Brooklyn brewery and beer market in sweden


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Brooklyn brewery and beer market in sweden

  1. 1. Brooklyn Brewery and beer market in Sweden Gustavo Pereira
  2. 2. The world loves beer. For the 27th consecutive year, sales have been going up, with Chinaleading the ranking, followed by the USA, Brazil and Russia. (source rise-27th-consecutive-year.html )
  3. 3. But what about Sweden?
  4. 4. The first good thing is that the number of people turning 20 in Sweden is on the rise. Why is that good? That´s the age when it´s become legal do buy alcohol at Systembolaget. The number of people allowed to walk into astore and get alcohol increased 7% in the last 3 years.
  5. 5. Not just more people are allowed to drink, butalcohol sales in Sweden have been going up for the last 3 and a half years.From 2009 to August of 2012, there were more than 1.6 billion liters sold at Systembolaget stores all over Sweden.Each year, the growth is around 6 million liters.
  6. 6. Sprit (vodka, tequila, whiskey and others) are selling less. They used to sell over 20 million liters, but now are on low 19s.Cider and mixed beverage are also going down and at the same 19 million range.Wine is doing better with more than 190 millionliters sold in 2011. It also had an extra 10 million liters in 2011 if you compared it to 2009.
  7. 7. But the real king in Sweden is still beer!Beer is responsible for about half of the alcohol sales in Systembolaget each year 
  8. 8. In the last 3 years, beer sales in Sweden have been stable.After a small drop in 2010 of 0,52%, sales went back up in 2011.Last year, Swedish people bought 227.092.404 liters of beer at Systembolaget, who has the monopoly of alcohol sales in the country.
  9. 9. There are four companies who areresponsible for tha majority of the beer sales in Systembolaget: Carlsberg Sverige AB Spendrups Åbro Bryggeri Kopparbergs/Sofiero Bryggeri
  10. 10. In 2009, they were responsible for 73,3% of the beers sold at Systembolaget. In 2011, they sold less and their share market dropped to 70%.
  11. 11. Ok, so 3% it´s not that much when you think about.But do you know what 3% means in this market?
  12. 12. 7 milion liters!!!!! Also known as 14 million bottles of 500ml or 20 million cans of 350 ml!!!!!!!!This opened the market for a lot of other brands to grow and increase their presence in the Swedish market.
  13. 13. In 2009 there were 2242 uniquebeers being sold in Systembolaget.In 2011, 2940, which means 31,1%more brands at the store competing for the costumer´s attention.
  14. 14. So Swedish people like to drink. You know what else they like? United States of America
  15. 15. Need proof?
  16. 16. Back to beer in Sweden... However, there is a smalltreasure when you look at the data.
  17. 17. One little name caught our attention: Brooklyn Brewery. How come an small brewery in the United States – 13th according tothe American Brewery Association – is selling so much in Sweden?
  18. 18. Their sales in 2011 were 3 times bigger than 2010 and 2009. And in 2012 is their best year yet and they still have 5 months left tosell beer to the Swedish population. And their main product is selling more and more....
  19. 19. But who is Brooklyn Brewery?
  20. 20. Facts 13th biggest Craft Brewing Company in USA (based on 2011 beer sales volume) Today two-thirds of Brooklyn Brewery beers are brewed in Utica, while the rest of beer production takes place in Brooklyn. There are plans to move 50 percent of production to Brooklyn within the next two years. The company had sales of $35 million last year and projects sales to increase to between $40 million and $45 million in 2012. The company employs 120 workers upstate and 57 in Brooklyn. Fifteen percent of Brooklyn Brewery beer is exported overseas. 67th out of the 100 fastest growing inner city businesses, according to CNN city-100.fortune/67.html
  21. 21. And where does Sweden come to all of this?"Sales have really started to spike in Sweden. Now were seeing a point where our beer is close to really becoming mainstream [there]." Ben Hudson, marketing director for Brooklyn Brewery source: lm_Fuggedaboutit
  22. 22. But, wait! There is moreSo close to mainstream that Sweden is now the second largestmarket for Brooklyn Brewery outside of New York. Yes, you read that right. "I usually have to explain it twice," says Hudson. "Most peoplethink I mean the number two market outside the U.S., and I have to say, no, no, its No. 2 after New York City." source: ggedaboutit
  23. 23. And the rise in Sweden makes somesense, according to someone named Google.• With 2.8% of population of the United States, Sweden has:- about the half of volume search recorded by America- 4 times more then Canada and the UK- the language with more searches about Brooklyn Brewery in the last 12months.
