Beerlines

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

08 June
1Comment

The short-lived Bond Brewing World. An insider’s view

America’s Cup winning skipper John Bertand summarises the man well. Alan Bond was “polarising”.

And so it was with Bond Corporation’s involvement in brewing.

I had joined Castlemaine Perkins Limited in October 1986 as Public Affairs Manager. Early the next year, MD of the brewery, Frank Burnett, summoned me to his office in our Finchley Street HQ overlooking the XXXX brewery.

Without words, but with obvious disgust, Frank threw the now infamous Bond Brewing repositioning plan across his desk. I opened my mouth to object. Frank just shook his head and, as I recall, said: “Every objection you can think of has been raised. Just do it. Get the signage underway and, oh yes, you’re now editing the central magazine. Close down every brewery’s in-house newsletters.”

So, the big ugly stainless steel Bond Brewing sign on Milton Road replaced the long-standing Castlemaine Perkins sign.

Bond Brewing replaces the Castlemaine Perkins sign: a great PR lesson

Bond Brewing replaces the Castlemaine Perkins sign: a great PR lesson

For Queenslanders it was bad enough – just tolerable – that XXXX was owned by a West Australian, but to do this …

This was a serious wounding to the Castlemaine Perkins’ image and its brands. Indeed, this helped open the door to a new competitor, Power Brewing (link to an overview of that era by Matt Kirkegaard).

Sorry Bondy!
Powers launched with a stinging put-down of XXXX via a television commercial featuring Queensland rugby league legend Wally Lewis, saying “Sorry Bondy!”powers

While the other breweries went through the same repositioning it’s fair to say it was Castlemaine and XXXX that were most adversely impacted by consumer backlash and competitor response.

In early 1990 Bond Brewing went into receivership and Lion Nathan took over the breweries later that year.

Those who ignore history..
Bondy, or rather Bond Corporation, took over the Swan Brewery in his home state of Western Australia in 1981. Thereafter he took over east coast brewing conglomerate Castelmaine-Tooheys in 1983. His company now oversaw about half of the national beer market.

While the media loved the glitz of Bondy’s brewing business with his Swan airships, Schooner XXXX, sponsorships and beer jingles by Mo and Jo, the stock market was less impressed. Again: polarising.

Make ‘Bond’ ubiquitous!
To remedy this, the Corporation’s board believed they would attract major institutional investors by renaming all his breweries as Bond Brewing.

This step remains a case study in ‘how to lose generations of consumer loyalty overnight’ as well as one of corporate hubris. Indeed, it’s a lesson a number of big corporate brewers seem to have ignored .. still. And they wonder why ‘small and local’ is doing so well .. Bond Brewing XXXX

Polarising is an under statement.

Because, under the direction of Bond Brewing’s Executive Director, Bill Widerberg, Castlemaine Perkins, Tooheys and Swan were very publicly rebadged as Bond Brewing Queensland, New South Wales and Western Australia respectively. As if this wasn’t enough for parochial beer drinkers of the time, Bond Corporation also changed the addresses on all labels to the corporate address in Perth. Read more…

01 October
0Comments

XXXX and HRH: “We could go a cold one son.”

Just a short post to celebrate that it’s thirty years today since the XII Commonwealth Games kicked off in Brisbane.

Many have said the event put Brizzy on the map. 

XXXX was a major sponsor and Castlemaine Perkins’ Games Special beer at 6% ABV caused quite a stir.

But it was this pic in Brisbane’s Daily Sun with, as I recall, the caption, “We could go a cold one son,” which must have delighted XXXX marketers.

Cheers!

19 September
6Comments

VB and Alan Bond: big lessons in taking beer consumers for granted

‘We put the consumer first.’

Any trust which mainstream beer consumers held for this claim, and the big brewers that made it has, too often, been shaken.

This post highlights two big lessons from both of Australia’s major brewers.

One is recent concerning VB. The other is from the 1980s but still provides relevant learnings in how not to treat loyal beer consumers. It concerns Alan Bond and his Bond Brewing empire.

Alan who? 
Fair question. The lesson however comes from what his Bond Corporation did to the three major state breweries it took over. They made up over half the national beer market and are now owned by LION, Australia’s largest brewer.

Bond Brewing corporate stainless steel replaces the Castlemaine Perkins sign

There are two great articles in Australia’s Beer and Brewer magazine which cover this fascinating and calamitous period in Australian brewing : one by ex-Four Corners journalist Paul Barry and the other by leading beer writer Matt Kirkegaard, editor of Australian Brews News.

A band-aid approach to trust
High-profile and public ‘whoops: we got it wrong’ flip-flops might help restore some trust. In the end though, loyal consumers still think they were taken for granted and ask ‘when will it happen again?’

The silver lining to these marketing and PR blunders is some big lessons for small brewers in what not to do in building and maintaining consumer trust.

Trust is hard to develop; easily lost; and unforgivingly hard to patch up. Band-aids only go so far.

If consumers really are your number one priority then you must live and breathe that focus 100%:  honestly, openly and transparently. Otherwise – especially in our increasingly networked market – your ‘trust’ credentials will be probed and found wanting.

Here are the two classic case studies in taking Australian beer consumer trust for granted:

VB’s apology letter in the press

VB: stuffing the golden goose Read more…