mostly towards people on a diet,
mainly women before it finally went bankrupt.
Apparently tasted a lot like wet metal.
Meister Br äu's attempt at diet beer
was a result of a growing trend
towards health consciousness.
In the 1960s, scientists begin to determine
that we have way too much sugar in the American diet ,
and it is causing all kinds of medical problems.
This increased awareness in health
absolutely spurs changes in the food industry.
This is when you have Crystal Light, and low fat,
and diet, and shakes instead of food.
Americans went crazy for diet foods and beer was seen as,
"Ugh, you're gonna diet, you can not drink this stuff."
Beer had always had a reputation of being fattening.
The real caloric impact from beer comes from sugar.
Sugar takes a lot of calories to burn,
and that's why it normally stays on your body as fat,
as a beer belly.
In 1967, the recipe for Meister Br äu's
low calorie beer was invented by scientist,
Dr. Joseph Owades.
Dr. Joseph Owades process in developing
a light caloried beer involved the use of enzymes
known as glucoamylase in the brewing process.
This enzyme breaks down a lot of the sugars
that are in the beer that contribute to body, mouth feel.
Certainly a little bit of flavor and definitely calories.
Meister Br äu is inherently less fattening,
but the flavor is not like a real beer,
and it failed miserably.
And the taste wasn't the only problem.
Diet beer was basically a poisonous concept
to many American males because diet, that's for women.
Despite its failure on the regional level,
Murphy sees potential in taking diet beer national
for the first time.
It's something Anheuser-Busch doesn't have.
The nation's top brewers believe
diet beer could alienate their core market.
The other top breweries,
they're too nervous to put their brand's name
onto diet beer.
Brewing companies objected to diet beers,
because if you're trying to sell a diet beer,
then you're conceding the point that beer is fattening.
And if this beer bond it was just better
to not be associated with it.
But Murphy sees it as an opportunity
to expand Miller's market.
John Murphy was a company guy
and he absorbed the Philip Morris ethos.
He understood that you need to find markets.
From Murphy's point of view,
there's an entire audience out there for diet beer
that no one's even coming near.
But first, he'll need to improve the flavor.
It's a massive risk.
You stop and you think about, my gosh,
you know that is your life, your career on the line.
You only took the Miller job
to become president of Philip Morris, and if you blow this,
I mean they gonna bury you under the conveyor belt, buddy.
The team at Miller has been working
for nearly a year trying to improve the taste
of their new diet beer.
They fiddled around with it,
trying to come up with the right formula,
'cause they wanted to taste like beer.
They definitely wanted to taste like beer,
and that's not something you can do in a week.
Up to 80% of a beer's flavor
comes from the strain of yeast that's used.
So in order to improve the flavor,
they decided to use the exact strain of yeast
that the founder of Miller, Frederick Miller,
brought with him from Germany in the 1850s.
The unique yeast provides the beer
with an aroma and taste that maintains a lager's flavor.
Now they've got a diet beer
that's reminiscent of a beer people know and love.
It's not dissimilar to what Coke will do
a few years later with Diet Coke.
Maybe not the same flavor exactly,
but it gives you the same satisfaction.
To John Murphy, the new formula
tastes just as good, if not better than the original Miller.
The fact that they were able to make it taste
like regular beer, it was a big innovation.
The other breweries,
they didn't know quite how they pulled it off.
Now he needs to find a way
to convince customers to try it.
What they're trying to do is with low calorie beer
was to come up with the perfect advertising campaign.
He commissions a comprehensive study of beer drinkers,
and the results narrow down the demographic
drinking the most beer.
Sports fans are beer drinkers.
Sports reflect this uber macho male culture,
and beer has just always been an integral part
to the gathering of guys.
And this notion of beer being unhealthy,
or beer leading to a perhaps
less than aesthetically pleasing physique,
that wasn't what guys really thought about.
So it wasn't about being healthy.
Miller realized we need to sell this to the same people
who are drinking our regular beer.
What they did was they set out
to make this thing seem macho.
Philip Morris had been one of the leaders
in making low tar, low nicotine cigarettes,
because during the health craze,
cigarette manufacturers are trying to figure out
ways to convince the public that they can smoke a cigarette
that's light in tobacco.
So this was an idea that John Murphy grasped.
Murphy needs the perfect message
to sell lower calories to a wider audience,
and make sure that everyone in his target demo will hear it.
John Murphy realizes that it's gonna require him
being very creative and spending more money
than Philip Morris has ever spent before.
