My Barnard Castle Eye Test IPA is on its way

The email arrived last Wednesday from BrewDog: my Barnard Castle Eye Test IPA was on its way. Billed as short-sighted beer for tall stories, it’s dry-hopped 6% ABV for a juicy hit with pineapple, mango and hint of zesty lime. All profits will go to funding production of their free sanitiser for the NHS & Health Care Charities.

The Scottish brewery has an (in)famous reputation for its bravado on the naming of its beers, and its bold and brash marketing, and this is their latest provocative and cheeky marketing stunt.

Barnard Castle Eye Test limited edition IPA was named via a public vote, shortly after news that Dominic Cummings had broken the government’s lockdown rules in April, travelling 260 miles with his wife and child to his parent’s home in Durham. It transpired that Cummings had travelled 30 miles from Durham to visit nearby Barnard Castle, a local tourist attraction, to test his eyes, as his vision had become ‘a bit weird’.

Quick off the mark, BrewDog co-founder James Watt asked his 67,000 Twitter followers to vote for the name for a new, limited edition beer: Cummings & Goings, Stay at Home were suggested, but Barnard Castle Eye Test won the vote. The label features blurred out text at the bottom of the can. It adds to the branding…

Beer has come a long way since an Italian medic, Aldobrandino of Siena, published his treatise on health and diet in 1256. Here was a drink, Aldobrandino argued, that harms the head and the stomach, causes bad breath, ruins the teeth, and fills the gut with bad fumes. But his views would not prevail. In Britain, beer became increasingly popular.

But by the end of C20th, beer was in a bad way. Traditional cask ale was vanishing from the pubs in favour of thin, industrial bitters and fizzy, low-strength lagers. Technology allowed the big brewers to commoditise the product with economies of scale to churn out mass-produced volumes, supported by big advertising budgets to somehow convince people this bland, insipid parody of a product was what beer was supposed to be.

The vast majority of beer in Britain was chilled, filtered and pasteurised (to kill the yeast and extend the shelf life), injected with CO2 (to make it fizzy), served from a pressurised keg. Sales in supermarkets killed off the pub trade with their pricing.

At this time, James Watt had a beer epiphany with an American brewed Sierra Nevada Pale Ale, bought at Tesco, to wash down some fish and chips. With his friend Martin Dickie – and the brown Labrador, Bracken – they began experimenting with their own brews because they couldn’t find anything they really wanted to drink. At 55% alcohol-by-volume, their first brew, End of Historya blond Belgian ale infused with Scottish Highland nettles and fresh juniper berries – was stronger than most whiskies. It sold in a limited run of 11 bottles.

Their vision was to make people as passionate about craft beer as they were, revolutionise the British beer industry, and redefine British beer-drinking culture. They were part of the vanguard of a remarkable renaissance in British brewing that triggered the healthy micro-brewery sector we have today. Punk IPA was born.

Watt and Dickie pooled their savings, negotiated a £20,000 bank loan, and bought a pile of second-hand brewing equipment. Their first two batches of Punk IPA failed; the first because a phone, a thermometer and a set of car keys ended up in the mash, and the second because they had bought dirt-cheap garden hose for their brewhouse and the whole brew tasted like really strong plastic.

The third, however, worked. It was awesome. Now they just had to convince enough people they should feel the same way. It was tough going. They filled bottles by hand, sometimes through the night, criss-crossed Scotland in an ancient Fiat Punto and an even older Skoda pickup, flogging their beer on farmers’ markets.

Less than a year later, BrewDog had won its first major contract – to supply Tesco with twice the quantity of Punk IPA it was then capable of producing. Watt and Dickie had entered four of their beers in a competition run by the supermarket chain: the prize for the winner was a place on the shelves in every one of its UK stores.

Punk IPA became the UK’s fastest growing alternative beer brand and they launched ‘Equity for Punks’, aground-breaking crowdfunding campaign, and their business model was born. Theycontinued to push boundaries and perceptions of what beer can be by brewing the world’s strongest ever beer, Tactical Nuclear Penguin, at 32%; further Equity for Punks crowdfunding campaigns financed growth.