  24. 24. Google Data• Even tough, Brooklyn Brewery sold 187.898 liters in Systembolaget in2010, there aren´t enough data on Google Insights about searches in Swedenabout their beer.• However, a spike began in September of 2011 and the rising reached an all-time high this year
  25. 25. Brooklyn Brewery Systembolaget - sales main productsYear 2009 2010 2011 2012 (until August 1st)Brooklyn Lager 103.136 166.450 338.130 347.995Brooklyn Brown Ale 8.290 1.803 20 901Brooklyn Black 5.893 3.288 5.156 7.839Chocolate StoutBrooklyn East IPA 238 1.114 58.156 78.816Summer Ale - - 43.500 1.486Total 120.145 187.898 446.302 446.881
  26. 26. Brooklyn Brewery Systembolaget - sales main products 20122012 January February March April May June July AugustBrooklyn 28.837 36.099 43.586 44.362 42.971 58.294 47.159 46.687LagerBrooklyn 4.576 5.773 7.312 11.458 10.428 13.428 12.453 12.866East IPATotal 33.869 44.832 59.747 56.639 53.921 73.496 61.127 61.131
  27. 27. Brooklyn BrewerySystembolaget - MAT sales
  28. 28. Brooklyn BrewerySystembolaget - sales
  29. 29. Brooklyn Brewery Systembolaget - sales200801 200802 200803 200804 200805 200806 200807 200808 200809 200810 200811 200812 5440 6607,25 9089,41 8073,44 9236,38 8501,88 6798,23 7287,82 10836,37 11684,81 6421,59 8974,04200901 200902 200903 200904 200905 200906 200907 200908 200909 200910 200911 200912 6991,72 13003,3 8470,28 9845,92 8542,71 10433,8 9334,36 10800,3 8983,2 10588,69 9150,93 13953,3201001 201002 201003 201004 201005 201006 201007 201008 201009 201010 201011 201012 10550,26 10689,8 17009,9 13124,3 8791,3 18269 15950,1 13489 13325,66 21147,34 17603 27947,7201101 201102 201103 201104 201105 201106 201107 201108 201109 201110 201111 201112 19881,76 28565,4 26294,1 34578,8 38045,7 65279,3 43811,3 32494 32785,12 34748,95 35070,5 57040201201 201202 201203 201204 201205 201206 201207 201208 33868,49 44831,8 59746,9 56639,1 53921 73495,6 62166,1 61631,4 • June presented the best two months for Brooklyn Brewery on the last couple of years, which became a pattern in the last two years. •December has some of the best results for Brooklyn Brewery, which is followed by bad results in every January.
  30. 30. Brooklyn Brewery Systembolaget - sales main products• Brooklyn Lager is by far their most selling product, with almost 5 times more thanBrooklyn East IPA.• Lager had an increase in sales of 100% from 2010 to 2011.• Together, Lager and East IPA are responsible for 95% of the Brooklyn Brewery sales in2012 Lager is 5.2%. East IPA is 6.9%.•This means that Lager has also an additional 30% of sales that happen in bar, whichcould raise their sales to 452.393 in 2012. So, Lager in bars, restaurants and SystemBolaget outsold Brooklyn Brewery in System Bolaget in 2011.• East IPA is classified as strong beer for the Swedish Beer Association, where only 3% isnot sold at Systembolaget.• June is always the best selling month to Brooklyn Brewery in Sweden. March is whensales start to go up after reaching a year low, thanks to the winter.