400 Miles south of Miller
seismic shifts are in motion at Anheuser-Busch.
What is this?
Gussie has to watch as board members say that they think
Gussie should be replaced as the head of the company.
With who?
Me.
Gussie was blindsided.
He saw himself as the person who took Anheuser-Busch
to number one, and he couldn't believe that people
would not be loyal to him and respect
all he had done for this company.
August III was in charge now.
It was time to automate whatever they could
and you know, do what the computer model
said to cut costs,
and that would be this new modern bottling machinery.
He is going to be the first person
with the most forward thinking,
most futuristic tools on his bottling line.
But for all his focus on the future,
August is unaware of the innovations
underway by his newest competition.
Miller is mounting a light beer revolution.
August was definitely missing the boat as it's taking off.
Meanwhile, John Murphy
needs Philip Morris's buy-in to get funding
to market his new diet beer concept.
It's not about being healthy or counting calories.
It's not diet beer.
It's light beer.
Introducing Lite Beer by Miller.
The genius of the new ad campaign
was that they just side stepped the whole diet thing.
It's more you can drink more of this,
because you're not going get as full.
Same great taste, less filling.
Murphy's asking for enough to fund
one of the biggest ad campaigns in history.
The ad spend on this will cost us a billion dollars.
It's gonna make us number one.
Now John Murphy will have to make good on the promise
that Miller's Lite Beer can take down the king of beers.
We're gonna be bigger than Anheuser-Busch.
August Busch's rise to power in 1975
sends a shockwave through Anheuser-Busch.
August immediately begins modernizing the company,
replacing many workers for automated machines.
The union workers are infuriated.
The company were starting to eliminate people
who are hand bottling things for machines
that are bottling things.
The people who are managing the bottling lines
asked to have full approval of any new automation
within the bottling processes in the company.
But August is not going to budge on modernizing his company.
But when the teamsters call a strike,
it forces Anheuser-Busch's production to stop down
and their stock to plummet.
Meanwhile, John Murphy prepares to launch
Lite Beer by Miller with Philip Morris
supplying hundreds of millions of dollars
for an advertising onslaught.
The amount of money that Philip Morris
was pouring into this was money at a level
that it just never been seen before.
He decides to create a campaign
that will hit Americans,
specifically American men, right in the feels.
So he recruits people they'll listen to.
Sports heroes, New York Jets player Matt Snell,
the Yankee icon, the Mick himself, Mickey Mantle.
He brings in smoking Joe Frazier,
and of course former coach John Madden.
He dubs them all the Lite All Stars.
In 1975, Miller launches Lite Beer nationwide
with an advertising blitz featuring their All Stars.
The best thing about it, it tastes great.
No, Horny, it's less filling.
Says who?
They had this great marketing idea
to create the great debate.
Is Miller Lite less filling or does it taste great?
That was kind of the mantra.
- Tastes great! - Less filling!
Tastes great!
Armies of men chanting, not like it's a slogan,
but like it's almost a battle cry.
It's fearsome, and it's blood thirsty and it's incredible.
Less filling is a great way to put a spin
on something being diet,
'cause that could turn a lot of guys off.
The idea of being, it's not gonna fill you up
because of low calories, so man,
when you're in at the bar after work,
you can drink a whole bunch of these if you want to.
It was genius.
Veteran beer marketers are just,
their jaws are hanging open.
That was really the moment culture and marketing
came together and light beer just took off like a rocket.
Over the next decade,
Miller will shoot more than 80 commercials
with dozens of celebrities and sports icons.
It goes back to the old saying,
people don't know what they want until you show them.
And that's exactly what they did.
Almost every commercial in every game
was a Lite Beer commercial.
Is still regarded 50 years later
as one of the pivotal moments
in the history of American beer.
Everybody in the industry was flabbergasted
that Americans really wanted a diet beer, especially men.
By 1977, just two years
since launching the only light beer on the market,
Miller is making 76 million dollars in profit,
almost three times what it made the previous year,
and has become the second largest brewer in America.
And it completely caught Anheuser-Busch off guard.
The strike at Anheuser-Busch
ends after 14 weeks.
The union finally gives into August
and ends up basically getting nothing that they asked for.
But now August finds the strike pales in comparison
to a far greater threat.
Not only does August III
truly have competition on his hands,
he's gonna start playing catch up.
John Murphy fully intended to knock AB
out of the number one spot,
which it had held for decades at that point,
not while Auggie Busch was in charge.
