VOL 5 • ISSUE 2, 2021
The Voice of Craft Brands
The Great Uniter How Societe Brewing is helping bringing the world together through craft
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VOL. 5 : ISSUE 2, 2021
THE GREAT UNITER
How Societe Brewing is helping bringing the world together through craft
IN EVERY ISSUE: 3 EDITOR’S NOTE A man. A beer. Oh, those were the days. 4 INSIGHTS Industry News
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ISSUE 2, 2021
ON THE RISE Craft sales are increasing in convenience stores, here’s why
CBAM-MAG.COM
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A BREAK IN THE CLOUDS 5 necessities to navigate your team through the change
editor’s note
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A man. A beer. Oh, those were the days.
I was starting to feel like Will Smith in the 2007 post-apocalyptic action thriller “I Am Legend.” Remember the plotline? Smith played a US Army virologist running around New York City immune to a virus that was originally created to cure cancer—only to wipe out everyone but him and a slew of unforgivably hideous nocturnal mutants. What can I say, I love those “post-apocalyptic-world-is-going-end-andsomehow-this-person-is-the-last-man-standing” movies. Remember Charlton Heston in “Planet of the Apes” and “The Omega Man?” he hopelessly types dating himself. So there I was, midway through one of my nightly walks with a friend, trying to remember the last time I had a night out with the gang. Turns out, it was the beginning of last year, where I met with a bunch of my buddies at Cherry Street Brewing, one of the breweries we’ve featured right here in CBAM. As it turned out, the conversation centered on the impending doom all of us were about to partake in—masks, social distancing, curbside takeout, virtual happy hours, and the list goes on. As we fist-bumped our way through a night of catching up and looking ahead, none of us really imagined what was before us. It feels weird to reminisce so hard about that maskless exhilaration of taking deep breaths, pulling up a chair to listen to a little live music, and soaking in every bit of all those things we so took for granted. And then it happened. The vaccine hit and (most) people everywhere started to stand in line to help get us past this madness. So here we are. With most restrictions lifted, the return to whatever normalcy awaits is beginning. Just recently, I ventured out with some of the old gang to have a beer and listen to some music. The summer nights will make that more of a habit. So there is some hope out amid the madness. But let’s not kid ourselves, there is still work to do. But as we continue to do a deep dive into what exactly happened since the walls came tumbling down, so to speak, there is much to be studied and learned from. As for the craft spirit world, we stayed true to the legacy of our profession by pushing forward when pushing forward did not seem possible. Some did curbside. Some made hand sanitizer. Everyone did what they could not make the abnormal seem bearable. Do you remember where you were when they said stop? Do you remember how it made you feel? Here’s till we can all toast one to the heroes who made that possible again. While it may not seem like it, the light is in front of us—out there flickering and begging us to stay committed to what needs to be done to reach it. Until then, masks and elbow bumps and Zoom calls and longing for the day when I can grab a fistful of M&Ms and toss them into my popcorn will have to do. It has taken me (us) this far. Stay safe. Stay strong. And let me know if you have any good movie recommendations.
Michael J. Pallerino
So there is some hope out amid the madness of the last year we have endured. But let’s not kid ourselves, there is still work to do.
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insights
They said it... “ When your brand narrative and message connect with customers’ emotions, you will create a trusted community where your customers will believe in you, no matter the changes.” — LookinLA CEO Ali Payani on why your brand’s narrative must deliver all your value propositions to your customers
“ One of the first signs of an area gentrifying is a craft brewery. It is businesses or individuals that do not know or aren’t from these communities that set up shop with no attribute or affinity or tie to the culture that is already there. I think that’s what separates what we’re doing. We are putting in a new business model and showing... that we can also be a part of what we consider [to be] revitalization of our neighborhoods.” — Crown & Hops co-founder Teo Hunter on her brewery’s efforts to build a community around its craft beer brand
“ Your ability to flex is what will make your business successful in the future. Disrupt yourself now by letting go of what’s out and embracing the trends that make our modern work environment more productive, more inclusive, and more profitable.” — Workplace thought leader Rick Grimaldi on one of the key areas leaders cannot afford to miss in today’s new landscape
lessons you should employ this year Everyone took a hit last year. So, as we move deeper into a landscape that's opening up, here are six lessons you can embrace to realign your success, complements of Constant Contact. 1. Don’t be afraid to try something new — The pandemic forced people out of their comfort zones. Don’t stop stretching those innovative muscles. 2. Stay in touch and top of mind — Business is all about relationships. Keep your customers close with consistent communication. 3. Do more business online — Online offerings are more than a social distancing measure and will continue to be an important aspect going forward. 4. Collect and take action on customer data — Who are your customers? Understanding them will help you communicate the most efficient way. 5. Build your brand with storytelling — Everybody loves a good story, and customers are increasingly looking to support small businesses rather than big corporations. 6. Prepare for uncertainty — Whatever comes next, anticipate that change is inevitable.
