7 minute read
Cracking craft
Craft continues to lead growth in the beer category but understanding the reasons why can lead to a more effective and profitable offer for retailers, as Charlie Whitting reports.
The Australian beer category has been evolving for decades, but the shift in focus has really picked up speed in recent years, with craft beer experiencing enormous and rapid growth across the country. The number of breweries is said to stand at around 600, up from around 500 last year, and each brewery is pushing boundaries with a range of new styles and interpretations that have captured the imagination of the beer drinking public.
With so many breweries creating so many beers, it can be difficult to know where to start, or indeed how to translate your craft credentials to customers. The growth in craft has been so fast, it has left many people struggling to keep up – just as New England IPAs are heralded as the next big thing, Brut IPAs start appearing on beer lists. So where should retailers start?
INDEPENDENT IMPORTANCE?
When it comes to craft beer, there are few fiercer debates than that around independence. The last few years have seen large, multinational brewing companies like CUB and Lion acquire or even launch smaller craft breweries and reactions have been mixed. Many have welcomed the increased distribution these acquisitions offer, bringing craft beer to a wider, more mainstream audience as a kind of gateway beer. But others see these acquisitions as a loss of identity, localness and authenticity – key pillars in the craft beer temple.
The Independent Brewers Association (IBA) launched a Seal of Independence last year, allowing customers to easily identify independently owned breweries. Brewers and drinkers alike have largely put their support behind the scheme, with results from Beer Cartel and GABS highlighting the popularity of independent beers. Stocking a blend of independent and other beers will give customers the opportunity to make a choice with their wallet.
“Remaining fiercely independent is one of our core values and we feel it is important to grow to help drinkers and community easily identify what beers are locally owned by independent Australian brewers,” says Jasmin Daly, Marketing Manager at Stone & Wood. “In the last quarter, major craft breweries’ sales only grew four per cent compared with 28 per cent growth in sales by indie breweries. This shows that as awareness grows of what it means to be independent and why it matters, drinkers are voting with their dollars.”
VARIETY AND EXPERIMENTATION
Craft beer is defined by its diversity – whether that’s in terms of where it’s made, the styles on offer or the ingredients that are used in the brewing process. This diversity offers retailers the opportunity to develop their beer range. They can stock beers from a greater variety of producers on their shelves or expand the beer styles on offer beyond lagers and pale ales. With this broader range, retailers can encourage customers to experiment and learn more about beer as a wider category.
“By offering a diverse range of craft, this supports the drinkers’ journey and reinforces the retailer’s commitment to providing their consumers with what they want,” says Daly. “Take on the feedback from your drinkers and then look to build a balanced offering that allows those who are wanting to dip their toes into craft beer a handful of approachable options that cross the spectrum, from malt-driven to hopfocused. From there, it should be about providing options for drinkers’ varying interests across IPAs, sours, dark beers and so on.”
With such a wide array of beers and brewers out there, it would be easy to get carried away with it all, stocking a host of outlandish and unusual beers at the expense of more mainstream brands and styles. But this would be an error. They certainly have their place, but the majority of people aren’t beer nerds, looking for the latest new beer from the most adventurous new brewery. Ultimately, even beer nerds still appreciate more mainstream styles. There is a reason why every brewery makes a pale ale and why more craft breweries are introducing session and summer ales. Consumers want interesting beers, but they still value drinkability, sessionability and approachability.
“There’s more interest as consumers grow their awareness and understanding, but more often than not people are looking for a beer that’s refreshing, approachable and great to drink on a warm day,” says Miles Hull, Head of Marketing at Good Drinks. “I think the more weird and wonderful beers will always remain a much smaller part of the market. Lower alcohol beers are certainly on the rise. People are very conscious of alcohol, health and also the impact of alcohol on our lives so we’re seeing a lot more craft breweries looking at lower alcohol beers.”
