Beverage Dynamics

Beverage Dynamics-July/August 2017

Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.

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www.beveragedynamics.com Trend- SPOTTING Goose Island, Terrapin, Hop Valley, Devil's Backbone and Ballast Point all made headlines thanks to buying sprees by InBev, MillerCoors and Constellation. As a result, some folks insist that such beers are no lon- ger "craft," but "crafty." The Brewers Association defi nes craft brewers as "small, traditional and independent," and that to be a craft brewer requires producing fewer than 6 million bbl and 25% or less ownership by a "non-craft brewer." Our research, however, shows growing con- sumer disregard for those defi nitions. So the landscape looks something like this: Big Beer buys (or invests in) craft brewers to gain volume/profi t but seemingly doesn't get any halo effect from consumers. Small brewers continue to ply their trade while say- ing that former craft beers purchased by Big Beer are no longer craft because of Brewers Association technicalities. Consumers increasingly don't care about the Brewers As- sociation defi nition of craft, but do like quality products and "small batch." What can you expect Big Beer brands to do during this im- portant transition in consumer beliefs? Smart ones will likely look at investing brewing and distribution power into creating legiti- mate craft brews that refl ect the heritage of their master brands (i.e. brew their own limited edition or small batch craft beers). Take, for example, one of the most delicious craft beers few have tasted — Barmen Pilsner. It's a ridiculously good craft pils with a head so thick it could fl oat a golf ball and a legendary seven-minute pour time. What you may not know is its legend – Barmen is Pete Coors' recipe and nod to Barmen, Germany, hometown of Adolph Coors. To beer marketers, a brew like Barmen has everything — great quality, experience, a story that casts a halo on the master brand, and the backing, production and distribution might of MillerCo- ors. It also has everything the majority of craft beer drinkers want — great quality, experience, a story and rare/small batch status. Clearly, the opportunity for Big Beer brands to brew legit- imate craft beers under their own names exists and will grow regardless of how industry trade groups defi ne "craft." Lovers of craft beer told us they want quality and rarity, not necessarily locality or small brewery origin. By the people's defi nition, major opportunity awaits. BD BROOKE EDGE is Director of Strategy and Analytics for PriceWeber. She has a PhD in Media Studies from the University of Col- orado. In her fi rst career as an academic, she focused on healthcare messaging in popular media, qualitative analysis of audience response, and strategic commu- nications to underserved populations. At PriceWeber, she has more fun. MIKE NICKERSON is Chief Marketing Offi cer and account director at PriceWeber Marketing. PriceWeber has worked for many years with beverage brands including Korbel, Early Times, Finlandia, Canadian Mist and Old Forrester. Prior to PriceWe- ber, Mike helped launch Coors' Blue Moon beer, led the Absolut Vodka agency team, and helped pioneer Bud Light's fi rst Hispanic TV promotion with World Cup soccer and Univision. 12 Beverage Dynamics • July/August 2017

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