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CBAM-MAG.COM
Book Rec
Building a StoryBrand: Clarify Your Message So Customers Will Listen By Donald Miller If you use the wrong words to talk about your product, nobody will buy it. That’s the dilema New York Times bestselling author and marketing expert Donald Miller believes today’s marketers and business owners struggle with. Being able to effectively connect with your customers will cost you money—period. In a world filled with constant, on-demand distractions, it has become near-impossible for business owners to effectively cut through the noise to reach their customers. In Building a StoryBrand, Miller shares the proven system he has created to help engage and truly influence customers. The StoryBrand process is a proven solution to the struggle business leaders face when talking about their companies. Without a clear, distinct message, customers will not understand what you can do for them and are unwilling to engage, causing you to lose potential sales, opportunities for customer engagement, and much more. If you’re looking to improve your relationship with your customers, Miller’s seven-part strategy is worth the read. See how building a StoryBrand can help transform your craft story.
Lift ‘em up Report shows support during COVID-19 was more important than discounts
56% 51% % % 49 49 44% 41%
Price. Value. Quality. When it comes to what consumers are looking for in a brand, those seem like the perfect offers. Interestingly, according to GlobalWebIndex's "Connecting the Dots" report, consumers seek more than discounts in challenging times. For example, during the pandemic, they wanted brands to emphasize more of the following:
Support people during COVID-19
Be ecofriendly
Offer value for money
Produce high-quality products
Treat staff fairly
Support social causes
CRAFT BRAND AND MARKETING
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The Voice of Craft Brands
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CRAFT BRAND AND MARKETING
ISSUE 2, 2021
CBAM-MAG.COM
Interview by Michael J. Pallerino
The Great Uniter How Societe Brewing is helping bringing the world together through craft Stop me if you’ve heard this one before: The Coachman, The Pupil and The Harlot walk into a bar… Okay, maybe you have to be from the San Diego area to know that The Coachman, The Pupil and The Harlot may be three of the best craft beers on the West Coast. At least that is the story San Diegans tell when they discuss their favorite West Coast IPAs, and sour and wild ales. Founded by Doug Constantiner and Travis Smith in 2011, Societe Brewing Company has become a bastion for award-winning craft beers and the place where beer aficionados go to get their craft on. The little brewery that could continues to forge an epic reputation in national and international beer competitions—driven by its tightly-focused, employee-driven business model and a series of polished beers that include, along with the aforementioned styles, names like The Butcher (dark, roasty and sinister), Not Enormous (bubbly, tart and refreshing), Fest Bier (crisp, clean and festive) and The Bachelor (curiously hoppy). To get a look at what the future holds for Societe Brewing and where the market is heading, we sat down with CEO Doug Constantiner and VP of Operations Mike Boggess.
What’s your story from a brand perspective? Beer is the world’s greatest social uniter. It is as equally important as what’s in the glass as the social connections going on around it. Beer is something that is available to anyone. We believe what’s special about it is that we are able to bring world-class beer to everyone, every day. We produce beer that is likely to be enjoyed by most people—it isn’t too niche or for one type of person. Beer, more than any other beverage, can be used for formal tasting or getting a case of “brewskis’’ to crush with your buddies before a game. We don’t need to pick a side; we like to create a quality product that can appeal to either. Societe is for everyone.
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Societe Brewing
Walk us through your branding strategy. We had a long history of being a “special occasion” beer because we were small and less available. We wanted our beer to become more accessible and less of the “waiting around to pop a bottle on someone’s birthday” type. You can go to the corner liquor store in your flip flops right now and find our session IPA, The Coachman, which also happens to be the most award-winning session IPA.
What’s the biggest issue today related to the marketing/sales side of the craft business? For us, we like to provide a simple message that’s easily digestible to our customers. Sometimes brands will go over the top to stand out when, ultimately it just becomes confusing for the consumer.
What’s the secret to creating a branding story that consumers can buy into? Authenticity and relatability. We aren’t flashy. We don’t talk badly about anyone. And we create a sense of “come togetherness” through our voice and product.
What’s the one thing every craft brand should do in the way of marketing? Use social media. It’s free, and there are a variety of platforms to fit your brand’s style. It’s the best way to get people near and far talking about and promoting your brand. It helps tell your story how you want to tell it, and directly connect with your customers.
