Guinness announced a few weeks ago that it was extending its current sponsorship of rugby’s Pro12 tournament for a further four years. The company clearly hopes that this new commitment will give it added exposure and convince people to stop referring to the tournament as the Magners League. This is a similar problem to rugby’s European Cup as people long associate it as the Heineken (or simply ‘H in France) Cup. The new Guinness tie-in follows an unsuccessful attempt to become title sponsors of the English Premier League. Carling has made a return as the official beer of type-flight football.
Of course these sponsorship arrangements are important sources of funding of sports. Breweries will try to snap up as many competitions as possible to keep them out of the hands of competitors but also to respond to a more imminent concern – a blanket ban on alcohol sponsorship of sports. It already happens in France for example. Now the Irish Government and others are expected to follow suit. This undoubtedly will cause problems for the likes of the IRFU and GAA.
In addition to the sponsorship money forked over, sponsors can be typically expected to pay anywhere up to 50% of the amount paid telling consumers that the sponsor said team, league or event. This can range from exclusive bars inside stadia, branding pubs, competitions, TV ads, instore promotions etc. However, they are particularly exposed on their flank to one particular threat – ambush marketing; other companies getting in on the game with little to no money down.
In the run-up to the All Ireland Football Championship, Five Lamps Brewery hosted a couple of GAA-themed events. Other breweries have released sports-themed beer names such as Western Herd’s Danger Here. Rascals Brewing Co.have had a few like Holy Schmidt Pale Ale and 13 Seconds. Such approaches fit in with a sector that sees itself in the midst of a revolution, trying to usurp control from the larger, macro breweries. Attention-seeking from the likes of BrewDog and others is key to a sector that has minimal money to spend on advertising.
Ambush marketing is perhaps a little too harsh a prism to view such actions. It’s not like infamous battles of Coke versus Pepsi or Addidas versus Nike to claim hearts and minds of consumers. Craft breweries are using other tactics to reach out to consumers through sport. Trouble Brewing has hosted craft beer nights in Dalymount Park. Kelly’s Mountain have been involved with their local GAA club.
Craft breweries are approaching sponsorship opportunities strategically. Sweetwater Brewery was launched by Rye River in Ireland the week of Boston College-Georgia Tech American Football game. As if that wasn’t enough, SweetWater was available draught at The Trinity Welcome Village at Trinity College Dublin, the official tailgating venue for the Aer Lingus Classic. Over in the west, Wild Bat brewery has collaborated with Oughterard RFC on a limited edition rugby jersey.
It seems that craft beer is prepared to take on the larger breweries head on in their traditional domain – sponsorship in marketing. However, they’re doing it in their own special way. Sure, what else would we expect from them.
This year saw the passing of a true revolutionary, Jack Joyce, co-founder of Rogue Ales and patriarch of Rogue Nation. He was a firm believer in “freedom of expression, absence of bullshit, variety, and the pursuit of beer with taste” even challenges the conventional craft beer mantra of small, independent and traditional. A former lawyer for Nike and who had negotiated Michael Jordan’s early shoe deals, Joyce was committed to “doing things differently, a desire and a willingness to change the status quo” and be believed that being a “leader doesn’t mean you have to be the biggest”. He like Fritz Maytag, Ken Grossman and even Jim Koch and Steve Hindy (although he reportedly didn’t agree with contract brewing) left an indelible mark on the US craft brewing scene. So when he checked out on 27 May 2014 what shape was the US craft beer industry in?
There are now 2,768 craft breweries in the US out of 2,822 total breweries. This represents the continued upward trajectory of craft brewing. There was an increase of 15.3% in number of craft breweries n 2013 than the previous year. In keeping with year-on-year growth in market share and production output, there was a significant increase in the number of regional craft breweries in 2013.
