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.
Issue link: https://read.dmtmag.com/i/446939
26 Beverage Dynamics • January/February 2015 www.beveragedynamics.com Imported Beer positioned," Sabia says. "Think about Corona Extra. We ask consumers to 'Find your Beach,' the state of mind that Corona can get you to. But if you think about Corona Light, we talk about the fact that it only has 99 calories, but 18 IBUs. So we talk more about the rational-functional benefi ts of Corona Light, where with Corona we talk a lot about the emotional benefi ts." Negra Modelo, a more full-fl avored brand, is being promoted as a great complement for food. "We are fi nding some consumers who would like a more complex beer, who are craft drinkers but also like Negra Modelo," Sabia says. However, he stressed that Negra Mod- elo, despite being the darkest of Constellation's beers, displays the easy drinkability of the whole portfolio. "That's the way we make our beers; they have a lot of taste upfront, but they fi nish very cleanly." As for any comparison to domestic pale lagers, Sabia insists that the chemistry is different. "Just because they're the same style does not mean their taste profi les are similar," he says, pointing to higher IBUs and greater complexity Mexican beers. Constellation is not the only player in the Mexican beer market. Heineken USA goes from strength to strength with Dos Equis, based largely on the continuing appeal, even eight years after its launch, of the "Most Interesting Man" ad campaign—a program catchy enough to have generated Internet memes. "By inspiring consumers to 'Stay Thirsty' and create their own personal legend, Dos Equis has de- livered an average of 16 percent annual growth for the past three years and continues to gain share in the growing Mexican import category," says Steve Ward, VP of National Accounts. Heineken USA has also introduced Desperados, a European lager with Latin American infl uence. With tequila and barrel-aging notes, "Desperados is targeted toward the on-premise, nightlife, party experience with the drinkability of beer and the image of spirits," according to Ward. Anheuser-Busch InBev, pivoting after the sale of the Grupo Modelo rights in the U.S., is introducing the similar-sounding Oculto, described on the label as "blended with beer aged on tequila barrel staves" and blue agave. Despite the clear bottle and Day of the Dead graphics, this beer with a Mexican profi le is not actually Mexican-brewed. Oculto joins Montejo, a Mexican pale lager A-B InBev began importing into limited markets this fall. EUROPEAN PRESTIGE So-called "Euro lagers"—generally richer in fl avor, more distinctively hopped and brewed with all malt—are the beers Americans compared favorably with domestic adjunct-brewed lagers in the heyday of im- ports. Strange now to see many of these European brands (Heineken, Amstel, Harp) losing numbers, but whether to lighter Mexican lagers, more fl avorful craft beers or to spirits and wine is not clear. Heineken, which fi rst entered the U.S. just days after the end of Prohibition, became the top import before being supplanted by Corona in 1997. Despite negative growth recently, "Heineken Lager is back in the black over the last three months and contin- ues to strengthen performance as share of total beer increases," according to Heineken USA's Ward. Despite the much-discussed growth of craft beer in recent years, Ward believes that imports are the "hidden success story in the beer category," explaining, "With national, mass appeal and higher loyalty and repeat pur- chase rates as compared to the regionality and trial-only nature of crafts, the segment has been able to drive volume through a sustainable growth model." The notable exception within the cohort of European beers is Stella Artois, the fi fth-largest-selling import, which grew by 19.4% in 2013. Imported by A-B InBev, the brand has always emphasized quality and, frankly, snob appeal, ever since its early campaign in Britain with the tagline, "Reassuringly expensive." The marketing once stressed French origins. Now, however, Belgian beer is popular among specialty beer drinkers and, with Stella and Hoegaarden, A-B InBev has the only Belgian imports among the big sellers. Brian Bowden, VP Spirits, Beer, Tobacco and Beverages for BevMo!, a 155-store chain in Arizona, California and Washington, calls Stella Artois "one of the anomalies." He says, "Stella is doing fantastic for us, and across the board. We're seeing that in Nielsen reports. I think the attraction of Stella is the way it's promoted as an upscale Belgian beer. In reality, it's a lighter-style beer that everybody will enjoy." A NEW WAY TO PARSE IMPORTED BEER? Four years ago, MillerCoors established 10th and Blake, an "inde- pendent yet connected company," to handle both their craft and im- ported brands. The new approach grouped together beers that shared a similar appeal, rather than a similar national origin—a commonality that some retailers on- and off-premise have also exploited. Communications Director Mark Rasmussen says, "10th and Blake was created with the understanding that craft and imports— particularly prestige imports—behave differently, and require a different type of selling and marketing and merchandising than mainstream domestic beers." With this approach the Molson brands, MillerCoors' more mainstream Canadian imports, remain with the company's mass-marketed domestic brands. 10th and Blake handles the pres- tige or specialty imports, notably Peroni Nastro Azzurro, Pilsner Urquell and Grolsch, along with the Leinenkugel and Blue Moon brands (American-made beers in the specialty vein). The brands all benefi t from the idea that "in order to sell craft beer and prestige imports, beer education is paramount." Even within the 10th and Blake portfolio, the brands fall loosely into two camps. Speaking of Peroni and Pilsner Urquell in particular, Modelo Especial Corona Extra Heineken Dos Equis