JANUARY/FEBRUARY 2019
For the Craft Brewing Professional
New England Made Inside the wonderful world of the Lord Hobo Brewing Company
Photography by @josephwymanphoto
Daniel Lanigan, Founder and CEO
contents
VOL. 3 : ISSUE 1
JAN/FEB
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A TIME FOR REFLECTION Evaluating the lessons that will drive your brand forward
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IN EVERY ISSUE: 3 EDITOR’S NOTE Fact-based drinking stories 4 INSIGHTS Industry News
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WE MUST CHANGE NOW! The environment, what we must do and why it matters to craft brewers
WHY YOUR BUSINESS NEEDS A SOCIAL MEDIA MARKETING PLAN
editor’s note
Fact-based drinking stories
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Experiential drinking venues are on the rise. Say what now? What’s an experiential drinking venue? That’s what I thought, too. My first thought was (signal Seinfeld’s Newman voice), “Millennials!” But you know what, it’s not just millennials. Those experiential places— brewpubs, tasting rooms, taprooms and groceraunts, yes, you heard that right—are changing the game when it comes to craft beer and places to drink such. Sure, according to the “Nielsen CGA On Premise User Survey (Fall 2018),” more younger craft beer drinkers are seeking out third-space drinking occasions, with 23 percent saying they visited a taproom or a brewpub, 13 percent admitting to eating and drinking at a “groceraunt” and 14 percent meeting up at arcade bars. But us non-millennials are getting in on the action, too (sorry Jerry). The survey shows that 15 percent of all U.S. legal-drinking age consumers say they have made a trip to a brewery taproom in the last three months of 2018. And while we’re tossing around all of those stats (okay, I am), the numbers seems to indicate all this infatuation with craft beer. For example, the Brewers Association (BA) shows that 85 percent of Americans now live within 10 miles of a brewery, with 55 percent saying they appreciate the variety offered in sample flights. Let’s face it, if you’re head-of-heels-cannot-leave-the-house crazy for craft beer, you don’t have to go far. In 2018, the industry reached another expansion milestone, with more than 7,000 breweries reported in the United States (more stats). And that number is only growing. And the next time you visit your local bar, check out the beer menu. That list of craft beers is starting to merit its own page (if not menu). So, as we do what we do, go where we go and drink what we like, isn’t it great know that craft beer is helping drive the bus, so to speak. This year will be no different. New breweries. New beers. New venues to enjoy. Isn’t it great to be a part of the revolution.
Michael J. Pallerino
Let’s face it, if you’re headof-heels-cannot-leave-thehouse crazy for craft beer, you don’t have to go far. In 2018, the industry reached another expansion milestone, with more than 7,000 breweries reported in the United States.
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insights
Book Rec
The Happiness Advantage:
How a Positive Brain Fuels Success in Work and Life By Shawn Achor The smart money is on that if you work hard you will be more successful. Work more successful, you’ll be happy. Not so fast people. Recent studies show that this formula is actually backward: Happiness fuels success, not the other way around. That’s Shawn Achor’s story and intends on continually backing it up. In The Happiness Advantage, Achor shows that when you’re positive, your brain becomes more engaged, creative, motivated, energetic, resilient and productive at work. The discovery has been repeatedly borne out by rigorous research in psychology and neuroscience, management studies, and the bottom lines of organizations around the globe. Achor spent over a decade living, researching and lecturing at Harvard University, drawing on his own research—including one of the largest studies of happiness and potential at Harvard and others at companies like UBS and KPMG—to fix this broken formula. Using stories and case studies from his work with thousands of Fortune 500 executives in 42 countries, Achor explains how you can reprogram your brain to become more positive in order to gain a competitive edge at work. A must-read for every craft beer enthusiasts, The Happiness Advantage isn’t only about how to become happier at work—it shows how to reap the benefits of a happier and more positive mind-set to achieve the extraordinary in your work and life.
