Molson joins low-carbohydrate beer fray

Fast-growing market

Peter Brieger, Financial Post

Tuesday, December 23, 2003

link to article

Molson Inc. yesterday became the latest brewer to unveil a low-carbohydrate beer, another sign that food and beverage companies are latching onto the fast-growing product area.

In fact, the company figures Molson Ultra is joining a beer category that will eventually carve out a position in the market similar to import brands or light offerings.

"We're just responding to evolving consumer needs," said Rob Assimakopoulos, Molson's vice-president of marketing innovation. "We think this could be a significant sub-category [of beer]."

In an effort to differentiate its lower-carb offering, Molson said Ultra has a regular beer taste and 4.5% alcohol-by-volume -- slightly higher than rivals' products -- with 2.5 grams of carbohydrates and fewer than 100 calories per bottle.

That level of carbohydrates is about the same as eating a tablespoon of peanut butter or drinking a glass of wine. By comparison, regular beers have between 11 and 17 grams of carbohydrates, equivalent to 10 french fries or a slice of french toast.

But consumers are sensitive to taste, especially in Canada where beer drinkers buy six times more regular suds than light beers, Mr. Assimakopoulos said.

In the United States, light beers account for about 50% of the market.

Last year, Michelob led the low-carb beer charge while in Canada, Sleeman Breweries Ltd. launched its Clear brand this summer. Earlier this month, Labatt Brewing Co. joined the pack with Sterling, a beer containing 4% alcohol and 2.5 grams of carbohydrates per bottle.

An initial shipment of the product almost sold out, despite the absence of an advertising blitz by the company.

It's a push that comes as food and beverage makers scramble to measure a market that some have estimated could be worth US$15-billion a year down the road.

The rise or fall of low-carb products will likely be determined by the staying power of the Atkins' diet, which preaches weight loss by cutting carbs and sugar from one's diet in favour of protein.

While Molson Ultra is being marketed to all beer drinkers, they must have at least one common trait, according to Mr. Assimakopoulos.

"Obviously, the people who are going to try it want the [low-carb] benefit,"

WOOOO HOOOOOO

I always drank Molson's Canadian before this WOL. Now I'll have a few Sleeman's Clear or Labatts Sterling, each have 2.5 carbs per bottle. It's going to be nice to have a Molson's product.

Opps. Maybe not. Not at 4.5 carbs.

That's the alcohol. The carbs are 2.5.

I saw the advertisements for Molson's Low-Carb yesterday on TV....I hadn't read anything on it until today...so needless to say that I was surprised to see it and kind of excited....even though I'm not a beer drinker.....just nice to see big companies recongnizing the postive aspects & the positive affects of a low carb lifestyle....and well of course they can corner another part of the market that has been looking for that low carb bevy

None of the low-carb Canadian beers has made it down here to Texas, yet, but I can hardly wait!