US Craft Brewing Facts:
There are 2,768 craft breweries in the US (overall 2,822)
Craft breweries increased by 15.3% in 2013; regional craft breweries (+22.6%), microbreweries (+22.8%) & brewpubs (+7.1%)
Slight decrease in total number of microbreweries opening in 2013 (304) to 2012 (340)
Sales up 17.2% in 2013 (overall beer sales down 1.8%)
Market share stands at 7.8%
49% increase in US craft beer exports
18% increase in craft beer volume production (overall beer down 2%)
This time last year, I posted a piece on Fritz Maytag in Revolution in Red, White & Brew because I wanted a US feature for July 4th. He was a pioneer not only in terms of what he did in saving and transforming Anchor Steam but more generally what he did for inspiring independence in US brewing. A group of us were only discussing his contributions to the revolution during the European Beer Bloggers Conference (EBBC 2014). This year, I’ve decided to focus on an Irish-American connection in Dundalk-native and now resident of Lexington, Kentucky Dr. Pearse Lyons.
At EBBC 2014 I had the opportunity to have a beer with Brian Yaeger and it was in his 2008 book Red, White and Brew that I first came across Pearse Lyons and what he was setting out to do in terms of brewing in Kentucky. The Southern US states, with a couple of exceptions (e.g. Texas, Florida etc), were fairly late to the craft beer revolution. Today the State of Kentucky is only 39th in number of breweries and 45th in terms of breweries per capita. On this side of the Atlantic, few had heard of the Lexington Brewing Company up until recently.
Over the past two years, the awareness of the Alltech, Dr. Lyons and the Kentucky brands both in terms of beer and whiskies has grown. He may have left for the US in the 1970s but he has always kept one foot on the island, just look at the Alltech investment in Dunboyne. He’s even building a distillery in Dublin. There’s a great team at Alltech and I’ve gotten to know a few of them over the past couple of years. However, one can see Dr. Lyons as the driving force behind all that they do and he describes himself as an “entrepreneur, salesman, marketer and scientist all rolled into one”.
The Alltech Lexington Brewing and Distilling Co. produces a number of beers, all ales. Their flagship is Kentuck Bourbon Barrel Ale, which is the result of aging their 6% Kentucky Ale in bourbon barrels for six weeks. I’m not that much of a whiskey drinker and always found bourbon a unique prospect but I must say this beer has grown on me, especially when it’s served in a snifter. It tastes of good ol’ Kentucky bourbon. They have followed suit with a stout also aged in a bourbon barrel with the added addition of Haitian coffee (also owned by Alltech), which maries well with the bourbon smoke. They produce a good value IPA (although would love to see them bring the cans to Ireland) and a Kölsch-style beer, which when I first saw the beers on sale a couple of years ago in Nashville, was branded Kentucky Light. As a sign of encouraging new craft beer consumers, this name was thankfully dropped. They have produced three seasonals but only one of which has arrived in limited quantities in Ireland, the Kentucky Peach Barrel Wheat. The others being two collaboration brews, a bourbon barrel maibock (with Blue Stallion Brewing Co.) and the other being a blend of barrel aged stout that has been specifically aged for two years and Country Boy Brewing’s Black Gold Porter, oh and of course the blend is then barrel aged for good measure.
A year ago this July, Alltech held the first International Craft Beer and Brewing Convention in Dublin and a second edition was held earlier this year. The good news is that the event (rebranded as the International Craft Brews and Food Fair) will return in February 2015. The first focused on entrepreneurship (see Brewing up new businesses) and the second had growing the market for craft beers (targeting customers and publicans) as a theme. There’s even the Dublin Beer Cup and opportunities for brewers to introduce their wares directly to consumers. N17, Rascals, Stone Barrel Brewing and Independent Brewing made their beer festival debuts in Febuary 2014.
The two Dublin editions afforded valuable opportunities for people in the trade to network and form new connections, some of which have resulted in new business for Irish breweriers. For example, Galway Bay Brewing has just done a collaboration brew with Chicago’s Begyle Brewing, a conference alumnus. Hardknott from Cumbria got added opportunities to visit Ireland and ahead of this year’s conference, brewed Yerba with Metalman. Alltech has rolled out this conference in Kentucky and I’m sure a number of Irish brewers are itching to be invited.
For what he has done in terms of brewing and for what he’s doing in terms of promoting the industry more widely through conferences and numerous events, this is the reason I chose to feature his contribution to the craft beer revolution.