Beer bound
Survey shows rise in non-traditional drinking venues Brewpubs. Tasting rooms. Taprooms. Depending on what you call them, the popularity of these non-traditional drinking venues is on the rise with younger consumers, according to the "Nielsen CGA On Premise User Survey (Fall 2018)." The survey shows that younger craft beer drinkers are seeking out third-space drinking occasions, with 23 percent of millennials saying they visited a taproom or a brewpub, while 13 percent cite eating and drinking at a “groceraunt” and 14 percent meeting at an arcade bar. And it's not just millennials, as 15 percent of all U.S. legal-drinking age consumers say they have made a trip to a brewery taproom in the last three months of 2018.
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Human touch Survey outlines importance of customer-centric customer service
If you're looking to connect with your customers in today's increasingly growing tech landscape, try being a little more human. Sounds crazy, right? Interestingly, according to The Northridge Group's "State of Customer Service Experience 2018," 69 percent of today's consumers admit that navigating automated systems is hard, while 62 percent say they have to make multiple contacts to get what they need. The report, which queried 1,000 consumers age 18 and older in the United States, broke down all the ways consumers perceive the customer experience and how they like doing it. Here's a look the preferred channels of communications for today's customer demographics:
Millennial 44% Digital 34% Phone 20% Email
Boomer 22% Digital 55% Phone 23% Email
Generation X 35% Digital 41% Phone 22% Email
Silent 18% Digital 52% Phone 28% Email
MEET LANCE One of Boelter’s regional Field Sales Managers. His favorite beer style? German dark lagers.
(800) BEERCUP • BEERCUP.COM
“It’s all about learning each brewery’s unique story and providing innovative, affordable, quality products to match.”
YOU BREW BEER. BOELTER GROWS BRANDS. Lance loves helping breweries and distilleries spread their craft and grow their brands through custom glassware, promotional products, and brand fulfillment services.
ARE YOU READY TO TALK BRANDING OVER A DRINK WITH LANCE OR ONE OF OUR OTHER PASSIONATE REGIONAL SALES MANAGERS? CALL 800 BEERCUP TODAY.
CIRCLE NO. 59
TA L K B R A N D I N G & M O R E W I T H O U R D E D I C AT E D S A L E S M A N AG E R S C A L L (80 0) B E E R C U P T O D AY O R V I S I T TA P.B E E R C U P.C O M / C B A M - M A G T O L E A R N M O R E .
New England Made Inside the wonderful world of the Lord Hobo Brewing Company With its unique ability to bring people of all kinds together, beer is the unifying factor we need today. Who couldn’t get behind that line of thinking? Just ask Daniel Lanigan, the founder of the Lord Hobo Brewing Company (LHBCo). From the lords that only enjoy the finer things in life, to the hobos who work hard to earn their small pleasures, Lanigan believes that great beer is an accessible luxury. Lanigan is a craft beer veteran. After building a deep connection to argu-ably some of the best beer bars in the country including but not limited to, the Moan & Dove in Amherst, the Dirty Truth in Northampton, and Lord Hobo Craft Beer bar in Cambridge Massachusetts), Lanigan set out to redefine craft style New England beers.
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Photography by @splfilms
By Michael J. Pallerino
There is a ton of noise in the industry. Cutting through that chatter with a unique perspective, top tier culture centric partners and creative talent is what sets us apart.
Enter Lord Hobo, the hop-focused brewery Lanigan founded in 2015. Its flagship beer, Boomsauce, became an iconic offering for craft beer fans everywhere. Today, it has expanded its core portfolio offerings which previously included the classic line up of: Glorious, Galaxy Pale; Steal this Can, a West Coast Style IPA; Consolation Prize, a Double IPA; and Hobo Life a Session IPA to include various styles and experimental options for all palates. The Taproom, in Woburn has 40 taps, of which at least 50% of those are LHBCo brewed products. And as the Lord Hobo legend grows, so does it distribution, as the demand for its New England style taste is gaining national interest. The brand also is eying building satellite breweries in the United States and abroad. CBAM sat down with Andréa (Drea) Hudson, Director of Brand Marketing, to get her thoughts on what makes the Lord Hobo one of craft beer's fastest growing brands.
