2. CRAFT BEER MARKETING & DISTRIBUTION –
BRACE FOR SKUMEGGEDON
By Mark Colburn
Shinerunner Publishing, Walnut Creek, California, USA Copyright Pending 2015
4. Praise for Craft Beer Marketing & Distribution
Mark and has spent many years in the Bay Area marketing and
distributing some of America’s leading craft beers. He is passionate and
thoughtful about craft beer.
Jim Koch – Chairman, Boston Beer Company
Mark Colburn has developed into an inquisitive thinker and marketer
of beer. He is continually searching for creative ways and distinctive
methods to develop beer brands. He has become a student of the
beer industry over the past decade and constantly uses his marketing
background and focus to trumpet the KDA’s of beer brands. Check out
his new book to expand your knowledge of the beer industry and learn
new ways to see how brands are built!
Bob Stahl – Former President of DBI Beverage and
Golden Brands Distributing
With the craft beer market experiencing phenomenal growth, Mark
Colburn has been integral in educating Walgreens team members about
the many details of this category. His efforts have allowed us to make
more informed decisions in respect to the merchandising and promotion
of craft beers. With Mark’s help, Walgreens store managers can make
better decisions on which brands to promote. Mark has discussed the
direction of the craft beer market, and helped position Walgreens to
capitalize on emerging trends.
Gorman Moy – Walgreens Senior Manager –
Retail and Pharmacy
I have worked with Mark for ten years and have not met anyone that
has the creative marketing energy and passion that he has. I have no
clue how he comes up with his ideas but they have certainly helped
Mendocino Brewing. In this book you’ll learn about beverage
marketing and distribution. The real life case histories that Mark shares
will provide you with ideas and methods to succeed in today’s tough
beverage environment. I strongly recommend this book for any beverage
professional.
Joseph Frankel – Regional Sales Manager,
Mendocino Brewing Company
5. As Britain’s Director-General of Trade and Investment in the United
States for four and a half years, I have seen the work of Mark Colburn at
both first and second hand. Mark’s efforts at helping UK companies in
the food and beverage industry have been outstanding. He has brought
to his work unbounded enthusiasm, complete dedication and in-depth
knowledge, which he continues to replenish, of the United States food
and beverage industry, at all levels.
Sir Alistair Hunter, KCMG – former Director of
Trade and Investment – The Americas
“Your (Mark Colburn’s) passion and advocacy, not just for the Guayaki
Brand, but for all brands that you represent, is something I have not seen
paralleled as I have gone around the country working with industry DSD
partners, seriously!”
Mateo Sluder – Regional Sales Manager,
Guayaki -Yerba Mate
6. Introduction
Mark Colburn, an East Bay native born in Oakland, California earned a
Bachelor of Science in Business Administration, concentration
Marketing and a Master of Science in Marketing with a concentration in
Advertising and thesis on product cannibalism in the beverage industry.
As a youngster he preferred to “channel surf” ads instead of watching
regular programming. He still thinks there is hope for a 24 hour all
advertising cable station (!). After graduate school, Mark went into the
advertising agency business as a research analyst. Working for Grey
Advertising, he was on the team that launched Kikkoman Light and
enjoyed working with the creative teams on strategy and new business
presentations. He got his first “taste” of the beverage category when
Grey pitched for the then-popular, California Cooler account. For his
efforts on California Cooler he was tasked to help prepare the
presentation on Shasta soft drinks where he built a market share
representation of Coke, Pepsi, and other competitors out of assorted soft
drink packages. This combination of bottles, six packs, PET Liter bottles
and others graphically depicted the uphill battle that Shasta faced then –
all on the executive conference room table.
After Grey, Mark went on to win the American Association of
Advertising Agencies’ Advertising Excellence award for his team’s
presentation to Levi Strauss and Foot, Cone and Belding’s senior
management group. The presentation was a competition amongst
Northern California advertising and marketing professionals (six teams
of 6-8 each) who were given the task of preparing a marketing plan for
the soon to be introduced Levi’s Dockers. Mark’s team was declared the
winner. Much of the strategy from that marketing and merchandising
plan was used by Levi Strauss for its number one selling brand in the
Company’s history.
From the advertising agency business, Mark worked in the gourmet food
sector as a brand manager for Honey Hill Farms. Mark was responsible
for launching the company’s super premium frozen yogurt which
targeted Haagen Dazs in the upscale pint category. He quickly learned
the consumer packaged goods business while working with the
company’s ad agency, overseeing a national sampling program,
presenting the marketing plan with the sales team at key chain meetings
and assisting/recommending R & D on new flavor introductions.
After Honey Hill Farms, Mark went to work for the British Trade and
Investment Office (BTIO). His background in food and beverage helped
him secure this highly sought after international position. While with the
British, Mark earned the status of, “lead post” on food and drink in the
7. United States for his marketing plan prepared for a prominent Scotch
whisky distiller. He enjoyed working for the British for seven years,
ultimately reporting to Sir Alistair Hunter, while gaining expertise in the
beverage industry. In those seven years he worked with many brewers,
cider companies and distilleries. Mark was also a speaker at London’s
International Food Exhibition (IFE) where he presented his published
reports on the US Food and Beverage sectors. Mark was also
interviewed live for his research on the US hard cider industry by the
British Broadcasting Corporation (BBC) at their studios in London,
England.
Once his contract was up with the British, Mark worked several years for
Earthgrains calling on Safeway as their Brand Champion, Category and
Account Manager. After Earthgrains was purchased by Sara Lee (now
Jimmy Dean), Mark joined the powerful beer distributor, Golden Brands,
later purchased by DBI, located in South San Francisco, California.
