Throwing Stones II: If You Sign Me Up

(To Read Part I, click Throwing Stones.)

Part I covered the excessive ticket prices for the Rolling Stones’ 50th Anniversary Tour, then time-tripped to 1960’s London to trace the roots of the band’s branding.

Sixteen months before Andrew Oldham began managing the Stones, the Beatles were the kings of the Liverpool scene and little more. Britain’s entertainment industry was based in London, and record companies had next to no interest in an act from a Northern city that, as Keith Richards would later say, “might as well have been Nome, Alaska.”

Bu200px-Decca_Records_logot Beatles’ manager Brian Epstein was nothing if not persistent, and as 1961 entered the history books, he had exciting New Year’s news for his unsigned band: They had a shot at a contract with Decca records. Decca would ultimately pass on the Beatles with the soon-to-be-infamous line, “Guitar groups are on their way out.” A year later, the Beatles were a chart-storming sensation, and Decca Records was the laughingstock of the industry.

The rap Decca took for turning down the Beatles was hardly fair. In truth, every major British record company had passed on the band. Decca simply had the misfortune of being the last to do so, and of doing so with such a memorably inaccurate turn of phrase. The Beatles eventually signed with Parlophone, the runt of the litter of labels owned by corporate big dog EMI. All of EMI’s other labels had already rejected them.

George Panel 2Lucky for Decca, George Harrison didn’t hold a grudge. While appearing on the TV show “Jukebox Jury,” Harrison told fellow guest-judge and Decca A&R Director Dick Rowe about a great new band. A rockin’ R&B outfit called The Rollin’ Stones. Having blown his shot at the Beatles, Rowe wasn’t about to ignore Harrison’s hot tip.

The Rollin’ Stones had officially appointed Andrew Loog Oldham as their manager on May 1, 1963. Oldham took the band shopping for new threads on Carnaby Street a few days later. Good timing. The next night, Dick Rowe caught the Stones at London’s Crawdaddy Club. They were even better than he had hoped.

Tired of being lampooned as a tin-eared boob in the teenybopper mags and the mainstream press, Dick Rowe was ready to do whatever it took to sign the Rollin’ Stones. Advantage: Andrew Loog Oldham.

Still too young to legally sign contracts himself, Oldham had formed a partnership with Eric Easton, an old school music biz manager who appeared to be (gasp!) “nearly forty.” While the flamboyant, controlling, egotistical Oldham wasn’t happy about having a partner, he and Easton seemed like a good team in the beginning.

Oldham knew rock and pop. He had press contacts, a vision for the band and a tremendous sense of style. More importantly, he had his finger on the pulse of an emerging market, and was one of the few people to realize that the music business was in the early stages of a revolution. Easton had industry experience, a no-nonsense attitude and the relationships required to shove a band up the showbiz ladder. More importantly, he had the cash to back Oldham.

Easton and Oldham negotiated a phenomenal recording contract for the Stones. The band got creative control, an impressive royalty rate, and the opportunity to eventually own their recorded masters. Decca got the band. It was an unprecedented deal for a new act.

Oldham added a “g” to the Stones first name, subtracted an “s” from Keith Richards’ last name, and booted beloved pianist Ian Stewart out of the band. Oldham believed the talented ivory-tickler lacked the requisite pop-star good looks, and besides, six was one too many members for young fans to adore. Why Bill Wyman’s hair wasn’t fired remains a mystery. The bassist is still the only performer to serve more than 25 years in a major rock band without a single good hair day.

Though he knew next to nothing about recording, Oldham dreamed of becoming England’s answer to Phil Spector. He declared himself the band’s producer and forged ahead. The Rolling Stones’ first single, a remake of Chuck Berry’s “Come On,”rolling_stones-gal-street made it to the middle of the British Top 40. It was a respectable showing, but the follow-up had Oldham flummoxed.

Record execs expected teen-oriented acts to fade quickly. Their strategy was simple: milk a hit-maker for as much product as possible before fickle young fans moved on to the next big thing. Bands were required to churn out a new single every three months and two LPs a year, plus EPs and promotional product. Grueling tour schedules, radio and TV commitments, and the constant demand for new material combined to create a distinctly Darwinian dynamic. Only the strongest bands would survive.

The Stones’ repertoire of blues, soul and rock ’n’ roll covers worked well in the clubs, but was unlikely to supply a steady stream of hit singles. When the recording date for the second single arrived, Andrew Loog Oldham found himself in the studio with a hot band and no song. It appeared that the Rolling Stones’ career and Andrew Oldham’s dream were both dead on arrival.

(This concludes Part II. For Part III, click Throwing Stones III: Write Yer Own.)

 

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Throwing Stones

The Rolling Stones have been around for so long now that I’ve begun to wonder if the Old Testament passage that mentions “a time to cast away stones, and a time to gather stones together” is actually a reference to the band. It does, after all, perfectly describe Messrs. Jagger & Richards’ pattern of periodically setting aside their personal differences to cash in yet another stadium-filled swing through the land of merch and money.

They’re at it again this year, in celebration of the group’s historic 50th anniversary. Whatever.