Photography by @srirachow
Give us a snapshot of today's craft brew market from your perspective. What’s likely to happen next? Given the explosive and well deserved growth of the craft beer industry, what happens next is determined by the brands that choose to dominate the industry by innovating, differentiating and staying focused on their communities. From our perspective, when we started on this journey four years ago, we had one goal in mind—to produce world class beers that were accessible to all. Now that we've expanded our distribution to 14 markets domestically and are beginning to export, we are well on our way. What's next for us is strategic expansion, continuing to invest in our team and our quality control, taproom focus and making sure that we're always taking care of our key partners, from distributor to fans and everything else in between.
What trends are defining the space? Trends are an interesting topic. Some may say style, others may say packaging. In our opinion, it's a combination of understanding the consumers
appetite for new portfolio options versus focus on flagship and branding. Style-wise, the New England IPA earned it's definition last year, along with the Hazy IPA, which as you know, we take great pride in being pioneers of that style. We see trends that lean into Sour, Gose and Session, which we currently have on tap at our HQ for R&D purposes. We're always keeping our eyes and ears out for what's coming next.
What is the Lord Hobo story from a brand perspective? We're grateful everyday to be one of the Top 100 largest breweries by volume as of 2017 and Top 5 by volume in Massachusetts in such a short amount of time. We know that this only happens when your partners, distributors and fans also understand your vision. Our founder and CEO, Daniel Lanigan, is a seasoned craft beer veteran in this industry and knows his stuff when it comes to beer. When we started to craft the story of Lord Hobo, we wanted to connect a few elements. It's important for us, that our fans know that we are serious about beer being one of the most affordable luxury items in the world. With that, it's also imperative that our story of Lords and Hobos alike, we all deserve to drink like royalty resonates. Beer has been a connector of all kinds of people for centuries and we firmly believe that we are bridging the cultural gap with our beers and branding by bringing people together who may not come
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cover story
your brand is built on releasing premium products, where quality comes before quantity and maintaining relevancy in key territories is always top of mind. There is a ton of noise in the industry. Cutting through that chatter with a unique perspective, top tier culture, centric partners and creative talent is what sets us apart. So the biggest challenge is, and always will be continuing to follow the vision that has been set forth, while being able to pivot as needed without diluting the brand that you've been building.
What is the secret to creating a branding story that consumers can buy in to? Back to the authenticity answer. It's less about fans buying into your story and more about crafting a story that's relatable and easy to remember. There are times where people are so focused on getting consumers to "buy in" to something that it comes off as fake. Count us out of that.
Walk us through your branding strategy.
The Lord Hobo team includes: Daniel Lanigan Founder & CEO
Our branding strategy is simple. Keep it authentic.
Andrew Bousquet VP of Business Development
What's the biggest issue today related to the marketing/sales side of the craft beer business today?
Andréa (Drea) Hudson Director of Brand Marketing
It's easy to release a bunch of mediocre beers to get fans excited about something new, which seems to be a trend for some. The challenge is when
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Lords of the Ring...
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Rob Day Director of Product Marketing Chuck MacSteven Lead Graphic Designer
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What is the one thing that every craft beer brand should be doing in the way of marketing? Deciding “why” they are doing what they're doing versus “what” they are doing. Marketing is not a one-way conversation, it's a twoway street, once you know your why, the rest comes easily.
What do you see as some of your biggest opportunities moving ahead? Large scale partnerships and collaborations with brands that you'd least expect to see a craft beer working with. This industry
Photography by @beersandcameras
together otherwise. We hold beer to the highest regard, and brew a premium product with ingredients that we can stand behind.
is so fresh, we're excited to shift the paradigm when it comes to those who should be drinking craft beer, when really craft beer is for everyone. The industry has been pretty one note for awhile, we're going to change that—one marketing campaign at a time.
What's the biggest item on your to-do list right now? Locking down our influencer marketing strategy.
Sitting down with...
