No matter
how you slice it, the consumer packaged goods industry is incredibly
competitive, and when it comes to beer, this is no different. This final blog
in our beer blog series focuses on the often controversial issue of a beer
store alternative, brought about due to the difficulties surrounding craft brewers’
ability to make their way into the realm that is Ontario liquor sales.
This recent
article from the Financial Post
pretty much sums it up: http://business.financialpost.com/2014/07/04-why-ontario-craft-beer-makers-want-a-beer-store-alternative/.
If
you are as yet unaware of this often controversial issue, according to the
article, craft brewers can sell their own beer, but only in their own retail
space, and only if that space is attached to the brewery. This can make options
for potential sales limited, as well as the growth of the brand.
Based
on a decades old tradition, the Beer Store and LCBO do sell mainly the big
brands, but are finding that craft beer sales have risen dramatically over the
past few years (by 575% between the 2006 and 2013). But they are still playing
catch up – the market share by volume sold was only 3% as of a year ago – so
there are still hurdles for smaller breweries.
So, if you are lucky
enough to make it to Beer Store or LCBO shelves, how can you compete? By
thinking outside the box. Eye-catching, creative packaging can not only
differentiate you from your competitors, it can also create a buzz – which can
mean a huge boost in sales. The right design team can help you develop a
strategy that attracts attention, thereby garnering the sales that make all the
difference.
What is your take on this
issue?
For more about competing
in an increasingly competitive market, please contact PTI today by calling 1-800-303-5883 or visit us online at www.ptibox.com.