20130506-rolling-stones-306x-1367856724Before you accuse me of being jaded, get a gander at the May 23rd issue of Rolling Stone magazine, which, to absolutely no one’s surprise, features the band on the cover. Again. Meanwhile, the article inside sheepishly reports that a ticket for the gang’s latest go ’round starts, that’s right, starts, at $150 and spirals upward to somewhere north of $2000. With prices like these, who needs scalpers?

A quick trip to the Ticketmaster website tells us that, to absolutely no one’s surprise, the usual fees are tacked on to all tickets in the $150 to $600 range. But as soon as you’ve leapt to the coveted $750 level, the Stones throw caution to the wind and generously waive those pesky extra charges. This is what passes for customer appreciation at the top of the rock food chain.

But wait, there’s more! Each $750 and up boomer-budget-buster also includes a laminated tour badge that gives you exclusive access to, umm, your seat! Plus a souvenir program! And an unspecified merchandise item! Now how much would you pay?

I’m guessing the mystery merch item is an adorable tank top that says, “Grandma Spent Two Grand To See The Stones And All I Got Was This Lousy T-Shirt,” but have been unable to confirm this with the band’s management.

Perhaps I am being a little jaded. Okay, more than a little jaded. But being jaded about the Rolling Stones is like being wry about Randy Newman, juvenile about Justin Bieber, nostalgic about Sha Na Na or cynical about Milli Vanilli. It comes with the territory. So let’s all make like Keith Richards and come clean. Or at least pretend to.

imagesLike it or not, we live in an era in which the terms “band” and “brand” have become interchangeable. An era in which the Rolling Stones will continue to be awarded iconic status. Ironic might be more suitable. Because, contrary to the fundamental tenants of marketing, the longer the Stones continue as a band, the more they damage their brand.

Let me make it clear that I have no hippie-dippy illusions about the music business. Being a musician is a profession. Musicians give performances and create intellectual property, both of which have value. Whether you’re a singer-songwriter at the local coffeehouse or a Rolling Stone at the 02 Arena, you deserve to be paid. The last free concert the Stones gave in the U.S. was Altamont, and nobody wants to see that again, especially Mick Jagger. Incredibly, that concert was staged as a response to fan and rock press outrage over ticket prices for the band’s 1969 American tour. I suppose we’ll all get another chance to see the Stones at next summer’s “45 Years of Price Gouging” jubilee jaunt.

“But, Bill, if being a musician is a job, doesn’t that also mean that musicians get to charge as much as they want for a ticket?” you ask.

Yes, my still-wearing-tie-dye-yet-surprisingly-capitalistic friend, it does.

“So why you gotta’ be so down on the Stones, man?”

Because I’m talking about the big enchilada–the overall brand–as well as ticket prices and their impact on that brand.

“That’s where you’ve got it all wrong, you sellout advertising hack. The Stones aren’t a freakin’ brand. They’re rock ’n’ roll outlaws!”

Actually, “rock ’n’ roll outlaws” is the Rolling Stones’ brand, and has been since shortly after their canny first manager, Andrew Loog Oldham, caught them at a London club in 1963. Oldham had done publicity work for the Beatles, and saw the Stones on the Liverpool lads’ recommendation. Having fallen out of favor with Beatles’ manager Brian Epstein, Oldham needed work. So he talked the Stones into ditching their sort-of-manager and going with his new, and in reality, non-existent, management firm. Incredibly, it turned out to be a smart move for all concerned. Well, except for the old sort-of-manager, anyway.

Still shy of his twentieth birthday, Oldham was a teenager himself. But he made one of the most brilliant branding and positioning decisions in the history of popular music and modern marketing.

The Beatles were spearheading a British pop revolution that would go global in a heartbeat. Oldham instinctively knew that trying to create “the next Beatles” was a dead-end strategy. The fab four had the lovable mop-top angle locked up tighter than a BBC playlist. Oldham’s eureka moment arrived when he saw the previously unrecognized flipside of the new pop marketplace. And it was wide open.

The world needed a bad-boy band. A band that adolescent girls would love. A band that parents, politicians and the press would love to hate. A band that Andrew Loog Oldham could turn into a global brand.

CU M & KBy positioning the Rolling Stones as the anti-Beatles and relentlessly flogging their rebellious image, Oldham defined the Stone’s public perception for decades. The Stones, for their part, were more than happy to play along. They fancied themselves an authentic Chicago blues band—the kind of willful denial of reality that only teenagers in their first rock group or someone with a serious head injury can muster—and dreaded being sold as suit-wearing sunshine boys. Besides, just as being sly, witty and charming came naturally to the Beatles, being snotty, scrappy and scruffy came naturally to the Rolling Stones. Going with Oldham’s flow was an assignment they could handle.

The Rolling Stones were about to learn that, if you try sometimes, you get what you need.

(This concludes Part I of Throwing Stones. Click now to read Throwing Stones II: If You Sign Me Up.)

(B/W Photo: Wiki Commons/Brisbane City Council/Retouching by Miss Sophie)

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Beer Brawl V: You Only Go Around Twice

(For Part IV, click: http://billsbrainworks.com/beer-brawl-iv-gusto-rides-again/ )

In Part IV, new “Classic 60’s Formula” Schlitz hit the shelves in 2008 and was hailed as a return to form. But the beer market had changed radically since the old days.

A final, unforeseen fiasco delivered a brutal low blow to the Schlitz re-launch. Just as the new-old brand was getting off the ground, the economy collapsed.

