Brand Owners or Brewers

1
Brand Owners or Brewers?

• Chris Lewis
• Director of Marketing

2
Challenge for Today

• What we are really witnessing in cask ale is the
  
• transition of a commodity market into a branded
• market.
• .Its beers with distinctive, strong and modern
  personalities
• that are showing the way to this new age
• The Publican Cask Ale Report September 2007

3

• Wells Youngs formed in Oct 2006
• Courage brands acquired Jan 2007
• 600,000 barrels
• 220m turnover
• 550 employees
• Export to 25 countries
• Ownership 60 Charles Wells Ltd. and 40 Youngs
  plc

4
INVESTING IN BREWING

• Over 6m investment in production andpackaging
  facilities to ensure that all our beer is
  produced to the highest quality

5
INVESTING IN DISTRIBUTION

• Over 10m investedin a new distributioncentre
• Solar panels for lighting
• Rainwater Storage System
• Stores green power with surplus sold back to
  the national grid

6
(No Transcript)
7

• To prosper as an independent business, passionate
  about premium speciality beer
• To have one of our brands in every bar and on
  every shelf.
• Growth through differentiation and marketing
  support
• To be recognised Category Champion for
  speciality beers

8
Propelled into the Big League?
9
Total Production Volumes (000 Hectolitres)
Source BBPA / CW estimates
10
Wells Youngs Has Come a Long Way.

• From 1994
• Private label contract brewers
• No National Brands
• Bombardier less than 10,000 barrels
• To 2007
• A National brewer of specialist beers
• Over 600,000 barrels brewed at Bedford
• Enviable premium Lager and Ale portfolios
• Annual turnover in excess of 200m

11
Brand Owners
OR Brewers?
12
What is a Brand?

• Mark made on the skin with a hot piece of
  iron..
• Type or kind of manufactured product
• Smith and Co. sell three different brands of
  tea
• A brand is a name, term, sign, symbol or design,
  or a combination
• of them, intended to identify the goods or
  services of one seller or
• group of sellers and to differentiate them from
  those of their
• competitors

13
What is a Brand?

• Brand
• Rational benefits Emotional benefits

14
NOTE The video clip on the following slide will
only play if the associated file
(YorkshireAirlines.wmv) is in the same directory
as this presentation. Additionally, links to
this video file may need to be restored in some
circumstances
15
(No Transcript)
16
The Yorkshire Airlines Brand
EMOTIONAL Proud Passionate Introspective Blunt
Old Fashioned / Basic
RATIONAL Flat Caps Ferrets Cricket Bitter Mushy
Peas Doris
17

• Rational
• Ingredients barley, hops
• Flavour and character
• Ram
• London-centric

• Emotional
• Trust and confidence
• Civilised Pint

18
Rational Red Stripe Jamaican music roots 4.7
abv Emotional Independent spirit

19
Brands and Branding
20
(No Transcript)
21
(No Transcript)
22
(No Transcript)
23
(No Transcript)
24
(No Transcript)
25
(No Transcript)
26
(No Transcript)
27
(No Transcript)
28
(No Transcript)
29
(No Transcript)
30
(No Transcript)
31
(No Transcript)
32
(No Transcript)
33
(No Transcript)
34
(No Transcript)
35
(No Transcript)
36
(No Transcript)
37
(No Transcript)
38
(No Transcript)
39
Brand Recognition

• Some brands easy to recognise
• Some brands difficult to recognise
• Brand investment
• Awareness
• Recognition of benefits
• Willingness to pay a premium

40
Winning Strategies Competitive Differentiation
Brand Supremacy
Operational Efficiency

• Clear consumer preference for your brand v
  competitive set

• Achievement of lowest delivered cost v
  competitive set

Customer Intimacy

• Clear customer preference for your offer v
  competitors

41
Soft Drinks Wine Cider
Beer --
Source A C Nielsen On Off
42
Brand Owners or Brewers?

• A need to be both brewer and brand owner
• Quality brewing
• Investment in Marketing
• Brands have the best chance of survival

43
In Conclusion for Today

• What we are really witnessing in cask ale is the
  transition of a
• commodity market onto a branded market. Its
  beers with distinctive, strong
• and modern personalities that are showing the
  way to this new age
• And whats noticeable to a humble drinker like
  myself is that you
• seldom get a bad pint if you order one of these.
  Its because the
• brewer is protective of its brand, and will
  pursue quality right into
• the glass
• The Publican Cask Ale Report September 2007

44
THANK YOU