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did a lot of ‘soul-search<strong>in</strong>g’, concerned that<br />
Blue Girl’s customers would react adversely<br />
to chang<strong>in</strong>g the character and taste of<br />
the beer.<br />
YET YOU WENT AHEAD AND BASICALLY<br />
NEVER LOOKED BACK.<br />
The move to Korea allowed us to change how<br />
we did th<strong>in</strong>gs <strong>in</strong> the past. We felt that mak<strong>in</strong>g<br />
this change wasn’t a big risk for us. Up to<br />
that time, it was a m<strong>in</strong>ute bus<strong>in</strong>ess. So, we<br />
decided to go ahead.<br />
Almost immediately, there were three<br />
benefits:<br />
• Our cost of goods improved<br />
• The beer was fresher<br />
• We took the opportunity to optimize the taste<br />
to better suit the local Ch<strong>in</strong>ese consumer. It<br />
was stilled brewed <strong>in</strong> the German tradition<br />
but was adjusted to be slightly milder <strong>in</strong><br />
taste<br />
critical market<strong>in</strong>g elements, such as<br />
choos<strong>in</strong>g the popular hit ballad “Wait<strong>in</strong>g for<br />
a Girl Like You” by Foreigner to accompany<br />
Blue Girl Beer ads.<br />
The results were that we grew to 5%, 10%<br />
and then 20% of the market – which took<br />
about 20 years<br />
YOU SELL BLUE GIRL ALMOST<br />
EXCLUSIVELY IN GREATER CHINA. HOW<br />
DO OTHER MARKETS COMPARE WITH<br />
HONG KONG?<br />
We’ve been <strong>in</strong> Taiwan for about 10 years.<br />
It’s similar <strong>in</strong> some ways to Hong Kong <strong>in</strong><br />
past, dom<strong>in</strong>ated by one brand – Taiwan<br />
Beer – and one import, He<strong>in</strong>eken. While<br />
the market is grow<strong>in</strong>g, it’s not been<br />
exponential.<br />
Blue Girl also has moved <strong>in</strong>to southern<br />
Ch<strong>in</strong>a, but took a conscious decision<br />
not to be a national brand – compet<strong>in</strong>g<br />
“We had to ask ourselves whether this was a bus<strong>in</strong>ess we were serious about<br />
or whether it would just go down <strong>in</strong> the annals of someth<strong>in</strong>g we did for a while.<br />
THE DECISION WAS MADE TO BE MORE<br />
SERIOUS ABOUT IT,” says Hennig.<br />
FOLLOWING THAT MOVE, BLUE GIRL, WHICH<br />
WAS VIRTUALLY UNKNOWN PREVIOUSLY,<br />
GREW RAPIDLY IN HONG KONG. HOW DID<br />
THAT HAPPEN?<br />
San Miguel, with about 60%, and Carlsberg<br />
(10-15%) dom<strong>in</strong>ated the market <strong>in</strong> the 1990s<br />
and fought ‘hammer and tong for market<br />
share.’<br />
We took a ‘slow and steady’ approach,<br />
focus<strong>in</strong>g on local, not expat, Hong Kong<br />
consumers. It was mostly sold <strong>in</strong> Ch<strong>in</strong>ese<br />
restaurants and <strong>in</strong> big bottles, and was<br />
popular at wedd<strong>in</strong>gs. It’s only <strong>in</strong> recent years<br />
that we’ve started to market more extensively<br />
to Western-style restaurants, pubs and<br />
karaoke bars.<br />
The brand was managed by an highly effective<br />
Jebsen executive, who had patience and<br />
good <strong>in</strong>st<strong>in</strong>cts. He and his team added some<br />
with the Ts<strong>in</strong>gdao’s, Snow’s, Harb<strong>in</strong>’s,<br />
etc. At the same time, Jebsen has<br />
noticed the development of ‘pockets’ of<br />
premiumisation <strong>in</strong> Ch<strong>in</strong>a; appreciation of<br />
quality beer, as well as w<strong>in</strong>e, that helps<br />
brands like Blue Girl. This means that<br />
Blue Girl has done well <strong>in</strong> Fujian prov<strong>in</strong>ce,<br />
especially <strong>in</strong> and around Xiamen, and<br />
Guangdong, where Jebsen focuses its<br />
attention.<br />
Throughout Greater Ch<strong>in</strong>a, Blue Girl now<br />
sells around 7 million cases a year, which<br />
represents progress but only a drop <strong>in</strong> the<br />
bucket <strong>in</strong> the Ch<strong>in</strong>a market.<br />
Go<strong>in</strong>g forward, we will cont<strong>in</strong>ue to<br />
concentrate on Greater Ch<strong>in</strong>a – and are<br />
quite happy with that. We’re better off<br />
be<strong>in</strong>g <strong>in</strong> three markets and do<strong>in</strong>g them<br />
well. n<br />
IMA ASIA CEO DIALOGUES<br />
AUTUMN 2015<br />
14