Beerlines

Insights on beer marketing & PR by a beer-war vet

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30 March
Comments Off on Craft beer winning the ‘eye level’ war in retail

Craft beer winning the ‘eye level’ war in retail

For decades major brewers have competed and paid heftily to secure choice, high-profile positions in major retailers’ bottle shops and liquor barns.

The visual customer-facing beer war at POS
Every customer-facing cubic centimetre was precious turf. It was (and remains) a very competitive visual war for beer brand presence in major retailers.

And the big brewers were all over it! They owned it – they thought. Indeed, they devised their own science to prove it: ‘space planning’ and ‘planograms’ and whatever.

The most highly sought after POS placements in retailers’ fridges are, of course, at eye level. The grab-and-go slot.

So for years, what have we seen at eye-level? Usually six packs of VB or Tooheys Extra Dry or XXXX Gold; the result of big brewers with big brands paying the big retailers big bucks.

Craft now dominates at eye level
But a trip to Woolworths’ owned BWS shows how times have changed. Craft beers are front and centre.

This pic from BWS South Melbourne was central to the fridge fronts. There was no VB or Carlton Draught in this frontage at all. Those brands were back in the cold room.

bws2

Clearly BWS is on top of consumer interest at retail. And the consumer increasingly wants something new to try: an interesting brand or style to drink and brag about.

Okay, quite a few of the craft brands in this BWS are Woolies’ own private labels (often called faux craft) and clearly the retailers are making better margins, but the takeout is clear: craft has won this particular POS battle.

Big brewer versus big retailer – control of the POS
For years the big brewers believed this key point of sale in retail was theirs.

That sense of entitlement, I suspect, has rankled the big retailers for some time.

These facings must seriously be pissing big brewers off no end. Especially, as you can bet many of these small craft brewers are paying nowhere near as much for the privilege.

Interesting times at POS. And for that .. Cheers!

08 March
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Beer provenance revisited: lack of transparency still a hot issue

On the matter of beer provenance I must highlight and hat tip the role Matt Kirkegaard, arguably Australia’s leading beer commentator and blogger, has played in bringing this issue to prominence.

After penning my previous post I came across an earlier post and podcast by Matt about beer provenance concerns. I urge you to read and listen to this interview with Dr Chuck Hahn by clicking on the RBN pic immediately below. Maybe miss the preamble and start 10 minutes in.

rbn chuck

While contacting Matt, beerlines took the opportunity to quickly interview him on beer provenance and secure an update on his thoughts.

Beerlines: “As Editor of Australian Brews News is provenance becoming more important? If so is there any variation between small and big brewers?”

Kirkegaard: “It’s an interesting question.

“As our shelves become more cluttered with a wider array of beers, consumers are looking to brand values as much as flavour to aid their selection.

“It’s here that provenance can really matter. It’s also here that large and small brewers can be pushing things a little too far and muddying the provenance waters.Byron_Bay_Pale_Lager_Carton_6_x_4_330ml

“While it’s very easy to point the finger at beers such as CUB’s outright deception with Byron Bay Lager, or LION’s highly dubious labelling of Kosciuszko Pale Ale, they can quite rightly point their fingers at smaller brewers who have taken the ‘we don’t hide it, but we just don’t advertise the fact’ line when it comes to own their own contract brewing.kosciuszko

“It really doesn’t matter to the quality of the beer, but the unwillingness to be open gives everyone the right to hedge a little and that hurts craft.

Unwillingness to be completely upfront .. lowers the craft bar
“While in one sense I can understand their thinking, it’s the craft brewers’ own unwillingness to be completely upfront that allows the debauching of the craft beer market by the likes of Coles’ Steamrail brand for example: indeed one beerlines used in earlier posts.

new dan murphys_1480

“When Coles can point to their product and say, quite honestly, that it comes from the same brewery as Mountain Goat’s Steam Ale and Summer Ale, and Mountain Goat offers nothing to differentiate their beer .. well, it lowers the craft bar. Read more…