  31. 31. Brooklyn Brewery Systembolaget - sales main products• If a 350ml bottle of Brooklyn Lager costs 16,90 SEK and they sold 347.995 liters in2012, this mean they have made around almost 17 millions Swedish Krona, whichmeans 2.5 million dollars.• And if they have an expected $45 million dollars in sales in 2012, sales of BrooklynLager in Sweden alone can maybe be responsible for something around 3 milliondollars!• This means can one beer in Sweden can add to 6.6% of the total sales of BrooklynBrewery in one year.• And according to Carlsberg, who sell Brooklyn Brewery in Sweden, 60% of their salestake place in Sodermalm, a popular neighborhood in Stockholm.
  32. 32. Physical World• According to the Swedish Beer Association, Systembolaget, grocery andconvenience stores are responsible for the biggest part of the sales in thecountry:-97.7% of the beers sold in Sweden are in grocery and convenience stores forbeer over 5.6% -> Which is good for East IPA-70.7% for beers between 4.5 to 5.6%. -> Which is good for Brooklyn Lager,especially after Brooklyn Brewery started to sponsor music festivals in Sweden:- Brooklyn Brewery hosted a festival in Stockholm and Malmo with bands fromBrooklyn: "We have a great fan base there and we felt like it was time we giveback and throw a big party for our customers," says the company.
  33. 33. Brooklyn Lager – competition Brand Price Sold in 2012 Sofiero 10,40 11.848.317 Femkommatvåan 10,40 6.131.585 Norrlands Guld 12,90 5.813.533 Export Stockholm Festival 10,40 4.750.761 Mariestads Export 15,40 4.678.946 Pripps Blå 10,90 4.428.584 Brooklyn Lager 16,90 347.995• If you compare Brooklyn Lager to the most selling beers in Sweden between5 and 5.3%, they have a problem: they are the more expensive for the leastammount of alcohol: 355ml against 500ml for the rest of the group.
  34. 34. Brooklyn Lager – premium LagerBrand Price 2012 2011 2010 2009 Difference 2009-11Stella Artois 14,40 522.342 681.501 571.872 513.115 +32,8%Red Stripe 14,90 393.532 627.966 566.226 553.134 +13,5%Staropramen 15,90 1.110.106 1.597.731 1.513.889 1.554.084 +2,8%Samuel Adams 15,90 121.166 182.906 80.228 62.474 +192%Boston LagerGrolsch 12,50 662.433 962.444 889.031 1.053.903 -8,7%Premium LagerBrooklyn Lager 16,90 347.995 338.130 166.450 103.136 +227% • Brooklyn Lager is the beer who had the biggest growth since 2009, beating America´s biggest brewery, Samual Adams and its main product, in that period. • Brooklyn Lager is still way behind the rest of the competion in total amounts, selling about half of Stella Artois and Red Stripe, both with two digits growth.
  35. 35. Brooklyn Brewery Swot - Prices against the most selling beers- Sales are on the rise in a market in Sweden and other premium lagers.that is getting more competition- All of the 17 beers that are the - Huge dependency (95%) in twomost sold in System Bolaget are in products: Lager and East IPAthe range between 5 and 6%, thesame one where you can findBrooklyn Lager.
  37. 37. 80000 70000 60000 50000 40000 30000 20000 10000 0 -10000 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67• This is the last 56 months of Brooklyn Brewery sales in Systembolaget.• The trendline shows the projections for th next 12 months.• So the future of Brooklyn Brewery sales looks promissing in Sweden for theupcoming future.
  38. 38. 80000 70000 60000 50000 2008 2009 40000 2010 2011 30000 2012 20000 10000 0 1 2 3 4 5 6 7 8 9 10 11 12• When we compare year by year using each month as a reference, we can stillsee the increase.• January, which is the worst month, didn´t do that well in 2012 comparing toJune, but it was better than most month of 2011.
  39. 39. What are the expectedresults Retention – more drunk people Purchase – increase yearly sales in 15% Preference - increase brand preference among target group in 20% Consideration – 4K new visitors to the website Awareness – Facebook ads and Instagram campaign
  40. 40. Website improvements- Sweden is your second market.- Your sales have increased over 300% in the last 3 years.- You are having your best year yet.- So why isn´t your website in Swedish?-Or doesn´t even say anything about Sweden?- Yes, Swedish people can speak pretty good English, but you can develop a betterrelantionship with your fan base if you adapt some things to their natural language and workon top of those.
