Beer Marketer's Insights
New Land at Home to Keep Saint Arnold Growing, But Not Too Fast; Leaves Colo; Big Bids in Past
Saint Arnold "just pulled out of Colorado," according to Brock, with interest in paying closer attention to Fla and Gulf Coast states. Brock considered selling the brewery "a couple of years ago," and got some eye-popping offers, he said. But he decided against it, saying "it's certainly not in my plans" still. Indeed, while he's happy with Saint Arnold size, current employees keep pushing to grow brand bigger. Tho Brock owns majority of co, Saint Arnold still has about 200 investors, who "lined up" for recent chance to purchase stock of one who wanted to sell some shares. "I probably could have gotten more" for that stock, Brock said, noting he'll look to set up a bidding system if another investor wishes to do the same. He's also considered entering politics even more recently, calling up former brewer/current Colo Gov. John Hickenlooper before nixing the idea to stick to beer. Speaking of the gov: pic making rounds on internet today of President Obama with him at Denver brewpub the governor founded, Wynkoop Brewing, shooting pool and sipping flagship Rail Yard amber.
Pressure to Lower Federal and State Barriers for Importing Small Brewers Too; Odd NM Op-Ed
These attempts to lower taxes on brewers echoed, but oddly, by guest opinion column for the Albuquerque Journal on the 4th. Columnist shares that NM's excise taxes (just over 40 cents/gal) is reason one in-state brewer is considering expanding production in nearby Ariz or Colo. The state isn't home to "any mega-breweries…with high-paid lobbyists," but small brewers becoming big biz in state, he argues. Yet rather than offering typical defense of graduated tax scale (taxes go up when a brewer hits 10K bbls and then again at 15K bbls), columnists thinks "this makes no economic sense at all" and is "an out-and-out lien on production." Instead, taxes "ought to be a flat rate," he argues, "at the very least," because "it's wrong for a brewery to be progressively penalized for being successful."
Expansions: Founders Duplicating Facility in Grand Rapids to Hit 600K Bbls; Speakeasy; Kona Pub
Out on the West Coast, Speakeasy Ales and Lagers is in the middle of expanding capacity to somewhere around 90K bbls, after shipping just under 30K bbls in 2013, according to SF Weekly. President Forest Gray didn't key the paper into any plans to expand distribution territory tho; it's already available across much of West Coast and some Eastern states. Further out into the Pacific, Honolulu could be home to another Kona Brewing pub/restaurant in Hawaii, where parent-co Craft Brew Alliance already operates a pair of pubs, one each on Oahu and the Big Island, reports Pacific Business News.
Take the above "Insufferable Man" piece, outed above the headline as a "Sponsored Post" and "commercial endeavor" ok'd by The Onion as "fit for publication." The "article" includes a mention of said "insufferable man" ordering a Fat Tire, but it's the disclaimer of sorts that points readers to NBB's site (along with familiar click-able digital display ads surrounding the post). That pointing is the point, Adrian explained to CBN. NBB, like other brand-owners, are "moving towards owning the audience," Adrian said, getting fans to spend time on NewBelgium.com, sign up for newsletters, download the mobile app and generally "bring them into the New Belgium fold." Whereas social media sites, particularly Facebook, used to play host to such interactions, "the game is kind of up" there, Adrian noted: Facebook has "become a publisher." So "as social became more and more monetized," the co started "migrating that process to our own properties."
NBB isn't creating all sponsored content on The Onion and others in-house. A video clip for the site's Newsroom about "Hipster Molting Season" was pure-Onion staff, but NBB gets wraparound display ads and "sponsored by" status for the post. Adrian and the co get to "steer and choose which kind of content" the brand is "associated with," he told us. A heavily shared picture-chronicle of an NBB brewery tour created by Thrillist is "presented by" NBB and bears an "ALLIED" banner before the headline. Thrillist writers created the post, but NBB went above and beyond typical tour standards to get it there. While this kind of content can be "more cost-intensive internally," mostly because it's "time-intensive" and "higher-touch," Adrian explained, "at the end of the day" the total cost is "probably comparable" to traditional advertising. But NBB has found "deeper engagement" with this kind of content, which is what the co's aiming for since it "drives preference." So while there could be "a little more risk" associated with these efforts, Adrian said, it fits right in line with NBB's general movement toward investing in "content and experiences" that tell the co's brand story, spokesman Bryan Simpson added. Digital content, "film in particular," backed up by experiences like Tour de Fat and Clips of Faith will remain points of focus for NBB, Bryan said, as it continues to "test and learn" effective strategies for reaching and engaging with beer drinkers.