August tasks his brewers
with creating a low calorie beer of their own.
Miller has a year or two advantage,
but once they realized that light beer
is starting to eat away at the market,
they were able to move quickly,
because they weren't going to have any new chemicals
coming in, they didn't have to test stabilizers,
none of that.
They only used longer mashing times.
So they were had less carbs and sugar
that can end up in the final beer.
It was a small tweak to the brewing process.
With a century of brewing experience
passed down in his family,
August plans to obliterate Miller
with an even better tasting light beer.
Okay.
August's new beer has only 97 calories,
33% less than Budweiser,
making it the lightest offering Anheuser-Busch
has produced to date, exactly one calorie more than Miller.
He calls it-
Natural Light.
Yep, Natty Light was Anheuser-Busch's
first light beer.
music]
In 1977,
Budweiser is still the most popular beer on the market,
but now with Miller's Lite Beer in second place,
Anheuser-Busch rushes to introduce
their own version of light beer.
The name Natural Light comes from Anheuser-Busch's
absolute commitment to a natural product,
both natural ingredients and natural process.
August sees that light beer has potential,
but it's still a novelty and for all he knows,
it's just a fad, so he's not willing to put the name
Budweiser on a diet beer and risk damaging the brand.
All he wants to do at this point is crush Miller.
August Busch poaches several
of the Miller All Stars for his own ad campaign.
Lite Beer, Mick?
Nah, I switched to Natural Light.
Their initial marketing campaign for Natural Light
was all about switching.
No questions about it, that they weren't just creating
this new light beer and putting it in the market.
They created it to take share from Miller.
But there is still a massive roadblock.
Miller has exclusive contracts during sporting events.
Which ones?
All of them.
Miller had bought up every single bit of airtime
at every single major sporting event.
The World Series, the Indy 500, the Moscow Olympics.
Basically everything had already been purchased
to the point that they were having a hard time
finding anything to purchase for Natural Light.
While Philip Morris has a pretty big budget,
so does Anheuser-Busch, and while they can't buy airtime,
they do something aggressive and unprecedented.
August is not giving up easily.
He is ready to go to war.
If we can't buy the ad time, we'll get the teams.
So leveraging 70% of AB's 400 million dollar
advertising budget, August decides to sponsor
all 24 US based MLB baseball teams,
20 of the 28 NFL football teams,
23 out of 24 NBA basketball teams,
and 13 or 14 domestic NHL hockey teams.
It was absolutely competitive
between August and John Murphy.
It was both a fight in the media and at the tap handles.
The rivalry between Anheuser-Busch and Miller
wasn't something that started off playfully,
and then eventually got ugly, it got ugly off the rip.
At the height of Miller's battle with Anheuser-Busch,
John Murphy was said to have a rug in his office
with the Anheuser-Busch logo,
so that he could wipe his feet on it.
He would even pull out a voodoo doll
that he called August
that bore a striking resemblance to August III himself,
and he would stick pins in it and it had the desired effect.
It pissed August III off.
And August is ready to pour as much money
as necessary to fend off Miller.
Though he was late to the game in creating a light beer,
he is way ahead of the game when he decides
to become the official sponsor of an upstart new network
out of Bristol, Connecticut,
called The Entertainment and Sports Programming Network.
Heard of them?
Da-da-net, da-da-net, me too.
Off the strength of Anheuser-Busch's
exclusive ad buys, this new network
grows to reach 28 million homes in just four years.
And in 1983, ESPN becomes the largest network on cable.
And the war between Anheuser-Busch and Miller
makes it clear to the rest of the industry
that there's big money in light beer.
While the light beer wars raged,
right behind them was Coors Light, released in 1978.
Schlitz made an attempt when it brought out
its light beer in the late seventies.
There were all kinds of low calorie beers to choose from.
But Lite Beer by Miller holds the number one spot.
Now, August Busch is readying a new secret weapon.
It was just obvious that Natural was apparently
only gonna get Anheuser-Busch so far.
August says to one of his confidants,
"If this doesn't go well, if people don't like this beer.
If they don't drink it,
I am out and my family is out of this company."
If he's gonna hold onto it as the head of the family,
it needs to be bulletproof.
He cannot fail on this one.
This is a company that has been making Budweiser beer
for over 100 years, it's synonymous with the brewery.
And to extend that line was a really risky thing.
It has to be better than any other light beer on the market.
If it's going to be the next great American beer,
it has to say Budweiser.