Things are more exciting and dynamic than ever before in the history of craft beer. There are more beer styles available and new innovative products on the market. What adjustments have you made to your business model with everything that has happened? We went from nearly 100% draft beer at restaurants only, to the majority of our beer being sold in cans at grocery stores. Additionally we partnered with local food partners at our tasting room to comply with safety orders.
What kind of conversations are you having with your customers? When it comes to Societe, there is no barrier to entry. Social responsibility is something we believe in—inclusivity and safety are very important to us. We are vocal about everyone being welcome at Societe, and that it’s a safe space for them. We regularly remind our guests of our rigorous safety protocols through social media and on our website.
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CBAM-MAG.COM
Societe Brewing
What role should a brand play in being a leader in a distressed market?
What’s likely to happen next?
Leading by example through ethics. Do the right thing. Follow government orders. If you’re a brand leader, people are looking to you. You should be a role model for them.
What’s the best piece of advice you can offer to other brands in how to deal with the unthinkable like this? Accept the way things are, and stop trying to predict the future in the sense that things will change and be back to ”normal.” As difficult as it is to accept the “new normal,” it’s better to pivot than be behind.
Give us a snapshot of today’s craft market from your perspective. Things are more exciting and dynamic than ever before in the history of craft beer. There are more beer styles available and new innovative products on the market. This is a win for the customer. Companies also have the chance to get out of their day to day and work on new exciting projects.
We don’t know and don’t plan on knowing. We focus on what we do best, which is making great beer.
What trends are defining the space? There is a growing focus and demand for healthier options, including low ABV, non-alcoholic and seltzer styles. All those things, yet staples like IPAs and blond ales still reign supreme.
What do you see as some of your biggest opportunities moving ahead? Craft beer continues to grow its market share, and while some breweries have to climb in volume, it gives smaller breweries like Societe an opportunity to grab shelf space.
What’s the biggest item on your to-do list right now? Managing expansion while balancing financial stability and growing consumer demand.
Craft Brewery Flooring
Sitting down with...
5 POINTS TO CONSIDER 1 2 3 4 5
Doug Constantiner, CEO, Societe Brewing Company
SLIP RESISTANCE DURABILITY
WORK ENVIRONMENT INSTALLATION MAINTENANCE
Metropolitan Ceramics® Quarry Tile is designed for the demanding CRAFT BREWERY environment.
What’s the most rewarding part of your job? What makes me happy at the end of the day is seeing our employees happy and fulfilled. Seeing every team member at Societe work together on our company culture is inspiring.
What’s the best advice you ever received? Cash is king.
What’s the best thing a customer ever said to you? Any time I have received a compliment that has everything to do with everyone else’s efforts in this building and little to none to do with mine. It re-enforces how proud I am of my team. 2 Silos Brewing Co. Manassas, VA
METROCERAMICS.COM | 1.800.325.3945
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CBAM-MAG.COM
What’s your favorite brand story? Southwest Airlines approach to simplicity, employee satisfaction and customer service.
business
By Elie Y. Katz
On the rise Craft sales are increasing in convenience stores, here’s why Craft beers are everywhere these days. There are some places you'd expect to find independently brewed IPAs, Pilsners Ales, and more, from stand-alone and chain liquor stores to the alcohol sections of supermarkets. But there's another, somewhat untapped market, that may present a new opportunity for craft brewers to boost sales. People also are quenching their thirst, especially over the last year for microbrews, at bodegas and convenience stores. While not usually thought of as a craft beer destination, sales data recently collected by National Retail Solutions (NRS) from more than 3,000 stores in its network found that craft beer sales significantly increased in several categories. While overall beer sales at its stores increased by 16% in 2020 Y-O-Y 2019, and beer, flavored malt beverages and cider were up 20% in 2020, craft beer purchases skyrocketed by 29%.
