Muscling in on the action

With 30% growth in the last year, speciality beer is one of the biggest success stories for pubs. And, like the imported beer market, it is attracting interest from the industry heavyweights.

JO de MILLE reports

Six months ago, the large brewers had a negligible interest in the speciality and imported beer sector, but now the big boys really are swarming around the honey pot.

InBev has brought in both Artois Bock from Belgium and Brahma from Brazil, Coors has taken over distribution of Sol and Dos, while Miller Brands, which is owned by SAB Miller, has promised to throw its considerable weight behind the category since taking back the marketing and distribution rights of Peroni, Castle and Pilsner Urquell from Ubevco.

Back in the summer, there was a sense of wariness about the potential damage the larger brewers could do to the category - the smaller players worried that they would be pushed out of the market. However, some of those concerns seem to have been rather premature and the trade is now rightly acknowledging the positive role the big brewers can play in helping push the market forwards. Indeed, AC Nielsen figures show that the speciality beer market alone has grown 30% in volume and 37% in value in the last year.

Geoff Bradman is managing director of Hamana, which imports speciality beer brands such as Little Creatures Pale Ale and Tooheys from Australia, and Steinlager from New Zealand. He says: 'Having the big guys on board gives the sector significant credibility, and the increased investment and interest in speciality brands makes it even more exciting.

'As the market consolidates, there's a real opportunity for licensees. Consumers will increasingly be looking for something different. We have never been discriminated against because of our size, and I strongly believe there is room for all of us, including the smaller guys who have a valuable offering to the trade.'

What is important, Bradman maintains, is that suppliers continue to treat their products as niche brands - targeting the right places with the right beers. This will ensure that brands don't become ubiquitous - which would turn off both licensees, who are after a point of difference, and also the consumer, who wants to be seen drinking something unusual. It would also help to make sure beer is sold and presented properly, in the right glass and at the right temperature.

An access route for people

Coors director of marketing, premium brands, David Preston agrees: 'Someone has to open an access route for people, and let's face it, a big brewer has the means to do that more easily.'

Clearly, it is going to be easier for a brand with a big company behind it as opposed to an independent brewer importing a small brand from Afghanistan. However, Preston is also aware that the larger players must not be greedy and warns that suppliers can't expect any speciality beer brand to be too successful.

While the bigger players may be able to control the market to a certain extent, Preston believes it is just as easy now for the smaller players to get listings in pubs because 'pub groups, such as M&B, will buy from anyone these days, as long as they have a valid offering'.

But with an easier route to market, we can expect to see more beers jumping on the bandwagon. As Bradman says: 'Products such as Artois Bock and Brahma do open up the market for other suppliers, however this will also create a certain amount of churn.'

If the products fail to live up to a consumer's expectation in terms of taste or what the competition is offering, there could be a number of casualties along the way. Bradman explains. 'If there are three or four products from a certain country, some are likely to fall by the wayside. Similarly, 'me-toos' or 'second-ins' are going to have to work pretty hard to succeed. Why would a licensee want a range of beers from one country when he could have a selection from around the world?'

In the imported beer world, a brand's success ultimately boils down to authenticity. Consumers are prepared to pay extra for a premium product, so long as they are getting a genuine import. While consumers no longer seem to be bothered about who imports their beer (be it a large or small brewer), they are concerned that they are getting the real deal.

Weird and wacky brands

As Miller Brands marketing director Jean-Pierre van Lin points out: 'People aren't just after weird, wonderful and wacky brands, but genuine products that have been successful in their home markets - they are the ones that will sell over here.'

It is for these reasons that he believes his brands do well over here: Pilsner Urquell is the number-one premium lager in the Czech Republic, while Peroni is the top seller in Italy. He proudly recalls the history behind Pilsner Urquell, established in Pilsen in 1842 and, he claims, the first lager ever brewed.

According to van Lin, any lager that carries Pils in its name refers to the Pilsner Urquell method of brewing. In the same way, Adnams' marketing director Steve Curzon believes that the reason the brewer's Bitburger brand has grown by 74% in the UK market in the last four years is that it is the number one draught beer brand in Germany - it is a genuine import with a real sense of heritage behind it.

But both van Lin and Curzon argue that, in order to protect a brand and ensure that it continues to do well over here, they need to keep a watchful eye on the number and the type of outlets that stock it. As Curzon comments: 'We have to be highly selective as to where the product is placed. We want to grow, but we don't want to be everywhere - we certainly wouldn't want to flood areas with the beer. It is a 'destination' brand that people should travel to find.

'The beer isn't for everyone, so there's no point in picking up the promiscuous consumer who doesn't appreciate the quality along the way.'

Bitburger's new press campaign, which was launched last month, also aims to exclude particular drinkers by featuring cultural icons from around the world, such as London's Portobello Road sign. The strapline 'Bit. Not everyone will get it' refers to the fact that only small bits of the icons are shown, so some people won't recognise them, in the same way that not everyone will understand the appeal of the beer.

Another example of a speciality beer ad that aims to make consumers think is the Budvar '10 commandments' press campaign - a tongue-in-cheek ad that includes commandments such as 'Thou shalt remember that a good lager takes time', referring to the fact that Budvar takes signifi- cantly longer to mature than other beers.

Delivering the best possible beer

While the ad doesn't specifically mention that it is matured for 90 days, Budweiser Budvar sales and marketing director Neville Hall explains: 'We would definitely use the 90-day maturation process with our future ad campaigns - it's something we could roll out next year. Whereas other Czech beers have reduced their maturation periods significantly, our primary concern is to deliver the best possible beer, which we believe requires the 90-day maturation process.'

Although imported beer brands are no strangers to advertising, in the speciality sector it wasn't until Leffe's 2004 summer campaign that suppliers really explored the option of marketing. Scottish & Newcastle followed suit this year with a summer press campaign for Kronenbourg Blanc, part of a £5m marketing spend on the brand. The ad appeared in weekend supplements and women's magazines and showed an albino zebra at the centre of a herd with the strapline 'Turn to White'.

Today, the general consensus is that marketing is fine so long as it targets a very niche consumer base, taking a similar approach to the one that suppliers take with listings. Bearing in mind that most speciality and imported beer drinkers are well educated and cultured, challenging those consumers in some way is also seen as a good way of drawing them in and driving brand awareness in a subtle way.

Although TV advertising is sti