The prolific Jeff Alworth at Beervana posts what appears as good news for the craft beer industry in these dark hours of recession. Indeed, if you are in the brewing business, you want to be in the craft segment. I agree with Jeff that this is good news and I also support his contention that craft beer sales are partially the result of a rise in average price for a barrel of craft beer.
Because this is a blog about brand and marketing, I think this rise in prices is an interesting one given the current economic downturn. To recap a couple of statistics that are contained in my comments to Jeff's post, craft beer volume is up a bit shy of 6% 2007 to 2008. A report in a Chicago area newspaper says that craft beer sales are up 12.6% according to the Neilsen Company.
I know that I am stepping into dangerous land when I start to discuss statistics, but it appears that the increase in sales has to come, partially, from an increase in prices. And, this was accomplished in spite of a declining economy.
Assuming you believe my math that you cannot get to 12.6% sales increase on 6% volume increase without charging more, we are left to speculate as to how to get there. And, here's what I think has happened.
Craft brewers know or should know that their product is a luxury product if you believe the data about the consumer. The dominant cohort of craft beer buyers is male, 25-34 years-old and earns $100K/year. I imagine that this buyer is purchasing Starbucks coffee in the morning after a few rounds of Bridgeport IPA the night before. In other words, what we once associated with luxury--expensive alcoholic beverages, premium coffees, etc.--is now considered a normal purchase, at least by this niche.
How did brewers exploit this advantage? By bringing out increasingly more expensive products. My opinion only, but you cannot have that sort of sales volume increase by cranking out another ordinary pale ale. You need to have new products that sell for more because they have more to offer.
Witness the rise of the seasonal and the proliferation of "Belgian-style" beers. It wasn't long ago that just a few breweries brought out a holiday ale around Christmas. Reflecting the "winter warmer" heritage of the British cousins, these bigger, maltier beers were limited in production and a bit higher in price. Now, it seems, every craft brewery has a holiday ale.
On to the Belgian-style products. I might be blinded by living in Oregon where we have so many breweries and they are often leading the market in style and product development. I use Belgian-style as a metaphor for the great expansion in the line-up of beers on tap from any given brewery. And, Belgium seems to be a big inspiration. Our major brewers in Portland were once satisfied to offer perhaps five to six products most of the year with the occasional addition of a seasonal or the introduction of a new product. Now, go into the tap rooms of Bridgeport, Deschutes or Widmer Brothers. There, you will see many of the same five to six alongside that many or more seasonals, specialty products, "reserve" series, etc. Granted, the price of a pint of most of these beers will be about the same, but you are surely paying close to $5 a pint (honest or not) for them. The real differences come at the retailer when you're buying packaged beer. Those specialty beers come at special prices.
I, for one, applaud these changes as it demonstrates the growing sophistication of the buyer, the producer and a vastly improved variety in product. I'll probably never tire of a Blue Heron, Mirror Pond or Ur-Alt. But, I also am a ready target for that special new brew for which I am likely to plunk down a few more shekels.
Sunday, June 7, 2009
Friday, May 15, 2009
Video promo and complementary festivals
Summer is, naturally, the time for festivals. We're talking about beer in this blog, but it goes far beyond that, of course. I've just spent a bit of time at Beervana, perhaps Portland's most incisive beer blog, and saw what I thought fit very well with the whole notion of promoting a brewers festival. Through the use of social media and with a well produced, though amateur, video, one comes away from it with a desire to go to the North American Organic Beer Festival. I know I do.
North American Organic Brewers Festival, 2008 from Alison Grayson on Vimeo.
Thursday, April 16, 2009
Product (re) launch and beer (brand) documentaries
A day that begins with tropical fruit and ends with a pint of local beer is a day that is bound to be a bit odd. In my case, not odd so much as disparate. And, the distance between tropical fruit and local beer is not as great as some of the other activities, but let's look at the beer side of things.
