A Marketing Bulletin Dedicated To The Advancement Of Great Brands

Volume 1, Issue 1

Spring 2007

Automobile Business vs. The Beer Business - Any Parallels?

 

An Interesting passage in a recent Wall Street Journal read like this:

 

Until the 1980’s, Auto retailing was dominated mainly by entrepreneurs who relied mainly on selling one major Detroit brand for their

livelihoods. Though often among the wealthiest citizens in town, traditional dealers couldn’t match the economic power of GM or Ford, whose managers could make their lives easy, or very hard. 

Since then, as the pioneers of the 50’s and 60’s retired or died, a new brand of dealer has emerged. These new auto retailers, some of which are publicly traded, own multiple dealerships in multiple cities and sell an array of models. They no longer rely on a single manufacturer — indeed, Detroit’s battered brands are generally the weakest links in their diverse portfolios.

 

I think you can see the similarities in the beer business, but just in case, let’s switch a few words from the excerpt.

 

Until the 1980’s, Beer distribution was dominated mainly by entrepreneurs who relied mainly on selling one major brand for their

livelihoods. Though often among the wealthiest citizens in town, traditional distributors couldn’t match the economic power of Bud or Miller, whose managers could make their lives easy, or very hard. 

Since then, as the pioneers of the 50’s and 60’s retired or died, a new brand of beer distributor has emerged. These new beer distributors own multiple distributorships in multiple cities and sell an array of brands. They no longer rely on a single manufacturer — indeed, the domestic brands are generally the weakest links in their diverse portfolios.

 

Now I wouldn’t go as far as calling domestic brands the weakest link in many wholesalers but everything else rings very true.

Reprinted from  Beer Business Daily February 12, 2007.

 

 

 

Gorilla Welcomes Duvel-Moorgat To Portfolio

Gorilla Brokerage is pleased to announce we have signed an agreement to represent the Belgian owned company Duvel-Moortgat USA based in Cooperstown, NY effective January 1, 2007.  The portfolio consists of Duvel, Rodenbach and Maredsous imported from Belgium and Brewery Ommegang from upstate NY.

We are happy to add these world class beers to our lineup and to be able to participate in the extremely hot Belgian & Belgian style ale market. As you all know the category is having extreme success with Stella Artois and things are projected to get even better as American beer drinkers are beginning to see the light when it comes what this little country has to offer.

Ommegang

Lineup

 

Hennepin Farmhouse Ale

Belgian Saison

Ommegang Abbey Ale

Belgian Abbey Dubbel

Ommegang Witte

Belgian White Ale

Rare VOS

Belgian Amber Ale

Three Philosophers

Belgian Quadrupel Ale

A Rich Blend of Malty Ale &

Cherry Lambic

Þ Bottle Conditioned - Always Changing

Þ Enjoy up to 3 years After Bottling

Þ High Gravity - 8.5% alcohol by volume

Þ Served In It’s Own Glass

Þ Complexity of an Ale with the

                 Drinkabilty of a Pilsner

Different For A Reason

Do You Have Hall of Fame Potential? - see page 3

Abita Ramps Up Harvest                                        Do you have what it takes to get                    The Back Page featuring

Series  ………...…………….pg. 2                            to the Hall of Fame? ………..….pg.3           Industry News & Stuff…...pg.5

                                 

Why Sell Craft Beer ………..pg. 2                                 Sales Tips & Strategies for

                                                                                     Selling Gorilla Brands ……. Pg. 4

                

 

 

 

 

 

In This Issue

….Let’s

Talk

Gorilla Gazette

Volume 1, Issue 1         Spring 2007

A Marketing Bulletin Dedicated To The Advancement Of Great Brands                               Page    2

Abita Ramps Up 2007 Harvest Series

 

Last year the Abita Brewery produced a modest 6,000 cases of Strawberry

Lager with the intention of it lasting until summer. Little did they know it would be gone just 3 weeks into Spring. We in Atlanta got a small taste of 125 cases which was gone in days. This year the brewery will produce over 18,000 cases of Strawberry Lager with a chance to make more depending on this years crop of Ponchatoula, LA berries and how well they sell in local markets.

The Atlanta market is earmarked for 1090 cases. Get your share fast.

