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progression. This causes them to track styles over brands, as seen by the ongoing popularity of hoppy IPA-style beers. The idea that cocktails are sexy, creative and visually beautiful carries on. Who Benefits? Craft Consumers - Millennials are driving the craft industry. Defined as people born between 1981 and 2000, they number 8.9 million Canadians. The number of Millennials of drinking age is peaking - those from the peak birth year are now 25 years of age, and they represent a powerful demographic for the future. This group looks for authenticity, flavour, and history in their drinks, seeking out local and artisanal products. Women also comprise a large stake in the craft market, and while craft consumers tend to be of higher socioeconomic status, that is changing as the industry broadens. Market surveys show that craft drinkers are better informed than mass-market consumers, and they choose what they perceive to be higher quality beverages. They are less brand-oriented, experimenting instead and exploring within the craft category without an easily predictable Your Reputation and Bottom Line - When you add craft products to your LRS or pub, you’ll attract a loyal following, one that gets its recommendations via word-of-mouth, whether in person or on social media sites. When people drink craft beer, cider or spirits, they feel virtuous and have a sense of discovery and insider knowledge that they will transfer to your establishment. Craft beverage enthusiasts are loyal to the category. Few people who pursue craft decide that they no longer appreciate it and switch back to mass-market products; this makes them excellent long-term prospects. And there's good reason to court craft consumers. According to GuestMetrics, a service that analyzes guest check data from restaurants, the average guest check that includes food and a mainstream drink is about $73, while craft drinkers average $86 - and the higher price of craft beverages is only part of the difference. More detailed analysis shows that craft consumers spent $1 per check per minute, versus $0.86 per minute for non-craft. Marketing to the Craft Category By definition, craft drinkers view themselves as better informed and more savvy than average. This makes it difficult to put together a sales 10 The <strong>Publican</strong>
Rare, limited release or seasonal beers, small batch spirits, and seasonal cider blends all bring their own followings. and marketing program to capture their attention. To take advantage of this dynamic and growing category, you'll need to carefully focus your efforts beyond standard discounting, promotions, or POS materials. Look at the selection you provide and the engagement and product knowledge you bring to your customers, in order to focus on ways to create excitement with rare and desirable releases. POS - Mass-market beers rely on POS material for in-store promotions and marketing. Craft producers rarely have the kind of marketing budgets that billion-hectolitre breweries and beverage conglomerates do, but craft enthusiasts don't associate POS material with the values they attach to their beverages. Stores with strong planograms and good shelf discipline rarely have the floor space or share of mind for bulky POS anyway. This makes it fortunate that labels and tap handles are where craft producers spend their time on design and messaging. “A good label jumps off the shelf,” says Jesse Bannister of Huxley Supply, a craft beverage distributor. “After having a good product with a connection to its grassroots supporters, a well-designed label with strong graphics has the biggest influence on purchase decisions.” Craft labels are typically more striking than traditional ones, and they often have a quirky twist or a socially relevant message. This leads to the “cereal box effect”, named for the way someone sitting down to a bowl of cereal will inspect the box and read it. Craft consumers inspect the artwork and read the labels for the back story of the product. Choosing visually strong products for your shelves and constructing a good-sized, wellmaintained display from among them will increase sales. At the bar, craft tap handles reflect their artisanal production and unique aesthetic. Craft fans are more likely than other users to scan the handles, looking for favourites as well as new beers or ciders to try, and an attractive label on the premium shelf will draw them to spirits with equal interest. Embracing Craft Selection Be careful of the temptation to carry every craft product you can source. Sometimes overwhelming choice is less of a motivator than a smaller, “curated” selection of products that have a direct appeal to the Craft drinker. Having The <strong>Publican</strong> 11
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