Bridgeport Brewing re-launched their Hop Czar product this afternoon in fine fashion, though somewhat restrained compared to previous product launches which I attended, notably Ropewalk Amber Ale. Nonetheless, the brewery continues to show us how combining good products and professional marketing and brand management can make for a good consumer experience. Judging by the nearly packed house, a few other Portlanders agree.
Following that authentic experience, I attended the Beer Wars movie "event" at a local theater. My low expectations arose from the fact that the producer/director a) claimed familiarity with the beer "category" having been CEO of Mike's Hard Lemonade and b) doesn't (cannot) drink. The latter problem is not an issue, but someone whose experience resides with a kiddie drink that only competes against beer because it is nominally a malt beverage is perhaps not the most capable person to dissect the complex issues in beer competition.
The film's thesis seems to be that the big three, now the big two, are category crushing, brand behemoths who will do and say anything to remain the dominant breweries in the universe. Their rapacious behavior is aided and abetted by an out-of-date distribution system that the breweries support and cherish because it rewards them with the leverage they need.
The movie succeeds at a certain level with folks who have had little exposure to the craft brewing business. That is to say most folks regardless of their beer preferences. One could see a documentary like this from Frontline on PBS, but without the fawning over a very select number of craft brewing business owners who seem chosen for their on-camera capabilities. Stone Brewing and Dogfish Head are featured and, indeed, their owners are great in front of the camera. Interestingly, both companies seem to be succeeding quite well. Stone admits to an average 46% growth year-over-year since its inception. So, where is the threat if these guys do so well? Who is being harmed? It would have been useful to show the breweries that struggle against the three-tier system and are not nearly so successful.
The one odd bottle in the six pack, if you can excuse the metaphor, is Moonshot. This unlikely product, "premium" beer with caffeine, is the brand brainchild of Rhonda Kallman, one of the brains and brand builders behind Boston Beer and Sam Adams. By the end of the movie, my fellow movie goers were booing or calling her out, much as the Beer Advocate's Todd Alstrom does in the live panel discussion that concludes the event, for producing something that is technically beer, but hardly fits with the craft brewing industry. Sure, she knows all about building brands, but what, exactly, is in that bottle and why should we care? Is adding caffeine to a contract brewed light beer anything like a complex, rich beer made by the same person that is trying to get the distributor to carry it? The audience, and this author, say no.
Ultimately, Beer Wars is a reasonable distraction, sort of like the Hammerhead I enjoyed after the movie. But, it doesn't satisfy in the way Hop Czar did or the cask-conditioned Blue Heron I enjoyed while watching the band and dancers at the Bridgeport Brewpub.
Monday, April 13, 2009
Venerable Oregon Brewers Festival celebrates 22 years of American craft beer
PORTLAND, Ore. – April 13, 2009 - It’s the event that brings together 80 craft breweries, 2,000 volunteers and 70,000 beer lovers for a four-day summer celebration of American craft beer. The 22nd annual Oregon Brewers Festival, one of the nation's longest-running and best-loved craft beer festivals, will take place July 23 through July 26 at Tom McCall Waterfront Park in downtown Portland. Event hours are Noon to 9 p.m. Thursday through Saturday, and Noon to 7 p.m. Sunday.
Eighty craft breweries from 14 different states will each send one product to serve at the event; an 81st beer, Collaborator, is a joint project between members of the Oregon Brew Crew homebrewing club and Widmer Brothers Brewing Co. More than 70,000 fans annually travel from points around the world to sample more than two-dozen beer styles, ranging from malty ambers to bitter pales to fruity wheats.
Joining the breweries are industry exhibits by hop growers, homebrewers, breweriana collectors, and national beer writers and publishers. Four days of live music showcases the best high-energy talent the Northwest has to offer. Food booths sell meals and alternative beverages, while the Crater Lake Soda Garden provides handcrafted sodas free of charge to minors and designated drivers. Minors are allowed into the event when accompanied by a parent.
