It’s not your fathers’ beer….

When I purchased the 7th largest Schlitz operation located in the Rio Grande Valley in early 1981, Schlitz was still the #1 brand in the market. Over the next several years, however, the Mexican trade was lost due to a massive devaluation of the peso; the area was hit by the worst freeze in 100 years, destroying all the citrus crops; oil prices rose, and sky-rocketing interest rates all took their toll on the South Texas/Mexican economy. Our unemployment rate approached 50% and the market shrank accordingly.  To make matters worse,  the Jos. Schlitz Brewing Company, with all its problems, sold out to Stroh. Within a short time, all of our Schlitz support was either terminated or dramatically reduced.

Even with all these difficulties, Schlitz still had a good market share several years into the venture, but Miller Lite was on fire and growing so fast it was really something to watch. We tried everything to slow Miller’s growth, but to no avail. Around the mid 80’s, I was in a golf tournament in my market playing with a couple of young men (early 20’s). The conversation turned to beer and I told them I owned the Schlitz operation. The immediate response from the group was “Schiltz… was my father’s beer, not mine!” I knew then we were fighting a losing battle and no amount of money was going to change the image this age group held of our product.

The South Texas/Rio Grande Valley populations is currently over 90% Hispanic and I have watched it with interest over these years. Schiltz, #1 in the 60’s, 70’s and very early 80’s, lost its position in the marketplace to Miller Lite; who then, in turn,  lost it to Bud Light, who now is losing it to Michelob Ultra. Each generation of beer drinkers gravitate to “their” beer, not “their fathers’ beer.” To this day Miller Lite is still losing share and volume even with the vast funding being dumped into marketing.

Over the years the industry has seen many brands die. In addition to Schlitz; Pabst, which is now coming back, saw market share decline to almost nothing in the past decades.  Other brands that have declined and/or disappeared over the years include, but are certainly not limited to: Hamm’s, Olympia, Pearl, Falstaff, Schaffer, Primo, Jax, Southern Select, Grand Prize and more. Many of these brands died due to their management and the influx of new brands. What would have happened to Budweiser, Miller, and Coors if Bud Light, Miller Lite and Coors Light were never brought to market? Would the “mother brand” have survived or would it have become “your fathers’ beer?” I’ve always wondered.

Could this same trend be what we are seeing happen to early and successful crafts including Sierra Nevada Pale Ale, Sam Adams Lager, and even Fat Tire? Are these labels becoming like Schlitz? To remain relevant, breweries are diversifying their portfolio with new products and line extensions. Distributors should do the same, and many have.

While you may support the “anchor distributor” concept, the risk of your main brand becoming “your fathers’ beer” is too great to leave to chance. So when a brand continues to die, when does the distributor make the decision to save the brand versus just trying to salvage what can be retrieved from that brand?