10 key ingredients to craft beer successNeal Stewart

10 Key Ingredients for Craft Beer SuccessBlocking and tacklingHave a home baseCreate conversation opportunitiesAuthentic storyOn-premise strengthFeet on the streetExploit the power of influencersActivate the iconThe marketing is baked inListen to your gut

Blocking and tacklingMost craft beer brands have extremely small budgets so the first marketing allocation goes toward tools that directly help sell beer - POSPOS is always first on the distributor wish list. If they don’t have any tools to sell with, they don’t sell.Craft beers also pay a higher price for higher quality/bigger/more unique POS pieces.Examples: Sweetwater, New Belgium, Odell

Have a home baseBeing that authenticity is so important, successful craft beer brands focus their efforts around their brewery where their story is more meaningful to consumers.It’s easier to activate the brand’s story in a home market:It’s repeated more often (by brewery employees)It is reinforced via brewery toursCraft brewers are also more profitable if they sell a higher percentage of their beer in their home market.Expansion is not made until there is sufficient consumer demand in adjacent marketsExamples: Summit, Harpoon, Bell’s, Abita, Boulevard

Create conversation opportunitiesCraft beer brands are built on conversations. One consumer at a time.The story and the passion in which it is presented is critical. Craft beer consumers respond to small companies that have deep passion for their businessConsumer interactions are best when they are with the brand’s “religious zealot” or spokesperson. Jim Koch for Sam Adams, Garrett Oliver for Brooklyn and Sam Caligione for Dogfish Head are great examples.Conversation opportunities:Beer festivals On-premise promotionsOff-premise hand-sellsSocial Media

Authentic storyGrowing craft beer brands have an authentic story at the root of their communication.More importantly, they live it.Employees don’t forcefully tell stories, they live them.People who represent the brand ARE the brand.Examples: New Belgium, Dogfish Head, Sweetwater, Stone

On-premise strengthOn-premise strength = off-premise pricing power.Craft brands that are weak in the on-premise channel never get the respect needed to become a power brandOn-premise strength also leads to sampling, credibility and top of mind awarenessExample: Brooklyn, Goose Island

Feet on the streetCraft beer brands need people in the market to build distribution and interact with consumers.Distributors cannot be relied upon to build awareness or execute promotionsRepresentation in market adds to the brand authenticityDistributors take craft brands more serious when there is representation in market.The feet on the street are there for sales and marketing executionExample: Sam Adams, New Belgium, Magic Hat

Exploit the power of InfluencersThe only craft beer brand that advertises nationally is Sam Adams. Outside of some print in niche print publications, most craft beer brands rely on word of mouth to build their brand.Many craft beer brands dramatically overspend on influencer consumersInfluencers are viewed amongst their friends, family and co-workers as knowing the trends and what’s new and excitingCraft beer is a segment that offers more than the image-based brandsInfluencers are credibleThere are various ways to reach influencer consumers:Heavy sampling – give them beer to give to peopleSupport their passionsIn-depth product experience (brewery tours, behind the scenes)Make them feel like they have a say in the brandExamples: Flying Dog, Sweetwater, PBR

Activate the icon“Big” sales promotions are mostly ineffectiveConsumers don’t expect them from “upstart” craft brandsBudgets prevent many brands from being able to do thisCraft brands must be creative and bring the spirit of the brand to life at retail by activating their “icon”Fat Tire = cruiser bikeSweetwater = fish sculptureShiner Bock = Mountain GoatGoose Island = GooseCraft beer brands also have success bringing their “icon” to life via branded eventsTour de FatBocktoberfestGonzoFestMagic Hat Mardi GrasExamples: New Belgium, Sweetwater, Stone, Magic Hat

The marketing is baked inCraft beer brands don’t have big enough marketing budgets to build awareness, adoption and loyalty the traditional way. Craft brands have to be remarkable so that consumers experiment and recommend to others.The remarkable nature needs to be in the product itself, not the marketing.Example: Dogfish Head, New Glarus,

Listen to your gutVery few successful craft beer brands are grounded in deep consumer insights (Blue Moon is the only one that comes to mind). Most are built on passion and are the product of someone’s lifelong dream. The people who build these brands NEVER have consumer research to support their decisions, they just do what they want to do and they bring it to life through hard work and dedication. Craft beer is truly a business where passion ALWAYS wins.Examples: Dogfish Head, Sam Adams, Stone, Widmer, Magic Hat, Boulevard,