BrewDog captures the essence of passion-driven entrepreneurship, disruptive thinking in revitalising a declining market, an innovation mindset, vibrant product leadership and positioning, and unique customer intimacy strategies.

Let’s look at some key aspects of their strategy for your own startup.

1.     Be authentic, live your passion and values

What excites Watt and Dickie about brewing – above and beyond their fanatical obsession with beer itself – are its unending possibilities.From the very start they were inspired to brew American-style craft beers, sweet-tasting ales with high alcohol levels and large amounts of hops, which gave them a bold, fruity, even perfumed flavour.

They experimented, and what’s good with beer is you can try stuff and get an outcome really quickly. You can put in twice the malt, four times the hops, whatever, and two weeks later you know the result. Whisky, you have to wait years.

The zeitgeist is also key. BrewDog took its cultural values from the punk ethos – looking at how punk rock existed as an alternative to pop culture. BrewDog wanted to exist as a radical alternative – to reassess the value of beer, how it should be drunk, and ultimately start a movement away from the ‘4%, industrial tepid lager’ which dominated at the time.

For all the annoyance at their marketing antics, BrewDog have built a successful business on the loud and repeated pronouncement of their own authenticity: that all they truly care about is beer.

Takeaway: Stand for something Founded on a mission to revolutionise the beer industry and redefine its beer-drinking culture, BrewDog started a movement. The lesson from this noble vision is that by aligning with a purpose and standing for more than profit, BrewDog created a community of loyal customers and investors.

2.     Create your own market space

The punk positioning strategy is classic Blue Ocean thinking – if the rest of the market has moved to the right, turn away and head left. With the market dominated by mass-produced similar tasting beers, BrewDog travelled in the opposite direction and created their own market space. They let everyone else fight for market share in the crowded mass market, and created individual craft beers, with a focus on beer drinkers who desired authentic and artisan quality beers at an affordable price.

They adopted the same approach to marketing, not competing with mass- advertising selling a similar message, they stood outside of the crowd and made their brand distinct and memorable. Some of their communication strategies maybe unconventional, but they leverage and amplify their brand values.

Punk makes sense for a startup, challenge the status quo, conventional thinking and accepted paradigms, be non-conformists, get your point of view across. They communicated their philosophy and attracted like-minded people to a craft beer cultural revolution. It was about staying true to their philosophy.

Takeaway: never compromise on price In a market characterised by big brewers shipping volume beers that sacrificed flavour to compete on price, Watt and Dickie did the opposite and set about creating a market and educating customers willing to pay a premium for their highly differentiated product. Lowering your price is often a race to the bottom and hard to reverse, so BrewDog steadfastly refused to get involved with this strategy.

3.     Make product innovation your purpose

BrewDog has a straightforward, single product-based strategy – they supply the best beer – but their business model is based on purpose, passion and beer. They are not about a crowded supermarket shelf where the product is stacked high and sold cheap, but about creating their own shelf space, through product innovation, a positioning on brand and product that is distinct, discernible and distinguishable from competition. It’s hard to compete against purpose, passion and innovation.

BrewDog has set the product innovation bar high, and shown what can be achieved. The reality is that innovation is like the old story about a teenage boy’s claims about his first kiss: everyone talks about it all the time; everyone boasts about how well he is doing it; everyone thinks everyone else is doing it; almost no one really is; and the few who are, are fumbling their way through it incompetently. But BrewDog makes it happen, time and time again.

Takeaway: Make scalable innovation your competitive advantage Product innovation and scaling this at high velocity enables BrewDog to out-manoeuvre the market. Time and time again they gain first mover advantage by being agile, bold and responsive – the Barnard Castle Eye Test is just their latest play.

