SEPTEMBER/OCTOBER 2019
The Voice of Craft Brands
The Engineering Crafters PLUS: Out on the streets Digitalize like this
The art and science of creating paper structures that save the planet
contents
VOL. 3 : ISSUE 5
SEPT/OCT
6
THE ENGINEERING CRAFTERS The art and science of creating paper structures that save the planet
IN EVERY ISSUE: 3 EDITOR’S NOTE A water shed moment
14
4 INSIGHTS Industry News
16 2
CRAFT BRAND AND MARKETING
SEPTEMBER/OCTOBER 2019
CBAM-MAG.COM
OUT ON THE STREETS 3 tips for getting in front of local customers
DIGITALIZE LIKE THIS 3 core rules for your email marketing
editor’s note
A water shed moment
W
What happens when one of the very things you depend on for your livelihood is comprised? It is the question that a group of 60 craft breweries are asking the U.S. Supreme Court to help decide. In a case filed against Maui County in Hawaii, the brewers asked the court to uphold the very tenets of the Clean Water Act, arguing that if the county convinces the court its Lahaina Wastewater Reclamation Facility does not need a federal permit to indirectly discharge treated sewage to the ocean via groundwater, the precedent will further pollute countless facilities nationwide. The end result: Bad water will eventually impact companies brewing beer. The case, which was filed back in 2012, squares up environmental groups and county government, including craft brewers and business groups nowhere near the Hawaii court battle. Brewers of craft beer understand that the quality and consistency of the water in their products is critical to the taste. How? According to a story on CNBC, too many sulfates in beer make it taste acidic. Too much chlorine and the beer will taste like aspirin. The stone cold truth is that bacteria can spoil a whole batch of craft beer. Any small change in the water can alter the beer’s foam pattern and shelf life. So, as the battle rages on, the questions becomes what’s a craft brewer to do, other than fight? Depending on where your craft beer is made, different water types produce different tastes for local beers. Polluted water is nonnegotiable. If you start filtering your beer with salts and other minerals, the whole aura of craft beer is no more. Maybe it is time to jump into the game. Maybe it is time to start marketing what the the impact of polluted water will have on your beer and, more importantly, the communities you serve. And while we want our beer and brand stand for the good, fun and laid back parts of the daily grind, there is no better time than now to stand up and let your voice be heard. If not, tomorrow might be too late.
Michael J. Pallerino
Maybe it is time to start marketing what the the impact of polluted water will have on your beer and, more importantly, the communities you serve.
CRAFT BRAND AND MARKETING
3
insights
The road ahead
Introducing Hockey Beer Yeah, it really is a thing...
Survey outlines challenges ahead for today’s small businesses Ask any craft beer brewer and they will tell you that running a small business has its share of ups and downs. But what do we all really want. Independence. Creative freedom. Being your own boss. According to Salesforce’s “Third Edition Small & Medium Business Trends Report,” 78% of small business owners are optimistic about the future of their business. As we head into 2020, here is a look at what challenges small business leaders anticipate for growth over the next two years: • Maintaining financial growth — 68% • Meeting customer experience expectations — 58% • Hiring and retaining employees — 55% • Establishing/maintaining processes — 52% • Scaling technology — 50%
Okay hockey fans, line up and get ready. Kachina Throwback Ale is the hockey-inspired beer you have been waiting for. Thanks to the Arizona Coyotes and Grand Canyon Brewing Company (the official craft beer partner of the local NHL team), you can take your love of hockey and beer to a new level. The 12-ounce cans, complete with the classic Kachina figure from the Coyotes jerseys of yesteryear, are available as six-packs at a number of local restaurants and stores (and, of course, at the rink). For more information, check out the the Grand Canyon Brewery (www.grandcanyonbrewery.com) or Coyotes (www.nhl.com/coyotes) sites.
