{"id":4416,"date":"2017-11-14T06:00:03","date_gmt":"2017-11-14T11:00:03","guid":{"rendered":"http:\/\/www.beerbusinessunplugged.com\/?p=4416"},"modified":"2017-11-11T10:46:18","modified_gmt":"2017-11-11T15:46:18","slug":"a-good-decision-is-based-on-knowledge-and-not-on-numbers","status":"publish","type":"post","link":"https:\/\/www.beerbusinessunplugged.com\/?p=4416","title":{"rendered":"A good decision is based on knowledge and not on numbers.."},"content":{"rendered":"

\"\"<\/a><\/p>\n

At last month\u2019s annual NBWA convention, the topic of conversation was what ails the beer industry.\u00a0 The issue was addressed by wholesaler and multiple panel discussions, in addition to on-stage discussions led by the leaders of ABI and Heineken.\u00a0 For the most part, both leaders listed virtually the same reasons for the industry woes: \u201cshare of throat losses\u201d to wine and spirits consumers, along with the loss of an entire generation which prefers wine and spirits over beer.\u00a0 Of course, there is the cannabis intrusion as well.\u00a0 More on that in upcoming posts.<\/p>\n

The losses in overall beer volume in the last 10 years is eye awaking as the industry struggles to determine the cause.\u00a0 So the question is: what can the beer industry do to turn the tides on such great volume losses?<\/p>\n

Why is it that some beers are continuing to not only do well, but are accelerating their growth rate?\u00a0 We all know them, Michelob Ultra, Modelo, Corona, and even Yuenglng.\u00a0 One major component is that these four have consistent messaging, and the effectiveness of their marketing in relaying the message to the consumer is unsurpassed.<\/p>\n

Recent scan data also has shown, not only what is happening, but what can<\/em> happen with adjustments in pricing.\u00a0 In IRI multi-outlet + convenience, Founders All Day IPA is up +49% and is now the number two best-selling IPA.\u00a0 All Days growth comes from the 15-pack pricing which is priced closer to the 12-packs.\u00a0 Recent data has also shown pricing on All Day dipped 2%, or less than $28 per case.\u00a0 The average price is down 3%, or closer to 87 cents a case.\u00a0 This puts the brand in the price range of Michelob Ultra!<\/p>\n

Is acquiring volume in the industry really that simple, or is it that All Day is revealing itself as a truly strong brand?\u00a0 Recent pricing adjustments to brands in the popular segment have also shown major increases in sales of Keystone Light, in addition to a jump in share-of-segment.\u00a0 There are four economy brands now in the top ten growth brands in the recent scan data: Keystone Light, Rolling Rock, Hamm’s and Bud Ice.\u00a0 Anyone see a trend here?<\/p>\n

Time and time again when we see a brand that prices its products to ensure the consumer sees the value, the brand virtually flies off the shelf.\u00a0 Of course the brand\u2019s message echoes its branding in the same way.\u00a0 \u00a0Over the years, by far two of the very best at price positioning and value are the Modelo brands and Yuenglng.\u00a0 You can add Ultra to that list, too.<\/p>\n

The beer industry does not want to be like the mattress or auto industry. Can you ever recall a time when a mattress or a car was not<\/em> on sale?\u00a0 Just watch a football game, as it seems that every other commercial is a car with incentives.<\/p>\n

These pages have addressed this same issue numerous times, always focusing on the same solution.\u00a0 For the sake of the industry, let\u2019s hope that we are not still addressing this topic five years from now.\u00a0 Is anyone in New York and Chicago listening?<\/p>\n

A good decision is based on knowledge, not on numbers.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

At last month\u2019s annual NBWA convention, the topic of conversation was what ails the beer industry.\u00a0 The issue was addressed by wholesaler and multiple panel discussions, in addition to on-stage discussions led by the leaders of ABI and Heineken.\u00a0 For the most part, both leaders listed virtually the same reasons for the industry woes: \u201cshare […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_s2mail":"yes","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_newsletter_tier_id":0,"jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[1],"tags":[],"jetpack_publicize_connections":[],"aioseo_notices":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p2xRTi-19e","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/posts\/4416"}],"collection":[{"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4416"}],"version-history":[{"count":12,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/posts\/4416\/revisions"}],"predecessor-version":[{"id":4449,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/posts\/4416\/revisions\/4449"}],"wp:attachment":[{"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4416"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4416"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4416"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}