Admission into the festival grounds is free. In order to sample beer, a taster package is required. Taster packages are available in $10, $20 and $50 increments. All packages include a 2009 souvenir mug, which is required for consuming beer (mugs from previous years will not be filled); a souvenir program that includes a map of where the beers are located onsite; and various quantities of tokens, which are used to purchase beer. Patrons pay four tokens for a full mug of beer, or one token for a taste. Additional tokens may be purchased at $1 apiece. Sales of taster packages and tokens cease one-half hour prior to the close of the event each evening.
Alternative modes of transportation are encouraged, with free monitored bicycle parking available each day. The main entrance is at SW Oak Street and Naito Parkway, one block from the MAX Light Rail line.
The Oregon Brewers Festival takes place during Oregon Craft Beer Month, a celebration of craft beer by Oregon's specialty breweries. A variety of special events will take place at craft breweries throughout the state, culminating with the Oregon Brewers Festival. The festival also hosts two ticketed auxiliary events: the Oregon Brewers Dinner, held on the eve of the festival opening, and the Oregon Brewers Brunch and Parade, a kick off to the festivities held the morning of July 23.
The Oregon Brewers Festival was founded in 1988 as an opportunity to expose the public to microbrews at a time when the craft brewing industry was just getting off the ground. Today, that industry has succeeded, especially in Oregon, and particularly in the city of Portland. There are currently 96 craft brewing facilities in Oregon, and 30 breweries operating within the Portland city limits – more than any other city in the world. The Portland metropolitan area boasts 38 breweries, making it the largest craft brewing market in the United States.
For more information about the Oregon Brewers Festival, visit www.oregonbrewfest.com or call the event hotline at 503-778-5917.
###
Note to Editor: High resolution digital images are available upon request.
Contact
Chris Crabb
503.314.7583
chrisc@oregonbrewfest.com
Eighty craft breweries from 14 different states will each send one product to serve at the event; an 81st beer, Collaborator, is a joint project between members of the Oregon Brew Crew homebrewing club and Widmer Brothers Brewing Co. More than 70,000 fans annually travel from points around the world to sample more than two-dozen beer styles, ranging from malty ambers to bitter pales to fruity wheats.
Joining the breweries are industry exhibits by hop growers, homebrewers, breweriana collectors, and national beer writers and publishers. Four days of live music showcases the best high-energy talent the Northwest has to offer. Food booths sell meals and alternative beverages, while the Crater Lake Soda Garden provides handcrafted sodas free of charge to minors and designated drivers. Minors are allowed into the event when accompanied by a parent.
Admission into the festival grounds is free. In order to sample beer, a taster package is required. Taster packages are available in $10, $20 and $50 increments. All packages include a 2009 souvenir mug, which is required for consuming beer (mugs from previous years will not be filled); a souvenir program that includes a map of where the beers are located onsite; and various quantities of tokens, which are used to purchase beer. Patrons pay four tokens for a full mug of beer, or one token for a taste. Additional tokens may be purchased at $1 apiece. Sales of taster packages and tokens cease one-half hour prior to the close of the event each evening.
Alternative modes of transportation are encouraged, with free monitored bicycle parking available each day. The main entrance is at SW Oak Street and Naito Parkway, one block from the MAX Light Rail line.
The Oregon Brewers Festival takes place during Oregon Craft Beer Month, a celebration of craft beer by Oregon's specialty breweries. A variety of special events will take place at craft breweries throughout the state, culminating with the Oregon Brewers Festival. The festival also hosts two ticketed auxiliary events: the Oregon Brewers Dinner, held on the eve of the festival opening, and the Oregon Brewers Brunch and Parade, a kick off to the festivities held the morning of July 23.
The Oregon Brewers Festival was founded in 1988 as an opportunity to expose the public to microbrews at a time when the craft brewing industry was just getting off the ground. Today, that industry has succeeded, especially in Oregon, and particularly in the city of Portland. There are currently 96 craft brewing facilities in Oregon, and 30 breweries operating within the Portland city limits – more than any other city in the world. The Portland metropolitan area boasts 38 breweries, making it the largest craft brewing market in the United States.
For more information about the Oregon Brewers Festival, visit www.oregonbrewfest.com or call the event hotline at 503-778-5917.
