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Tuesday 16 September 2014
Dan Fox
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Craft vs. craft: A Sam Adams “throwdown”

10th February, 2014 by Dan Fox

Over the past year or so, there’s been a fair amount of public speculation that the craft-beer category might be peaking.

Spy_vs_Spy_WallPaper

In December, Business Insider published a decidedly cautionary outlook for the craft industry. Two other independent sources signaled more caution. GuestMetrics reported 2013 on-premise craft beer sales up just 3.8%, slowing and well below the rate for off-premise retail stores. Even more striking, Restaurant Sciences, reported a 4% drop in craft-beer sales in a single quarter in their monitored restaurant/bar sample. These on-premise trend reports fueled the growing unease. For good reason.

Any proven weakening in on-premise sales–where these beers have been riding a consistent upward trend for years– would be particularly unsettling to craft brewers. As beer sales folks know, ordering a beer at the bar, or in a restaurant, is the most brand-conspicuous buying moment. Unlike the retail store-shelf, brand-calls at the bar are least influenced by price, most influenced by what the drinker believes his public beer-choice says about him. So, on-premise is where beer brands always weaken first.

Friendly competition

Until now, if you’d asked craft brewers who their competition is, they pretty much would’ve all responded the same way. Something like: “The cr@p sold by Big Beer.” And they would’ve been right, at least about the Big Beer part. Because until now, craft beers were blissfully free to concentrate on one collective competitive set: the mega-brands.

As a result, craft brewers were also free to devote little, if any, energy to battling each other. They were a happy band of like-minded Davids, merry allies at war with the evil, monolithic, Big Beer Goliath. And to the delight of many pundits, these Davids were winning. But to mix metaphors a bit, a good part of their momentum lay beneath the surface, where a rising craft-beer tide was lifting all the Davids in the same boat at once.

Now comes an in-market claxon that one important David is abandoning the happy-boat.

New Sam Adams ad calls out IPAs, porters, stouts, brown ales among “beers (that) have come and… gone”

The TV ad below does not appear on the Sam Adams website. But it has run on the MLB Network. It was captured off-the-air and subsequently posted on YouTube. That’s why the sound is tinny and the picture’s a little hazy. Clear as can be, however, is the distinctly competitive message: Sam Adams, by far the largest and most successful David of them all, is firing a marketing cannonball at other craft beers that have come to market since the 1980s.

Talk about rocking the boat.

This shot-across-their-bow signals a coming-of-age moment for craft brewers. The challenges and pains of real head-to-head brand competition– from which they have been protected for so long– now seem headed their way. Market historians may well look back on this as the beginning of the “throwdown among craft beers” sagely predicted by Business Insider. Still, in spite of the consternation it may provoke among the craft crowd, this development should be welcomed, not whined about.

“Small” is no guarantee of “good”

In marketing as in nature, no upward trend lasts forever. Brand-to-brand competition is the natural path to weed out the inefficient, the less desirable, and the redundant options in any market. Even the most rabid aficionado will admit there are craft-beer brands that don’t deserve to live. The market, in its natural progression toward maturity, will take care of that.

Competition is why America saw some 700 brewers disappear since Prohibition. And competition is why a significant number of today’s craft brewers will inevitably go the same way. For now, though– to paraphrase a hero of the American Revolution who doesn’t yet have a beer named after him– the fight has only just begun.

Brand-versus-brand competition: A sure sign of a market coming of age

Brand-versus-brand competition: A sure sign of a market coming of age

 

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Follow Dan on twitter: @HeyBeerDan

4 Responses to “Craft vs. craft: A Sam Adams “throwdown””

  1. Layla says:

    While small may not equal good, to make the claim that IPAs, porters, stouts and brown ales have “come and gone” is beyond ridiculous – and I don’t think that’s what SA was doing in that ad. Sam Adams itself has an IPA and several other non-lager style beers. What it seems they’re actually saying is that “our large craft brewery is better than your small one”, which is also an absurd message to send. There will always be smaller local stars, some of which shine so brightly that they go national, and some of which stay close to home… and neither of which are outshined by SA. I won’t say that SA isn’t worth drinking from time to time; it is. I’m not a lager fan myself, so I’ll stick to their ales and bocks, but all the same it’s silly to harp on about how successful your brewery is just because it’s been around longer.

  2. brianf says:

    EXTRA EXTRA READ ALL ABOUT IT…….SAM ADAMS BEER MAY…..JUST MAY……HAVE CREATED AN AD ATTACKING OTHER SMALL BEER PRODUCERS………PERHAPS THEIR INTENTIONS WERE NOT AS SUCH BUT COURTESY OF THE INTERNET I WILL SAY SO ANYWAYS. HAPPY SPECULATING ABOUT VERY UNIMPORTANT THINGS FOLKS!!!!!

  3. HeyBeerDan says:

    Thanks for your thoughtful comment, Brian. (Hint: /caps lock)

    Facts are facts. The Sam Adams ad does exactly what I said it does. As to what’s important and what isn’t, intelligent readers and marketing folks can judge for themselves.

    Cheers.

  4. Smithk271 says:

    Very nice! ggeddcagee

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