Andréa (Drea) Hudson, Director of Brand Marketing
How does your taproom space integrate into your branding/marketing strategies? Our Taproom is our home. It's the heartbeat of our brand and when we had to renovate last year. Our job in marketing was to bring that heartbeat to people at external events since they weren't able to come here. Now that we have the Taproom, we have infinite opportunities to connect with our fans, be strategic about beer releases, programming and perks for fans. The Taproom will be a huge driver in our future success, and we're looking forward to integrating it as much as we can into our global marketing plans. What’s the most rewarding part of your job? The trust that my team has in me to lead with creativity. What was the best advice you ever received? If it doesn’t inspire you, motivate you or elevate you, it’s not for you.
Photography by @beersandcameras
Does music and/or other arts play a role in your overall brand strategies? Yes, 100 percent. Beer is our core product, but when we talk about our mantra of connectedness we think bigger than beer. We think about the other components that have similar effects bringing people together. The pillars for our brand are music, art, style and adventure. Everything we do on the marketing side of the house, should connect to one or all of these pillars in some way shape or form. On the music side, we work with our venue partners and support emerging musicians. On the art side, if you ever come to an LHBCo produced experience, there's likely a pop up art element featuring a local art partner. We also have a quarterly artist in residency program where we invite local artists to display their art in our Taproom and take no commissions for any art sold. When it comes style, we can wear beer well. Merchandise can be fashionable and partnering with other style brands are important. The adventurer exists in all of us. With partners like Parlor Skis, we lean heavily into the Vagabond Royalty side of our brand, which is all about going your on path and owning your adventure, whatever that may be.
What’s the best thing a customer ever said to you? There’s something about Lord Hobo that’s different, it definitely has a vibe that stands out from other breweries. What is your favorite brand story? It’s unreal to be outside of our home territory, like Colorado at GABF and have fans come up to you complimenting your content strategy, cohesion of packaging design and relating to the voice of our brand. Every time it happens, it does two things for me. First, it reminds me that we are in the middle of building something much bigger than we even know, no matter how many metrics we have. Second, we’ve got some kick ass work ahead of us.
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By Eric Balinski
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We must change now!
The environment, what we must do and why it matters to craft brewers Few days go by without hearing about climate change and the impending demise of our plant. As one congresswoman recently predicted, the world will end in 12 years if we don’t do something now. As a person who has worked on pioneering “Save the Planet” stuff over the past 30 years, I am both pleased and disturbed by what I hear, read and see. In the mid-’80s, my work at GE was to promote a more effective and smarter use of the world resources. We developed a 3,000-square-foot research home to showcase the latest ideas and new products that could improve the world. Back then, we understood the world had limited resources and it was in people’s best interest to be prudent about how we produce, use and dispose of them. Our work led to the practice of certified pre-owned cars. We introduced the idea to every American and Japanese car company that automobiles had life after the original buyer if their value in terms of quality and reliability remained after the first buyer sold the car.
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Many people in the craft-made products industry also feel strongly about saving the planet. Their ethos as a craft maker is attuned to making the world better. This has led them to take steps in their facilities to lower energy consumption, improve water conservation and reduce waste. Bravo. Nonetheless, this will not save the planet. Yes, it is wonderful that attention is being given to our planet and climate. But don’t be fooled. Even with all the effort by people in the United States, most of what we’re doing will not stem the tide of climate change. The data tells us this. And this disturbs to me. A lot has been made out of how nations banded together in the Paris Climate Accord to help our planet. Yet, recently, our country walked out of it, drawing scorn at home and abroad.
But if you look at the exact data the Paris Climate Accord was based upon, as well as the pledge commitments countries made, we are in trouble. My analysis in Table 1, the “Paris Accord — CO2 Emissions Data & Forecast,” reflects the CO2 emission numbers that the Paris Accord was based on in 2015. The main CO2 emitting countries and the rest or the world (the other 191 countries) are in groupings to make it easier to see reality. China is by far the largest CO2 emitter. On the right side of the chart (see "Paris Accord — CO2 Emissions Data & Forecast") show that economist and scientist predictions for 2X and 3X C02 emission increase for China and India. One key goal of the Paris Accord was to hold the rise in global average temperature below 2 degrees Celsius. Countries
If you’re a craft producer working to improve the planet, keep doing it. It will likely lower you operating costs, build your community image, and reduce your footprint.