Twenty-somethings began graduating college heavy on student debt and light on job prospects. They moved back home in record numbers. When they arrived, many found an newly out-of-work parent. Suddenly, two key segments of the beer-buying public, including the one targeted by new-old Schlitz, were forced to see beer as luxury rather than a staple. And those nostalgia-driven online ads for rebooted Schlitz didn’t seem like much fun anymore. To some, it felt like you were having your nose rubbed in the prosperity of a previous generation. Gusto was back. But the paycheck was gone.

schlitztap_fullsize_story1

None of that was Schlitz’s fault, of course. The lords of finance who sank the world economy operated at a level of avariciousness that made the cost-cutting schemes of Robert Uihlein Jr., look like penny-ante poker. As beer sales sank, even the most sober of marketing plans began to look tipsy. Keeping that Gusto going was going to be a lot tougher than anyone could have predicted.

The economic meltdown held an even nastier surprise for Schlitz’s old rival. International behemoth InBev pounced on Anheuser-Busch after realizing that August Busch III’s obsession with being number one in America had come at the expense of an effective global strategy. Budweiser’s greatest strength was its greatest weakness–a turn worthy of Greek Tragedy.

Anheuser-Busch was America’s biggest brewing company and America’s last major family-run brewery. Bud Light and Budweiser were America’s most popular beers. In better times, the hostile takeover of Anheuser-Busch by a foreign entity would have likely generated tremendous press and a huge public outcry. That outcry could have been harnessed like a team of Clydesdales and used to power the PR side of the company’s takeover defense. But in a year filled with astounding corporate collapses and astonishing job losses, Budweiser’s story got downsized, and the Busch family got little sympathy. The toppling of their brewing dynasty undoubtedly hurt the Busch’s pride, but the buyout of their stock made an extraordinarily rich family even richer. Other American families were losing their homes and struggling to scrape by on unemployment. They could hardly be expected to pity the former beer barons of Saint Louis.

Five years after its introduction, new-old Schlitz has expanded its territory, but does not appear to have spread as far and wide as its makers had hoped. The official Schlitz website seems to have lost its enthusiasm. The news page shows no updates since the fall of 2009, the calendar of events peters out a year later. The site link doesn’t match what seems to be the official Twitter feed. The retail locater fails to provide business Yeng Finalnames or street addresses. As “Classic 60’s Formula” Schlitz struggles, Yuengling has become the cool American lager of the moment, siphoning off the buzz that Schlitz had hoped to call its own.

Perhaps it’s simply too late for consumers to care. Economic upheaval and changing tastes have been sucker punching the big box beer brands for years. After decades as the undisputed champ, even the seemingly invincible King of Beers was forced to abdicate. Most Americans don’t realize it, but Budweiser lost the title of America’s top selling beer to its upstart younger brother, Bud Light, over ten years ago. What’s more, Budweiser has suffered an astonishing 30% slide in sales since its purchase by InBev. The former champ currently finds itself grappling with Coors Light in a no-holds-barred cage match for the title of beer number two. Talk about a royal pain.BudBow

Budweiser’s graphics and packaging got a makeover recently, complete with a nifty new bowtie. A-B InBev has also introduced Bud Light Platinum and Budweiser Black Crown, two higher alcohol content lagers aimed at the college and craft brew crowds. Whether or not these line extensions will help alleviate a crippling case of flagship fatigue remains to be seen.

Schlitz A Brick 4Meanwhile, my calls to Schlitz have gone unreturned. Still, if I can find a bottle of their new-old formula, I’ll gladly give it a go. The folks who brew Schlitz have tried to do the right thing, and for that alone, the brand deserves a shot. Who knows? Decades after it disappeared, now may be the time to give Gusto another chance.

(This concludes the five-part “Beer Brawl” series. To begin the series, click here: http://billsbrainworks.com/beer-wars-the-birth-of-the-brands/).

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Beer Brawl IV: Gusto Rides Again

(For Part III, click Beer Brawl III: Drink It Or Else.)

In Part III, a reformulated Schlitz led to the Joseph Schlitz Brewing Company’s implosion, and the brand was sold. Bud ruled, while Schlitz survived as a bottom shelf bargain brand.

Schlitz Old LogoFast forward to 2007. Pabst Brewing had been sold several times, eventually morphing into a holding company that owned several beer brands, including Pabst Blue Ribbon, Schlitz, Stroh’s, Old Milwaukee and more. The company contracts out the production of these beers, operating no breweries of its own.

Having seen Pabst Blue Ribbon (PBR) become an unexpected favorite of the young and the hip, the folks at Pabst had a special announcement. They were resurrecting Schlitz. Though the original recipe had been lost, brewmasters had teamed up with former Schlitz staffers and created a taste profile that matched the glorious Schlitz of old. They called it “Classic 60’s Formula.” The Gusto was back!

In contrast to Richard Uihlein Jr., the makers of new-old Schlitz decided that time was their friend. Their beer would be rolled out slowly on a city-by-city basis. “Classic 60’s Formula” Schlitz would only be sold in bottles, distinguishing it from any previous stock that was still on the shelves.