Craft Breweries "Punching Above Their Weight Class" In Digital Mktg: NBB Ranked #2, Sam Adams #5
Five of top-10 and 10 of top-20 beer brands in L2 Think Tank's annual Digital IQ Index were craft brands, including #2 ranking for New Belgium, just behind Bud Light, and #5 for Sam Adams, behind Bud and Heineken. Based on study of digital marketing "competence" of 56 different beer brands in US mkt back in Apr, the report found plenty of small brands making it work on digital platforms, some way outperforming brands with much bigger market share. Both NBB and Sam Adams given "genius" status, the crème de la crème for this ranking, but plenty of "gifted" craft marketers too: Dogfish (#6), Sierra (#8), Stone (#10), Deschutes (#12), Harpoon (#13), Shiner (#15), Brooklyn (#17), and Lagunitas (#18), plus Blue Moon at #14. Success of small brewers "punching above their weight class" in survey called out in introductory video on L2 site but questioned in report: "given their small size (and lower level of scrutiny), this segment is notorious for skirting industry guidance," according to authors. But "as industry standards trickle down to small players," current advantages "may be neutralized." The rest of cos/brands received lower scores, considered "average," "challenged," or "feeble" in Digital IQ. All cos' IQs were measured based on work in Digital Marketing, Social Media, Site & E-Commerce and Mobile effectiveness. (Get a taste of NBB's "genius" below.)
Shift to Online Retailer "Could be Key for Beer"; "Critical" Retail Locator Feature "The fight over beer is increasingly tied to the rising grocery wars and the new battlefront online," according to Digital IQ Index. Study points to more online grocery options such as FreshDirect and expanding AmazonFresh; tho "online sector represents only 3.3 percent of grocery, analysts expect that share to grow to anywhere from 6.7 to 16.9 percent in the next ten years," and "could be key for beer brands." That's as efforts with broader geographic but narrower beer-focus have struggled (also, see below).
Then too, "critical feature" for beer cos, digital "retail locator" that allows visitors to find nearby stores/bars that sell brands, becoming more prevalent and more sophisticated. Now 63% of the 56 surveyed provide retail locators compared to just 46% last yr. The majority (86%) of these cos now offer the ability to differentiate search between on and off premise, from just 35% in 2013. And now "two thirds provide the ability to search by specific products (up from 43 percent)." But few locators detecting locations of visitors to narrow results for them. And gotta note, beer is behind spirits on being able to "direct visitors to major retailers." Interestingly, when folks searching for beer brands on Google, results rarely include additional links to other places on brand websites and retailers barely come up at all. Instead, search results commonly include hits for "community sites," BeerAdvocate.com and RateBeer.com taking the lion's share of those results. And about 61% of folks landing on beer website got there from a search engine.
Here’s to a happy and successful July 4th holiday for all. Cheers!
Up in the Air: More Local Craft on Airplanes, at Airports; Ninkasi Launches Yeast to Outer Space
Then too, Ninkasi Brewing announced peculiar partnership with Civilian Space eXploration Team to send "a payload of 16 strains of brewer's yeast above Earth's atmosphere" and back, co announced. The project, dubbed Ninkasi Space Program (NSP), has been about a yr in the works, and will (literally) launch this mo. "If successful the NSP team will return to the brewery with healthy yeast, ready to make its way into a very special beer for craft beer and space aficionados alike," according to the co.
Oddly enough, Ninkasi ain't the only ones in Oreg lookin' to send beer (or beer ingredients) to space. "Thanks to a kickstarter project, a group of Portland beer lovers (who also happen to be amateur rocketeers), are getting ready to launch the first ever two-stage rocket filled with kegs of beer," with a 5 gallon keg and 15 gallon keg of Burnside Brewing's Pale Ale this September, reported 9News. It isn't even the first time this group has accomplished what they call "kegetry" or "keg-lofting"; in 2008 "they successfully launched and recovered their first single-stage keg rocket" of IPA from Roots Organic Brewery over 6200 ft. And they did it again in 2012. This time they're lookin' to launch the beer 20,000 ft high. Likely have to let the beer settle a while before tapping those kegs.
Meanwhile, Deschutes entered its 4th new state this yr, Wisc with Wirtz Beverage Co; plans to enter Mich next, this September. Smuttynose entered eastern Tenn with Carter Dist, marking its 24th state plus DC, Puerto Rico and 4 mkts overseas. Knee Deep Brewing entered NC with Mutual Dist, and will enter NY with Sarene Craft Dist in either July or Aug. Also announced it will enter NorCal counties with DBI Beverage, same distrib co partnered with in SoCal this May.
Then too, click here to see round-up of craft brewer distribution territory expansions from June. Organized by state, this list includes craft brewer distribution expansions with sales expected to begin by the end of June, 2014, as well as a handful of announced mkt entries coming soon.

