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.The United States Brewers Association nolonger existed to advocate for protection from taxes; in its place stood the BeerInstitute.The leaders of the brewing industry were also different: in the fortyyears since the last tax increase, Coors Brewing had emerged as a top brewery.575 Lee W.Holland, The Evolution of the Brewers Association of America (Colorado: BrewersAssociation of America, 1994); Institute for Brewing Studies backs tax fight, ModernBrewery Age, February 4, 1991.576 Gephardt, A-B key players in holding down beer tax, St.Louis Business Journal, October 22,1990.577 Stephen Barlas, Post mortem, Beverage World, November 1990; Amy Mittelman, Taxationof Liquor (United States), in Blocker, et al., Encyclopedia), vol.2, 609-611.183Brewing Battles : A History of American BeerUntil the late 1970s Coors was a regional brewer; the beer was available insixteen Western states.The Coors family sought nationwide distribution of theirbeer, but faced several problems.Their appeal and brand recognition flowedfrom the Rocky Mountain springs that supplied the water for the beer.Buildinganother brewery somewhere else would negate those advertising claims.Coorsplanned to compete in both beer types and advertising.By 1979, the company hada light beer and hoped to produce a super premium beer in the near future.578Coors plans to diversify its products reflected the changing nature of thebeer market since Repeal.Nineteenth century brewers brewed fresh lager forpatrons at saloons.A few brewers persisted in brewing English ale.Althoughthe German brewers had argued for the uniqueness of their product when con-fronting federal taxes in the 1860s, for much of their pre-Prohibition history theypresented and promoted beer as beer.Most brewers had only a few differentproducts and they didn t really advertise one over the other.During Repeal, brewers returned to a world of consumer products andbrands.Slowly they began to develop different beers.Modern Brewery Age was aleader in promoting product differentiation, advertising, and marketing cam-paigns around specific items.Of course the brewers pushed for great latitude inproduction definition when producing the industry s NRA code.They contin-ued to resist ingredient and alcoholic content labeling.True product differentiation began in the 1960s with malt liquor; it accelerat-ed after Miller and Phillip Morris introduced light beer in 1975.Other categoriesof beer included super premium, dry, reduced alcohol, non-alcoholic, and beercoolers.579 Anheuser Busch has over sixty beers including Michelob, its superpremium entry which the company has produced since 1896, as well as O Douls,a non-alcoholic beer, and Bud Light.580 Most other breweries do not have thatmany products; craft brewers usually have a few different beers.Boston Beer,makers of Sam Adams, produces about twenty-five different products.581Coors was obviously hoping to move onto the national level and begin pro-ducing a variety of beers.The company developed a plan to move into two orthree new states a year.By 1986 people in forty-five different states could buyCoors beer.The company maintained its number five position in the industrythrough massive advertising expenditures.Coors spent more than $10 a barrel578 Jerry Knight, Coors Plans Expansion, Washington Post, 79.579 Beatrice Trum Hunter, More Informative Beer Labels, Consumer Research Magazine, vol.79,no.10 (October 1996): 10-15.580 http://anheuser-busch.com/ (accessed April 2, 2007).581 http://samueladams.com/verification/ (accessed April 2, 2007).184Chapter 8.Joe and Jane Six Pack, 1970 2006on advertising and its total marketing expenses were $165 million in 1985.Thecompany s net income was $53.4 million from sales of $1.28 billion.582By 1986 the fourth generation of Coors family members was running the com-pany.Jeff Coors stated that the brewing industry was much more of a market-ing game today. Beyond problems of market expansion, throughout the 1970sand 1980s, the company faced a series of controversies.In 1977, Local 366 of theColorado UBW began a strike against Coors
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