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Six-packs sold best in 2020, accounting for 55% of craft beer sales, while individual bottles and cans represented 25% of sales. Interestingly, though, 12-packs and multipacks of less than six cans or bottles experienced the greatest growth, at 64% and 87% respectively. Consumers seem to be interested in either purchasing in bulk to keep stocked up or just enough for a few days. This type of data is important because it lets
ISSUE 2, 2021
CBAM-MAG.COM
craft brewers allocate the right mix of categories and provides predictive forecasting for the year ahead so that customers can always find what they need. In addition, new points of distribution for craft beer rose 12% across the NRS stores in the last quarter of 2020 compared to the first quarter of 2020 (pre-COVID), which translates to two additional SKUs per store. Meanwhile, mass-produced beer stayed flat— and no one likes flat beer—for new points of distribution during the same time period. This data must take into consideration that craft brews only represented 4.8% of NRS stores’ total beer dollars in 2020 versus 25% in the overall US Beer Market, but that's not a bad thing. To the contrary, there is tremendous room for growth and opportunity for revenue generation in a market that is gaining steam. Independent brewers would be wise to look at bodegas and convenience stores to accelerate growth. NRS stores' demographic also is a key indicator and driver of investment opportunities. A great number
of stores in the network are located in diverse, multicultural neighborhoods, many with a sizable amount of immigrants. Using this data, craft brewers will not only know where to sell their product but what kind of beer to sell. For example, a craft brewery with a special imprint that appeals to the Spanish, Latino or Asian communities would be a perfect fit for many bodegas, liquor stores and convenience stores. The stores selling beer span across several channels. Nearly 80% of beer sales are through the Conventional Independent Convenience Stores (49%) and the Conventional Independent Liquor Stores (30%). Superettes and Ethnic Markets combined represent an additional 10% of sales. Microbrewers also can peruse data to decide where best to leverage distribution. Stores selling beer fall into 168 Designated Marketing Areas (DMAs), but the Top 7 account for over 50% of beer sales: Los Angeles (11.5%), Dallas/Fort Worth (9.4%), Sacramento/Stockton/Modesto (9.1 %), New York (9.0%), San Francisco/Oakland/San Jose (4.7%), San Diego (4.4%) and Boston (3.2%). On a sales-per-store basis, the West Coast is the best coast for beer—with stores in California selling more than five times as much beer as stores in New York and Boston.
Pandemic helped sales Part of the increase in craft beer sales certainly can be attributed to the pandemic. With bars and nightclubs shuttered, the corner convenience store and bodega have become, in essence, the neighborhood bar, a popular destination to pick up a six-pack, a case or individual bottles of microbrews.
The data also can be interpreted to show that shoppers are becoming more savvy and willing to try new types of beer. Drinking the same old beer may have been sufficient pre-COVID, but new and different routines, or lack of adherence to old norms, have become common during the pandemic. People are craving new experiences, and that could easily extend to new adult beverage choices.
barrel. NRS stores saw an increase of SKU proliferation of craft seltzer brands carried with 93 unique items scanned across the network in 2020 versus 58 in 2019, an increase of 60%. Another trend anticipated by BevSource is more craft brewers leaning into lagers. Today, most craft beers are ales, but lagers are the most widely drank beers in the world. In 2020, the NRS stores already started to see a
The stores selling beer span across several channels. Nearly 80% of beer sales are through the Conventional Independent Convenience Stores (49%) and the Conventional Independent Liquor Stores (30%). Customers may be enjoying that cold brew at home while watching sports, or the latest hot series or movies from a streaming service. While more people will be going to games and movies in person once venues reopen, they're also likely to still spend a significant amount of time on the couch. We still are in an economic downturn, and live sporting events and movies could pose a budget crunch for many people. Likewise, people during the pandemic spent a significant amount of money on streaming services. It wouldn't make sense to abandon that investment just because sports arenas and movie houses have reopened. According to BevSource, 2021 is expected to see craft brewers stepping further into the seltzer
growth in craft lager offerings—with a modest 5% growth in lager SKUs available versus 2019. Craft brewers that acquire NRS data already are ahead of the game in knowing how bodegas and convenience stores, a bustling market in themselves, are following, outgaining or distancing from current trends. Bodega and convenience store sales, when tied to demographics, gives even more insight into how this specialized market operates. Companies like NRS that specialize in tracking these stores' sales can provide substantial data to microbrewers. Going down to the local bodega or convenience store for a cold craft brew will continue to increase, and NRS will continue to gather unique data and insights that can help grow your brewery.
Elie Y. Katz is founder, president & CEO of National Retail Solutions (NRS), subsidiary of IDT (NYSE: IDT) that operates a nationwide point-of-sale (POS) terminal-based platform to bodegas and other independent retailers. Six years ago, he brought his many years of experience as an executive at various companies, in diverse industries, plus strong leadership, interpersonal and organizational skills, to create NRS.
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business
By Jason V. Barger
It has been quite foggy out the windshield for many teams and organizations lately. The last years have been blurry with a fast-moving and often divided world. We’ve experienced differing modes of communication, the expansion of remote workers, a global pandemic, issues of racism, social injustice and equity, political and economic uncertainty, all while continuing the pursuit to maximize the experience, product or service that you are delivering to the marketplace. The view of the road ahead has been quite foggy for too many. The best leaders and organizations understand that cleaning off the windshield and the view of the road ahead is a necessity for those who are traveling with them. It is not reactionary, it is proactive. The best team cultures are committed day in and day out, month in and month out, year in and year out to removing obstacles from the view and aligning their people on the next actions needed for the road ahead. Leaders often beckon their people to “Trust the Process,” but are surprised or frustrated when people do not just magically fall in line. The idea of “Trusting the Process” is good in theory, but all too often the “process” is blurry due to a lack of clarity on the game plan or the inability of the messenger to communicate the road ahead. Therefore, the “process” is unclear and “trust” is nowhere to be found.
