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Generalisations about beer culture marketing

Why people choose to buy beer brands

Consciously or otherwise, people take into account all sorts of factors when choosing which beer brands to buy – and when it comes to indie/local status, there’s plenty of ground between ‘I don’t care’ and ‘I would die before buying from a multinational’.

In the pub on Friday night, we were amused to hear two lads discussing Beavertown at the bar.

“Ah, they’ve got Neck Oil!”

“Tell you what, you see that everywhere these days.”

“They’ve done really well for a small independent brewery, haven’t they?”

A large chunk of Beavertown is, of course, owned by Heineken, which is why it can afford to have ads on the side of every bus in Britain and now turns up in all sorts of unlikely places.

Do we think these lads would have ordered something else if they’d known about Beavertown’s ownership? Probably not.

Do we think they’d have been furious or felt betrayed? Again, probably not. But we bet they’d have looked a bit crestfallen and said, “Oh.”

We say that because we’ve had this conversation with friends and colleagues, with regard to both Beavertown and Camden. These are people who like beer and are conscious of their choices but not, it’s fair to say, obsessed with it.

To generalise about their response, we’d say (a) mildly disappointed and (b) a bit embarrassed not to have known already – a sense of having been tricked by sneaky marketing.

Without conducting a full-on survey (tempting) we can’t say with any certainty how people weight different factors when buying beer. We reckon, though, that for most people, it’s something like this:

1. Want a lager or IPA.
2. Want the best available version.
3. Like the brand.

If you break down ‘liking the brand’ you might find all sorts of other stuff going on, including a preference for independent and/or local.

When you learn that a beer isn’t independent/local, it might stop you buying it – but you’ll probably still want the best IPA or lager on offer in the pub you’re at.

That’s certainly how it goes for us.

But if there’s a choice of another beer that’s also in the right style, and tastes decent, but is also indie/local, you might choose that instead. In fact, you might even be willing to compromise a bit on the quality. It’s a matter of preference.

As we’ve said before, if multinational brewers didn’t think independent/local appealed to consumers, they wouldn’t keep buying independent/local breweries and would proudly declare their ownership on the packaging.

Categories
opinion

Crossover Event: Beavertown & Heineken

Heineken sign

Beavertown has sold a substantial stake to Heineken  — they’re not specifying how much but 49 per cent seems a reasonable assumption — and our Twitter mentions have gone a bit mad.

That’s because a few weeks ago, you might recall, we wrote a piece reflecting on signs one might look out for to indicate that a brewery is readying itself for sale, pointing to Beavertown as an example of a firm that seemed to be glowing hot.

Now, let’s be clear: our post was actually pretty tentative — might this, possibly that — and, though we named AB-InBev as a possible suitor in the quick Tweet we fired off before the post, we didn’t specify any names in the post proper because we didn’t have a clue.

Even if we’d guessed Heineken would have been low down the list given its fairly recent acquisition of another London brewery, Brixton.

(Although within minutes of our posting multiple people had messaged us to say, “It’s Heineken”, and proper journalists soon ferreted out the story.)

So, yes, we’re feeling pleased that our logic was tested and seems to have held up but, no, we don’t feel like soothsayers or a pair of Mystic Megs. What we came up with was half educated guess, half luck.

In the PR around today’s news Beavertown has addressed a few important points head on, admitting to having swerved telling the truth because (as we acknowledged in our post) businesses don’t generally talk about deals while they’re being negotiated and, indeed, are usually legally prohibited from doing so:

It’s been an uncomfortable few weeks as speculative rumours have been flying about.  The reality is that sometimes in business you can’t share everything and I’m a true believer in not talking about anything unless it is a done deal, and up until this very day there was no deal.

It’s at this point, though, that we’ll refer to an even older post of ours, from May last year: breweries could avoid a lot of the criticism and high emotion that hits on takeover day, and lingers for months and even years after, if they made a point of saying from much earlier on in the cycle something like, “We sometimes talk to potential investors and would never rule out selling a stake in the company, just so you know.”