 

 

In the fall Abita will release its second Harvest Series beer, Pecan Nut Brown Ale, it will have a subtle pecan finish and a brand new outlook in a world becoming very crowded with Pumpkin ales. The South’s largest craft brewer will produce something near and dear to most southerners, especially Georgians.

Among Craft Beer Sales, the leading style is pale ale followed by amber ale, this is not surprising. What is surprising is that third on the list of most shopped craft beer styles is the range of seasonal offerings. Wheat beers, Octoberfest beers and X-mas beers are all becoming very popular as the

American beer consumer is demanding more and more variety. Abita has always had seasonal

Selections and United has begun to offer these to select retailers (not just Cajun/Creole joints.)

In December we brought in a limited amount of X-mas Ale and followed it up with some Abita Bock.

Very popular in their home market, these tasty beers are being produced in slim 1/4 kegs for the Atlanta market making it easier to find those special retailers who can squeeze it in.

 

 

 

 

 

 

 

Have an account who wants to sign up for Abita Seasonals call Gorilla or see Ricky

Speaking of Seasonals….

Why Sell Craft Beer ?

Easy Decision As Craft Beer Growth Outperforms

All Other Adult Beverage Categories

Source - Information Resources Inc. (IRI)

Sell what’s Hot

Not what’s Not !!

 

Statistics don’t lie and neither should you. Don’t lie to yourself or your

customers. Craft beer grew 8.8% in 2005 and sales continued to grow in 2006 as it continues to outpace total beer, wine and spirits as all 3 grapple for total share of stomach.

 

 

How Are You Stacking Up vs. The U.S.

 

Brand        U.S. 2006 growth       GA 2006

 

Abita                  +23%*                     +20%

Rogue                  +33%                      +10%

Ommegang         +23%                        -30%

 

*Abita Grew a whopping 58% in the S.E.

Looks like Ommegang needs some work

See Next page!!

The Full Seasonal Lineup for Abita Looks Like This:

Jan. to Mar. - Bock      Mar. to Jun. - Red Ale

Jun. to Sep. - Wheat       Sep. to Nov. - Fall Fest         

Nov. - Dec.  - X-mas Ale

               Got an account teetering on the edge of expressing themselves by

               offering Craft Beers? Call Gorilla @ 678-556-0124 & earn rewards

Gorilla Gazette

A Marketing Bulletin Dedicated To The Advancement Of Great Brands                                Page    4

Volume 1, Issue 1          Spring 2007

The Keys to success in Selling Gorilla Brands

Did

You

Know

???

DYK that Abita is one of only a few craft brewers in the U.S. that produce more barrels of lager than ale? A true accomplishment considering that lagers are more expensive to brew in the scheme of things for craft brewers because of longer aging time from kettle to bottle or keg. Time is money for most craft brewers….not Abita. Abita recently invested $2 Million in a brand new German Steinecker Brewing  System, the Mercedes of Lager brewing systems and just began a $5 Million renovation right on top of the old brewery so as not to disturb production of Louisiana’s Favorite Brew. The Future is Bright. Katrina who???

 

DYK that there is a tiny D etched in the bottom center of every Duvel glass that holds and releases the natural carbonation right up the center of the glass. As the head dissipates it leaves a beautiful white residue known as Belgian Lace on the inside of the glass.

Up-selling: Rewarding, very, very, very Rewarding

Meet The Chef

Chances are there will be no one person at a restaurant that will have a greater appreciation and understanding of beer than the chef. They love to cook with it, they love to match their dishes to it, they love to talk about it and more importantly they love to drink it. Want to do a beer dinner? See the chef with an armful of samples and say create me a menu and let’s share it with about 40 people. Voila! Beer Dinner.

Most chefs are familiar with Abita as most have traveled to New Orleans in search of gastronomic bliss and Brewery Ommegang has already been a part of several Atlanta area dinners including one at Chef Carmen Cappello’s Sweet Lowdown.

Plenty Of Opportunities Still Exist Out There.

