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Anheuser-Busch vs Miller - Miller Killers | 4

2019-06-10

It’s the late 1970s and Miller is hurtling towards the top of the brewing industry on the back of High Life and Lite. Anheuser-Busch’s new leader August Busch III knows he must act fast to stop the threat.

But before he can do that there’s internal problems that need fixing. A strike has shut down the company’s breweries and threatening to leave the business disunited and demoralized at the worst possible moment.

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This is an unofficial transcript meant for reference. Accuracy is not guaranteed.
Guanaria. Its march, nineteen. Seventy six at regular intervals die bar and Jonesboro Arkansas are tender. Smiles is the man hops onto a bars to make her usual? Floods is always my Barton starts to handed over, but suddenly stopped. He takes a clue, Sir look at the Amber brew and sees thousands tiny specks floating in the normally clear liquid not this again had to say problem with another slits barrel, We some wrong with the entire batch. current you also males I guess Gimme a Miller lie as the bartender dumps tainted slid He makes a mental moved to complain that the wholesaler first thing tomorrow, but the wholesalers already knows so. Do shit.
executives in Milwaukee, the company under siege from complaints that its beer looks hazy or speckled some people even say they see, mucus floating in it and That's why she switches top brass or holding crisis meeting this very minute. The market, chief is seriously rattled he's leading the desperate battle stop Miller from replacing slits is America's number two brewery the lad First thing he needs is to lose loyal customers. What the hell is this got in our beer, Is it even safe to drink the vice president of operations response It is totally safe, is just proteins clotting together that happens naturally overtime. Our stabilizers normally prevented the marketing chief narrows his eyes hang on. Hang on didn't. You change the stabilizer. Recently the operations executive gets defensive,
but we tested it thoroughly. It's not the stabilizers. It's, gotta, be something else: well, whatever it is figure it out fast for it sinks us I'm on it, outside lab to investigate suddenly slits is If executive Robert Eli who's been listening quietly intervenes. Oh No, you won't work. Of this can't get out. will investigate this ourselves. The marketing cheap pushes back but it'll, quicker. If I said no orders given dig negative spiral out knowing they need a solution and fast not only is Miller snapping at their heels, but their missing. golden opportunity to grab market share from Budweiser and that's because an Heizer bushes, new boss, is it
or with his own workers, and the Teamsters know exactly where to strike, to inflict maximum pain. Again is the payments platform built to help your business grow with and you can accept payments in app online in store, touch, free and beyond think about it more to get paid in more places. What could that do for you well your sales and happier customers. For starters, again, technology adapts to any business, store, industry or shopper journey online. Retail market places subscriptions mobile, wallets mobile payments, you can do any of it or all of it. You'll get flexible features that Your business with a single integration you'll leave a revenue, optimization and customer insights as part of the same solution again built their platform to help businesses like yours from day one Is it a d? Why ye and dot com slash wondering to get started? That's eighty! Why
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On the last episode Miller. Like beer into the mainstream, while August Bush, the third dethrone his father and became Theo of an Heizer Bush, but now August. The third must act fast. to stop Miller's March to victory. This is episode for Miller Killers. It's late March, nineteen, seventy six and there's a picket line of several hundred strikers at the gates of analyzer bushes, huge brewery and Saint Louis workers have been set. King for almost a month demand
the company, stop any further automation of its bottom plant. Since then, all of the company's plants have gone off line. An eight thousand workers are idle, but today strike breakers are about to cross the picket lines. Eight hundred people typist accountants, middle managers and others from the companies corporate offices approached Rikers, jeer and shout outside the gates. scabs nervously brush, pass the picket line and through the brewery gates, seen from a window on the executive floor or August a third and his bespectacled deputy Danny long after the last Right breaker makes it through long turns to his boss and smiles I think that went well agreed no violence of anyone backing out after they learn the ropes. How much can we expect them to make