“ It’s been 40 years. It didn’t happen overnight. But it’s been quite a story to see the industry change. There were maybe 44 breweries in the U.S. when I started.” — Ken Grossman, founder of Sierra Nevada Brewing Company, reflecting on the brand during its anniversary celebration
Book Rec
The ONE Thing: The Surprisingly Simple Truth Behind Extraordinary Results By Gary Keller That one thing. What is it and how do you make it work for you? In their book, “The ONE Thing: The Surprisingly Simple Truth Behind Extraordinary Results,” Gary Keller and Jay Papasan show how by focusing their energy on one thing at a time, people can live more rewarding lives and build the careers they want. The book teaches you how to cut through the clutter and achieve better results in less time, build momentum toward your goal, dial down the stress, overcome that overwhelmed feeling, revive your energy, stay on track and master what matters to you. It is book every business leader and marketer should read today.
4
CRAFT BRAND AND MARKETING
SEPTEMBER/OCTOBER 2019
CBAM-MAG.COM
Puzzled about how to build your business? You’re experts in your business. You want to grow. Whether you’re going in new directions, ready for expansion or just keeping your name “out there,” we’ll solve your marketing challenges with a strategic program tailored to your specifications. With over 30 years of major market experience and close ties to the building and design community, we’ll help you develop a clear, big picture. And ultimately, bolster your sales.
been working with Communicators for the last three years. “ We’ve The results have been absolutely remarkable. I would recommend this firm to anyone! ”
– Scott Banda, Director of Marketing & Business Development, Bostik
MARKETING COMMUNICATIONS www.communicatorsintl.com | info@communicatorsintl.com
The Engineering Crafters The art and science of creating paper structures that save the planet By Eric Balinski
Throughout history, people have marveled at magnificent man-made structures, from the ancient pyramids, to the Roman aqueducts, the Eiffel Tower, the Brooklyn Bridge, the Dubai’s Palm Islands, the Hoover Dam and New York’s Freedom Tower. Looking at these structures begs the question: “How did they make that?” Few would suggest the 2,000 year old art of papermaking would draw such awe. Even though its inventor, Cai Lun, was deified as the god of papermakers in the Han Dynasty, creating papermaking as we know it by combining natural materials like tree bark to make a pulp mixture with fibers pressed into paper. But papermaking is entering a new realm of sophisticated engineering, driven by the technology wizards at Footprint. Its development efforts create engineered paper by formulating fibers, additives and manufacturing to achieve specific paper structures for consumer packaging that is replacing single use plastics.
6
CRAFT BRAND AND MARKETING
SEPTEMBER/OCTOBER 2019
Footprint is leading the way with disruptive technologies across a wide range of industries too. Its ability to deliver game-changing solutions for its customers is based on the work performed by Footprint’s technology innovation team. Led by Yoke Chung, co-founder and Chief Technology Officer, this team is made of up Ph.Ds., chemists, material scientists, mechanical and process engineers, and designers, all working together to build the formulations, equipment and process controls necessary for Footprint’s success. As a measurement of their success, the team has enabled 1,124 global inventions to be patented
CBAM-MAG.COM
What trends are defining the space? People want to buy sustainable products. Consumers pressuring brands to do better by eliminating plastic from their packaging is the defining trend of 2019. You are seeing the results of this as the EU and now Canada have announced significant bans on all single use plastics. There is also some compelling consumer research that proves consumers are not going to allow plastic to exist when there are viable alternatives. The move to eliminate these plastics is coming from rising consumer awareness about how plastic is affecting our environments in the form of pollution, but also how plastics are causing detrimental impacts to our food chain and human health.
Plastic in general are getting negative stories about their environmental impact. What specific environmental issue does Footprint address or solve? or that are in process of being patented. The team’s success in creating and bringing to market the technologies of the future has been unmatched in the industry. Craft Brand and Marketing Magazine spoke with Footprint’s SVP Marketing, Jeff Basset, to learn more about their engineering crafters that will make the world’s environment better.