The tactics and target market would differ as well. There would be no gigantic national ad campaign aimed at the twenty-somethings so sought after by Bud, Miller, Coors and other big brands. Schlitz’s efforts would zero in on baby boomers who remembered the beer’s glory days. Low-cost new media would do the heavy lifting. An army of enthusiastic supporters, dubbed “Gusto Guys,” would go forth and spread the word.

New-old Schlitz was hailed as a marked improvement when it hit the shelves in 2008. Cheered as fresh, crisp and light in the tradition of mass-market American lagers, this was a solid entry, or rather, re-entry. You had to hand it to the Pabst people for setting things right after all those years. Now when you reconnected with your college roomies on Facebook, you could catch up over the brew you used to drink back in the day. This was a beer you could root for.

Generalists were roundly pleased. But America’s new legions of craft brew connoisseurs were, unsurprisingly, not quite as impressed. Most admitted that new-old Schlitz was better than the swill it replaced. Still, they dismissed it as just another lackluster American lager.Imps 4

The makers of new-old Schlitz never intended to win the hearts and minds of self-styled microbrew snobs. But they knew that this breed of beer drinker–essentially non-existent in the ’60s and ’70s–could cast a long shadow, especially in the digital age. In a knotty contradiction, Americans were drinking less beer per capita, but had grown both pickier and more adventurous in their beer drinking. New imports kept appearing. Small, entrepreneurial breweries were popping up everywhere. Flavors once thought far too bold, complex or exotic for the American palette were becoming favorites. Added together, imports, microbrews and craft beers were bottling up more than 10% of the market and growing their share every year.

Schlitz Beer Delivery PhotoOther things had changed as well. Wine had gone mainstream. Hard liquor was back, inspiring expensive, super-premium products and a cocktail craze. And all of the famous American breweries founded by German immigrants in the 1800s had been swallowed by conglomerates.

Anheuser-Busch was the last to go, gulped down by international giant InBev in a particularly prickly hostile takeover. Family names that had become iconic brands–including Hamm’s, Stroh’s, Coors, Blatz, Miller and Schaefer–held no intrinsic emotional value for cool, calculating corporate types.

In the brand’s heyday, ads for Schiltz proclaimed, “You only go around once, so grab all the gusto you can!” With a second go around at hand, Schlitz was finally the same. But the landscape was dramatically different.

(To read the exciting conclusion of this series, click Beer Brawl V: You Only Go Around Twice now!)

 

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Beer Brawl III: Drink It Or Else

(For Part II, click Beer Brawl II: How Gusto Lost Its Mojo.)

In Part II, Schlitz was reformulated, sacrificing taste, quality and shelf life  for bigger margins. Sales collapsed and the brand went into free fall.

Schlitz A Brick 4Schlitz’s self-inflicted defeat included one more surprising twist, brought to you by a world famous advertising agency. Like any good corner man, Chicago-based Leo Burnett realized that their client might be down for the count. The ad men decided that aggressive marketing was the only way to save the brand. Thus was born the legendary “Take Away My Gusto?” television campaign. Calling it aggressive proved to be an understatement.

A milquetoast voiceover nervously suggested that an actor portraying a Schlitz drinker try some other brand. The suddenly irate suds-sucker addressed the camera as if he had caught the home audience breaking Cougarinto his fridge and stealing his last six-pack. Thunderstruck viewers felt like the town bully had gone on a bender and busted into their living rooms in a beer-fueled rage. The nerve! After all, they hadn’t messed with this psycho’s Schlitz; Schlitz had messed with his Schlitz!

The most obnoxious spot featured a handsome lumberjack type chopping wood in the company of his (no kidding) pet cougar and a frosty mug of Schlitz. Incredibly, nobody at the ad agency had the sense to realize that combining alcohol, an axe and a mountain lion is never really a good idea. By the time the Brawny Paper Towel Man’s evil twin was ordering the big cat to eat the audience for lunch, the last, tattered remnants of Gusto had drifted away on a bitter wind. Advertising wags quickly declared the disastrous ads and their devastating impact on remaining sales the “Drink Schlitz or I’ll Kill You” campaign.

The battered brand rolled under the ropes and out of the ring. Milwaukee’s landmark Joseph Schlitz brewery closed. The Schlitz name was sold to Stroh’s. The champ had become a chump.

Budweiser reigned. Historically speaking, Pabst Blue Ribbon should have slid comfortably into the number two spot. But Pabst had problems of its own. In the early 1960s, Pabst had lowered the retail price of its flagship Blue Ribbon beer. Intentionally or not, that repositioned the brand, moving it from the “premium” to the “popular price” category. Sales rose initially, then began to decline. The American middle class was riding high in the ’60s, and preferred “premium” beer. PBR was soon seen as the cheap stuff, and the public perception of the brand was neatly summarized in the 1973 country smash, “Rednecks, White Socks and Blue Ribbon Beer.”

RN BS BRB Final Unlike Schlitz, PBR had not been reformulated. But its image had. As Schlitz self-destructed, Blue Ribbon’s decline took a steep turn for the worse. The brand never recovered. Tellingly, the “popular price” beer category eventually came to be known as the “sub-premium” category.