  41. 41. Brooklyn Brewery website-If you search for Brooklyn Beer inthe USA, their webiste will showyou places where you can buy theirproducts.- But what happens when you try aSwedish address?
  42. 42. Brooklyn Brewery website-The searches for Swedish adressesalways come back empty.- If this is your second market,sales are on the rise, peopleare looking you up in Google,why are you not paying attentionand doing something about this?
  43. 43. Brooklyn Brewery website- The Strand, in Hornstull,just opened a Brooklyn Bar, whichonly sells Brooklyn Brewery.- Why is that not on the map????- The same goes for SlussenDebaser and other bars inStockholm.
  44. 44. Brooklyn Brewery What can they do?- Using the Google Maps API, we could make this a lot prettier and more functional
  45. 45. Brooklyn Brewery website- Ok, so the search failed, but I stillwant to know where I can find thedamn beer in Sweden.- Now you need to send an e-mailto a generic address to someone atCarlsberg(!) to get moreinformation.- BTW, we tried that. There was noreply.- We only got data because wewent to the Beer Sales and PRpeople from Brooklyn Brewery.
  46. 46. Brooklyn Brewery website- If over 80% of the beer in Sweden is sold at Systembolaget, why don´t you have a link onthe Swedish part of the website where people can order your products?- This way people can see which stores carry Brooklyn Brewery, how much do they cost.-Systembolaget actually shows how many bottles are avaliable at each store. So, you can seeif your favorite has only 1 bottle, so you can go to another one to make sure you haveenough beer for you and your friend.- Just by clicking on the link Ok, the link is ugly, but you can redirect people or embed that :)
  47. 47. Brooklyn Brewery What can they do?- According to Google, 100% of the searches for Brooklyn Brewery in Sweden happen inStockholm. So we have also an entire country to conquer - Systembolaget website shows that stores in Uppsala and Skane already sell BrooklynBrewery. So we can develop a plan to increase the awareness in smaller city, to keep thenumbers up, so the brewery is not dependant of Stockholm for sales.- The words “brooklyn brewery”, “brooklyn beer” and “brooklyn lager”, according toGoogle, would only cost 10 cents per click.- If Sweden is the 2nd market outside New York, generating traffic to the website couldincrease sales and awereness, if the map function is working, if they have a list of bars sellingthe beers and also link to Systembolaget, especially now that the winter is coming, so you canalso make life easier for your costumers.
  48. 48. Brooklyn Brewery website- If you are focusing part ofyour business putting the rightbeer with the best food, youcould create and/or publishSwedish recipes.- BB could also use digitalplatforms so people could sendtheir own Swedish recipes.- Swedish cuisine is verydifferent from theAmerican, for instance.- This would help increase theproximity the Swedishaudience, and, therefore, sales.
  49. 49. Brooklyn Brewery website- Using Instagram´s API we can “stream” the latest pictures of people drinking Brooklyn Breweryon the webiste like We can also take the picture and use them in the Facebook page to make it more interestingfor the audience.
  50. 50. Brooklyn Brewery website- Using Spotify´s API we can also add playlist to our website with new Brooklyn bands, or musicto go to parties or to have a romantic dinner, based on the beer of your choice.
