So I am watching TV the other night and I catch Michelob's new spot. They are claiming to be a craft beer now. If you haven't seen and can find it on the internet let me know, I can't find it. Basically, it is laid out similar to the Boston Beer Company commercials talking about how they are 100% malt, even speaking with a maltster to prove how quality ingredients are important to Michelob. It also highlights there selection of Porter, Bavarian Wheat as well as the rest of their line up, minus the fruity Michelob Ultras and the Ultras in general. At least we and the general public know this beer is made by the big guys but what about the offerings from A-B, Miller and Coors that don't tell you the affiliation. Beers like A-Bs Wild Hop, BareKnuckle Stout and Coors' Blue Moon and Miller's Leinkugels. Is this misrepresentation fair? Should their be some acknowledgment on the bottle of the producer of the product. With pricing on the rise for the small guy and the difficult distribution system, companies like A-B can uniquely position themselves on the shelves of major retailers all over the country under the guise of craft beer where the average joe, and even the somewhat new craft beer enthusiast, would not recognize the difference. Is this taken advantage of the system or just good business? Does it matter if their beer is good? The reverse of it is, could this back fire on the big guys? Could this be a gateway "drug" to bigger and better things and open palates all around the country?
Here are my thoughts on these questions. I definitely think it is dishonest at the very least for hiding their pedigree on the bottle. I also think the distribution system works in their favor which isn't fair and beyond the scope of this discussion anyway. I will offer this though, for the local bar owner looking to get a craft beer selection on tap it is pretty easy for the distributor to sell them on a keg of Bare Knuckle Stout without even mentioning where it comes from. I am sure it is cheaper than a keg of a local stout and I am sure that the local guy is unaware of where it comes from, he is looking for profit margin most of the time and flavor second. Now this is the average bar/restaurant, keep that in mind.
So what if they actually make a good beer, I have had the Wild Hop, it isn't bad and I would drink it again if there isn't another option but what if they really start competing? I think this could only be a good thing, we are after quality beer after all, and more of it. Does this put the small guy out of business though? It might, I think the small guy will just have to become more specialized to set themselves apart.
Overall I think this brand positioning will backfire on Michelob. I think that they have established themselves for too long as the light beer guys with their Ultra line that I don't think people will buy the change. As for the craft beers that the BMC groups either own or produce, I think they will maintain their position and only turn on people to the craft beer segment. If they start really working on expanding customers palates (making more flavorful beer) there should be concern for the "real" craft beer makers. I don't expect that to happen though, the bottom line and investors are too important.
What are your thoughts? Let us know.
4 comments:
Nice news feed below the banner.
A few thoughts. As someone who truly enjoys a well made craft beer - diversity is a good thing and as you've said, the big guys are turning out some new products that are actually quite good.
That aside, there are a number of things here that the average consumer isn't going to pick up on without some additional education. This isn't a craft beer - we know that but the average consumer looking to make a selection without a good background in beer finds this quite confusing.
It may be well made and all beers have their place but this shouldn't be portrayed as something in the craft beer category. This is exactly where a constant education of the public in craft beer is so vital. Stats over the years have shown that we're doing good to educate people on craft beer but the big guys and their marketing budgets can easily influence the buying public - and also easily mislead them.
Is this marketing approach and a blurring of the lines intentional? Absolutely.
I love to watch Sam Calagione rail on the marketing tactics used by the big boys - I agree with his thoughts. He's also quick to follow his statements with comments that you have a wide range of choices in beer - give craft beer a try. These ads create a situation where a desire to purchase a craft beer becomes a misinformed evening cuddling up with a simple repackaged factory beer.
You have to give them credit - the ads are doing what they'd hoped, make the buying public think they are selecting a craft beer when they are not.
I appreciate you focusing on this one - we need to highlight issues such as this and educate people as much as possible.
The main thing I don't like about the big breweries is the poor quality of their product and the lack of variety. If the rise in popularity of craft beer forces the big boys to make good beer, then I think that's a good thing.
I, like many others, have a soft spot for the small guy. These companies should explore the "product of Nebraska", "officially certified microbrewery", etc. marketing angles to get a leg up on the big reach of the large corporations.
I don't see any reason the big boys should be compelled to identify themselves, but I do wish they would just voluntarily stay out of the craft brew market because they just flat-out don't need the money. They already have a lock on, what, 90 percent of the beer market? Let the little guys have the other 10.
But no point in agonizing over it, because big corporations always want 100 percent of market share and they're not gonna stop.
As for the issue of them making good beer: Well bully for them if they raise the quality of their product, but I'm still not gonna buy it, for exactly the reason stated above. They don't need my money. The little guys do. I'm not completely anti-corporate: If the little guy can't deliver the product I want at a price I can afford, then I go to the big guy. But in the case of beer, the little guys are kicking butt, and they totally deserve my money.
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