Category: The Business End

| Advertising, BrewDog, Craft Beer, Marketing, The Business End

Why I can’t get too excited about BrewDog’s big ‘sell out’

The bad boys of brewing recently sold a 22% stake of their company to an investment firm. So?

First, I have a terrible confession to make. Remember when John Lydon made those butter ads? I’m afraid I was partly responsible for that.

It wasn’t my idea or anything like that, but in my role as a planner I was responsible for putting together the research among butter buyers to find out who the best celebrity would be to front the campaign. It was one of the last freelance planning jobs I did before being able to switch to writing and beer consultancy full time.

We tested Lydon against a bunch of other people, and he came out top among Britain’s housewives because they felt he was so uncompromising, he’d never just do an ad for the money – he’d only do it if he genuinely believed what he was saying.

In other words, he was the best person to do what we were paying him to do, because he would never do what we were paying him to do, so if he did that, it’s OK.

Predictably Lydon got some stick for ‘selling out’. Because this is Johnny Rotten we’re talking about, he didn’t give a shit. Where he deigned to give a response, he said that punk was always about grabbing the filthy lucre from the big guys, and that’s exactly what he was doing here.

(If you ever tire of arguing about the definition of craft beer, head over to music and have a go at defining punk. As I witnessed last year at an event to mark punk’s 40th anniversary, it makes craft beer look simple.)

So I’ve witnessed a similar situation before to the one this week where BrewDog announced they were selling a chunk of the company to TSG Investment Partners in San Francisco – the same people who also help finance Vitaminwater, popchips and US beer brand Pabst – and were greeted with cries of ‘sell out!’

I can’t get too excited one way or the other about this.

Firstly, it’s hardly surprising, is it? BrewDog has been on an astonishing growth spurt for ten years. It already has 44 bars around the world and exports to 55 countries, and has double or even triple digit growth every year. The company has always been about rapid expansion, and this is a logical next step, which, if it has any lesson at all, is that, as Martyn Cornell has written, crowdfunding can only get you so far.

Second, BrewDog is maturing. Being ‘punk’ makes perfect sense when you arrive and overturn all the tables in the temple of beer, but they’re ten years old now, and that’s ancient in craft beer years. Martin Dickie and James Watt are in their mid-thirties with young families, and they employ, at the last count, about 450 people. A couple of years ago they did a re-brand that ever so subtly made them look and feel more grown up, less brash.

Before
After

BrewDog stopped being ‘punk’ when they grew into a stable, successful business that supports hundreds of people’s livelihoods instead of putting their foot through the mash tun and throwing the fermenters into a swimming pool before overdosing on End of History in a seedy hotel room. Behind the image and the increasingly infrequent brash stunts, they employ marketers, PR people, accountants, HR managers as well as brewers who all know what they’re doing, because you can’t function as a large business if you don’t. That doesn’t sound very punk, does it?

Thirdly, James Watt individually still owns more of the company than the investment firm he’s sold a chunk of his business to. If you insist on going by the US definition of craft beer, the sold stake is less than the threshold that disqualifies BrewDog from being craft.

I doubt anyone can be truly surprised by this move. I’d be amazed if anyone was genuinely upset by it. I think any outcry is merely the satisfaction of being able to say, ‘I told you so.’

As this spoof makes clear, the one significant part of this is that BrewDog will find it increasingly difficult to get away with grandstanding ‘4 real’ behaviour. I’ve sensed a move away from this over the last few years anyway.

The punk attitude has helped BrewDog build an amazing brand that pays a lot of people’s wages and genuinely does encourage more people to enjoy great beer than would otherwise have been the case.

Punk is dead. But the punks won.

Okay, now you can tell me how the Sex Pistols were never really punk anyway.

| Anheuser-Busch, Beer, Budweiser Budvar, Lager, Marketing

Budweiser: You Can’t Rush Plagiarism

Seems like America’s beer just can’t stop stealing things from southern Bohemia…

I was shocked late Friday night to see a really good beer ad from Budweiser. No, stop laughing. I’ve seen plenty of good ads from Bud before – stuff about frogs and lizards and whazaaap, but this was a good beer ad: it’s true, it’s centred on the product, and it says something good about the broader beer category – good lager takes time to mature.

