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March 20, 2007

Beer Brewers Pursue the 'Brand Experience'

Analysis of: Heineken Hopes Branding Will Fly At Airport Bars | www.beverageworld.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Ed Heethuis, Director of Information Based SellingEd Heethuis
Director of Information Based Selling, Straub Distributing Company, Ltd.
Implications: Brewers, increasingly searching for opportunities to expand consumer interaction beyond the 30 second television commercial are turning to various levels of 'brand experiences'. The 'Heineken Bar' in Hong Kong's International Airport is an extension of the 'Heineken Experience' in the brewers home of Amsterdam. With the airport locale, the brand seeks to increase awareness, acquire consumer loyalty, and raise their image above that of their global competition.



Analysis:
Brewers Love Airports...

...and why wouldn't they? Beer has always ranked near the top of favorite beverages and the ability to create a 'closed concession' gives them an opportunity to educate travelers. Popular topics include the quality message, new product introduction, and the history of the organization. Samuel Adams began building 'Brewhouses' in US airports in the mid-1990's.


Difficulties in the U.S.

Creating 'the experience' is more difficult in the United States than in other parts of the world because of the three-tier system of distribution. Brewers find it difficult to create 'tied-houses' with retail partners due in part to post-prohibition laws which prohibit the negotiation of 'pouring rights'. In addition, Retailers are hesitant to 'lock themselves in' to one brewer, fearing lost sales from consumers loyal to other brands.


Working Together...

...the brewers of the world are fending off the encroachment of Wine and Spirits. By enhancing the consumer experience and increasingly educating the public, brewers will find the image of their product rising...along with sales of their products.


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