4.     Choose your attitude, choose your tone of voice

BrewDog describes itself as a post-punk, apocalyptic, motherfucker of a craft brewery. Their crazy, provocative marketing stunts have got their voice heard – as seen by the Barnard Castle Eye Test venture. Two others stand out for me:

·     Ahead of the 2012 Olympics, BrewDog released a special edition beer, Never Mind the Anabolics, containing steroids and other substances allegedly popular – though banned – among athletes. When we were putting steroids and other banned substances in beer, the initial reaction from the media was shock, disdain and disgust, but then we were able to talk to them about the chemicals that are in beer – that started a whole discussion, said Watt.

·     My name is Vladimir, was a beer released to mark the 2014 Winter Olympics and protest against President Putin’s archaic laws around homosexuality.

Takeaway: Develop a brand personality that people connect with BrewDog is an alternative type of business and from the beginning its founders focussed on creating an irreverent and quirky brand personality. By doing so they have built a passionate and sustainable connection with their audience whose loyalty has driven its hockey stick growth.

5.     Build a brand: make your marketing memorable

BrewDog’s provocative marketing has been a pivotal to the business model. They are serial offenders, and haven’t always got it right – Pink IPA, satirically labelled beer for girls, to highlight the gender pay gap, drew significant criticism.

Shock and fanfare have been the core of the marketing strategy for their thirteen years (91 dog years) existence, with the aim to shorten the distance between the people who make the beer and the people who drink it. 

BrewDog has used its marketing to provide a direct connection between the brewery and their audience, injecting humour and education content to reflect the brand personality. Their marketing is notorious for the alignment of product branding with their ethos, often being opportunistic with controversy whilst focused on product innovation – a winning combination.

Takeaway: Leverage the power of content BrewDog is a great example of leveraging content for inbound marketing. Introducing a whole new product category, their marketing fuels the sales cycle – from suspect to a prospect, to a customer, to a repeat customer, to an advocate and to an evangelist – Equity for Punks means customers own equity, an amazing alignment.

Business for Punks: Break All The Rules – the BrewDog Way by James Watt captures the remarkable tale of their turbocharged, heady growth, it’s a must read for all startup founders. They are a remarkably energised business. My Barnard Castle Eye Test IPA is on its way. Short-sighted beer for tall stories. I can’t wait!

Lessons for startups from the craft gin innovators

Gin has overtaken vodka to become the most popular spirit in Britain, evolving from the home-made C18th gut-rotting drink that was the scourge of the poor, to the tipple of colonial civilisation, and now the many-splendoured glories and choices of hipster watering holes.

We don’t know exactly what went into the strong water made of juniper that the diarist Samuel Pepys knocked back on October 10, 1663, but it did the trick he said, allaying his constipation. A couple of decades later, gin’s popularity exploded, after the introduction of jenever, a Dutch and Belgian liquor. Originally a medicine made of juniper berries, William of Orange, brought the tipple with him from Holland when he took the throne.

This was the time of the gin craze. More than half of London’s drinking establishments were gin emporiums. Parliament reacted by passing various laws to control the drinking and production of gin, and by the 1850s, things had calmed down.

The enthusiasm for the spirit, nicknamed ‘mother’s ruin’, took a different turn in the 1800s when colonialists in India used it to make malaria prevention more palatable. The antimalarial quinine, derived from the bark of cinchona trees, was effective but tasted awful, so colonialists mixed it with sugar and gin to cut the intense bitterness. The gin and tonic was born.

Today, surging popularity and wide-open competition has led to consumer’s conflation of gin with gin liqueurs. Many products are pushing or breaking the boundaries of established definitions in a period of genesis for the industry. We have a bewildering array of craft distilleries along with spas and hotels devoted to selling gin parties, gin menus, ginvent calendars.

The passion for all things gin has resulted in 315 distilleries in Britain – more than double the number operating five years ago. Nearly fifty opened last year. A total of 47m bottles worth £1.2bn were served up last year, enough for 1.32bn gin and tonics. The craze has even reached BBC Radio 4’s series The Archers, where Toby Fairbrother produced Scruff Gin, flavoured with his own mix of botanicals.