Give us a snapshot of the current environmental/green product market(s). Today’s green product market, especially in packaging, is focused on the easily implemented items such as picnic and to-go containers. The reason the segment is focused in these areas is because of the low technical requirements necessary to deliver product performance. At Footprint, we refer to these solutions as “low hanging fruit.” These are the easy items to replace and have been in the market in one form or another for some time (think back to picnics as a kid using the thin paper plates). But these items, while great at picnics, are not the items that large consumer brands are being asked to change. Footprint tackles the elimination of plastic from products and packaging in market segments were paper based packaging has typically never been used. From frozen food, to shelf stable cups, and even six-pack rings. Footprint is focused on helping brands solve real world demands from their consumers to eliminate plastic.
Footprint solutions address a wide range of negative environmental impacts, first and foremost
Footprint’s technology innovation team members are: Yoke Chung, Chief Technology Officer Brandon Moore, SVP Design & Tooling Engineering Mike Lembeck, Director Tooling Engineering Kent Warner, VP, Product Management Jean Pelkey, VP, Product Management Steve Lucero, VP Equipment Development Engineering Todd Biggs, Director Process Development Engineering Winnie Luong, Senior Process Engineer Rick Gonzalez, VP Materials Science & Engineering Yiyun Zhang, Director Materials Development Engineering Austin Gann, Lab Manager Timsy Shukla, Materials Engineering Matt Wang, Materials Engineering Megan Dieu, Materials Engineering
CRAFT BRAND AND MARKETING
7
Footprint
is the elimination of plastic. By eliminating plastic at the source, Footprint is putting a stop to the influx of waste plastic into the ocean which is killing more than 1.1 million sea birds and marine animals each year. Footprint solutions are biodegradable, compostable and recyclable, which offers brands and municipalities several options for how to handle the end of life of a Footprint product. Having multiple end-of-life options is a critical benefit for municipalities as waste infrastructure varies greatly. Flexibility to fit into the waste infrastructure on a national, regional and local level means that our solutions can immediately help address environmental impacts due to plastic waste.
Your website says Footprint is “reinventing sustainable packaging.” What does this mean? Footprint is taking sustainable packaging into the future, essentially reinventing where and how paper-based packaging can be used. As a powerful example, we’ve eliminated the need for plastic sixring beverage packaging with our new molded-fiber alternative. More importantly, as an innovation technology company and as a manufacturer, Footprint is developing solutions to be consistent with current pricing models of materials and components that brands buy today. It is disproving the long-standing belief that sustainable packaging has to be more expensive.
8
CRAFT BRAND AND MARKETING
SEPTEMBER/OCTOBER 2019
At the heart of reinventing sustain packaging is Footprint’s technology innovation team, which ultimately makes Footprint products work and make a difference to improving our customers businesses. Without this team pioneering the technologies, and then refining the technologies to make sense at mass scale, Footprint would not be where it is today. These are the unsung heroes that are fulfilling Footprint’s vision of eliminating plastic. Our technology innovation team that is creating the solutions to make future grocery stores free of single use plastics.
Most plastics are chemical compounds originating from petroleum. Footprint uses fibers as the basis of its product. What is the fibers source from? Footprint use a range of fibers to produce our products, the majority of which comes from recycled sources. Paper is the number one recycled material in the U.S. (roughly 85% recycling rate), using recycled fibers is an easy win. Footprint has even built closed loop supply chains that take a customer’s waste fibers, such as corrugate boxes, from their factories and turned it back into their packaging. The best part of using fiber sources is their renewability and availability. Unlike petroleum-based plastics which rely on fossil fuels or even bio-based plastics that use food crops as their inputs.
CBAM-MAG.COM
CIRCLE NO. 66
Footprint
Tell us how Footprint products are more sustainable and beneficial than other consumer package options? Simply put, Footprint solutions are more sustainable due to the renewable nature of their raw materials, the ability to use high percentages of recycled paper content (up to 70%) and most importantly, their non-detrimental impact at the end of life stage. Because our products are paper based, they are generally recognized as recyclable, compostable in industrial composting facilities and if they leak out into the environment, they behave just like any other paper type product (they bio-degrade and quickly break apart). I don’t know about you, but I’ve never heard of a whale that died from swallowing too much paper, or a bird that mistook paper for food and subsequently died. These situations with animals, which have become all too common with plastics, simply don’t happen with fiber-based products. July-Aug-2019.pdf
1
7/17/19
12:46 PM
Is there any environmental impact associated with generating or using these fibers? There are environmental impacts associated with all materials. The best advantage of using fibers vs plastic and petroleum-based solutions, is the renewability of the fiber sources. More plants, more trees, more agricultural by-products are available every year and the fiber sources used to create papers or footprint products are largely bi-products of other industries. For example, trees are cut down for lumber for buildings and furniture. The left-over bits are used for making paper. The world has a finite amount of petroleum, and while the debate rages as to when it will run out, the real fact is that it will run out. Fiber sources can be regrown.