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were considered either as developed (e.g., the United States) or developing (e.g., China). Every country’s actual CO2 reduction amount varied and based on a volunteer pledge. A total of 196 countries committed to the climate deal in 2015. At least 55 nations—between them accounting for at least 55 percent of the world's total greenhouse gas emissions—needed to formally approve the pact before it went into effect. I hypothesized that the U.S., the European Union, Russia and the entire rest of world would reduce CO 2 emissions even more significantly then the Paris Accord was seeking, by 50 percent. In other words, the more likely scenario is less reductions. Meanwhile, China and India as developing nations were predicted in the next decade to increase CO2 emissions by two or three times.
Why we are in trouble
than China and produces less CO2 as measure by GDP. The very act of buying American made not Chinese made is saving the planet. But nobody says this. Why? There are stories about the money the Chinese are spending to go green. Chinese leaders make all sorts of claims to the media, and the media happily reports them as fact, even swooning over China’s efforts. Here again, actual current data suggests Table 1 is likely correct. The chart (see "Best and Worst Performing Countries") show the CO2 emission numbers of the best and worst CO2 emitting countries in 2017, released in a June 2018 report. Can anyone explain why the media is demonizing America, while the U.S. is the best at improving? And with all the loud climate change voices in the EU, it actually increased CO2 by more than the U.S. decreased it? Given China increased CO2 emission by more than three times what the U.S. reduced it by, why does media and global leaders give them a pass? And Canada, which has an economy 14 times smaller than the U.S,. at only $1.53 trillion, increased its CO2 output by about 40 percent of what the U.S. decreased ours by?
Many people in the craft-made products industry also feel strongly about saving the planet. Their ethos as a craft maker is attuned to making the world a better.
My analysis shows why the world is in trouble. Without significant and immediate improvement by China and India, whatever every other country does, including the United States, total CO2 emissions will increase and are currently increasing. This was first red flag two years ago. The other was the world condemning the United States while staying silent about China’s and India’s a forecasted increases. In fact, many are defending China from criticisms. They say things like, “China is a developing country, and their CO2 emissions are lower than the U.S. on a per capita basis.” Ask yourself this: Why does the second largest economy need such an unfair advantage? If you looked at U.S. GDP output, roughly $21.5 trillion compared to China’s $12.8 trillion, you could conclude that the U.S. is more efficient in its production
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business
What this means to you What are the implications for wine, beer and spirit producers? Any agricultural based product will be subject to global climate change, some crops more than others. Whether it’s extreme heat or cold, or a shortage of rain or irrigation water for these crops, weather pattern changes will play a role no doubt. Searching stories in the wine, beer and spirits industries, you will find acknowledgement of this, but more likely one will also finds criticism of America, with little written about China and India who are
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and will have the most impact on climate. That’s an enigma to me. If you’re a craft producer working to improve the planet, keep doing it. It will likely lower you operating costs, build your community image and reduce your footprint. Frankly though, it’s not enough to keep the planet from being destroyed. It’s time to change the conversation. Time to ask better questions, such as why are world leaders, scientists and the media ignoring the most dramatic threat to the planet? Time to ask your local congressperson why he or she is so quiet on this? It’s time to hold the biggest polluters accountable. The climate change hypocrisy irks me, too. When someone points at another person claiming to do no wrong, it is to hide that person’s own misdealing. More than 25 years ago, I testified on Capitol Hill about how our government should take a leadership role in making the planet better. It met with ho-hum receptivity. Today, a lot politicians make it look like they are doing something, but data suggests otherwise. If we want to save this planet, it must start with the truth about what’s going on. Reality is CO2 emissions are increasing, even from countries that are the loudest proponents of reducing emissions. That means we’re in a sinking boat, with a few bailing water, while the boat’s holes pour in water three to four times faster than their bailing. As Zen Buddhist Gido Shoseki said, “Truth only reveals itself when one gives up all preconceived ideas.” Eric Balinski is the owner of Synection, LLC, which is a strategy and growth consultancy firm. For more information, visit: synection.com.
