Stone Brewing’s Transparency

For those of you not intimately familiar with the Craft Beer industry, Southern California’s Stone Brewing is kind of big deal. They’re one of the hottest brands in the Craft segment and their Founder and CEO Greg Koch has become quite the celeb in beer geek circles.

Stone recently posted this video on their blog where they announced plans to explore brewing options in Europe.  From a pure business perspective, this is a big deal and makes some sense.  Contrary to 10 years ago, it is now the Europeans who are interested in American beer – not the other way around.  So building a brewery in Europe could open a lot of doors and present some substantial volume opportunities.

From a marketing perspective, I love the transparency that Greg is showing here.  He’s not making any promises or saying that it’s a done deal, but he’s floating the idea out there to consumers and letting them share in the excitement of the plans.  If they play it right, the entire RFP and brewery building process is something that consumers will get to participate in and follow.  It will also give them something to talk about the next time they recommend a Stone IPA.

I wish more companies would operate like this.  It’s easy to say you do, but not many pull it off quite like this.

(if the video doesn’t show up in your reader, click here)

more about “Stone Brewing’s Transparency“, posted with vodpod

Naragannsett Really Wants to be Your Neighbor

Narragansett is a beer brand that has been around since 1888 and seen it’s highs and lows.  Most recently, Mark Hellendrung, who was one of the key players in building the Nantucket Nectars brand has brought ‘Gansett back.  He relaunched the brand in 2005 and has been doing things the right way.

Their website alone is a great example of building a strong brand on word of mouth and transparency.  In fact Mark isn’t building a brand, he’s on a mission.  He’s taken one of Naragannsett’s weaknesses of not owning a brewery and made it a strength by creating a cause for New Englanders to support so that they can grow the business, build a brewery and help the economy.  Brilliant.  My favorite part is the powerpoint they share on the “Support the Cause” (not website) home page. 100% transparency on numbers and vision.  If only employees of all companies could be so lucky!

The best part is that all of this is 100% real.  It’s not some phony “support the cause” that will go away when the campaign is over.  Mark and the rest of the folks at Gansett seriously want to be “your neighbor.”

Mark and I traded a couple emails and I asked him some questions on how he is positioning the brand and building it from scratch.

Neal: What are your thoughts on brands having a home base from an operational and marketing standpoint? How do you bring that local positioning to life without the use of big advertising campaigns?

Mark: I think localness is a differentiating idea, and the concept has been building for a while and has only accelerated in the last 18 months. You could see it starting a while ago with the re-emergence of things like local farmers markets and the backlash of corporate sell-outs and jobs going overseas. Then when the economy when south, I think you had people realizing that this model doesn’t work, and now the thought leaders are saying how can I create local jobs, support local businesses, etc.

I actually think the use of big advertising campaigns risks undermining your local authenticity in that you start to look like a big company, and consumers are pretty cynical right now. So you’re left with a path build on relationships (selling one account at a time), a lot of sampling, word of mouth marketing and use of social media.

Neal: How have you found your brand influencers or loyal consumers for Nantucket Nectars and for Gansett?

Mark: The thing about Narragansett Beer is that it’s built on 120 years of heritage, so while we work to contemporize our story it’s still fairly well-defined, i.e., there are only so many different ways it can go. Given that, we try to look at the beer drinking community and try to identify who would be most interested in our story and most likely to carry it on.

Neal: What was the best use of your limited marketing dollars since you relaunched Gansett a few years ago?

Mark: Investing in our street team (sales and marketing) is the best use of our dollars. It builds availability and distribution. The team does a lot of sampling, which is critical in that we’ve got a great beer, we just need people to try it. And the relationships that we create cement us into the community.

Neal: I assume you don’t spend a ton of money on consumer research to uncover opportunities or validate marketing campaigns, so can you give me a couple examples of how your gut instincts have worked or not worked?

Mark: One thought we had going into this that didn’t play out was that there were a whole lot of older guys who grew up on Gansett that would be interested in our comeback and switch back. What we learned though is that many (not all) of these guys were just too far gone and settled into their routine of current brand choice. We thought we could switch them because when we talked to them that weren’t overly excited about their brand. However, they weren’t necessarily dissatisfied either, so there was no real motivation to switch.