Torn between a Tommyrotter and a Cathouse Pink? Can’t tell the difference between a Spirit Hound and an Ugly Dog? You’re not alone! There are now gins of every shade, for every social occasion. By any reckoning, the demand for the juniper-flavoured spirit made by small-scale craft and artisan producers has been a freakish phenomenon, reaching a market outside traditional gin drinkers.

We have Monkey 47, a gin from the Black Forest of Germany, which has become something of a cult, largely on the ground of its botanicals. Not a big deal, you might say, given that botanicals are in every gin – they are the ingredients – floral, herbal, spicy etc. that, via an alchemy provide each brand with its singular magic. In most gins, the number of botanicals tends to stay in the single figures. Not in Monkey 47, though, whose name is a statistical boast. Personally, I can’t even think of forty-seven botanicals!

Few innovations have been more successful than Hendrick’s gin, thanks in part to its apothecary-style bottles. Hendrick’s is part of William Grant & Sons, a Scottish firm that owns Glenfiddich, so has some marketing muscle. Gin aficionados and new producers alike owe a huge amount to Hendrick’s as the category’s real trailblazer.

Developed in 1999, Hendrick’s launched its gin product, with the inclusion of two unlikely essences, rose petal and cucumber, and started the ball rolling in the new market with two factors, premium pricing and taste. The pricing factor together with high quality packaging served to signal to consumers that the stodgy old gin image was gone. As to taste, Hendrick’s was among the first to move out of citrus and herbaceous into a novel new flavour for gin.

This was followed by the emergence of the micro-brewery and craft ale renaissance, which has seen the alcohol market undergo a major shift in the last few years. We’re drinking fewer units, less often but still spending more. For more and more consumers, a night out means a couple of cocktails or fine craft ale that’ll look great on Instagram. In this sector as with others, it’s become as much about the experience as the product.

So that’s the back story, what lessons can we learn from how gin producers found new ways to excite and engage with more and new consumers, for other startup ventures introducing new products?

Understand your product’s market position Gin benefits from being versatile, and thus a more interesting product than vodka. When mixing in simple drinks or fancy cocktails, it’s possible to bring out different aspects of the gin by choice of ingredient, or indeed bring out different elements from the cocktail by trying it with different gins.

Gin is also more affordable when compared to a lot of spirits. Aged spirits command a premium due to time spent in the barrel, angels share etc., where as gin is a relatively quick spirit to make, therefore the price tends to be lower meaning it’s a more accessible category to explore.

Be agile in your product thinking Whilst it is not at easy to produce a great gin, the production time is relatively short, with no need for aging like fine whisky and wine. This has allowed producers to be agile, moving to swiftly rise with the demand and to create new products.

With gin simply being defined by having juniper as the prominent flavour, it allows for experimentation and diversity in the market. This not only gives it broad appeal to people’s different tastes, it allows distilleries to rapidly create powerful narratives around their new gins that capture consumers’ interest.

Like the micro-breweries, some gin distilleries have been going the extra mile to reflect their locality, using botanicals that are locally foraged and distilled. The Botanist is a prime example, distilled from twenty-two types of berries, barks, seeds and peels found on the Isle of Islay in Scotland.

Put innovation and experimentation at your core Gin has the power to transport the drinker through the powers of taste and smell. One of the reasons craft gin has proved so successful is because it’s quick and easy to tweak and tailor as highlighted earlier. There isn’t really another spirit category in which you can commission your own product so easily. With gin, it’s a matter of days before it can be on the market.

This enables experimentation, making your own gin experiences and bespoke offerings for anything from hotels and restaurants to events. Distilleries will also continue to experiment with distillation techniques and barrel ageing, for instance, to increase depth of flavour. They will also get more and more creative with the flavours and botanicals they use, to create new and unexpected flavour profiles.

It seems that the more theatrical that producers can make their botanical constituents in their gin, the more success they have. This seems to have replicated the growth in wine sales. When it comes to the actual wine in the bottle, one of the biggest innovations was the move by supermarkets to start promoting wine by their grape variety and not brands per se, to engage with shoppers. It is arguably what kick started our love affair with Pinot Grigio.

