Brewing Success in a Competitive Market
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The beer business in America is a turbulent space. Changing consumer tastes, battles between brewing behemoths and regulation all play a part in the the beer making story. A story that dates back to 9500 BC and the ancient Egyptians.

In 1900, there were more than 1,700 breweries in the United States. By 1920 this number was down by 30%, and when prohibition became law that year, all were wiped out. Less than 1,000 reopened in the mid-1930’s when prohibition ended, and over the next forty five years the number of breweries steadily declined as consolidation and big corporations took over the business. By 1980, there were less than 100 breweries in the U.S.

Then something happened. Visionaries, innovators and entrepreneurs, determined to create beer that was full on flavor, launched new brewery ventures. They became known as ‘craft brewers’ because production required a sense of artistry that far surpassed the mass produced beers offered by the big corporate brewers.

In 1989, John McDonald launched Boulevard Brewing in a turn-of-the-century brick building on Kansas City’s historic Southwest Boulevard. A vintage Bavarian brew house was installed, and a new entry on the brewery landscape was born. Now more than 20 years later, Boulevard has grown to become one of the nation’s top ten craft brewers. Through hard work, persistence and staying true to its core, Boulevard has grown and expanded far beyond McDonald’s initial vision. A new facility opened in 2006, expanding capacity to 600,000 barrels per year, and the Boulevard brand is available in twenty states and growing.

Bob Sullivan, VP of Sales and Marketing for Boulevard, visited with the Go To Market Show about the company’s path to success. While the recent recession was difficult for the beer business, Boulevard continued to find ways to grow demand. One area that grew, according to Sullivan, was retail sales as people looked to Boulevard as an affordable luxury they could enjoy at home. The company also used the capacity they gained with their 2006 expansion to launch premium craft brews in a Smokestack series line. One brew from this line, was a special chocolate ale developed in conjunction with Kansas City chocolatier, Christopher Elbow.

Because craft beer accounts for one-sixth of the total U.S. market, a space that is occupied by 1,700 brewers, competition is fierce. Rather than trying to out market the corporate brewers, Boulevard focuses on a distribution strategy the expands outward from its Kansas City location. Working closely with retailers and restaurants to optimize exposure for the brand at the point of sale is key to building name recognition. And continuing to innovate, fuels the breweries reputation for quality and taste.

Sullivan has a few words of advice for companies looking to succeed today’s world:

- Look inward to leverage assets and innovate during tough economic times or in tough competitive markets. Launching the Smokestake series to capitalize on capacity is one example.

- Build partnerships in the community to drive innovation. An example includes Boulevard’s partnership in Ripple Glass – a recycling company that works with Dow Corning to re-use glass bottles.

- Persistence pays. Keep creating what you create best. Boulevard’s focus on quality craft beers, and consistent growth has put them in the top 1% of craft brewers in a highly competitive marketplace.

Here’s a toast to a great Kansas City brand. Visit www.boulevard.com for more information.

bob sullivan, boulevard beer, kansas city company, marketing strategy

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