On the flip side, we had a feeling that the craft community would appreciate our beer, and it’s played out pretty well. For a lot of the craft guys, I find that they love their craft choices but when they find themselves in a higher usage occasion or are just looking for something a little lighter, they really didn’t enjoy settling for one of the mainstream domestics. Our beers have a little more flavor and our brand has a little more character and you can see us selling some Gansett in “craft bars” whereas the mainstream beers aren’t even on the menu.

Neal: Thanks Mark. Keep up the good work.

Craft Beer Success Ingredients – Blocking and Tackling

First off, I want to thank everyone who stopped by to read my post on the Key Ingredients to Craft Beer Success.  In terms of views and feedback, it was by far my best blog post ever and I really appreciate all of the kind words.  It was nice to hear that some people who are actually launching new craft breweries read the piece and I sincerely hope I can point you in the right direction for you new endeavor.

As promised, I am going to follow-up and add a little detail to all of these key ingredients.

In this follow-up blog post, I’m going to cover two of the ingredients: “Blocking and Tackling” and “Activating the icon”.

Blocking and tackling

As I said in the original piece, if you don’t give your distributor the tools to sell, they won’t sell.  You gotta have the basic elements to get the beer/product placed.  In the leanest of times, I would highly recommend allocating a large percentage of your budget toward elements that help price and promote your beer.  When you have enough of those items, you can move on to the image building stuff like neons and signs.

Activating the Icon

My opinion on the image building stuff this:  quality, uniqueness and brand communication trump quantity.  Challenge yourself to find that one truly unique item that brings your brand to life.  New Belgium/Fat Tire has done this with their iconic cruiser bike.  Sweetwater has done this with their metal sign and their fish tap handles.  Odell Brewing has done this with their barrels.

Perfecting that iconic piece is not easy.  But it’s worth the challenge and you’ll know it when you find it.

Craft Beer vs. Expensive Wine

As you might know, I work in the Craft Beer industry.  As it is with any other industry, the economy is a big topic – specifically which segments of the adult beverage industry will benefit or suffer.

According to retailers, wine is struggling – especially expensive wine – and Craft Beer is hanging in there.

Why is that?

I can come up with two reasons:

  1. Price: A 6-pack of GREAT beer is still less expensive than an average bottle of wine.
  2. Branding: Expensive beer is Craft Beer and expensive wine is just expensive.

The beverage segment that was originally known as “micro brews” has done a great job of branding itself as something more than just “small” or “expensive.”

Consumers that drink craft beer know that the name is more than industry segmentation.  They know that its a community of people dedicated to creating and brewing unique, quality beers.  Community is uber important these days and it’s a huge point of differentiation when consumers have tougher choices to make.

Side note: A lot of the credit here goes to the Brewer’s Association for all of their hard work in representing the craft brewing industry and marketing all of the passion and hard work all the breweries contribute.

Do People Hate Marketing?

Seth’s blog post got me thinking about this today…

When I worked on PBR, we focused most of our efforts on word of mouth or “buzz marketing.”  Mostly because we didn’t have any money, but also because the young adult, hipster consumer resisted mainstream mainstream marketing and embraced brands that didn’t market.  The hipsters were the ones rediscovering, reinventing and advocating the brand.

Believe it or not, the concept of hipsters drinking PBR was a hard idea to sell internally back in 2001-2003.  You gotta remember that the brand was living on middle-aged, blue collar men who drank it because it was cheap.  It wasn’t sold on-premise and it was a forgotten brand.  So when it came to convincing all of the big shots that this brand had a chance with a new consumer base, we rationalized it by telling them that it was being embraced because these consumers resisted mainstream marketing.

Is that true?  Do even the most fickle and anti-establishment of consumers “hate” marketing?  Here we are, six years later and I say that it is totally false.  I think consumers LOVE marketing.  BUT, they only love it when it’s authentic and meaningful to them.  If it’s fake, consumers, whether they are cynical hipsters or not will REJECT it.