###
Note to Editor: High resolution digital images are available upon request.
Contact
Chris Crabb
503.314.7583
chrisc@oregonbrewfest.com
Wednesday, April 8, 2009
2009 Festival Media Kit
Here it is. The official guide to the guide. Advertising rates and specifications for this year's Oregon Brewers Festival.
2009 Oregon Brewers Festival Media Kit
2009 Oregon Brewers Festival Media Kit
Tuesday, March 31, 2009
Beer Packaging-Bottles and such
From a tweet this morning came this link to beer packaging.
In early November, I had an opportunity to visit Copenhagen, which inevitably led to a visit to the Carlsberg Brewery. Carlsberg is an enormous brewery with a global reach and not the sort of brewery that would find its way into a blog on craft brands and local festivals. However, Carlsberg stands out in packaging because of their rather incredible museum of tens of thousands of beer bottles from around the world.
A visit to the original brewery, now more museum, but with a pilot brewery for their specialty beers, reveals a rich history. You might say the same for Anheuser-Busch, too. And, Carlsberg has horses, Jutland horses, whose original use as dray beasts of burden probably pre-dates the Clydesdales. These stout pony-horses are sized for a European capital and easily as charming as the US version. But, I digress.
Carlsberg, expansive as they are, are protectors of their brand even as they expand it and have a keen sense of history. They also have a keen sense of science and an early "open source" sensibility about its use. Their lab or research center, still operating on the site in the outskirts of Copenhagen, has pioneered a number of innovations. Rather than keep those innovations to themselves only, the founders believed that they should be shared. Even with competitors.
Enjoy this diversion to macro-beer land and visit the brewery if you ever find yourself in Copenhagen.
In early November, I had an opportunity to visit Copenhagen, which inevitably led to a visit to the Carlsberg Brewery. Carlsberg is an enormous brewery with a global reach and not the sort of brewery that would find its way into a blog on craft brands and local festivals. However, Carlsberg stands out in packaging because of their rather incredible museum of tens of thousands of beer bottles from around the world.
A visit to the original brewery, now more museum, but with a pilot brewery for their specialty beers, reveals a rich history. You might say the same for Anheuser-Busch, too. And, Carlsberg has horses, Jutland horses, whose original use as dray beasts of burden probably pre-dates the Clydesdales. These stout pony-horses are sized for a European capital and easily as charming as the US version. But, I digress.
Carlsberg, expansive as they are, are protectors of their brand even as they expand it and have a keen sense of history. They also have a keen sense of science and an early "open source" sensibility about its use. Their lab or research center, still operating on the site in the outskirts of Copenhagen, has pioneered a number of innovations. Rather than keep those innovations to themselves only, the founders believed that they should be shared. Even with competitors.
Enjoy this diversion to macro-beer land and visit the brewery if you ever find yourself in Copenhagen.
Monday, March 30, 2009
Packaging design-Holly Koons O'Leary
Designer, graphic artist and cake-baking maven Holly Koons O'Leary has created package designs for prominent local brands of food and consumer products including Bob's Redmill, The Oregon Dairy Council and Oregon Scientific. She has recently turned her attention to coffee packaging. Her craft beer expertise developed from consumption, an honest approach.
1. Describe the process for developing a good package design. What steps do you take with a client and in what order?
Define the following, not necessarily in this order:
Intention
How do we want the consumer to feel?
Budget
Audience
Direct competitors, if any.
Distribution (retail markets, geographic areas)
Price point
Rebrand or Re-Fresh?
Personality of the product.
2. How do you incorporate existing brand identity, i.e. logos, color, typography, into a package or label design?
That depends on how a client defines the points I listed in no. 1.
3. Do you treat package design differently than you would an overall brand and identity scheme for a client?
Not really. Some technical, logistical considerations are necessary though.
4. What considerations, other than legal requirements, do you see as unique for beverage package design, and in particular, beer package design?