maybe half our usual output, if we're lucky, but them supply beer we ve stockpiled means we should be able to stay in the market until the strike is good. Guess now we wait to see how the Teamsters react. He won't have wait long? The union is furious union workers, pick it. The railroad tracks leading into the brewery hindering delivery of raw materials They hold citizens at the gates to stop trucks, hauling beer from leaving the premises the Teamsters also call on the public to boycott and your Bush bruise until the strike ends Other union show support by protesting outside bars and lick, restores in Saint Louis that stock. The cup he's Budweiser, Michelob and Bush beers by late April? The stakes are rising. The strike costing the company hundreds of thousands of dollars a day but August. The third sticks to his guns,
talks between management in the union stall, and then the dispute turns violet a man charges do the end. Heizer Bush company parking Lot of Saint Louis. he's swinging, a baseball bat he's skids too. and lives is bad high above his head over a mustard, yellow Toyota silica in smashers in the windshield, spins around and swam the bat down onto the hood of the neighboring Dodge Coronet, Security guards chased him, but he sprints away elsewhere in the city renegade strike, there's throw bricks through the windows of liquor, stores, bars and restaurants, stock Budweiser, there's also trouble at the end. Heizer Bush, Worryin Jacksonville Florida shots fired at? Is it into the sun the next day? someone fires a rifle at the breweries electrical substantial, causing the blackout in forcing it to turn on its emergency power generators. Soon, after someone
fire bombs, the home of a strike break but the strikers resolve is already collapsing, they need their paychecks, in MID May workers of the New Jersey Brewery. Take the stock option. And pay rise. They were offered before the strike and get back to work. My late may Their colleagues in Saint Louis have done the same. on June. Seventh, the strike ends completely but ninety five day walk out his cost: an Heizer Bush, ten of millions of dollars and lost earnings and four percent of its market share August. Third feels it was a price worth paying too weaken the union's grip on the company but his victory has left the company divided. Its July. Nineteen. Seventy six Danny Long is in August the Thirds Office in Saint Louis, August's deputies.
Back from a tour of the company's facilities to share his assessment of the work forces mood. Morocco is bad. the union, eyes. Workers no longer feel part of the business August, the third suspected as much There's just because of the strike is deeper now they feel there's an US versus them attitude. Now her any ideas on how to get him back on our side. We need everyone working as hard as they can to stop Miller, maybe remind them that all our jobs are on the line of Miller winds. I was thinking we get out tee shirts. With a phrase, I am a Miller killer yeah I like that, do it within weeks an Heizer Bush plants are full of employees wearing Eighteen with the words I am a Miller killer, slapped across their yes in bright, Budweiser Red, Demonizing Miller turns out to be powerful motivator
poor little more than the cost of a few thousand tee shirts product Poverty levels start rising while an Hussar Bush shift to a war footing. The chemists at slits have finally, covered, what's causing flakes to form in the company's beer, the problem is the new stabilizer each react with another stabilizer in the beer which maintains the foam, the company, sides to solve the problem by ditching, the stabilizer, but the moon, backfires big time. after fifteen years of skimping on ingredients, slits is beer contains too little barley and hops to produce foam without a stabilizer and the result is flat beer? drinkers have already been dumping slits and my father, Nineteen. Seventy six, the company is in a tale spin.
Its reputation is ruined its marketing confused and its brew still unfixed on top of Oliver federal regulators are investigating the company for tax violations and giving kickbacks to retailers and distributors in To shut out its competitors, then slits boy Robert E line is diagnosed with acute leukemia, He dies two and a half weeks later his legacy is a brewery in terminal decline, a company with a broken reputation, no succession plan, a mountain of debt and federal agents. On its back with slits, going down in Flames Miller, cruises into the number to spot in just four for years Miller's from the eighth largest brewery in America to the company.