  51. 51. Going outside of your website- But why are talking about Spotify and Instagram?- We interviewed over 30 people in both Stockholm and Malmo, where Brooklyn Brewery heldthe Brooklyn Sweden music festival. They were in Debasser Malmo and Strand and this is whatthey said:- All of them are between 25-40, which is the same age group that Carlsberg works with.- That group identify themselves a lot with the Brooklyn scene, especially when it comes to arts.- Music is their first choice of cultural consuming, followed my movies and sitcoms -> good thingthat Brooklyn Brewery had a Brooklyn Sweden music festival- They either work with art or digital communication, like social media- They said the Brooklyn Brewery products taste better than the Swedish beer.- They don´t have a problem with the beer being more expensive, because it´worth it.-- They are tired of Facebook and find themselves spending less and less time onTwitter, especially posting.- They like Instagram because of the visual impact and simplicity of the platform.- obs: THIS WOULD MAKE A GREAT INFOGRAPHIC
  53. 53. Brooklyn Brewery What can they do?- Using the research we got, we decided to test the answers.-Brooklyn Brewery has 25 thousand fans on Facebook.-At the same time, they have almost 8 thousand on Instagram.-But their engagement rate on Instagram is way better :)-Examples:-The average likes on 8 of their Instagram pictures: 134-The average likes on 8 of their latest Facebook posts: 44,5
  54. 54. Brooklyn Brewery What can they do?- Now let´s move on to Twitter.-If we search for #brooklynbrewery using the Top funcions (tweets for more influentionalpeople, that generated RTs or replies from followers), the first 11 results all have one thing incommon: they were all posted from Instagram with pictures!-The ammount of posts on Instagram using the hashtag #brooklynbrewery is also 80% morethan in Twitter.-There were 123 pictures tagged on the last 7 days on Instagram.-Posts on Twitter? 18 with the hashtag.
  55. 55. Brooklyn Brewery What can they do? So, if your fan base is more engaged in oneplatform, why not take full advantage of it?
  56. 56. Brooklyn Brewery What can they do? The idea is promote "missions" on Instagram with the feelings that people put on pictures tagged with Brooklyn Brewery. We analyzed 50 of pictures tagged on Instagram go analyze some the emotional datasets included on the images. Almost 90% of them have positive feelings involved such as friends, fun, concerts, food.We can increase awareness and make the brand more "socialfriendly" to the Swedish fans by posting people´s pictures on the Brooklyn Brewery fan page and also Twitter account.
  57. 57. Brooklyn Brewery What can they do? Examples of missions: - Share a BB (Best Buddy) moment with your friend with another BB (Brooklyn Beer)- Stories and pictures of an awesome party you had a BB with your BB - Take your favorite Brooklyn Brewery product sightseeing to your favorite places in Sweden
  58. 58. Brooklyn Brewery What can they do? But wait.Don´t they all like music and Brooklyn Brewery even had a music festival in Sweden?
  59. 59. Brooklyn Brewery What can they do?Yes, that´s why we are also using music to make the brand closer to Swedish people. How? Using one of Sweden´s most known products: Spotify
  60. 60. Brooklyn Brewery What can they do?Brooklyn Brewery can develop both playlists and an app so people can have cool and new music while having a beer. We can even make playlists to specific beers. And we can make playlists to specific moments.But we can update weekly playlists with new Brooklyn bandsso Swedish people can discover new music using the brand.And new Swedish artists will be able to submit songs to the Brooklyn Brewery playlist.
  61. 61. Brooklyn Brewery What can they do? The Systembolaget and Carlsberg data showed us thatDecember is a good month for Brooklyn Brewery, but January isn´t. So we wanna change that. By developing the first edition of the Brooklyn Brewery Swedish edition, with a more local flavour.
  62. 62. Brooklyn Brewery What can they do?The design of the bottle would also be open, so any designeror graphic artist in Sweden could submit their work, and we would let the people choose the winner. The winner would also help Brooklyn Brewery develop the first Swedish beer.That beer can be sold as their “New Year Beer”, to help the January sales. January is always their worst month, with the average of 5.5% of the total yearly sales.This would be a good move to make the sales better during the first month of the year.
  63. 63. Brooklyn Brewery What can they do? Another thing we noticed is the consume of non-alcoholicbeverages at Systembolaget is increasing: 64% in 2011 if you compare the results to 2009. That´s a new market where Brooklyn Brewery still hasn´t tapped in.By developing an alcohol free beer or even soda, there are a lot of new markets that open up to Brooklyn Brewery: - lunches - people under 20 - pregnant women
  65. 65. Brooklyn Brewery What can they do? Create more Brooklyn Bars! They only have in Strand right now. And do you know whose idea was that? STRAND! If Brooklyn Brewery could do the same with other bars around Stockholm (especially outside Sodermalm)And this would allow them to throw parties in months like January, where they have their lowest sales.