Use storytelling to build advocacy Hendricks tells a great story, using nostalgia of a bygone era, while positioning as a contemporary, exciting and innovative product – a blend of the old and the new. Skilful storytelling is essential, partly because premium gins are sold at a high price point.

The Hendricks storytelling was about selling something more than just a better taste – the experience, a ‘proper’ gin and tonic, a gin that deserves to be savoured – it needs to work in a loud, busy bar when somebody asks What’s a good gin? A truly great story can be distilled down to an instantly appealing point of difference.

There are many examples that show new demand can be built by a new product with a good story and a bit of audacity. For example, long before craft gin was a thing, Grey Goose won itself a huge share of the premium vodka category.

The brand had a great story, a beautifully made, unabashedly French vodka from the Cognac region. Determined to take on Absolut, which dominated Grey Goose’s category in the US, the brand almost doubled its retail price overnight. The genius behind this was Sidney Frank, the man who also turned Jagermeister from a herbal digestif for German grandmothers into the booze half of a Jagerbomb.

I think that provenance had a lot to do with the success of craft gins. Those interested in buying things locally, or from specific regions liked the idea of gins with firm roots. They bought into the story of where they’re produced and the people that produce them, giving a strong connection to the products.

Know your customers as individuals The craft gin boom follows a surge in demand for locally made small scale beers, as the hipster generation seeks drinks with a more interesting taste created by individuals rather than faceless international corporations. Who are these consumers?

When launching Hendricks, their marketing identified ‘The Activist Consumer’, defining their characteristics, which are driven by lifestyle trends:

·     Always seeking to identify optimal experiences and the best products for the moment.

·     Exploring the ethical ramifications of their choices.

·     Multi sensory experiences enable brands to differentiate their interface with consumers.

·     Dreams of extremes: embrace moments that transport them outside their comfort zones.

·     Augmented crafted products, through a mix of ingredients, craft and ‘mixology’

·     Tangible transparency: brands that share consumers values and beliefs

·    Seek to combine high-speed gratification with balancing their always-on lives.

Personalised choice, allows brands to connect with their customers using multi-sensory techniques can all contribute to the higher-level experiences that people are looking for. The aim is always to surprise and delight your consumers.

Whether it’s a lavender infused gin and tonic or a spit-roasted pineapple gin with ice, there are now seemingly endless ways to drink gin that go beyond the standard G&T. This growth has been helped by a string of new brands, flavours and innovations entering the market, and now Amazon has joined in, further establishing its direction of travel in the grocery sector with the launch of its own premium gin brand – Tovess will retail for £24.99 and is described as offering a ‘smooth Mediterranean taste’.

There are lessons for us all in the attitudes of gin entrepreneurs, their world is everything-is-possible and optimism rules. A strong sense of the possible is essential to driving innovation that in turn leads to success. Whilst the image of the swashbuckling adventure-hungry risk-taking buccaneering entrepreneur is somewhat of a caricature, positive energy and exuberance are key, and the new gin innovators have it in buckets.

We all need to have new ideas, different ones, about what’s changing in our market, and how those changes could disrupt our business model. You also need to think about how you can disrupt yourself.

We need to live with the future customers and in the future markets of our business, we need to work on the business, not in the business. The world isn’t waiting for you to get inspired, you have to inspire it, and at the same time don’t let your doubts sabotage your thinking – there are far better things ahead than any we leave behind.

We are all confined by the mental walls we build around ourselves, sometimes innovation starts with a critical decision to reinvent yourself and kick-start your business 2.0 – a moment of truth, flash of brilliance or the end result of a bout of determined reflection to make a difference. But whatever the trigger, take a leaf from the craft gin folks, pushing limits and challenging conventions, live craft.

Changing lifestyles factors are driving the growth of the companies in gin industry, driving product strategy from a customer’s point of view and with customer-based insights, to ensure the business model is as robust as it can be.

The macro lesson is this: focus on the horizon and hold your vision. Do something everyday to move your business forward, and that makes you stand out from the crowd. A sheep has never stood out from another sheep, so don’t follow the herd blindly. People will take notice.