To challenge an Heizer Bush Miller, isn't yet capable producing more beer than its top rival, but it's can ground on new plants fast enough to make August the third Eggs streamlined nervous. So, as teen. Seventy seven begins and you're Bush launches a light beer com, natural light to take on Miller light. Where are you To look like you do went through the time taken, unnatural right. GOSH natural light rude naturally with another artificial workers, crushing very slowly natural light, is no Miller killer It does well enough to slow the light train down Miller responds with a counter attack on Michelob, which is an
your bushes, highest margin, beer marketed upscale beer drinkers to take on Michelob Miller's bought the right produced the seven hundred year old german logger loan brow in the. U S the plan is to lure highbrow drinkers away from Michelob on the back of low and our reputation as an imported beer I know exactly what I want. I want the biggest state you got a bottle of snake Darwin reaching when you want to change to a truly great beer tonight, but it means, but Miller's hopes low and brow are about to be dashed. Its August nineteen, seventy seven and in Saint Louis analyzer, bushes, public relations and legal chiefs are telling us the third, how they plan to take down Lowbrow Bp Archie goes first Lowbrow is no important. We need
people know it's brewed in Texas, not Munich. the real low and brow only uses water, barley, hops in east, we make sure people know Miller, adds corn grips the legal chief ways in May, downplaying how low and browse brood right here in Amerika people who think their buying a german import. So we're going to file a complaint with the Federal Trade Commission, accusing Miller of misleading advertising same time, will send complaints to the media. reckon wants the highfalutin rich crowd that low and brown targets forms the truth about what their drinking they'll be outraged August. The third does, smile very often, but this path, and good enough to make even his rulers straight lips, curl upwards This is good right. Good August. The third turns to the legal boss. What are you The federal Trade Commission will do to Miller
The complaint won't go anywhere, we're just we're just doing it to get the media to run the story. Well, still, good plan Soon, after and Heizer bushes, low and brown dossier lands on the desks of hunger of american journalist of blood Paper articles follow chilling, low and browse sales momentum and settling the logger with a phoney image Miller's two years of planning and eleven million dollar add campaign go up in smoke. It's the first big set. back from Miller since Philip Morris bought the business nearly a decade earlier and offers the third is determined. It won't be the last blow he inflicts on his Milwaukee rival. This year has been a doozy. You couldn't possibly anticipated all the curve balls that had been thrown your way.
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It late summer. Nineteen, seventy seven in August Third has some analyzer bushes senior marketing team to his office he's got a new plan for stopping Miller What sports do we currently sponsor the executives? Look at their feet he's not going to like the answer. eventually, the head of marketing replies We don't really sponsor anything. Miller owns the big ease. The world series money like Football Navy, see the India five hundred Stanley CUP. What I get the picture the only to list all of you failures. How the hell did this happen. He glared at the head of marketing there Spencer sponsorships. We felt the prices were
excessive August. The third is angry. How could his team miss this? The Harry Crowd there, trying to real. In eighteen thirty year old men, love watching sports. Letting Miller dominate TV sports is not an option. Give me the details on every sporting event in team in this country. to know what sponsorships are available and how much they cost. I care of which the super bowl or the college water Polo team, but everything on that list and and to me by next week, is two weeks later An Heizer Bush has commandeered the ballroom of a hotel near Williamsburg Virginia the room, looks ready for a telethon August third and his deputy Denny Long sit at the top table,
how's. Your bushes marketing team and media buyers sit at dozens of surrounding tables on each table, our beige telephones and copies. Six inch thick sports sponsorship, Bible compiled by the marketing team contains names phone, birds and cost of sponsoring of every sports team an event in the country, Is the third raises his copy in the air and addresses his troops? now over the next four days, we're through every single opportunity, and this book line by line and it makes sense buying whatever's available. I want to play our flag wherever sports fans are found and when Miller's current deals come up for grabs, we're going to take them to understood for hours the marketers work. Their way through the town, Long reads out each sponsorship opportunity than August. The third gives it a thumb.