CBAM-MAG.COM
CIRCLE NO. 60
social media
By Dalana Morse
Why your business needs a social media marketing plan 16
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Social media is the talk of the marketing town, and that’s not changing anytime soon. Almost every business is jumping on the bandwagon and scrambling to boost their social presence. But why is there so much buzz around the topic?
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Traditionally, the social arena has something of a reputation for being, at best, awash with videos of cute cats or amusing babies, or at worst a playground for fake news pushers and unethical scammers. While there's an element of truth in both these stereotypes, a quick look at the traffic numbers shows why social media attracts so much marketing attention: • Facebook has more than a billion daily users, out of a total of 1.8 billion active members • WhatsApp and YouTube claim a billion active users each • Tumblr and Instagram both report close to half a billion regular users • There are 150 million Pinterest users, of whom 87 percent have made a purchase prompted by marketing activity on the platform • Even Twitter, often identified as the platform most struggling to gain traction, boasts more than 300 million active users
that your brand needs more social media exposure, following these guidelines will help you reap the benefits while avoiding the dangers.
Define your aims Embarking on social media marketing simply because it's the flavor of the month is a recipe for failure. Playing the social game requires commitment, the ability to adapt quickly and a clear vision of the end you're working toward. Without a defined aim, social media activities can quickly become unfocused, draining resources that could be better employed elsewhere.
Find your market The different social media platforms have distinct demographics and require tailored approaches. Trying to cover every base is likely to result in spreading your efforts too thinly. It's far better to determine which platform most of your target market can Jan-Feb-2019.pdf 1 1/17/19 10:19 AM
A properly executed social media marketing campaign can have remarkably effective results and provide a solid branding foundation for future promotion to build upon. C
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While these statistics may be astonishing, they don’t even take into consideration the smaller players with more tightly focused user demographics. No matter how you look at it, there’s a massive market full of untapped potential out there. So, if you're not already in the game, what are you waiting for? Word of mouth is a key factor in any social marketing campaign. You must leverage the ability of users to share content and spread a carefully crafted message. Done well, this can provide huge benefits and wide brand exposure for relatively little cost. Careful planning is essential. If you've decided CY
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be found on, and devote your resources to a tightly focused campaign that plays to that platform's strengths. Wider campaigns targeting other platforms can come later, once the social marketing concept has proved its worth.
Develop material in advance
Playing the social game requires commitment, the ability to adapt quickly and a clear vision of the end you’re working toward.
Unlike a one-shot advertising campaign, social media marketing requires a long-term outlook. It's essential to have plenty of content in reserve so that you're never short of material. If your campaign loses momentum because the content well has run dry, any results gained during your first flush of enthusiasm can easily be lost, and bringing a dormant account back to life can be even more difficult than starting afresh.
Measure your results The success of social media marketing is by nature harder to measure than that of other, more direct types of promotion. Concepts such as brand visibility, authority, and reputation are rather
nebulous, but this doesn't mean you should conduct your campaigns in the dark. While the ultimate goal will probably be to improve your business's bottom line, you need to establish ways of measuring results along the way. To start with, choose as many metrics to monitor as you can think of—followers, shares, likes, referrals or raw traffic numbers. Over time, you can refine your measurements as you begin to determine which metrics correlate most closely with profit.
Plan to win the game A properly executed social media marketing campaign can have remarkably effective results and provide a solid branding foundation for future promotion to build upon. However, a half-baked strategy can easily prove worse than no activity at all. Make sure you enter into the game with a clear plan of action, and you'll be halfway toward success right from the start.
Dalana Morse is the founder of DAM Media and Design, a boutique design and digital marketing firm located in Fort Worth, Texas. Dalana is a seasoned professional with a diverse background in marketing, web and media design, digital and social media marketing, and search engine optimization. Having served in marketing leadership roles for close to a decade, her experience spans both B2B and B2C industries including multifamily and single family real estate, electrical and utility technologies, and visual branding agencies. For more information, visit dalanamorse.com or dammediaanddesign.com
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CIRCLE NO. 62