C
M
Y
CM
What are the unique benefits for companies who use Footprint products?
MY
CY
Footprint products can be disposed of in any bin—which eliminates confusion for the consumer. Other benefits fall into two primary categories— and are benefits we pass on to consumer brands, the first is consumer recognition. The second is product performance. The No. 1 way that consumers evaluate a companies’ sustainability position is through their packaging. Consumers immediately and intuitively understand the sustainable characteristics, such as recyclable, compostable and biodegradability, of paper-based packaging. This is vastly different from
CMY
K
CIRCLE NO. 67
10
CRAFT BRAND AND MARKETING
SEPTEMBER/OCTOBER 2019
CBAM-MAG.COM
» CCRS 2020 SPONSOR
CIRCLE NO. 68
Footprint
other packaging solutions that are not immediately recognized by customers. Examples from the plastic industry, such as light-weighting plastics, (where plastic solutions are made with less plastic) or alternative plastics such as recycled plastics and bioplastics are not noticeable to consumers and can even harm the brand in terms of lower quality perception. The methods used to make plastics “more sustainable” have no immediately discernible differences from regular plastics. The second way that companies’ benefit is in the packaging performance. Footprint products are engineered to protect the product just as well, and in some cases, even better than plastic. Take our fiber six-pack rings. Our rings pass the same test standards as plastic rings, including jolt testing in high-humidity environments.
What are the benefits for end-use consumers? Consumers want to do the right thing. They want to feel good when they walk away from a typical landfill/recycle/compost bin. But the consumer rarely feels like they get this decision correct. To compound the problem, municipalities are starting to abandon recycling and are taking the recyclables that consumers separate and sending them straight to a landfill. With Footprint products, consumers can feel confident that even if they get it “wrong” they are doing better by having used a fiber product rather than
12
CRAFT BRAND AND MARKETING
SEPTEMBER/OCTOBER 2019
a plastic product. Footprint solutions have advantages over plastic no matter which bin they go in.
Compared to other bio-degradable single use products, what makes Footprint a superior? Footprint products are superior because they work. Our ability to engineer precise performance standards with a fiber product is unmatched in the industry. From frozen foods, to fiber meat trays, to fiber six-pack rings, our technologies meet customers’ needs, and in some cases, outperform the performance plastic based solutions. Footprint’s product performance paired with our “Any Bin, You Win” material makes our products a formidable force that is driving key market segments to switch to Footprint Fiber.
What’s the biggest issue today related to the marketing/sales side of green products today? Performance and price. Footprint demonstrates that matching the performance requirements of our partners is achievable, but often, the initial perception of what fiber products can do is negative. Footprint is clearly reversing that initial perception but it is still an issue that needs to be overcome. A great example of this is seen in the paper straw market. When the big conversion to paper straws occurred, an influx of substandard straws from other suppliers and countries flooded the market. Now we see a lack of consumer confidence in the category. This has driven several brands to reach out to Footprint to solve the performance issues they are experiencing with other paper straws, which of course is Footprint’s area of expertise; matching sustainable solutions to customers performance requirements. We believe that a paper straw should outlast your longest party. This means that our straws are engineered to last through multiple drinks and not fall apart in milkshakes and such. Footprint’s paper straws vastly outperform other paper straws by lasting a full 24 hours or more and are, in essence,
CBAM-MAG.COM
What do you see as some of your biggest opportunities moving ahead?
