So proclaimed Beer Marketers Insights this week, announcing that Founders Brewing in Grand Rapids, Michigan had joined the ranks of the top-ten craft beers in America... with a bang!
Founders has been posting double-digit growth numbers for some time, and this year it recorded the largest volume gain of any craft brewery. The vast majority of this remarkable growth arose from a single offering: All Day IPA Session Ale.
Founders has been posting double-digit growth numbers for some time, and this year it recorded the largest volume gain of any craft brewery. The vast majority of this remarkable growth arose from a single offering: All Day IPA Session Ale.
The envy of every craft brewery
No doubt, as the BMI article mentioned, some of this achievement was the result of Founders innovative move to bring the brand to market in 15-packs, with pricing at or slightly below many craft brands' 12-packs. Similarly, the infusion of capital from Founders sale of 30% of its equity to the Spanish brewing giant, Mahou-San Miguel Group, played a role, too. But while both may have helped, there's a far more consequential reason for All Day's success. Indeed, without this marketing idea, no amount of pricing cleverness or capital-raising would've mattered.
"Been done before" isn't always a bad thing Founders All Day enjoyed a sine qua non (without this, nothing) marketing advantage from its inception. We said as much when we featured the brand and made our prediction nearly five years ago. How could we be so confident? Easy. The session IPA product idea arose from a category need that existed long before Founders was... um, founded. That need--to be able to consume more beer without losing one's edge--had been the powerhouse marketing idea behind highly successful brands like Schaefer's ("The one beer to have when you're having more than one") and Coors Light ("No slowin' down with the Silver Bullet.") Bringing this "extended-consumption benefit" to craft beer was arguably an even more powerful notion since most craft brands were high alcohol and heavy-tasting, two features that compromise the multiple-beer experience. This strategic opportunity was there for any craft brewery to grab, but only Founders was sharp enough to take full advantage of it.
To be sure, the Founders folks created a wonderful beer with lower alcohol levels (4.7% ABV) to deliver on the session-ale promise. Its slight hint of grapefruit flavor even suggests the summer peak selling season vibe. We would never minimize the role of product quality in a brand's success. That said, there are way more quality products out there than there are brands posting Founders kind of success. The difference? Founders identified and delivered on a key, proven benefit others had simply abandoned. And their "All Day" brand name registered product distinctiveness beautifully. When we spotted their insight and their execution, we were confident enough they had a winner to conclude our 2013 article with "Bet on it."
Yes, we're patting ourselves on the back here. But more important, we're patting Founders on the back for a classic marketing success that has rocked the craft beer category.
To be sure, the Founders folks created a wonderful beer with lower alcohol levels (4.7% ABV) to deliver on the session-ale promise. Its slight hint of grapefruit flavor even suggests the summer peak selling season vibe. We would never minimize the role of product quality in a brand's success. That said, there are way more quality products out there than there are brands posting Founders kind of success. The difference? Founders identified and delivered on a key, proven benefit others had simply abandoned. And their "All Day" brand name registered product distinctiveness beautifully. When we spotted their insight and their execution, we were confident enough they had a winner to conclude our 2013 article with "Bet on it."
Yes, we're patting ourselves on the back here. But more important, we're patting Founders on the back for a classic marketing success that has rocked the craft beer category.
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