Last I heard, Budweiser is matured for twenty days. That’s not as long as the classic lagers of the Czech Republic and Germany are matured, but it’s a hell of a lot longer than the 72 hours some leading brands allegedly spend in the brewery between mashing in and packaging. You may not like the (lack of) taste in Budweiser, but even now they do some things right, and deserve some credit for that. So I was pleased to see an ad that had made lager maturation look cool.

I said as much on Twitter and Facebook, and very quickly Simon George of Budweiser Budvar UK shot back that his new strategy is to focus on the Czech beer’s astonishingly long lagering time – five times longer than the American beer. Budweiser Budvar has been running this copy for about nine months, albeit without the huge TV ad budgets US Bud can afford:

The dispute between American Budweiser and Czech Budweiser Budvar is decades old. Bud founder Adolphus Busch told a court of law, on record, in 1894: “The idea was simple,” he testified, “to produce a beer of the same quality, colour and taste as the beer produced in Budejovice [the Czech name for the town known as Budweis in German] or Bohemia.” Even though that record exists, the company has since flatly denied that this it stole the name Budweiser from the town of Budweis, or even took any inspiration from there. (There’s a lot more on this dispute in my book Three Sheets to the Wind.)

Budvar spent a long time capitalising on its David V Goliath relationship with Budweiser and has recently decided to move on and focus on its ageing process instead, as part of a new strategy to remain relevant in a market where craft beer means drinkers are more interested in product specifics. But it seems Budweiser are still hung up on their namesake. Nine months after Czech Budvar focused their marketing campaign on how long it takes to make their beer, American Budweiser focused their marketing campaign on how long it takes to make their beer:

 

Having stolen the idea, they’ve now gone the whole hog and even stolen the same copy. The Budvar headline above? ‘You can’t rush perfection.’ Spot the difference in the Facebook link to the ad below.

Come on, Budweiser. You’ve already stolen your name from the town in which Budweiser Budvar is brewed. You’ve copied their advertising idea (albiet in a fine execution) and now even their copy, word for word. You employ some of the best and most expensive advertising agencies in the world (even if you do try to shaft them on costs.) Is this the best those agencies can do?

| Advertising, Beer, Beer Marketing, Marketing

How Big Lager Lost The Plot And Developed Narcissistic Personality Disorder

As anyone who has read Man Walks into a Pub will know, my entry into the world of beer was via Big Lager.

I loved lager ads when I was growing up as a teenager.   

Later, once I was helping make those ads, I was fascinated by the tribal loyalty people had to their favourite beer brands. If you were a group of mates in your twenties, Carling or Heineken or Carlsberg was like another one of your gang, always there when all the best times happened. In research groups you sometimes do an exercise where you ask people to imagine what brands would be like if they were people at a party. Beer brands were always characterised as confident, friendly guys, witty and popular without being an arse, enjoying a drink but never getting too drunk. This guy was never the pack leader, not necessarily the most popular or pushy guy in the room, but everyone liked him.  

Things started go go wrong around 1997. Advertising regulations grew ever tighter and the funny campaigns of the eighties were no longer possible. And beer started to take itself seriously. It wanted to provide a bit of substance behind the good-natured banter. Fair enough. But the picture started to blur.  

As sales of Big Lager shifted from pubs to supermarkets, price became a more decisive factor than brand image. It was widely believed that all these brands tasted the same. Not true, but if you’re drinking your lager ice-cold straight from the can, you’d have to have a delicate palate indeed to spot the difference in flavour.   

With very similar products, preference had been shaped from the mid-seventies to the mid-nineties by who had the best ads, the most likeable personality. (I once looked at thirty years worth of image research, and perceptions of which lager was the most ‘refreshing’ tracked the brand that had the funniest ads, rather than the brand that was banging on about refreshment specifically).   

By the mid-noughties, that differentiation was based on price.   