The clock struck Miller time, and there was a new number two in town. Following its purchase by Phillip Morris in the late 1960s, Miller® High Life™ relied on a war chest stuffed with tobacco profits and cigarette marketing savvy to become America’s second-most-popular beer in record time. Miller also introduced Miller Lite™, the first light beer and, to the surprise of brewers everywhere, a huge hit—with massive implications for the American market.

Working budBlue Ribbon’s dive and Schlitz’s suicide had Miller looking like a sure thing. Certain that Anheuser-Busch’s golden boy was on the ropes, Phillip Morris execs moved in for the win. They didn’t realize the easy part was over.

Budweiser countered every punch, dazzled the crowd with clever marketing campaigns, and spent the 1980s and ’90s knocking the wind of Miller. As Bud developed an aura of invincibility, the once-mighty Schlitz haunted the lower shelves at rock bottom prices, a pathetic shadow of its former self.

(This concludes Part III. Click now to read Beer Brawl IV: Gusto Rides Again.)

 

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Beer Brawl Part II: How Gusto Lost Its Mojo

(This is Part II. To read Part I, click Beer Brawl: The Birth Of The Brands. )

At the conclusion of Part I, Budweiser and Schlitz had spent some seven decades battling for the title of America’s bestselling beer. Bud took the title in the 1960s, but the 1970s brought unexpected challenges and change.

cu schltzThe baby boomers lack of enthusiasm for hard liquor was a boon to America’s beer makers. But while both the Joseph Schlitz and Anheuser-Busch brewing companies were hugely successful, neither was outrageously profitable. Brewing is an expensive process that requires a unique combination of high quality ingredients and time. Shortchanging either is risky business.

As the supercharged economy of the 1960s sputtered into the slumping ’70s, the cost of the grains used to make beer rose dramatically–while President Nixon’s wage-and-price controls prevented brewers from hiking their own prices. Exasperated executives at the best-known brands pored over the numbers and searched for ways to shore up sagging margins.

Schlitz Chairman Richard Uihlein Junior decided that he had the answer. Unlike the Uihleins of old, Richard Jr. messed with the recipe. Uihlein decreed that cheap corn syrup could stand in for a high percentage of pricy malted barley. He demanded that low-cost, processed “hop pellets” replace hops on the ingredient-shopping list. And he dramatically shortened the brewing schedule of his flagship product. Uihlein was warned that the taste and quality of Schlitz would suffer, but he was having none of it. This was a man who prided himself on his Harvard degree and his polo playing abilities. As far as he was concerned, the average beer drinker wasn’t sophisticated enough to tell the difference between old Schlitz and new. Besides, the changes would be made incrementally, ensuring the public would never catch on. Executives who dared to disagree were quickly canned in one of the chairman’s endless Untitledre-orgs.

For the briefest of moments, it appeared that Uihlein was right. Output exploded. Profitability skyrocketed. The share price soared. Wall Street hailed Schlitz as a model of efficiency and innovation. Anheuser-Bush was dismissed as a tradition-bound dinosaur. But who cared about boxing with Budweiser for market share with fat new margins like these? Incredibly, the suits didn’t see that they were punch-drunk with self-delusion.

It only took beer drinkers a few sips to realize that Schlitz suddenly tasted funny and spoiled quickly. And they let Milwaukee know it. Uihlein dug in his heels. Refusing to return to the old recipe, the company tried to solve the new brew’s issues with a series of unappetizing chemistry tricks. Each had more disastrous consequences than the last. By the time new and improved Schlitz included unexpected extras like snotty mystery strands and creepy floating flakes, it was too late.

Sales tanked. Market share evaporated. The stock price went down the drain. Tens of millions in profits became tens of millions in losses. Quality sank so low that even Uihlein could no longer deny it. Word leaked out that the brewery was secretly destroying millions of bottles of defective product. Betrayed by their beloved brand, heartbroken Schlitz drinkers found other beers to call their own.

Then, while he was in the midst of shipwrecking his family’s business, the downside of tragedy doubled-down on Richard Uihlein Junior. Doctors discovered he had leukemia. Days later, he was dead.  Astonished industry watchers shook their heads and wondered how soon they would be reading the obituary of the Joseph Schlitz Brewing Company as well.

(This concludes Part II. Click now to read Beer Brawl III: Drink It Or Else.)

 

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Beer Brawl: The Birth Of The Brands

Schlitz BottleFor three-quarters of the twentieth century, two great brands stood toe-to-toe and slugged it out for the heavyweight title of America’s most popular beer. Then, to the astonishment of its loyal fans, one took off  the gloves and pounded itself into oblivion in a few short rounds.

Nearly four decades later, an admirable effort has been mounted to restore lost quality and resurrect a classic. But re-entering the ring has proven to be a difficult struggle, and the long term appears to be in doubt. Despite the selling power of baby boomer nostalgia, the move may have come too late–and the market may have changed too much–for most beer drinkers to give a Schlitz.

So pull up a stool. Pop open a cold one. And imagine yourself in a ringside seat for the fight of the century.

In this corner: Budweiser, the self-proclaimed “King of Beers,” brewed by the now legendary Anheuser-Busch of St. Louis, Missouri. Funny how times change. In the beginning, Anheuser-Busch looked like it would amount to little more than a short-lived, foamy flop.