coming to the rescue of the paper straw segment. Pricing is another issue with marketing green products. Green products have to compete vs. their plastic counterparts on what is essentially an uneven cost playing field. Don’t get me wrong, Footprint is still winning the game, but it does create an uphill battle. The plastic industry has had a 20-50-year head start on green products in general. Essentially, we are a new technology, while plastics have had decades to automate and improve their manufacturing process to lower costs. Footprint solutions see the same cost reduction curves that the emerging plastic industry experienced decades ago. Give Footprint three years and we see a roadmap to being less expensive than our plastic counterparts. The other thing that the plastic industry has done very well is to externalize their costs. This gives the perception that the products are inexpensive, but the truth is, that the consumers pay for the externalized costs of plastics. From cleaning plastics out of our oceans and off our streets, to the recycling infrastructure, all of these costs are paid for by us, the consumer, not the plastic manufacturers. In essence, it gets to flood the market with low value waste, that consumers have to foot the bill to pick up. Unlike the paper fiber industry where recycled fiber is valuable which is demonstrated by the high recycling rates.
Our biggest near-term opportunity is launching the Footprint paper cup. Footprint was recently named a winner of the “Nextgen Cup Challenge” for our ability to eliminate plastic liners from typical paper cups. This challenge was a global innovation challenge that received close to 500 entries from 26 countries to solve the problem of plastic liners that are used in paper cups. Beyond our fiber drinking cups, Footprint is also expanding into products that are disposable, such as disposable razors, hotel room keys and even diapers. While Cai Lun was deified as the god for his invention of papermaking, perhaps one day Footprint’s technology innovation team may be recognized for their role in transforming the landscapes and seascapes littered with single used plastics back to their natural beauty. Surely, if nothing else, traditional papermaking will forever be changed by the know-how being developed at Footprint to engineer paper beyond what most people can imagine paper can do.
Eric Balinski is the owner of Synection, LLC, which is a strategy and growth consultancy firm. For more information, visit: synection.com.
CRAFT BRAND AND MARKETING
13
marketing
By Kevin Groome
Out on the streets 3 tips for getting in front of local customers
If you are looking to expand the reach of your taprooms and get your local community involved in the excitement, there are ways to get it done. Following are three tips that we have found core to this strategy. Let us know how they work.
No. 1 — Make the most of what you have Take time to locate and use the resources the master brand supplies. Sometimes, this will be as simple as a DropBox or a Facebook page where you can find brand-supplied photos and other marketing resources. In other cases, you may have access to a password-protected local marketing automation system that allows you to produce polished, professional marketing materials in a matter of minutes, and absolutely free. Take a moment to talk to your contact at the brand or brands you work with to make sure you're taking full advantage of all the resources on offer.
No. 2 — Be obsessed about brand consistency Independent small businesses should focus hard on creating a strong brand identity—and then stick to it in everything you do. Remember that every communication (a sign, a counter-card, an email) will either add to or detract from brand equity, and resist the temptation to modify your brand look and feel. Use the same typeface in everything you do. Define a small color-palette, and stick to it. Your creative does not have to be earth-shattering or award-winning (although that is always nice). But it absolutely has to help you keep making
With your social media presence as a foundation, begin to encourage your customers to review your products in appropriate review sites.
14
CRAFT BRAND AND MARKETING
SEPTEMBER/OCTOBER 2019
CBAM-MAG.COM
"deposits" in your brand "bank" rather than withdrawals from it.
No. 3 — If you are buying paid advertising space, remember that frequency is more important than reach It is better to reach a smaller audience with more repetitions of your message than to stretch to reach a larger audience once and then pray for luck. If you are working with a local ad salesperson ask her for advice about the right frequency for the medium she is selling—and if she stares at you blankly, politely excuse yourself from the conversation. To get the best geography, gather as much data about your customers in store as you can, and then share that with your sales rep. What can they do online and off to gain awareness with their target audience?