Flavor profile. In other words, how the packaging scheme looks sitting on the shelf. This is not just for beer packaging but for food and beverage in general. I like to recommend a contrasting profile to what others are doing so the products don't get lost amongst other brands. Although, sometimes a clients intentions are to directly appear similar to a competing brand in order to lure a potential customer. Folks like when beer looks like beer. To me, a successful example would be Rembrandt Toothpaste. No, not a beer. But a lovely, sophisticated package design in a sea of glittered plastic, holographic logos and promises of the virtues of a well-brushed mouth. Which brings me back to "intention" and "competition" which I listed initially. I imagine the Rembrandt folks intended to elevate their paste to top shelf, which is where it resides. Elevation is not always the goal, of course. But a contrast in flavor profile (whatever the product) can also achieve increased visibility, causing consumers to gravitate to your product.
5. What impact does the package as a physical entity have on the overall design? For example, when do you recommend a special bottle or can vs. a graphical treatment of a standard bottle?
Hmmm...good question. And one I'm not sure of the answer. What I've experienced though is the use of unique form factors or "new" designs in cases of innovative products, brand elevation and special limited edition items. This is tricky and should be well thought out for many reasons. Use of specialty packaging may successfully convince consumers that a product is truly unique, enticing them to make a purchase or appear as a desperate and frivolous gimmick that only increases the cost of a product and not its value or benefits. Cost is a huge factor when special packaging is being considered. Not only is the cost of producing the actual package typically higher, but many increased costs are associated with such a change on a production line as a product is being packaged or bottled. It's essential to communicate EARLY with the production team to examine the need for additional equipment, machinery adjustments or increased man power that might be required to get a product to market in a timely and affordable manner. Shipping weight and space, as well as storage of a package prior to bottling/producing, must be considered.
6. For you, what makes a great package and/or label for a beverage? What do you want to see on the shelf?
If a package captures my attention and makes me want to eat, drink, rub something on my skin, look, smell or feel a certain way, then the package is good. That doesn't mean the product is great. If I purchase the product, then the package is even better. But, if I've purchased a product and it IS great and lives up to the promise of it's package, then I consider the package exceptional! I think packaging appeals to consumers on an emotional, gut level. So, that is how I like to design packaging...with my gut (and a whole bunch of other considerations listed in no. 1).
7. For some brewers, making the step from draft beer to packaged beer is a big one involving significant investments. What weight, in terms of time and budget, should a brewer put on the package and/or label design?
Perhaps go back to number 1 and really look at...
Direct competitors, if any.
Distribution (retail markets, geographic areas)
Price point
Then, hire a GREAT designer to create a solid design for you. No need for a snooty ad agency but this is also not a job for your nephew right out of design school either. There are plenty of fantastic designers out there who are affordable. Have a conversation with them and please be willing to pay for this expertise too. Designers are thinkers who can offer great solutions to make your product a success. Shop around. Get some estimates. Approve the one that works best for you. It's not necessary to break the bank but be prepared to spend SOME money. Otherwise, it will be painfully apparent that you were a cheapskate. If your package is well designed, consumers will see that you take pride in what you produce. That is important in the retail arena as you begin to develop a relationship between the consumer and your product.
8. When do you know it’s time for a new design?
Pay attention to trends. Better yet, be ahead of the trends. Or, go back and recapture/redefine something that has become a cliche. People like that. For example, I have BIG plans for the starburst! Really I do!!
9. In your opinion, what are three particularly interesting package or label designs?
Sophisticated, reliable, high-end but worth the price...
Rembrandt Whitening
Honest, real, straight-forward...
Vintage Beer Packages
Fun, unique...
Japanese Fruit Drink
To reach Holly, go to Holly O'Leary Design.
1. Describe the process for developing a good package design. What steps do you take with a client and in what order?
Define the following, not necessarily in this order:
Intention
How do we want the consumer to feel?
Budget
Audience
Direct competitors, if any.
Distribution (retail markets, geographic areas)
Price point
Rebrand or Re-Fresh?
Personality of the product.
2. How do you incorporate existing brand identity, i.e. logos, color, typography, into a package or label design?
That depends on how a client defines the points I listed in no. 1.
