This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and watch out for more Battle of the Brands posts.
I'm not ashamed to admit that I've been known to turn up my nose at (free) pitchers of Miller Lite, exclaiming "this [potential explicative] stuff taste like formaldehyde!" Many of my closest friends and family members, however, prefer the "tastes great/less filling" brew to any from Anheuser-Busch (NYSE: BUD). Though everyone is entitled to his or her own opinion, when it comes to the battle of the light lagers, I don't go quietly into the night with this one. Maybe it's because I was born and raised in St. Louis, which would arguably cease to function without BUD dollars. Maybe I simply prefer red to blue. Or perhaps it's because I'm not a huge fan of tasting formaldehyde (I kid!). Regardless, I stand my ground for my right to drink Bud Light, demanding it for shared pitchers and community coolers. In fact, I haven't even tasted Miller Lite in about seven years, but more on that later.
Celebrity Backers: "H.O.V.A." vs. the Nicest Divorced Guy in America
From the real men of genius to the man-law round table, both BUD and SABMiller (LSE: SAB), the London-based parent company of the Miller Lite brand, are powerful forces in the advertising business, and celebrity endorsements continue to roll in. Rap artist Jay-Z emerged from retirement ready to pitch Budweiser Select (a low-carb, 99-calorie offering) while Burt Reynolds, Jerome "The Bus" Bettis, and others sit on Miller's aforementioned round table. While not lending an endorsement in a traditional sense, who can forget Nick Lachey and Jessica Simpson frequently kicking back with ice-cold cans of Miller Lite on the now-defunct (in every-which-way) Newlyweds? The brand allegiance added to Lachey's corn-fed all-American appeal (and I say that honestly as a BUD fan).
The Portfolio Potential
BUD clearly takes the hops-rich cake for American investors, as SAB trades on the London exchange (or through the pink-sheet electronic system). Better still, BUD actually looks like a decent play right now. After bottoming out in early 2006, the stock began to gain ground, motoring higher along its 10-month moving average. Just 14 months later, the shares have gained more than 25 percent and are within five points of entering new all-time-high territory.
Fundamentally speaking, BUD still controls 50 percent of the U.S. market share for all beer sold. Its forward price-to-earnings (P/E) ratio is decent; at 16.11, it is below the average P/E ratio for the S&P 500 Index. Year-over-year quarterly earnings growth stands at more than 30 percent, and revenue growth is solid as well. If that doesn't sell you, consider this endorsement from Wikipedia: "[Bud Light] is often a beer of choice for drinking games because of its low alcohol content." Rock on! (Specifically, Bud Light is 4.2 percent alcohol, equal to Miller Lite and below the 5.0 percent content of regular Budweiser.)
The Challenge
As advised (perhaps in jest?) by my superior, Nick Perry, I drafted my husband to conduct a blind taste test ... eight samples of Bud Light and Miller Lite, not knowing how many of each I was tasting. (No, I did not undergo the test while still on the clock.) The results? I got six out of eight correct, and still prefer BUD. I found Miller to be heavier on the carbonation and lighter on the taste (and Nick, you owe me $4.99 for the six-pack of Miller we had to buy to conduct this experiment!).
Beth Gaston Moon is an analyst at Schaeffer's Investment Research.
Be sure to vote in our poll for Bud Light or Miller Lite as your preferred brand, and let us know why you love it in the comments. Results of all Battle of the Brands match-ups coming soon.











Reader Comments (Page 1 of 2)
6-13-2008 @ 1:50PM
Gadfly said...
There's a big conference of beer producers. At the end of the day, all of the presidents of all beer companies decide to have a drink in a bar.
The president of 'Budweiser' orders a Bud, the president of 'Miller' orders a Miller Lite, Adolph Coors orders a Coors, and the list goes on. Then the waitress asks Arthur Guinness what he wants to drink, and much to everybody's amazement, Mr. Guinness orders a Coke!
