"For years draft beer was more about inexpensive beers served in
plastic pitchers. It was more about a volume play for consumers,"
said Kheri Tillman, Heineken USA's VP-trade marketing and sales
strategy. "But through the influence and dramatic increase and
availability and quality of craft beers, [it's] really driven draft
and made draft synonymous with quality."
Heineken USA, the nation's No. 2 beer importer, is much too
large to be considered craft, but competes in the same premium beer
arena.
Today, roughly 30% of all upscale beer brand sales are
"on-premise," such as bars and restaurants, according to Heineken
USA. And bars are key because that is where 60% of consumers say
they try new beers -- purchases that often drive them to buy the
same brand at the store. On-premise sales are about 20% of Heineken
USA's business, which includes brands such as Dos Equis, Tecate and
Amstel Light. For the Heineken brand, a majority of on-premise
sales are in bottles. By contrast, Anheuser-Busch InBev's Stella
Artois gets 80% of its on-premise sales from draft, according to
Heineken USA. Draft sales are critical because tap handles often
take center stage at bars. "Bartenders typically recommend those
brands that are on draft," Ms. Tillman said.
The importer will spend more than $40 million on the on-premise
push, including 80 new staff positions to help manage on-site
accounts and emphasize draft. The ad campaign is still in
development but will feature glassware and target 25 big markets.
Executions will include billboard and bus stop displays, as well as
print ads in local publications such as Time Out NY and Improper
Bostonian. The more general brand-building campaign will position
the Heineken drinker as a "cool, confident man of the world," and
the brand will double the number of TV advertising weeks to 30.
The brand had $58 million in measured media spending last year.
All Heineken USA brands had $124 million in measured media spending
in 2010, according to Kantar Media.
The Heineken brand, whose modern era in the U.S. began in 1933
after prohibition was lifted, historically grew its business
on-premise -- but mostly through bottle sales. Starting about 15
years ago, the importer shifted its focus to the store, as it
sought to increase distribution. But the brand has struggled as of
late. Shipments dropped by 4.9% in 2010, as its share of the import
market fell from 17% to 15.5%, according to Beer Marketer's
Insights. Competitor Corona Extra, the top import, managed to eke
out a slight gain of 0.1%, although its market share dropped from
27.7% to 26.4%, a slower decline than Heineken, the No. 2 import
brand.
Heineken's draft effort was recently unveiled to distributors at
a meeting in Las Vegas, as part of the importer's larger growth
strategy. This year's push will focus in part on the "celebration
of beer," which seeks to tap into growing consumer interest in
ingredients and craftsmanship, which again seems to be a nod to the
growing influence of craft beers.
Here's a quick look at plans for other key brands:
The importer is expanding its target audience for Tecate, which
had long been positioned for first-generation, blue-collar
Hispanics with advertising that emphasized perseverance of Mexican
immigrants. The new ads, by roster agency Kirshenbaum Bond Senecal
& Partners' shop Ramona, go after more acculturated Hispanics
using humor. Tecate, whose shipments fell 10% in 2010, will also
test English-language ads. Tecate can no longer concentrate only on
foreign-born drinkers because their proportion of the Hispanic
population is expected to shrink in coming years, officials
said.
Amstel Light is ditching the "Dam Good Bier" tagline, reviving
"The Beer Drinker's Light Bier," which last ran in 2004. The move
is meant to position the brew as a light beer that "tastes like a
full strength beer." The brand's agency is Richards Group in
Dallas.
Heineken Premium Light, which has struggled (shipments were down
8.1% in 2010, according to Beer Marketer's Insights), will get a
new campaign this summer, replacing "See the Light," but the
importer has yet to settle on new creative from Euro RSCG.
Newcastle Brown Ale, whose store sales were up 3.52% in the year
ended Feb. 20, according to SymphonyIRI, will get its first TV
campaign under Heineken USA, which acquired the brand in 2008. Ads
airing in 12 markets encourage drinkers to "taste the lighter side
of dark" and build off a digital effort last year that included one
spot in which parents tell their son he is not their favorite but
they please him nonetheless by giving him Newcastle. The brand's
agency is San Diego-based Vitro.
It's full-speed ahead on Dos Equis' Most Interesting Man in the
World effort, which has made the beer one of the hottest-selling
imports, with shipments up 17.6% in 2010. The brand will seek to
capitalize on growth by expanding distribution beyond Mexican
restaurants to chains such as Buffalo Wild Wings and TGI Fridays.
Euro RSCG is also Dos Equis's agency.