With Lite Beer by Miller
getting closer and closer to toppling the number one beer
in the world, Budweiser,
August Busch finally unleashes a light beer
emblazoned with the Budweiser name.
The branding of Budweiser Light
was an incredibly risky move for the company,
because it was pulling from the goodwill
and brand recognition of their flagship beer,
which had pretty much been their workhouse
throughout the entire course of their history.
In 1982, Budweiser Light hits store shelves
backed by a 57 million dollar ad campaign.
Their tagline is,
"Finally a light beer worthy of the Budweiser name."
So they basically tell everyone,
this took a while because it is so good.
But in its first two years,
the lower calorie version of America's favorite beer fails
to beat out Lite Beer by Miller.
When Budweiser Light was first introduced,
the idea was to closely align that
with their flagship product,
and that was the approach that failed.
And so the company took a different approach.
In 1984, 2 years after Budweiser Light
hit the store shelves, they want to differentiate it
from the original, make it cool.
You know, something to drink at parties.
It's not just your grandfather's Budweiser,
but it's also a huge risk for them
to deviate from the brand they've
had so much success with.
Beautiful name, right to the point, Bud Light.
And so they had a series of ad campaigns
to repackage Light beer as a young person's drink.
You're trying to create an image of the kind of person
the drinker wants to be.
In 1987, Bud Light uses the Super Bowl,
the most watched sporting event of the year
to introduce a new face for the brand.
He's Spuds MacKenzie, Bud Light's original party animal.
♪ Go Spuds go
When the Spuds MacKenzie ad came out, you start to see,
Okay, we're not pitching this at middle-aged guys
with bellies with bellies anymore.
We're gonna have young people
who look really good in swimsuits,
and that's the people who should be drinking Bud Light.
Ladies and gentlemen, Mr. Spuds MacKenzie.
I don't think the Super Bowl would be what it is
without the Anheuser-Busch ad campaigns
that it put forth for Bud Light.
We watched the Super Bowl for the commercials
as much as the game.
Bud really paved the way for what we think of
as Super Bowl commercials.
They were wackier, funnier, more irreverent,
and they are as indelible to the Super Bowl
at this point as anything, Bud Light is the Super Bowl beer.
Bud Light became the go-to party beer.
Anheuser-Busch had gotten its mojo back
and it was going full steam ahead.
In 1994, after a 17 year battle
between Anheuser-Busch and Miller,
Bud Light finally overtakes Lite Beer by Miller.
We can certainly thank Miller Lite
for introducing light beer to the mass market
in the United States, but we have Bud Light to thank
for pushing it to boundaries
that we've never seen in the past.
August III definitely deserves a lot of credit.
He saw the future coming, wasn't afraid to respond to that.
He knew the brand was strong enough to stand
splitting into light beer as well.
So without him and his foresight,
Bud Light and light beer in general
just might not be as big as it is today.
In 1998, off of Bud Light's rapid success,
Miller changes the name of its best-selling brand,
Lite Beer by Miller to the shorter catchier version
we know today, Miller Lite.
Following Miller's astronomical success,
Murphy is promoted to president of Philip Morris.
Murphy had no fear, he just plowed forward
without stopping and the momentum that
light beer created, it became a thing unto itself.
If you look at the top 10 brands today,
almost all of them are either low carb,
or low calorie, or both.
In 2001, Murphy witnessed the unimaginable.
A light beer finally beat out Budweiser
for the number one spot.
However, it wasn't Miller Lite as he hoped.
Bud light is such a force.
Nobody realizes or remembers what actually happened,
that Miller pioneered light beer.
Miller Lite might not be as big as Bud Light now,
but they're the reason that we have it
and any other light beer.
And in 2002, nearly 30 years after ushering in
the light beer craze, Murphy passes away.
Today, Bud Light remains the number one beer in America,
and 20,000 Bud Lights are sold every minute.
Bud Light may be king, but Miller Lite paved the way.
Not only is light beer
the best selling domestic beer category in America,
it's spearheaded the growth of the global beer market
to become a 600 billion dollar industry.
While there were barely 100 breweries in the US
when Murphy invented Miller Lite,
there are now more than 9,000 across America.
The rivalry between Miller and Anheuser-Busch
did nothing short of revitalizing
the American beer industry.
And it opened us up to whole new categories of beer,
things like ice beer, red beers, wheat beers, draft beers,
the embracing of foreign and craft beers.
None of that could have happened
unless John Murphy and August III
upset the apple cart for the betterment of all of us.
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