People will probably understand if you have to keep the specifics of particular deals quiet, as long as the very idea that you might be talking to whichever global giant isn’t a nasty surprise.

Whatever the logistics behind the decision, however good the news for the company, regardless of whether the beer stays the same, there will always be people who feel stung when a company which was selling a set of values as much as pale ale decides that one of those values doesn’t matter any more.

Categories
opinion

Getting in Shape for Takeover

Reading tea leaves in a cup.

Without insider intelligence it’s impossible to say with any certainty whether a brewery is about to be taken over by a larger national or multi-national but we reckon there are a few things to look out for.

First comes a shift from purism to pragmatism. Smallness, independence and provenance, once both sacred values and selling points, get dropped.

There might be surprising partnerships with ‘evil’ companies; there may be contracts to supply supermarkets; or plans to have beer produced under contract, with more or less transparency.

This kind of thing usually comes with a rush of blurb explaining how, actually, this way is even crafter because it widens access to the product, challenges the status quo, and so on, and so forth. But what it also happens to do is send a signal like animal hormones in mating season: we’ve grown up now; we understand how it works in the real world; we’re people you can do business with.

The tying off of loose ends is another thing to watch out for, e.g. the sudden settling of legal disputes, which few potential buyers will want to acquire as part of any bundle. Camden settled their dispute with Redwell over the trademark for Hells, for example, at around the time of its takeover by AB-InBev. (We understand that reporting of this news came much later than the settlement itself, though it’s possible we’ve got the wrong end of the stick.)

Along the same lines, one might read something into the winding up of fun but marginal parts of the business.

The emergence of a dominant beer in the portfolio might be the biggest red flag of all. (Or green, depending on your point of view.) Big multinational firms are drawn to lagers, pale ales, wheat beers and increasingly, we’ve observed, session IPAs. These are products with mainstream appeal, that people can and will drink for an entire session or buy by the six-pack, and which fill a gap in their portfolios of Craft Brands. If they’re already in supermarkets and chain pubs (see above) all the better.

All of this is a roundabout way of saying that, thinking back on the trajectories of Meantime, Sharp’s, Camden and others, we’d put money on Beavertown being bought up before too long.

Of course Beavertown says this:

Twitter conversation: a takeover is not going to happen, says Beavertown.

But that doesn’t change our gut instincts. After all, the one indicator of an impending takeover you can guarantee you’ll never get is any explicit announcement of intent before a deal has been finalised.

Categories
Belgium News

News, Nuggets & Longreads 14 April 2018: Beer Duty, Beavertown, Baudelaire

Here’s all the writing about beer from the past week that most engaged, informed or entertained us, from the Fall of the Craft Beer Empire to Gamma Ray in Waitrose.

Well, most of the past week — we wrote this post at breakfast time on Friday and scheduled it to post, so if anything exciting happened on Friday afternoon, we probably missed it. We are now on holiday for a week and a bit which means no round-up next weekend. If you want a fix of links in the meantime check out Stan Hieronymus’s Monday post and Alan McLeod’s on Thursday.


Adapted from ‘The End is Nigh’ by Jason Cartwright on FLICKR, CC BY 2.0

We’ll start with a piece by Pete Brown which prods at the kind of would-be sensational news story based on a piece of research you have to pay to read in full:

“Have you noticed a decline in the demand for craft beer? Why do you think this is?”

I stared at the question, cognitive dissonance making me feel momentarily floaty…. The reason I was confused is that it hasn’t happened – not yet. When I got these questions, I’d just delivered the keynote speech to the SIBA conference. To write it, I’d had to do a lot of digging. I’d discovered that craft beer volume increased by 23 per cent last year, and that analysts are predicting continued growth until at least 2021. I’d learned that business leaders in the food and beverage industry had named craft beer the most important trend across the whole of food and drink – comfortably ahead of low alcohol drinks, artisan coffee and craft spirits – for the fifth year running.

Categories
beer festivals News

News, Nuggets & Longreads 16 September 2017: Beavertown, Burials, Biggsy

Here’s everything beer- and pub-related that caught our eye in the last week, from viking funerals to mysterious pressure groups.