• MSNBC/AP, Friday, May 16, 2008 10:15 AM

As a direct result of people having less disposable income as they grapple with higher gas and food prices, they have been buying economy beers like Milwaukee's Best at the expense of higher priced brews since January, according to Miller Brewing CEO Tom Long.

The beer industry has been stable during tough times in the past, but executives are watching carefully to see whether the shift toward cheaper beers continues, Long says. Americans also are spending less in bars and restaurants, and Long says Miller is starting to see a drop in sales to those businesses.

In the U.S., Miller's revenue rose 4.8% to $5.1 billion in the year that ended March 31. Sales of Miller's two biggest brands--Miller Lite and Miller High Life--were up 1.1% each. Miller Lite makes up nearly 46% of the company's sales. High Life accounts for just over 14%, but it reversed a three-year sales decline on the strength of its ad campaign urging people to "Take Back The High Life."

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