Education, Education & more Education

If you know the difference between an ale and a lager you probably know more than the majority of your customers. In this day and age one only needs to get on that information superhighway to absorb a plethora of knowledge about the brands you represent. Everybody has a website that will provide you all the information you need for wait staff trainings, beer tastings or to match wits with that minority of retailer who knows their stuff. Here are the Gorilla resources at your disposal:

 

Abita - www.abita.com                          Ommegang - www.ommegang.com

Duvel - www.duvelusa.com                    Gorilla Brokerage - www.gorillabrokerage,com

 

All have an excellent interface and will provide all you need to be comfortable selling the brand.

Nobody knows your accounts like you and what they sell on a week to week basis. Up-selling is the act of convincing your customers to buy and sell the more expensive items in your book. Now more than ever consumers are spending more on dining and entertainment experiences. Trading up your customers to a $140 keg instead of that $80 keg increases the invoice and your commission. The retailer charges $1 more a pint which makes them happier and the  consumer is happy to experience something different and is happy to pay for it.

Sounds like a Win, Win, Win provided the account has the clientele to make it happen.

If your customer is buying a lot of craft and import beer, then they have the clientele.

Gorilla is happy to provide you with plenty of opportunities for Up-selling and earning more money for yourself. Because you work hard and deserve it.

$140 keg vs.

$80 keg.

 

Sell 2 kegs/mo

 

$120 a month

$1440 a year

 

At 5% comm.

$72 a year

The Gorilla Gazette

The Back Page - News You Can Use

Is a publication of Gorilla Brokerage LLC - 1104 Glenrose St. - Smyrna, GA  30080 - ph. 678-556-0124 - fx. 678-556-0413

All content is the property of Gorilla Brokerage LLC & it’s affiliates.

Opinions expressed are not necessarily those of our sponsors and are clearly our expressions of freedom of speech.

 

                            Just For Laughs…

A-B Welcomes PK With Open Arms

We had to dig deep in the Gorilla family album to pull this picture out circa 1978 of Paul (formerly known as Caveman) donning his best Bud Gear. It was just a matter of time before things came around full circle and PK was once again    answering to the boys in St. Louis. Rumor has it that he still has the sweater packed in moth balls and will break it out at the next Inbev/AB National Sales Conference putting to rest all word on the street that Retro is in.

Definitely Not A Good Look !  (Then or Now)

Changes at Retail Giant

Prompt Debate

Merchandising or Marketing ?

Julie Roehm was a progressive thinker who came into the

organization as head of marketing with a vision of making Wal-Mart a more upscale shopping experience. Unfortunately, the powers that rule the roost in Bentonville reside in the merchandising department where the school of thought has always been price it low, stack it high, watch it fly and only worry about offering the consumer the basic brands. Exit Julie Roehm and as a result you will continue to see the beer

section dominated by Bud & Miller. Which school of thought is correct here? For every Yin there is a Yang

as buyers at Super Target are embracing

Smaller craft brands and more obscure

Import brands. Looks like this little guy

has his eye on the Bull's-eye for sure.

Brands often go through face lifts, some more than others, but mainly due to changing trends or new marketing V.P.’s. Not often does a brand go through a total overhaul including a change in recipe. Is it a last gasp for a 1970’s dinosaur who was temporarily    resurrected by the low carb craze? Or a brilliant    marketing campaign to launch a new image to better combat the craft beer movement?

 

With A-B announcing they will change the recipe of

Michelob to an all malt product at least they would like the public to perceive them as having craft-like principles. The below criteria are so far from A-B’s reach especially with the vast majority of their production being Bud & Bud Light which is brewed with Rice and Busch, which is brewed with corn.

 

According to the Brewer’s Institute a craft brewer is

defined by these three criteria:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Your

Mug

Goes

Here

The Gorilla

Prime Time Player

Brand Michelob Gets

Complete Overhaul

With each new issue of the Gorilla Gazette we will choose a United Sales rep who has gone above and beyond the call of duty to advance the interest of craft beer in general and more specifically Gorilla brands.

More than a hail & hearty handshake and stern pat on the back the winner will receive a $100 meal at a favorite Gorilla grazing post.

For More Info On Craft Beer go to www.beertown.org

Back To Home Page

Back To Services Page

“He Was A Wise Man Who Invented Beer”     -Plato

©  2007 Gorilla Brokerage LLC