Subject: Digest for the period 5/6/2005 - 5/7/2005
Date: Sat, 07 May 2005 01:04:24 -0400

Table of contents
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  1. Stupidity and the American consumer... 


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From: bdb2  Date: Fri, 06 May 2005 09:26:06 -0400
Subject: Stupidity and the American consumer... 


Norman begs us to answer:
"Craft" beers, remember, represent only about 5% of the market.  95% of beer 
consumers can't be totally stupid,  can they? 

and of course, therein lies the rub...  Market share isn't a fair assessment 
of either consumers intelligence or the quality of the product.  (look at 
Windows...) It's actually more about market presence, advertising dollars 
and consumer education.  Take NASCAR...  It used to be regarded as the 
"redneck" sport that hicks in the South used to watch only for the crashes.  
These days some of the best brewers I know (who have good educations and 
managerial jobs) are avid NASCAR fans.  What changed?  NASCAR did.  It 
established a circuit instead of being all about Daytona.  It started 
marketing drivers and teams as personalities.  Suddenly tracks with luxury 
boxes, attached hotels and conference centers started popping up all across 
the country.
Give Anchor or Sierra Nevada Budweiser's annual advertising budget and see 
what happens.  Give them the economies of scale that SAB Miller or 
Molson-Coors has.  Suddenly that $6.99 six pack of Anchor Steam is $4.99 and 
it becomes competitive not just on taste and quality, but on price and 
visibility.
I've "ruined" many a Bud or Coors drinker on beer.  Give them a few 
homebrews or take them to a brewpub and suddenly they sing its praises as 
"the best beer I ever drank!"  Even so, they save purchases of "better beer" 
for special occasions, company, holidays, etc.  It's a luxury item.  So they 
aren't stupid, they're just price or status conscious. 

So.  When considering the market share of "craft beer," you should look to 
something like BMW, Mercedes or Cadillac (and their purchasers) as a guide.  
Bud, Miller and Coors are the GM, Ford and Chrysler of the industry, they 
dominate by making a serviceable product, at a low price with massive 
advertising.  When you get to the likes of Mercedes, Porsche and Ferrari, 
you're dealing with luxury, high performance brands that are targeted to the 
discerning, affluent and brand conscious consumer.  As Homebrewers, we're 
the ones who are playing "Monster Garage" and turning out exotics on a Chevy 
budget! 

 -BDB2 

Bev D. Blackwood II
Brewsletter Editor
The Foam Rangers
http://www.foamrangers.com
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