Up or down like a roman emperor and with each thumbs up a media buyers, make the call to cut the sponsorship deal. They buy into college football teams, catholic basketball, tournaments, local, tee, sports reports and even hydro plain races and hot air ballooning. Four days, he's and millions of dollars later they leave the ballroom. An Heizer bushes banner will now hang over hundreds of sports teams and events, but it's not enough in nineteen seventy eight, an house bush. can use losing ground to Miller, but for all its progress Miller knows it can't catch up fully until it can brew just as much beer. As an Heizer Bush, and then why Miller, Boss John Murphy's been spending hundreds of millions of dollars constructing breweries across Amerika
the new breweries in the pipeline and sales, rising more he's feeling so confident he's journalists that he already knows the date when Miller will replace an Heizer Bush as the number one brewer that he sharing that date publicly an Heizer Bush knows it needs to derail the Miller locomotive and soon so pressure on Denny LAW besides it's time to rekindle Budweiser Mojo, Slade nineteen. Seventy eight and Longs visiting analyzer bushes, add agency Darcy in Saint Louis he's come here to talk. Budweiser Still America's best selling beer but its sale have been flat ever Miller, high life and light beer took off as at agencies. Director listens long spells out what Is he wants bottom. Yours part of the fabric of american life like Levi's in Coca COLA, I dont
set the idea that has had its day we a Budweiser campaign that celebrates blue collar America. the Miller time adds the age She's director gives longer surprised, look Sorry, you you want to be Miller. No, no, not copy! Think of it like this, they got there. right campaign, but the wrong beer. Now we got the right beer. We just stronger version of their campaign, am I sure about this. You risk or racing the distinction between Budweiser and high life long shrugs. We you ve, got the more popular beer now in scenario. It will be Miller, not us who struggle. to stand out. In eighteen. Seventy nine, the new, but why, your tv edge finally arrive to everybody.
Push in a hard day's work, its previous? That's where you live? an Heizer, Bush also applies to copy gas strategy to the ads for its beer, natural light, the ads star the same Ex athletes, who used a hawk Miller, light at first mill executives, don't quite understand, what's happening, they think as your bushes run out of ideas, but as the Bud sales bubble up. The strategy becomes clear By muddy the waters, an Heizer Bush, robbing Miller's brands of any distinctive identity and its working like a charm.
these campaigns are Miller killers, At the same time, Analyzer Bush continues to spend millions to snatch sport sponsorships away from Miller by the end, nineteen eighty, the impact is clear. Mynors years of meteoric growth are over and Budweiser roaring back to life, on the back of it. This buds for you campaign, For the first time. In a decade, the gap, Queen Ann Heizer, bushes Miller is widening if Miller can't find a way to get back in the raise its chance to become Number one could be gone forever on the net, episode Miller finds hope in Tokyo, Budweiser employs a sky
morning, dog and a foreign predator stocks, the dear giants, FR. I am wondering this is business wars, and we should hope you enjoy this episode. We invite you subscribe on apple pie casts Sticker Spotify, Google, podcast, Iheart, radio ever, you listened to pipe cast you'll find link on the episode notes you can tap or swipe over the cover, art and you'll see some offers from our sponsors. We hope you can support our show by supporting them. If you like what you heard, it would be swell if you give us a five star rating and tell your friends had to subscribe to there's another way. You can supporters and that's by answering a short survey at wondering: dot com, slash survey, and while you there don't forget to tell us what business war stories you'd like to hear, we should say so
where the conversations you ve been hearing in this episode, we can't know exactly what was said at the time, but this dialogue is based on our best. Research. Are your hosts David Round, Tristan Donovan wrote this story, care and low? Is our senior producer and enter Emily Frost and Donna Highlands edited distort our editor and producer? Is Jenny, Lauer Beckmann, sound designed by Bay Area sound our executive producers, Marshall? Do we created by for Non Lopez for wondering high there podcast listeners if you'd like to hear another part cast when you're done with this one check up mine mine, it's just in long, and I do a show called life is short with my brother Christian this week our guest is lamborn Morris Lamborn and I did new girl together many years ago on Fox and now someone's gotta greatness, chokehold woke on Hulu. We talk about that. We catch up about our old new girl days and a lot of things and between with a lot of fun, so check it out on life is short
Transcript generated on 2020-10-05.