3. Do you treat package design differently than you would an overall brand and identity scheme for a client?
Not really. Some technical, logistical considerations are necessary though.
4. What considerations, other than legal requirements, do you see as unique for beverage package design, and in particular, beer package design?
Flavor profile. In other words, how the packaging scheme looks sitting on the shelf. This is not just for beer packaging but for food and beverage in general. I like to recommend a contrasting profile to what others are doing so the products don't get lost amongst other brands. Although, sometimes a clients intentions are to directly appear similar to a competing brand in order to lure a potential customer. Folks like when beer looks like beer. To me, a successful example would be Rembrandt Toothpaste. No, not a beer. But a lovely, sophisticated package design in a sea of glittered plastic, holographic logos and promises of the virtues of a well-brushed mouth. Which brings me back to "intention" and "competition" which I listed initially. I imagine the Rembrandt folks intended to elevate their paste to top shelf, which is where it resides. Elevation is not always the goal, of course. But a contrast in flavor profile (whatever the product) can also achieve increased visibility, causing consumers to gravitate to your product.
5. What impact does the package as a physical entity have on the overall design? For example, when do you recommend a special bottle or can vs. a graphical treatment of a standard bottle?
Hmmm...good question. And one I'm not sure of the answer. What I've experienced though is the use of unique form factors or "new" designs in cases of innovative products, brand elevation and special limited edition items. This is tricky and should be well thought out for many reasons. Use of specialty packaging may successfully convince consumers that a product is truly unique, enticing them to make a purchase or appear as a desperate and frivolous gimmick that only increases the cost of a product and not its value or benefits. Cost is a huge factor when special packaging is being considered. Not only is the cost of producing the actual package typically higher, but many increased costs are associated with such a change on a production line as a product is being packaged or bottled. It's essential to communicate EARLY with the production team to examine the need for additional equipment, machinery adjustments or increased man power that might be required to get a product to market in a timely and affordable manner. Shipping weight and space, as well as storage of a package prior to bottling/producing, must be considered.
6. For you, what makes a great package and/or label for a beverage? What do you want to see on the shelf?
If a package captures my attention and makes me want to eat, drink, rub something on my skin, look, smell or feel a certain way, then the package is good. That doesn't mean the product is great. If I purchase the product, then the package is even better. But, if I've purchased a product and it IS great and lives up to the promise of it's package, then I consider the package exceptional! I think packaging appeals to consumers on an emotional, gut level. So, that is how I like to design packaging...with my gut (and a whole bunch of other considerations listed in no. 1).
7. For some brewers, making the step from draft beer to packaged beer is a big one involving significant investments. What weight, in terms of time and budget, should a brewer put on the package and/or label design?
Perhaps go back to number 1 and really look at...
Direct competitors, if any.
Distribution (retail markets, geographic areas)
Price point
Then, hire a GREAT designer to create a solid design for you. No need for a snooty ad agency but this is also not a job for your nephew right out of design school either. There are plenty of fantastic designers out there who are affordable. Have a conversation with them and please be willing to pay for this expertise too. Designers are thinkers who can offer great solutions to make your product a success. Shop around. Get some estimates. Approve the one that works best for you. It's not necessary to break the bank but be prepared to spend SOME money. Otherwise, it will be painfully apparent that you were a cheapskate. If your package is well designed, consumers will see that you take pride in what you produce. That is important in the retail arena as you begin to develop a relationship between the consumer and your product.
8. When do you know it’s time for a new design?
Pay attention to trends. Better yet, be ahead of the trends. Or, go back and recapture/redefine something that has become a cliche. People like that. For example, I have BIG plans for the starburst! Really I do!!
9. In your opinion, what are three particularly interesting package or label designs?
Sophisticated, reliable, high-end but worth the price...
Rembrandt Whitening
Honest, real, straight-forward...
Vintage Beer Packages
Fun, unique...
Japanese Fruit Drink
To reach Holly, go to Holly O'Leary Design.
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