Heileman Brewing Company: Power Failure at PowerMaster
Heileman wanted to use the new product, the Colt 45 PoweMaster, to expand its business and solve the financial problems, but the new product’s advertisement strategy stripped up a storm of controversy among minority advocated and alcohol foes. This is not only because the label and advertisements Heileman used imply the alcohol content of the new product, but also the main consumers the new product targeting are those who are inner-city, and lower-income blacks and this population group suffered disproportionately from alcohol-related disease. Eventually, in face of continuing protest from community and regulatory pressure, Heileman had to give up the paln to introduce its Colt 45 PowerMaster brand.
Heileman was one of America’s oldest and most venerable brewing companies. However, in the mid-eighties, Heileman met some financial problems and even faced the crisis of bankruptcy. According to the research, Heileman marketing director found that higher alcohol content malt liquor category is where the consumer is going and low-income blacks are main consumers in this category. At this point, the company decided to focus on malt liquor segment, offer a higher alcohol content product called Colt 45 PowerMaster and primarily focus on the black, inner-city, and lower-income consumers.
However, the market strategy of the new product was not as good as Heilemnet expected. In contrast, the strategy results in a lot of the controversies. Protesters assailed the Heileman for targeting its products at low-income, inner-city blacks who suffered disproportionately from alcohol-related disease. The Wall Street Journal also denounced that Heileman Company is no sense of moral or social responsibility. Health groups, as well as United States Surgeon General Antonia Novello, had publicly called on heilemen to halt the