Even as late as the mid-1970s, the six-pack was by far the number one package for both cans and bottles. In fact, with the exception of loose cases of 24 units, the six-pack was the only package available to the consumer. When the 12-pack was introduced about this time, there was but a small price break difference over the purchase of two six-packs. Immediately the 12-pack became a hit, and soon was the largest selling package in all warehouses.
The success of the 12-pack opened the door, and soon breweries started expanding packaging. Along came 18-packs, 24-packs, 30- packs, and a multitude of other packaging sizes. Discounting moved almost weekly between packages. Strategies were designed to not only ensure pull-through justified the shelf space, but said strategies also locked in ad activity and floor space every week. When states like Texas and Florida changed their laws allowing beer to be sold in packages with more than 12 ounces, more packages hit the shelves.
Many grocery stores expanded their shelf space, from as little as 12 feet of space to retail establishments providing more than 72 feet of space complete with walk-in beer coolers. Of course, the industry now deals with the onslaught of craft beers!
The industry also focuses on the real estate in the off-premise market, along with authorizations and ad activity. How does one separate itself from the clutter? How do you get not only the consumer to try your beer, but ensure repeat sales?
Founders Brewing of Michigan, introduced what is by far their best selling beer, All Day IPA, a sessionable liquid. A initial key tactic used by Flounders with their All Day IPA was to put 15 cans in a package and price it at a 12-pack price point. In other words, buy 12 cans, get three cans free! This package is now one of the chain’s top selling SKUs.
With a price point of a 12-pack providing the 15 cans, Founders does not have to discount it, but because of the incentive of the three cans, they get ad activity and floor space. Real value for both the retailer and the consumer.
AB also has tried new and interesting packaging especially with the 16 ounce aluminum bottle which has had varying degrees of success. Just recently hot-selling Michelob Ultra hit some markets with a 16-ounce aluminum bottle, 8-per pack.
Last month, Payette Brewing Co. of Boise, the state’s largest brewery, introduced an 8-pack of cans at a six-pack price point. In Payette’s Brewery’s recent press release, they introduced this unique package is in honor of their fifth anniversary and in appreciation of their local consumers. As you might expect, early sales are very good and it appears Payette has a winner.
With the success of both Founders, and now Payette, the industry should see more such stories triumph of brewers creating unique packaging scenarios. It is a great way to get the consumer to try a brewery’s brand while separating themselves from the clutter of all the other beers on the shelf. The retailer also sees the advantage of offering an unusually packaged product.
To date, it is somewhat surprising that other breweries have not yet jumped on board. What you risk reveals what you value.
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