Mark has worked for Golden Brands and DBI for nearly thirteen years as
their Marketing Manager. At DBI, Mark manages a brand team, is
responsible for a variety of brands as well as the company’s special
events that are executed in both San Francisco and San Mateo Counties.
Mark enjoys the pace and the variety which can range from launching a
new micro/craft brand to devising a creative sales incentive program
around an international beer brand’s marketing plan.
More recently, Mark was invited to participate in Boston Beer
Company’s, “Brewing the American Dream” competition for beverage
entrepreneurs. Mark acted as a “marketing coach” for a variety of
companies that attended the June 2013 and May 2014 events held in San
Francisco, California.
Mark also has twelve years of adjunct professor experience teaching
Marketing and Advertising at both the undergraduate and graduate levels.
He has also been published by the American Marketing Association for
his article on Guerilla Marketing in the food and beverage industry.
Mark is also proud of his football coaching days when he coached with
former teammates and had two undefeated seasons with two players
ultimately playing pro football.
His passion and fascination for beer dates back to the 1980’s when he
had one of the largest beer bottle collections anywhere. Unfortunately he
ran out of shelf space (that endless quandary!) and his parents made him
take the colorful assortment down.
8. From his first taste of Pabst Blue Ribbon as a teenager (shhhh) he was
hooked on beer and continues to love the category, the passion and the
people within it.
DEDICATION
This book is dedicated to my dad, Ron Colburn, who helped me greatly
with my marketing education and my grandfather, Ken Colburn, who
taught me the importance of relationship building in business and how
that translates into sales. I must also thank my darling fiancé, Starla, for
her support over these four long years of writing and for her editing of
the book. Thanks also to Kim, Rob and Kevin for your helpful input!
9. TABLE OF CONTENTS
i - Preface – INDUSTRY OVERVIEW
ii - DEFINITION, DSD & THE THREE TIER SYSTEM
CHAPTERS
I – MARKETING – WHY BOTHER?
II – THE PRODUCT LIFE CYCLE
III – THE BOSTON CONSULTING GROUP MATRIX
IV – BRAND POSITIONING & KEY DIFFERENTIATING
ADVANTAGE
V – CROSS POSITIONING & CO-BRANDING
VI – THE FINAL “P” DISTRIBUTOR-WHOLESALER SELECTION
VII – DISTRIBUTOR-WHOLESALER DYNAMICS
VIII – CONVERTING THE TROOPS
IX – TIME STARTS NOW
X – CLUTTER BUSTING INCENTIVES
XI – DRIVING YOUR MARKETING PLAN DOWN to
DISTRIBUTOR LEVEL
XII – ON vs. OFF PREMISE DISTRIBUTION
XIII – BRAND PROLIFERATION and CONSEQUENCES
XIV – SENSIBLE SURVIVAL
XV – MEMORABLE OFF PREMISE PRESENTATIONS and
PREPARATION
XVI – EXPLOIT YOUR PACKAGING and YOUR ORIGIN
XVII – GUERILLA MARKETING
10. XVIII – SOCIAL MEDIA – SO MANY OPTIONS
XIX – SELECTING MARKETING TALENT
XX – EXPORTING and IMPORTING – WORTH THE TROUBLE?
XXI - EPILOGUE - FADS, TRENDS and IDEAS to WATCH FOR
XXII – CLOSING
iii – Appendix
1-New Supplier Questionnaire
2-Industry Interviews
3-Craft Beer Semantics
4-Marketing Brief and Annual Brand Overview
5-Footnotes
i - PREFACE
This book is intended to assist the small to medium craft brewer with
marketing, sales and distribution questions on how to succeed in the US
beverage industry. It will also be of value to beverage professionals and
recent college graduates who are curious to learn more about consumer
packaged goods marketing, sales and distribution. I have written the
book based on my own educational and professional training and
experiences in the field, citing these continuously throughout the book.
My style is based on a funnel principle whereby I begin at the top with
broad based overviews such as market size and trends then spiral down to
the bottom with specific examples and recommendations. I hope you
will enjoy and benefit from my experience and recommendations. I say
this with a caveat in that I do not guarantee that my recommendations
will work for your specific company as all situations are different and
require tailored marketing plans to fit a company’s nuances and
competitive situation.
11. Mark and has spent many years in the Bay Area marketing and
distributing some of America’s leading craft beers. He is passionate and
thoughtful about craft beer.
Jim Koch – Chairman, Boston Beer Company
Mark Colburn has developed into an inquisitive thinker and marketer of
beer. He is continually searching for creative ways and distinctive methods
to develop beer brands. He has become a student of the beer industry over
the past decade and constantly uses his marketing background and focus to
trumpet the KDA’s of beer brands. Check out his new book to expand your
knowledge of the beer industry and learn new ways to see how brands are
built!
Bob Stahl – Former President of DBI Beverage and Golden Brands
Distributing
With the craft beer market experiencing phenomenal growth, Mark
Colburn has been integral in educating Walgreens team members about
the many details of this category. His efforts have allowed us to make
more informed decisions in respect to the merchandising and promotion of
craft beers. With Mark’s help, Walgreens store managers can make better
decisions on which brands to promote. Mark has discussed the direction
of the craft beer market, and helped position Walgreens to capitalize on
emerging trends.
Gorman Moy – Walgreens Senior Manager – Retail and Pharmacy
I have worked with Mark for ten years and have not met anyone that has
the creative marketing energy and passion that he has. I have no clue how
he comes up with his ideas but they have certainly helped Mendocino
Brewing. In this book you’ll learn about beverage marketing and
distribution. The real life case histories that Mark shares will provide you
with ideas and methods to succeed in today’s tough beverage environment. I
strongly recommend this book for any beverage professional.
Joseph Frankel, Regional Sales Manager, Mendocino Brewing Company
