An article in Beer Business Daily last week focused on the Mark Anthony Group and their hot brand, White Claw. As a company, the Mark Anthony Group could be considered the personification of what it means to move from insignificance to viable vendor, for yet the second time.
In the 1990’s, Mike’s Hard Lemonade, a front runner among FMBs, was one the hottest brands of their time. Not only was their product selling at record pace, the company’s culture was envied by many. But in 2000, that all changed and Mike’s sales started to slip. New management was brought in, many of whom were from Gallo, and immediately the culture changed, key employees left, and the company began to struggle.
A year or so later, Mike’s annual sales meeting was held in Las Vegas. What was typically an easy location at which to entice distributors to attend turned into a challenge to get distributors to show up. In some cases, distributors were so reluctant to attend the convention that field reps even had to persuade them to do so. And once at the convention, many distributors walked out just 10 minutes into the opening session as they were so disgusted with the comments.
Eventually, Mark Anthony made changes, however, it was not until Phil Rosse took the lead role did Mike’s begin to move in a positive direction. Phil stated, “Businesses today need purpose, and the next generation of employees is looking for so much more than just a job. You need a reason to feel deeply connected to companies, businesses, and brands. So for many years now, we have been working hard to make Mike’s a different type of place to work. And by different, we mean something that attracts folks that want to be part of something special that we’re trying to build, and a place where every employee plays a critical role.”
Phil goes on to say, “We have been trying for many years now to create an environment where everybody wins. Obviously, there’s ownership, there’s management, but winning must be felt by all employees and all our partners. We want everyone associated with this business to feel like they are a part of the success. That, in our mind, is the Mike’s culture and we believe organizational culture can be as much a disruptor in today’s world as a new product can.”
The article in Beer Business Daily is extensive, but there were two other comments which provide additional insight on how Mike’s goes to market. Sanjiv Gajiwala, the marketing chief commented on consumer targeting: “We have not in our marketing been trying to identify or associate who, or what, a White Claw drinker looks like.” Phil added, “My perspective on category management, shelf sets, and space at retail is that it has always been our number one opportunity as a company. I think it (category management) is truer now than ever, is our number one opportunity as a company.”
There is no discounting the fact that superior products such as Mike’s and White Claw speak volumes in the success of any company, but in Mark Anthony’s case, Phil and his leadership team have implemented a winning culture.
It is apparent that Mike’s learned from their past, the question is: why is it others cannot see that, too?
Culture eats strategy for breakfast.