In 1857, the son of a prosperous wine merchant left Germany for America. Eighteen-year-old Adolphus Busch was just another drop in a tidal wave of new immigrants from the Fatherland. Busch eventually settled in St. Louis, where invested his share of a family inheritance in a brewing supply company. One of Busch’s best customers was a successful soap manufacturer and fellow German immigrant named Eberhard Anheuser. Having received a failed brewery in lieu of repayment for a start-up loan, Anheuser was busy giving beer the old German try. Unfortunately, Anheuser’s acquisition had come with its own recipe. That recipe produced a brew so foul that Working budbartenders knew to step aside after serving a glass, the better to the avoid the spray as the customer spat it out.

Adolphus Busch married Eberhard Anheuser’s daughter, Lilly, and took charge of the family’s snakebitten beer business. When Busch discovered that a family friend had the formula for a beer brewed by monks in the Bohemian village of Budweis, his company tweaked the recipe slightly, but kept the product’s original European name.

First brewed and sold by Anheuser-Busch in 1876, Budweiser was a trend-bucking light lager and the first mass-produced beer to be pasteurized. Those two characteristics significantly extended Bud’s shelf life, expanding its shipping range. Other brewers carped that pasteurization, which involved heating the product, degraded the taste of the beer. Customers disagreed. Budweiser enjoyed impressive growth, and Adolphus Busch emerged as one of America’s first, and most successful, turnaround artists.

And in this corner: brand Schlitz. “The Beer that Made Milwaukee Famous.” The only beer with “Gusto.” In an incredible coincidence, German immigrants Joseph Schlitz, Adolphus Busch and Frederick Pabst all married into the beer business. Schlitz acquired his Milwaukee brewery in the 1850s, after he wed the widow of its recently deceased founder. Having learned to turn tragedy into opportunity, Schlitz donated numerous kegs of his now-namesake brew to the beer-starved citizens of Chicago following the great fire of 1871. The flames had reduced many of the Windy City’s once-mighty breweries to rubble, and Schlitz lost no time turning Chicago into a major distribution center.

Like Missouri’s Busch family and his Milwaukee rival, Best-Pabst, Joseph Schlitz ignored the American tradition of brewing heavier beers for local consumption and set his sights on a far more ambitious goal: building a national brand with a far ranging, lighter lager. The bell sounded, and the bout was on.

The downside of tragedy caught up with Joseph Schlitz shortly thereafter. He died in a shipwreck in 1875. Ownership of the Schlitz brewery passed to the Uihlein brothers, nephews of the operation’s original founder. The Uihlein boys knew better than to mess with a good thing. By 1902, they were brewing a million barrels of beer a year. That made Schlitz the country’s top brewery, pushing former champ Pabst to number two. Though still fiercely competitive, Pabst slipped into third as Bud vs. Schlitz became the ultimate beer brawl. Bud took the title, only to have prohibition put everything on ice for over a decade.

By the time prohibition ended in 1933, many of America’s breweries were gone for good. But Budweiser, Pabst and Schlitz came out swinging, and Bud regained the championship. All three brands landed huge military contracts during World War II and enjoyed soaring popularity when the boys came home. Pabst emerged as the immediate post-war sales champ, but soon lost out to Schlitz. Bud launched a relentless comeback and squeaked ahead on the scorecard in the early fifties after Schlitz suffered through a long strike. Schlitz doggedly slugged its way back to the top, winning the title after Bud initiated an ill-advised price hike. Bud reversed the increase and edged ahead again, but Schlitz landed a powerful blow in the mid-60s with the introduction of the pull-tab. Round after round, it was a battle royal in every sense of the term. And then, somebody got greedy.

(This concludes Beer Brawl I: The Birth Of The Brands. Click here for Beer Brawl II: How Gusto Lost Its Mojo.)

 

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A Rye Eye On Tennessee Flavors

Last week, Nashville State Community College (formerly Nashville Tech) held its second annual Tennessee Flavors fundraiser, benefitting the school’s Culinary Arts Program. Having recently survived a nasty bout of the flu on little more than club soda, crackers and Kleenex®, I wasn’t about to let the rain falling as I entered the White Bridge Road campus dampen my appetite. Billed as a chance to “Sample the Latest Creations from Local Food & Drink Artisans,” the event did not disappoint.

TN FlavorsA wide-ranging array of restaurants offered a taste of their wares, including old favorites like Sunset Grill, Tin Angel and Merchants, more recent arrivals like Table 3 and The Pharmacy, and corporate big guns like Aquarium and Rainforest Café. The list is far too long to mention all of them here, though not quite long enough to have kept me from stuffing myself with samples from nearly every station.

And so, filled with the foods of Tennessee, it was time to visit the beverages of the Volunteer State.

The gang from Yazoo® Brewery was offering sips of two very different selections. A beer named “Sue” took its cue from the Shel-Silverstein-penned Johnny Cash smash. This unique, robust brew was as dark as French roast, as smooth as sweet cream and walloped the tongue with the huge flavor of smoked malt. I don’t usually care for darker beers, but the next time I’m in a joint that serves Sue, you might actually hear me sing “Hey, Porter!”

HH_LagerMy hopes that Sue would have a sister along were answered by “Hap & Harry’s® Lynchburg Lager.” This isa refreshing entry with a slight sweetness and a crisp finish, brewed by Yazoo in partnership with Tennessee distributor R.S. Lipman. It’s a beer that every Yuengling lover could love, and one whose local charm could easily end a romance with the pride of Pennsylvania.