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A break in the clouds
ISSUE 2, 2021
5 necessities to navigate your team through the change
CBAM-MAG.COM
The best leaders and teams on the planet understand their role is to help navigate their people through the fog and to continue to advance the Mission. Here are five necessities to help your team navigate through the fog:
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Identify Obstacles
Don’t assume everyone sees or has been willing to be honest about the obstacles, challenges and threats you are facing as a team. Take time to step back as a team and identify the obstacles that lie ahead and assure the team that you will face them together with a solutions-focused mindset.
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Reclarify Mission/Vision & Values
Take a step back and make sure people’s sight is clear on the Mission, Vision and Values of your team. The Mission is “why” you are going on the journey that you are on. It is the heartbeat and soul to all your efforts. The Vision is “where” you are heading as a team or organization. It is the dream of what is possible and what can be created together. Paint the picture of what you hope to create that does not exist and what that future Vision looks like. Your Values are “how” you are committed to traveling along the journey. They are the compass that helps you know that you are on track with “how” you’re committed to traveling. Values are not dictated to us, but are discovered, discerned and identified by participatory discussion.
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Articulate the Game Plan
It is hard to “Trust the Process” if we are not fully sure what the actual game plan is or the process for moving forward. Take time
to articulate the strategy moving forward and why you will approach it the way you are as a team. The strategy is “what” you are going to do proactively to bring the Mission, Vision and Values to life. It is the game plan that clarifies the priorities, people and next actions to bring the dream into reality.
for a consumer to hear a message before they take action and the same thing is true for cascading messages throughout your organization. Communicate the game plan over and over and over again and then continue to update the progress being made along the way.
Marketers remind us that it takes seven times for a consumer to hear a message before they take action and the same thing is true for cascading messages throughout your organization. 4
Deposit Trust as the Messenger
Trust does not magically exist between people or leaders and a team. It is bartered every single day by the deposits we make in the relationship over time. Do we do what we say we are going to do? Do we hold ourselves and others accountable for holding up our end of the commitment? Leaders deposit trust by being transparent about the obstacles and what hasn’t been successful and by honoring their commitments. As the messenger, they deposit trust by owning the next stretch of road ahead and jumping in with the team to seek solutions.
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Cascade Consistent Messages
As the strategy and game plan becomes clearer, rinse and repeat the message throughout the team and organization. Marketers remind us that it takes seven times
Every time you return to these discussions and seek clarity as a team, the fog does not quite seem so thick. The path forward becomes clearer. Your team may not have all the answers, but they’ll have a compass with clear direction on where to head. The best cultures proactively help their people navigate their way through the fog, together. They are grown, developed, cultivated and led with intentionality. The process for developing high-performing and engaged teams never stops and the best leaders, teams and organizations are committed to setting the temperature in how they hire, onboard, do performance evaluations, develop emerging leaders, and recognize excellence. The best leaders invest in their teams and how they travel, together. If you’re experiencing fog, division, negativity, blame, blurry vision, disconnection or uncertainty, it may be time to clean off the windshield!
Jason V. Barger is the globally-celebrated author of “Thermostat Cultures,” “ReMember” and “Step Back from the Baggage Claim,” as well as the host of The Thermostat podcast. As founder of Step Back Leadership Consulting, he is a coveted keynote speaker, leadership coach and organizational consultant who is committed to engaging the minds and hearts of people and growing compelling cultures. For more information, visit JasonVBarger.com
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It’s easier to sell during a pandemic if everyone on your staff is selling Every one of your employees, from the brewmaster to the cellar workers, can and should be selling for your craft brewery. Does your team know how to spot an opportunity to sell? Do they know what to say when the opportunity presents itself? In the Wall Street Journal best-selling business book Every Job Is a Sales Job, Dr. Cindy—also known as the First Lady of Sales—motivates your entire team, even non-sales employees, to bring in new business and nurture the customers you already have.
Visit www.DrCindy.com and get Every Job Is a Sales Job for your employees today. Use promo code CRAFT to get a special bonus with purchase. To contact Dr. Cindy for a personal consultation, visit www.OrangeLeafConsulting.com.
Dr. Cindy McGovern