“Craft customers tend to be in two different camps,” says John Carmody, Managing Director of Liquor Legends. “Some craft drinkers shop slightly more mainstream and are just looking for a really high quality beer every time. Other craft drinkers are looking for the latest flavours and small batch brews. For the latter customer, they are informed and aware, so the local hero, sustainability and environmental elements all matter.”
THE LEARNING EXPERIENCE
With more than 600 breweries in Australia alone, each with a sizeable portfolio of beers, to have tasted every last one of them is a near impossibility. However, it is necessary to have at least tasted the beers you are stocking. Beer is a far broader and more varied category than it is often given credit for, with all the difference in the world between an Imperial Stout, a Raspberry Berliner Weisse and a West Coast IPA. And that can be a daunting prospect for staff members, let alone customers.
If your staff understand what makes these different styles different, then they can help to demystify them for uncertain customers and make purchases more likely. And if they have tasted individual beers, then they can further assist the more dedicated beer aficionados and help other customers along their own craft beer journey.
“Ensuring staff are knowledgeable about the beers they are selling will help interaction with customers and improve sales,” says Cam Pearce, Marketing and Innovation Director at Coopers Brewery. “Trial is also a great way to get staff engagement. With any new release beers, we aim to get staff to try the beers through sample cans, so they know what they are selling. We find this makes a big difference in inspiring staff of bottle shops as they are then able to talk about our beers confidently.”
As well as encouraging your staff to try the beers and engage with customers about tasting notes and styles, there is also a lot to be said for hosting themed events to further highlight your beer range. Of the alcoholic drinks out there, craft beer has surely been the one that has inspired more festivals and events than any other. The on-premise sector has taken full advantage of the growing interest in the category to connect with local communities by having local brewers take over their taps or host events centred around beer. There’s nothing stopping retailers hosting similar events themselves.
CARING FOR CRAFT
While there is much to be said for stocking interesting beers from local, independent breweries, what is more critical is that it tastes good. Retailers shouldn’t take it on faith that just because a beer is independently owned or brewed locally that it will good enough to sell regularly. Talk to suppliers, visit breweries and drink their beer.
“Go and enjoy a beer at your local craft brewery with your staff and try something you wouldn’t normally drink,” says Jonny Bucknall, Head of Marketing at Modus Operandi. “Walk a mile in the shoes of the consumer. Tweaks can improve the overall experience and the passion is infectious.”
Of course, the quality of the beers on offer in your stores is not just dependent on the craft brewers themselves. Once a pallet of beer leaves the brewery then the duty of care rests with the distributors, drivers and you, the retailer. Regardless of how much care has been taken in the brewery, a perfect beer can be ruined by logistical mismanagement – slow or non-chilled transportation, non-refrigerated storage, poor stock rotation. Craft beers – especially the popular hoppy ones – can have considerably shorter lifespans than other styles, so getting beer to your customers in top condition is a significant challenge.
“Craft beer doesn’t have the luxury of big brand-building to influence perception, one bad experience and the consumer won’t purchase your beer again,” says Bucknall. “So quality is key. Freshness is a huge determining factor for taste, particularly for hop forward beers and so we make sure that we look after our beers and keep them fresh.”
With this in mind, it is critical to build relationships with suppliers and delivery drivers so that you know the beer will be arriving at your store in top condition. Then it is essential that beer goes straight from the truck into the fridges and remains in refrigerated conditions at all times. Beyond that, it is important to highlight the need for stock rotation with staff until it becomes a constant habit.
Ben Keen from Fish and Boat Magazine and Liquor Legends MD John Carmody (right) at the Stafford Tavern, Brisbane.
“It’s something as an industry we can work better with our logistics company and also with the retailers, but I think retailers understand and we know there are really good retailers out there that treat the beer with equal care that we do at the brewery,” says Hull. “I think that’s improving and that we need to continue to work with everybody in that supply chain.”
Craft beer is one of the trends of the moment and shows little sign of slowing down. With a devoted and knowledgeable following, as well as a growing number of casual fans and interested parties, it has become an essential part of any retailer’s portfolio.