Incredibly, most shopping is still done by the wife/mother in a family. The person who buys Big Lager is usually not the person who drinks it. As the distinct personalities created by ‘Reassuringly Expensive’, ‘This Bud’s For You’, ‘I Bet He Drinks Carling Black Label’,  ‘Follow The Bear’ and all the rest receded, the lager buyer knew her fella had a set of big brands that were all OK – nothing special but fine, all as good as each other – and she knew she could buy the one that was on the best deal and he’d be happy enough.   Brewers hate offering these deals. Headlines like ‘lager is cheaper than bottled water’, whether they’re true or not, don’t do anyone any favours. Margins shrank to almost nothing. If any big brand could get away with not doing supermarket deals, they’d jump at the chance.  

So it’s completely understandable that in the last few years Big Lager has started trying to build a sense of value and worth back into brands. Beer is cheap and commoditised, so how can we make it special again?   

The strategy of putting some premiumness back into mainstream beer is a good one. The execution of that strategy, however, is starting to look pretty horrible.   

I haven’t worked on any of these brands for a long time, but I know exactly the kind of language that’s being used in meetings. I’d bet my house on the fact that most Big Lager brands have a creative brief in the system that’s about ‘creating differentiation’, ‘making lager special again,’ by ‘making the brand more iconic’ and ‘improving perceptions of premiumness’. I’ll bet they also all have research that shows you don’t do this by banging on about the quality of ingredients and provenance. These might be mildly interesting copy points, but as Kronenbourg has demonstrated recently, it doesn’t wash as your main message to a typical mainstream lager drinker, especially when the substantiation behind your claim is paper-thin.   

So what do you do?   

You create an iconic, premium image. High production values. Brand fame.    And before you know it, you turn your brand from the genial bloke at the party into an arrogant, preening narcissist.   

From Psychology Today: “Narcissistic Personality Disorder involves arrogant behaviour, a lack of empathy for other people, and a need for admiration-all of which must be consistently evident at work and in relationships… Narcissists may concentrate on unlikely personal outcomes (e.g. fame) and may be convinced that they deserve special treatment.”

    You demand to be revered, claiming outrageous titles for yourself with no justification.  

      You start telling your drinkers they’re drinking the product wrong, or using the wrong terminology. You demand they start showing some respect.

    You imagine that you are some kind of treasured prize, rather than a simple, straightforward beer.  

      You start to think you embody and represent something much bigger than yourself. 

    And lose all sense of perspective.

      On the bar, you make your fonts ever bigger – sorry, more ‘iconic’ – until punters can no longer see the people serving them and bar staff have trouble passing the drinks across the bar.   

Who do you think you are helping here? How exactly do you think you are ‘enhancing the consumer experience at the point of purchase?’      

My aim here is not to slag off any individual campaign – some of them have merits, and like I said, I understand where they’re coming from up to a point.   

My aim is to demonstrate the aggregation of so many big brands taking this approach at the same time. Brands demanding to be worshipped and respected, rather than liked and tolerated. The cumulative effect is dreadfully cold and alienating, aloof. This, for a drink that is supposedly all about the good times, about kicking back and relaxing with your mates.    Big Lager has lost its way and forgotten its place. This collective arrogance is not credible, and it’s certainly not appealing. Where’s the warmth gone? Where’s the sociability?   

Premiumness in beer is not about this kind of cock-waving, and it never was. It’s about the premiumness of the experience the beer creates – the experience for which the beer is the catalyst, not the central focus.   

Big Lager should be reclaiming its territory as the catalyst for the perfect occasion with friends. Ale is more for savouring, more introverted. Craft beer is more exploratory, adventurous and product-focused, and cider is more refreshing, but has a limit on how much of it you can drink in a session.   

Yet all these drinks are stealing share from lager. All are looking more interesting, engaging and appealing than that big lager at the moment.    Mainstream lager should be solid, dependable, and reliable, and I’m sorry if that’s not sexy enough for career marketers.   

As the Beer Marketing Awards demonstrated, in some areas – particularly social media and trade marketing, where you actually have to talk to people and deal with them on a one-to-one basis – Big Lager is doing some brilliant stuff.   

But in advertising and branding, it has collectively lost the plot. If you think your brand should be revered and worshipped by its drinkers, you need to get out of beer as soon as possible and into therapy. Or maybe Scientology. They’ll love you guys.