Beverage Dynamics

Beverage Dynamics - January/February 2017

Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.

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Imported Beer 38 Beverage Dynamics • January/February 2017 www.beveragedynamics.com distributors who have to manage this growing list of choices. "And it causes confusion for consumers at retail, who are fi nding it increasingly diffi cult to shop amidst such a broad selection of products and brands," he says. He challenges distributors and retailers to "lean in" to the changes in the industry. "There is a desire among retailers for actionable insights based on high-end trends, consumer preferences and shopping behaviors, and shelf standards that provide guidance related to assortment, fl ow and selection of high-end products that can maximize returns on the space investment within their stores. And there is an opportunity for distributors to adapt their strat- egies, resources and service levels to better align activities with brands that are driving growth and profi t for their businesses and at retail," he adds. Heineken, once the number one-selling import, has long dif- ferentiated itself from domestic lagers on the basis of perceived higher quality and sophistication: its "high-end" position. In recent years, the brand—now number three among imports—has strug- gled to translate that cachet into growth, which sits at just 0.4%. New promotional efforts reassert Heineken's legacy status, while also dipping into popular culture and sports. Ray Faust, chief sales offi cer of Heineken USA, explains, "We're inviting LDA+ consumers to discover the authentic product stories that are the foundation of this iconic, global brand." A campaign fea- turing Benicio Del Toro, titled "There's More Behind the Stars" will be extended into its second year. At retail, a new sponsorship of soccer's International Champion Cup, "Soccer Is Here," will engage customers with merchandising tools and a text-to-win offer for soccer gear and gift cards. COUNTERING CRAFT Given the proliferation of craft and specialty brands, brewers of all sizes look at the rumored saturation of the marketplace and wonder how to stand out. Although all importers expressed op- timism about the ability of their brands to appeal to craft and specialty beer fans, some styles fi t more comfortably than others into a craft framework. For decades, Guinness Stout was the only easily available alternative to lager styles. As the eighth best-selling imported beer, with 2.4% growth, it is still a popular choice, whether with specialty drinkers or with a traditional Irish bar audience. "The rapid growth of craft brands has defi nitely given every- one so many more options. Having said that, right now, it seems to me that most people are just looking for great beer with a great story, period—regardless of whether it's craft or not—so that fi ts well with how we've always done things," says Emma Giles, Guinness brand director with Diageo. "If the craft beer revolu- tion has done anything, it's brought the focus back to beer and people. Guinness has always been about connecting those two things to share and help people create great stories, and it's been natural for us to share the inspiration behind our beers and to show the passion of the people who brew them." Beyond its classic stout, Guinness is offering Rye Pale Ale on a limited basis in the U.S., as well as a second edition of the limit- ed-time variety pack called The Brewers Project Pack. It features Rye Pale Ale, along with Milk Stout and Golden Ale-the fi rst time the latter two have been sold in the US. Although quantities are limited, the Brewers Project Pack sounds like a likely vehicle for introducing craft-styled beers to the American market. Giles says, "We've brewed a lot of beer during our 257 years, and The Brewers Project gives us an outlet to use that experience while continuing to experiment with new beer styles and fl avor com- binations that we've always wanted to try out." US Beverage also makes a claim to appeal to the craft drinker. "US Beverage has been representing craft and import beers since its inception 20 years ago, which puts us in the sweet spot of the 'craft movement'," says Georgia Homsonay, the company's brand director. "We feel our brands attract craft consumers be- cause our import brands, similarly to crafts, are priced at a pre-

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