"Why don't you order a Guinness?" his colleagues ask.
"Naah. If you guys won't drink beer, than neither will I."
American light beer is for sissys!!!!!!
drink something with flavor and character !!
not watered down piss, you ignorant wankers!
7-06-2008 @ 12:46AM
jay said...
well...
First of all I love beer of all kinds, and when they are accessible to me ($) If I wasn't a broke college kid I would drink Spaten, Heineken, Leinenkugels, Kokanee, etc.. But, I do love a good cold can of miller lite. As mentioned before by Ashley I believe bud/coors are watered down versions of the original. Now, I grew up 15 minutes from Golden Co, (brewery of Coors) and I enjoy it. But, I prefer miller lite anyday.So it's Miller for me. (unless bud became much cheaper than miller)
8-10-2008 @ 4:45AM
ryan said...
bud light is great for beer pong because it goes down easy and sorry but mgd tastes like piss. i would prefer a bud anyday tho...unless we bring coronas in the picture, then its a different story
9-10-2008 @ 1:30AM
Jake said...
All I have to say is that the numbers speak for themselves. Bud Light is the best selling beer in the world! Secondly, A-B owns 5 out of the 10 top selling beers in the United States. Enough said.
4-06-2007 @ 8:58PM
Bart V. said...
They both stink campared to "COORS LIGHT" the best
light beer. I really can't stand "Bud LT.". I've had beer all around the world and 27 states. COORS LT. is still my favorite.
4-07-2007 @ 10:50AM
Neal S said...
Coors Light sucks, its like drinking water. that brand shouldnt even be in this battle. I hate Miller Lte to, but at least it's worth mentioning. Bud Light wins by a landslide
4-09-2007 @ 10:03AM
cameron said...
As an investment, I am quite partial to BUD. See my blog http://www.mybudblog.com.
As a beverage, I am also partial to BUD products, although I do enjoy an MGD every now and again. I could do without Miller Lite.
4-12-2007 @ 2:29PM
dickie said...
Coors is like making love in a canoe, and I cannot forget their fascist attitude towards workers.
I can drink Bud with satisfaction, but prefer Miller.
4-12-2007 @ 5:43PM
bob said...
Bud tastes the same in the usa or japan or where ever you can get it, like a beer should. Millers tastes like it is watered down and no taste to it at all. BUD'S THE KING OF BEERS. Hands down.
4-15-2007 @ 12:32PM
eric said...
miller light is way better than bud light, less carbs and better taste. I think the only reason its not more popular is it doesn't have the good advertising and commercials that budweiser has. I switched from bud to miller after a trip to a bar that didnt carry bud products, and was forced to drink miller and couldn't tell a difference. Since then, I've persuaded many others to make the switch too, and now our whole "group" prefers miller to bud. It's really not the taste, it's all in your head.
4-19-2007 @ 6:16AM
Kare said...
I don't drink--period.However, for 2 years straight I bought my mother Miller Light.
When I found Bud light on sale, or Coors light I bought them a few times.
She drank 2 or 3 times as much of the Coors or Bud light..Secondly, any one else that was visiting, or, if another family member tried one--they all said BudLight was not great and Coors light was awful--like p**s water.
The store manager where I bought it said the same thing--Coors was like nothing -he even suggested I drink it since I don't drink anything alcoholic.(I didn't ):-)
So, I'm astonished everyone here is saying different things, and that some prefer Bud or even Coors.
Bud regular is good as far as I'm told though.
4-26-2007 @ 4:48PM
matt said...
Can't spell? It's Miller LITE not light! America, you are sooooooo dumb.
4-27-2007 @ 11:12PM
dave said...
What a terrible article to attach to a "survey"!! It reminds me of the old SNL skit "Beth Gaston Moon, you ignorant s**t". How in the world can you pretend to be informed when you admit to being from St Louis where no one has ever tasted a decent beer. By the way, Miller Lite is the best.
