Jun 182019
 

Last week’s post highlighted the story of the Mark Anthony Group. The account of Mark Anthony is not as much about their hot product, White Claw, as it is about how the company made a complete turn-around. This is a bit of an anomaly in the industry as most turn-around stories are about the brands themselves, not about the actual beer company.

There have been a myriad of stories about Schlitz in these posts. A brand that could not have been saved despite the fact that multiple leaders tried and millions of dollars were spent. Pabst is another story, albeit one with an asterisk. Notwithstanding a small revival some years ago, and multiple owners, Pabst is now struggling.

Many regional brands, long since departed, have attempted comebacks under different ownership. None have succeeded, although several appear to be riding the proverbial roller coaster. Examples include Rainer and Lone Star, both of which are owned by Pabst, and both of which have managed to become more relevant in their regional markets.

Because crafts, many of which have not been existence for 10 years or more, have a shorter history, they do not fit into this category of come-backs. Older crafts like Sierra Nevada, New Belgium, and Boston have either morphed their portfolio to ensure success, or have simply ridden the ups and downs from year to year. The glaring exception is Yuenglng, which, under the same ownership, continues to excel regardless of how or what the industry is doing.

Wholesaler’ degree of success is not relevant when discussing the topic of turnarounds because success is more directly tied to that of their suppliers. Even wholesalers, whose volume for decades consisted of brands like Schlitz or Pabst, survived if they could capture a brand like Constellations Brands or Heineken in their house.   

Obviously, wholesalers who were not as fortunate to have afore mentioned vendors, have since sold out or closed. A wholesaler who finds themselves in a crisis is most likely in that position due to their portfolio; and in almost all cases it does not matter who is in charge. Without the bullets, you are firing blanks.

Importers are the one segment where a change in leadership can and does make a difference. With the right leadership a restructuring and direction change can turn a small to medium-size importer around.

The beer industry is not one of turn-arounds. This is an industry which needs the right product at the right time; a product that will be supported and enabled to move in the right direction with a clear understanding of who and what that product is.   Victory is never going to happen when a beer attempts to be something that it is not, can never be, and prevents the brewery and the products from ever being successful.

Spending resources in an attempt to be something that will never happen is a waste and a pathway to failure. A crisis in beer is not about leadership, it does not have to be a crisis if the proper leadership is in place.

Careers are made in times of “crisis.” 

 Posted by at 6:00 am