Wines and moonshines were both well represented, but while eating too much and waddling home was an option, drinking too much and wobbling home was not. I skipped the vino and the white lightning, limited myself to three whiskey tastings, and was pleasantly surprised to find rye in unexpected places.

I am far from the only person to think that George Dickel® is the sleeping giant of American whiskey brands (or as they spell it, “whisky”). Like Jack Daniel’s® line-up, Dickel’s products are Tennessee Whiskies, and undergo the Lincoln County process of charcoal filtering prior to being barreled for aging. While that’s nothing new, a George Dickel Rye is.

Dickel RyeA forgotten American favorite, rye whiskey is distinguished by a mash bill in which rye, rather than corn, is the dominant grain. Typically viewed as bourbon’s bolder, spicier cousin, rye whiskey began making a comeback in the early 2000s. Today, stores that once struggled to scrounge up a bottle of Old Overholt® offer an ever-growing list of ryes in a range of prices. Though announced last fall, George Dickel Rye has just started showing up on many stores’ shelves. It’s a welcome addition, combining the spice and citrus notes one expects in a rye with a sweet smoothness that makes for easy sippin’, even at 90 proof.

Dickel Brand Ambassador Douglas Kragel explained that, unlike other Dickel drams, the new rye goes through the Lincoln County Process after it comes out of the casks. That no doubt accounts for some of its signature smoothness. Kragel further clarified that George Dickel Rye is actually distilled in Indiana and undergoes the Lincoln County Process in Illinois with charcoal shipped from Tennessee. While it would be nice to say this new Dickel is distilled in Tullahoma, the Hoosiers at Indiana’s LDI/MGPI facility have got ryes down, and it shows. As whiskey authority Chuck Cowdery recently wrote about Dickel’s latest addition, “If the people who claim to primarily like rye aren’t all over this, there’s something wrong with them.”

CM LabelCollier and McKeel® Tennessee Whiskey, meanwhile, was being made just a few miles from where westood. A taste quickly revealed that Collier and McKeel is no Dickel or Daniel’s knockoff. Though corn dominates its mash bill, a helping of rye gives this small batch upstart a spicier taste than other Tennessee Whiskies, while charcoal filtering keeps things smooth. If you like American whiskies, but have a hard time deciding between bourbon, rye and Tennessee whiskey, Collier and McKeel may be the ideal resolution to your dilemma.

When a gentleman from the Prichard’s® distillery in Kelso heard me discussing the rye in Collier and McKeel’s flagship product, he insisted I give his Prichard’s Rye a try. (He didn’t have to insist too hard.) This is one of the most interesting ryes I’ve ever tasted. It started off like a bourbon, and then seemed to transform into a rye in my mouth. A neat trick—and one that would lead me to drink it neat.

I left Tennessee Flavors well feted and well fed, musing on how much the food and drink scene in our state and our city has changed over the last two decades. In some cases, change is good. In this case, it’s delicious.

Notes: The folks at Tennessee Flavors were kind enough to offer me a complimentary ticket to this event. I have only touched on a few of this year’s numerous participants. You can learn more about Flavors and the participants at www.tnflavors.org. Drink Responsibly–Beer, wine and spirits were offered in sample-sized portions, not full servings. Refills were readily available, but since I was driving, I chose not to have any.

 

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The Digital Whiskey Rebellion, Or How Maker’s Returned To The Mark (Part II)

(This is Part II. Click here to read The Digital Whiskey Rebellion Part I.)

At the conclusion of Part I, Marker’s Mark announced that they were lowering the proof of their bourbon to ease a product shortage. Chairman Emeritus Bill Samuels explained that he could not taste a difference and did not think others would, either.

MMCU

Bourbon drinkers are intensely brand loyal. And proud of it. Maker’s Mark fans saw the proof switch as a profound slap in the face. Watered down whiskey at full price. What a cheap trick! Worse, the company thought its customers were literally too tasteless to notice the difference! Twitter and the blogosphere blazed like that tax inspector’s home in 1791. People who didn’t even drink whiskey fanned the flames. This was just like that sneaky dimple in the bottom of the peanut butter jar. Or those swollen snack packages that hold fewer chips and more puffed air. Corporate contempt for customer loyalty at its worst!

The mainstream media went from touching on the story to jumping on it. Coverage ballooned as the rebellion spread. Many diehard Maker’s drinkers pledged to boycott their favorite beverage. Others swarmed into stores, intent on buying all they could before the lower proof product arrived. Angry e-mails flooded the company’s inboxes. Online comments grew more extreme. The social media fury itself became a mainstream story. Forbes declared that Maker’s had committed “brand suicide.”

Geo WashingtonSo, nearly 210 years after Pennsylvania farmers realized that fighting an overwhelming force would be a fatal error, Maker’s Mark called the whole thing off. Fresh from their weeklong digital tarring and feathering, Bill Samuels and his son, President and CEO Ron Samuels, announced that they had heard their customers loud and clear. They made a mistake, and they were sorry. Maker’s Mark would continue to be bottled at 90 proof. “You spoke. We listened,” Maker’s tweeted, including a link to a full apology on Facebook.

