Friday, October 28, 2005

Portland Beer Blog

Portland Beer Blog
As a marketer of beer for numerous years, I have been trying to get people to discuss aspects of advertising craft beers for years. It seems as though there is this extreme dislike of advertising in general in the craft beer industry. In the old days, I would hear that "we don't need to advertise, we sell all that we produce." Then I would hear.."we are all friends in this community, there is plenty of business for everyone. We don't need to grow our market from our competitors." Then things got rough. Many small breweries went under or were bought out. Then all of sudden.. brewery people are calling Widmer names because they have grown so much with the help of A/B. You still have Jack Joyce from Rogue saying he doesn't advertise even though he spends thousands of dollars on a newspaper of his own and merchandising like there is no tomorrow. Yeah, right! I get sick of the spin sometimes.

19 Comments:

Anonymous Anonymous said...

Hmmm, "we make good beer and we need you to buy it in order to continue making it but we are not going to advertise because that is against everything we stand for. Screw the man, my beer will sell by itself"!

I can't tell you how many times I have heard this and it usually comes from breweries that will either be out of business in the next year or brewers that are content with brewing in their basements or gargages. Hey, more power to them if that is what they choose. But to say that advertising has a negative affect on what craft breweries stand for is absolutely ridiculous. We need to look at the big picture.

Advertising in small local rags (no offense) is a great way to connect with people in your backyard. Most of the people who are reading these types of weekly periodicals are looking for ideas as to where to eat, drink and be merry for the upcoming weekend. It is also a great way to support your local retailer by showing them that you are behind their business.

Now, we need to look at advertising on a bigger scale. Let us talk about radio for a minute. The boys over at the big W have shown us that having a bigger advertising budget (Uncle Bud) can get you as many spots on the air as possible but does it really help in sales? Tough one to answer because it is very hard to capture the return on investment at the store level. We don't know that the person grabbing a 6 pack of that cloudy beer you put a lemon in is buying it because they heard a radio ad stating that other breweries hang wind chimes or wet kittens on thier "wheat" beers or because they saw a friend drinking it at a party or they have been drinking it since it was available to the general public. Whatever the reason, we have no way in finding out why.

Now, we jump to TV which only a few have tried (remember, we are talking about CRAFT breweries, not the big YELLOW guys). Why do TV? Well, my guess is that it covers a heck of alot more people at one time, it can be geared towards a certain demographic and it is probably more cost effective. I would think that you can also relay YOUR message through TV rather than some idiotic jingle or tag line that comes from most radio spots.

Sam Adams was the first to explore this and they have done a pretty good job of relaying their message. Some of the spots are very, um how can I say this, Bud'esque, meaning they take the dudes at a bar or the people who have been partying all night to get thier point across. But as of late you see good ol Jim Koch preaching the gospel of using only the highest quality of hops (almost like the Tom Shane radio commercials) and then they bring the brewers in to back up what their boss is saying. It is very easy, clean and gets to the point they are trying to make.

Lately, I have noticed a smaller (smaller than Boston Beer) craft brewery that has taken TV advertising to the next level. New Belgium Brewing has decided that they have no need for girls, fireworks or brewmasters to tell their story. They have also done this without any dialogue. No one is telling you of the quality of beer, the choice hops or the actual brewing process, they are letting the story speak for itself. The guy finds a bike, rebuilds it and goes for a ride down a country road. It is something we can all relate to. It is getting back to the simply things in life. The only time you see the actual beer is at the end when it fades to a full glass of their flagship liquid and then shows the bottle sitting right next to it. This is the type of TV advertising that really gets your attention. You can remember the music, you can relate to the story and you would just about do anything to be in that scenario. But, again I ask, what is their ROI and how can it be gauged?

My father sold insurance for many years and would ponder the same question. "If I spend X amount on advertising, how do I know if it is paying off for me"? He could never figure out that question, but I am happy to say that he is retired owns an RV and vaction house and works as a marshall on a golf course. Seems like all of the advertising he invested in paid off in the long run.............

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