4-28-2007 @ 2:39AM
AA said...
Have you ever drinking a Miller Lite can or bottle and get near the bottom of the can or bottle ? The beer loses all taste ,carbonation,and flavor.Hands down Bud Light over Miller Lite.No comparison.
4-28-2007 @ 3:46AM
steve said...
Bud, Miller, Coors, it doesn't matter they all suck. If you want a really good lite beer that actually tastes like beer and not p**s, then I suggest you go try Sam Adams lite. It's by far the best lite beer there is!
7-12-2007 @ 5:36PM
BABS said...
ERIC, YOU HAVE SAID IT ALL! EXACTLY WHAT I WAS GOING TO SAY, SOME PEOPLE JUST FOLLOW THE CROWD, ITS ALL IN THE ADVERTISING. BABS
7-12-2007 @ 5:36PM
Jenn said...
Bud light deffinetly taste the best out of a keg!!
7-27-2007 @ 1:56PM
Ashley said...
As a prior Bud Light drinker that switched to Miller Lite, I have to say that I find it absolutely hilarious that people say "Bud Light wins because it has a better flavor!" or my personal favorite, "Coors Light awful because it is so watered down, but Bud Light wins over Miller Lite any day!"
You people do realize that Bud Light is just water + Budweiser, right? Why don't you just make your own Bud Light?? It doesn't even have a true recipe! It's just Budweiser with extra water which is why it cannot compete against Miller Lite in the carbs/calorie arena. Also, Bud Light has changed their "recipe" twice since it first came out - Miller Lite developed its low cal/carb goodness in 1975 and hasn't changed since.
And just so people know, Miller Lite was BREWED TO BE a light beer - unlike Bud Light or Coors Light. Speaking of which, Coors Light is made the same exact way... Coors with extra water. Sounds delicious...
I just find it utterly hilarious that people think that their beers are not watered down when truly and honestly, that's exactly how they're made.
I guess those that drink Bud/Bud Light, Coors/Coors Light will stand by their beers and continue their "good ole boys" attitude until the end of time - which is fine by me. I'll continue to support the company that produces the best bang for my buck - Miller Brewing.
9-12-2007 @ 9:37AM
JD said...
I'll try to make this short and just talk about marketing on the miller lite side.
1.) Remember back a few years ago when Miller tried to 'Nay-Say' Bud and they TRIED to give themselves a name of 'Presidents of Beers'?? When a company has to make fun of another company; it shows that they are the ones' at the bottom. (Kind of like how MOST Countries hate America)
2.) I was at a bar about a year ago and I was wearing a bud-light hat. Miller Lite girls were passing out free beer and I overheard one girl say, 'don't give it to that guy..he's wearing a bud light hat' SMART miller lite people...you give beer away for free to the people that already pay for it and don't give to the people you are trying to switch over. And Miller Lite wonders why they're dominated when it comes to sales vs bud light...hmmm...
3.) Their new marketing commercials crack me up. A Miller Lite driver comes into a restaurant and takes the beer away b/c the restaurant is charging too much for their food. WOW. I could probably go on for hours about why/what Miller Lite was thinking when they made this commercial. Let's just say this; they don't pull beer off shelves like that, they would go out of business. This commercial was obviously geared toward a certain market. (Financially unstable- which might be the MAJORITY of their customers anyways) AGAIN, it's kind of funny how they're marketing their product to people who are already customers.
To sum it up, Bud Light does a better job when it comes to basically everything a company should do for success. I am willing to pay for a $5 bud light beer over a $1 miller lite beer not only b/c I prefer it more and I'm willing to pay for something I know is better, but I know that miller doesn't deserve my money.
10-14-2007 @ 12:16PM
Jerry Berryhill said...
I have been a avid Miller drinker for many years, but after you sponsered the gay rights hoopla in California, I am switching to Bud lite, Thanks a lot