A great cheer echoed across the fields, umm, screens of the republic. “You spoke. We listened,” became a hashtag that became a public kiss-and-make-up fest. D’awww.

Maker’s Mark won praise for listening and learning. A “new Coke” or “new Netflix” fiasco had been headed off at the pass. Meanwhile, some of the same bourbon drinkers who scorned the sale of a lower proof product began searching for the few bottles that had supposedly reached the shelves, intent on snapping them up as treasured collector’s items. Go figure.

The Whiskey Rebellion of 2013 was over. But like the Whiskey Rebellion of old, this year’s model includes a slippery conspiratorial coda.

Alex Ham

Back in the day, some said that Alexander Hamilton’s tax was never intended to be a revenue raiser. His true agenda was to create aconfrontation in which the federal government showed the citizenry who was boss by force of arms. After all, few things were guaranteed to generate conflict like a whiskey tax. Especially an unfair one. Today, bars and blogs alike are full of rumors that Maker’s Mark never intended to lower the proof of its bourbon. The whole thing was an insanely brilliant shadow show staged to create fresh buzz around a fifty-something brand. No such thing as bad publicity, right?

I find this “the whole thing was a fake” theory harder to swallow than a mouthful of moonshine. Betting their brand on a dishonest publicity stunt is the complete opposite of the Samuels’ style. Like the rest of the liquor industry and the rest of us, they learned that changing a popular product in the digital age can cause your customers to pop their corks in a very different way than you expected.

(Notes: 1. Maker’s Mark is one of the relatively few American distilleries that uses the less common spelling “whisky” to identify their product. To avoid confusion, I chose to go with the more typical  “whiskey” throughout this piece. 2. The Maker’s Mark distillery in Loretto, Kentucky, is a little harder to get to than some of the others on the historic Bourbon Trail, but well worth the effort. 3. The Samuels family founded Maker’s Mark in the 1950s. Though the company has been sold several times and is currently owned by Beam, Inc., the Samuels continue to manage it. 4. In my humble opinion, longtime agency Doe-Anderson’s recent work for Maker’s is some of the best spirit advertising around. Their “It Is What It Isn’t™” tagline is terrific.)

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The Digital Whiskey Rebellion, Or How Maker’s Returned To The Mark

I was proofreading a piece on Richard III for the second time when the folks at Maker’s Mark® announced a little re-proofing of their own. Much to their surprise, they incited a Whiskey Rebellion worthy of 1791. If eighteenth-century Americans had preferred Twitter® and Facebook® to tar and feathers, that is.

Whiskey ProclamYou probably heard about the Whiskey Rebellion in high school. You may even confuse it with the Fake ID Citation or the Raid On Dad’s Beer Fridge. To clarify, the Whiskey Rebellion was the first true test of the power of the federal government. In an effort to pay off debts accumulated during the revolutionary war, newly minted Treasury Secretary Alexander Hamilton pushed a tax on whiskey producers through congress. An angry public pushed back, particularly in Pennsylvania.

Having won their freedom from arbitrary English taxes, our forefathers were far from eager to pony up. Transforming grain into whiskey was one of the few ways to store harvests in those days; trading in it was seen as a birthright. What’s more, many felt Hamilton’s tax unfairly favored large producers over small farmers operating their own stills.

Tar And FeathersAs often happens when large amounts of booze are involved, things got ugly fast. In 1791, “whiskey rebels” tarred and feathered a tax inspector and a process server. By 1794, shots were being exchanged, a rebel leader was killed, a tax inspector’s home was torched and armed mobs were threatening Pittsburgh.

Hamilton pushed for military intervention. President Washington chose negotiation. When talks failed, Hamilton got his way, and 13,000 troops marched into the Keystone State. The rebellion evaporated. Hamilton was elated. Jefferson was appalled. George Washington served two terms and returned to Mount Vernon, earning a living by–wait for it–distilling whiskey.

You probably heard about the Whiskey Rebellion of 2013 from the instantaneous, inescapable consumer outrage. It’s a textbook lesson in the power of social media. One that leaves no remaining doubts about customers’ ability to clobber companies that dare to mess with beloved brands.

MM3B

The seeds of rebellion were sown when Maker’s Mark announced that they were lowering the proof of their flagship bourbon from 90% to 84%. The stated reason was simple enough: they had underestimated demand. Bourbon sales were booming at home and abroad, and Maker’s Mark was struggling with a product shortage. Because bourbon is aged in barrels for years before bottling, increasing production couldn’t solve the immediate problem. The company had a choice. Let some customers go without, or add more water to the current stock, reducing the proof and stretching supplies. They chose the latter.

Of course, almost all whiskey is cut with water between the barrel and the bottle. This helps the distiller create a specific taste (flavor profile) and consistent alcohol content (proof). There are a few barrel proof bourbons available. But they are far too potent and pricey for most consumers.

Bill Samuels, Chairman Emeritus of Maker’s Mark, explained the lower proof in levelheaded terms. The company had been very careful to craft a new Maker’s Mark that hewed to the existing flavor profile. He could not detect any difference in taste, and he did not believe other drinkers would, either. Loyal customers would not go without. The retail price would remain the same.

All was well. Until all hell broke loose.

 

(This concludes Part I. Click here to read The Digital Whiskey Rebellion Part II.)

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