That’s the beauty of social media, sampling and experiential marketing programs.  All of these tactics are real because the consumer is interacting and having a conversation with a real person.

Coincedentally, when we scaled up the PBR program, we hired more people to go out there and have conversations.  Even the hipsters knew that these people were there to MARKET to them.  But they were totally fine with it. Why? Because it was REAL.

The Long Tail of Beer – Pete Slosberg Interview

While I was bumming around the convention hall on the first night of the GABF (Great American Beer Festival) with Mark Silva, I got a chance to meet Pete Slosberg.  If you enjoy craft beer, Pete is one of the guys you should thank because he’s one of the guys that started the “Long Tail of Beer” back in 1986 when he started brewing and selling Pete’s Wicked Ale.

It’s been 9 years since Pete came to the GABF as a brewer, which is an eternity in the day and age of the “long tail”.  Here are Pete’s thoughts on the industry and how it’s changed.

The One Thing NOT to do After GABF Week

Last year, I made a mistake that I’ll never repeat again: I let my wife schedule my yearly physical the week AFTER the Great American Beer Festival. It’s not all that smart to go the “The Doc” after putting my liver through the 3-day binger that is the GABF.

This year’s festival probably won’t be too much different. There are just too many beers to sample and being that I work in the beer business, I don’t have any excuse.

My goals this year are to document the week here and on our Flying Dog Blog.  The content on FlyingDogNews.com will obviously be more brand related, but on here I want to bring you some conversations and interviews with people who are out there doing some cool shit in the world of beer and marketing.

I’ll also be twittering and flickring the week, so check out that out, if you’re into that kind of thing.

Thank You, Old Style

When will Cubs fans learn?  You don’t fuck with the curse.  The minute you think you have it beaten, it comes back to bite you in the ass.

1984: The Padres suck, we’re going to sweep them!

Whoops, a ball through Leon Durham’s leg and all of the sudden Alan Wiggins, Kurt Bevaqua and the Padres win three in a row to boot your ass out of the playoffs.

2003: Let’s have Bernie Mac come and sing “Take Me Out to the Ballgame” for the 7th Inning Stretch!

What did you say? Bernie is actually a Sox fan? And what’s that guy thinking in trying to catch a foulball? Next thing you know, the Marlins are World Champs.

And now 2008: The Cubs are the class of National League.  Getting to the World Series will be easy! We better buckle down for the crazy celebrations that will erupt in Wrigleyville!

So the city of Chicago gets a little presumptuous and suspends liquor and beer sales in the city for one hour after the 7th inning, assuming that they would be in the World Series.  And my old friends at Old Style get wise and come out with an 80oz can to create their own little loop hole – again ASSUMING that the Cubs would go deep into the playoffs. (click the image below for the full story)

Not so fast, Cub Fans

So, now the Cubs are down 2-0 and head to LA having to win three in a row just to advance to the NLCS.  But, I’m not going to say that it’s over.  I’m a Cardinals fan and way smarter than that.  But when you see a whole bunch of 80oz “Clinch Cans” at a dump in Joliet, don’t say I didn’t warn you.

Beer: The Movie

I came up with an idea today: There should be a movie about marketing beer.  As it turns out, there already is one – from 1985.  I’m about 20 minutes in to the flick and here have already been several scenes that are completely out-dated:

  • A memo being copied and distributed by hand
  • Smoking in the board room
  • 3-piece suits
  • Believing that a big advertising campaign will save a brand (great scene at the 20 minute mark)

This movie is 23 years old after all, so it stands to reason that things have changed in the beer business.  Too bad a lot of breweries today haven’t realized this.

Are you thinking what I’m thinking?  REMAKE!

more about “Beer – The Movie“, posted with vodpod

Britekite Invites

Yo.  I have three Britekite invites.  First three people to email me get them.  nealdstewart {at} yahoo dot com.

I was also stoked to see that Britekite is a Denver company – literally blocks from my office.  If anyone from Britekite sees this, let me know and I’ll come by and drop off some Flying Dog beer for your crew.