![]() Oksenhorn said it’s important to stay true to a brand’s identity to retain customer loyalty. “It looks like something you’d ask AI to generate for you,” Kelly said, “and it speaks to a fundamental, strategic misunderstanding” of the brand. Sapporo believed they needed to expand offerings to grow sales, rolling out hazy IPAs and a colorful new look as well as new products. “Unfortunately, I think they made some decisions that hurt a lot more than they helped,” Garrett Kelly, an Anchor employee from 2014 to 2020, told the Los Angeles Times. In 2021, Sapporo sought to refresh Anchor’s brand and expand its offerings, rolling out a new logo and labels, prompting backlash from those who loved Anchor’s tradition and history. ![]() Getty Images Something new, something old but faced backlash for straying from the brand's traditional identity. Sapporo attempted a brand refresh for Anchor in 2021, introducing new logos, labels, and products. A rebranding took place which soon lifted eyebrows, as much as, and possibly more than, beer mugs. But something else may have been pivotal in determining the brand’s future. Anchor became the first unionized craft brewery in the nation, approving a three-year contract in 2020. Covid hit in 2019, the same year workers voted to unionize. The Griffin Group, an investment and consulting company focusing on alcohol, bought Anchor in 2010, which Sapporo acquired in 2017. “That was really their niche/signature origin.” “I’ve always personally known Anchor Brewing for their Steam beer,” Oksenhorn continued. Anchor suspended production during Prohibition, survived an earthquake and fires, and briefly closed in 1959 before several acquisitions, even trademarking its Steam beer. ![]() in Potrero Hill, San Francisco, Calif., becoming famous for its Steam-style beer. Sam Singer, an Anchor Brewing spokesman, told the Los Angeles Times the pandemic, inflation, and “a highly competitive market left us with no option but to make this sad decision to cease operations.” Anchor’s AcquisitionsĪnchor’s story has been one of survival for 127 years, prompting many to view its shutdown as a watershed moment. In a press release, Sapporo said Anchor generated $12 million in sales in 20 and only $10 million in 2022. “The decline in the brand (Anchor) is reminiscent of when Constellation Brands STZ purchased Ballast Point for a large sum and then ultimately sold it for a big loss,” Oksenhorn added. Constellation, in 2019, said it was selling Ballast Point to Chicago-based brewery Kings & Convicts at a price that estimated at under $100 million. After acquiring Mexican beer brands Corona and Modelo, Constellation in 2015 acquired Ballast Point for $1 billion. Not every brewery pairing has led to future celebrations as greater distribution leads to bigger sales. “For the time being, their core flagship beers, branding, and overall look have not drastically changed, though their reach has significantly increased.” “One example that for now looks like it is working out is Montauk Brewing Company, which was more recently purchased by Tilray Brands,” Oksenhorn continued. AB InBev that year bought Wicked Weed Constellation acquired Funky Buddha Castanea Partners bought The Bruery, and Valterra Partners acquired Lord Hobo. The same year Sapporo acquired Anchor, Coronado Brewing bought Monkey Paw, Heineken bought Lagunitas and Lagunitas bought Short’s, while New Belgium bought Magnolia. ![]() “Either the product or the branding has to be unique.” Acquisition About facesĪcquisitions can be a great way to grow a company in all industries, including brewing. “In order to be successful, not only does the brewery need to have a good product,” Oksenhorn added. ![]() Branding in the brewing business is just as crucial as in any other, and Anchor’s brand was shrinking. Anheuser-Busch ranked first, followed by MolsonCoors, Constellation, Heineken USA, Pabst Brewing Co., and Diageo. “Craft brewer sales rebounded in 2021,” according to Bart Watson, the association’s chief economist.Ĭompetition, however, sharpened as Anchor in 2021 ranked 47, well behind Stone Brewing at 18, among all brewers, according to the Brewers Association. Craft’s overall beer market share by volume grew to 13.1% from 12.2% the prior year. Small and independent brewers produced 24.8 million barrels of beer in 2021, up 8 percent, according to the Brewers Association. While Sapporo blames the Anchor shutdown on macroeconomic factors like Covid and inflation, recent industry numbers aren’t so gloomy. ![]()
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