With your social media presence as a foundation, begin to encourage your customers to review your products in appropriate review sites (Yext, Yelp, and many, many others). Remember that customers believe each other a lot more than they believe a customer's advertisements. But do not make the mistake of trying to "pay" your customers to write nice reviews. People are getting more and more sensitive to those kinds of shenanigans than ever. And if you get a bad review, reach out—in public—and do what it takes to make things right. You will be pleasantly surprised how much people are rooting for an honest, hard-working entrepreneur.
Smart local marketers are beginning to use a rich set of social media channels to build relationships with their customers.
Online — Smart local marketers are beginning to use a rich set of social media channels to build relationships with their customers. If you are new to the social media game, pick no less than three and no more than five social media platforms, and then make yourself and you are a regular presence multiple times per day. Do not just throw advertising messages at people. Be an authentic and helpful member of the community. If you're a financial advisor, offer perspectives on the economy. If you are a restauranteur look for opportunities where you and your team can help give back to the community through food banks or drives. Be a champion for the values that you think set your business apart (service? hospitality? prudent planning? devotion to quality?) and try to embody those values in the way you post info, and comment on the content of others. Every so often, make an offer to the folks who are following you, and let them know that this is something available only to them.
Offline — This is just a little tip, but I think it's one that often works. Combine an offline advertising tactic (say, direct mail), with an online social media tool (say, Facebook). Make a compelling offer in direct mail and drive traffic to your Facebook page—where the offer can be activated or fulfilled. This works really well with customer referral programs, where both the referring customer and the new customer can earn a discount or reward. Another great pairing of offline and online is outdoor (think, billboards) and social media or text. Again, use the offline tool to drive people to your online presence, where a specific reward or discount can be granted. This helps you to combine the broad visibility required for brand awareness, with a level of accountability usually seen only with direct mail or email campaigns.
Kevin Groome, founder of CampaignDrive by Pica9, is a serial entrepreneur, award-winning creative director and enterprise software architect whose work in marketing and technology has benefited some of the best-known brands in the world.
CRAFT BRAND AND MARKETING
15
social media
By Dalana Morse
Digitalize like this 3 core rules for your email marketing
16
CRAFT BRAND AND MARKETING
SEPTEMBER/OCTOBER 2019
CBAM-MAG.COM
Most businesses will need to use a variety of techniques in their digital marketing efforts. This can include blog posts and strategies for various social media. But email marketing is also important for many businesses. Here are some tips for getting the best results:
1. Professionalism is critical If you are reaching out to a customer or client for the first time, make the best first impression possible. Brands often forget how critical this is with digital communication yet would not make the same mistake in face to face meetings with clients. Before you send your first email, consider how it will come across if you are the prospective client or customer. Getting the basics right is critical, and it is common to see emails where the sender is not named individual, or there is no company website mentioned. Ensure you have a registered email attached to your domain name and make sure there is information on your company and its background.
2. Personalize your message
focused about them and their needs may work a lot better than a longer message.
3. Pay attention to subject lines and signatures You want to grab the attention of your target in the subject line. Remember your first goal is to ensure the recipient opens your email. Much of determining the best subject line goes back to your research mentioned in the previous point.
You want to allow your target to find out more about your business and make it as easy as possible for them to respond to you directly from your email.
It is also incredibly common to receive emails that are clearly copied and pasted messages that are being sent to hundreds of others. You might pick up the odd client doing this, but it's not the way to make the right impression if you are truly interested in a particular client. You want a prospective client or customer to read your message thinking you have specifically addressed their needs, wants and desires. The best way to do this is to conduct research to identify what the needs of their business are and the services they may be in need of. Although there may be a bit of guesswork involved, if you can identify a specific problem they have, the chance of them being receptive to you is so much better. It is also fair to say that a simple short message
For example, if you have identified a need for a prospective client, then you can suggest you have the solution to their problem in the subject line. Your signature should identify who you are, and provide a link to your website or other contact information. Remember, you want to allow your target to find out more about your business and make it as easy as possible for them to respond to you directly from your email. There is certainly a lot that goes into digital marketing. Remember that professionalism is vital, personalize your message and pay attention to subject lines and signatures.
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
CRAFT BRAND AND MARKETING
17
