D.G. Yuengling & Son

Pabst’s Unusual Business Model

Pabst Brewing Company has 2 percent of the American beer market, which puts it in a class with Boston Beer Company and D.G. Yuengling & Son. But under Eugene Kashper, Pabst’s busimess model is much different than that of Boston Beer and Yuengling.

Jason Notte of Forbes magazine, who recently interviewed Kashper, writes that Pabst’s CEO is “also digging into corners of the beer industry where the competition hadn’t tread and using its strengths in marketing, production and scale to take on the big brewers on a much smaller budget”.

Kashper told Notte that his portfolio was “kind of in a sweet spot between big beer and craft” because his legacy brands not only have a following, but also own a library of recipes for craft-like beers that he can sell for less than the going price of craft. Kashper’s success stories include Stroh’s Bohemian, Old Style Oktoberfest, and Rainier Mountain Ale, all of which have strong regional ties.

In addition, Pabst has entered into partnerships with craft and import brewers to enable it to penetrate those segments of the market. Those partnerships emphasize the strength of Pabst’s distribution and grassroots marketing, which Kashper hopes will give it a fighting chance against brewing giants Anheuser-Busch and MillerCoors.

The Friday Mash (Cubs Win! Edition)

On this date in 1908, the Chicago Cubs last won the World Series. Managed by Frank Chance of “Tinker to Evers to Chance” fame, they beat the Detroit Tigers, 4 games to 1. Cubs fans are hoping their team can end their 108-year drought in this year’s playoffs.

And now…The Mash!

We begin in Detroit, where Ludwig’s beloved Lions will sell $3.50 beers during Sunday’s game against the L.A. Rams. The way the Lions are playing, fans need a few to get them through the game.

D.G. Yuengling & Son is waging a last-ditch fight against the pending merger of Anheuser-Busch InBev and SABMiller. Yuengling argues that A-B is trying to keep it out of new markets.

German scientists have found that beer causes less liver damage than hard liquor. The reason? Hops may inhibit the formation of reactive oxygen species, which can damage cells in the liver.

Ken Pagan, the Toronto-area man accused of throwing a beer can at a player during a baseball game, better have his lawyer warming up. A Canadian attorney discusses Pagan’s legal problems.

Two Copenhagen men have taken the idea of freeze-dried coffee and applied it to four of their craft beers. They’ve created instant versions of a coffee beer, a fruity IPA, a wild-yeast IPA, and a pilsner.

After a church in Canyon, Texas, ran an anti-alcohol ad in the local paper, an establishment called the Imperial Taproom offered a discount to customers who brought in a copy of the ad.

Finally, Fat Head’s Brewery had a very short reign as “Mid-Sized Brewing Company of the Year” at the Great American Beer Festival. Officials revoked the award after concluding that Fat Head’s, which has three locations, had been misclassified.

Beer…By the Numbers

  • Percentage of regular wine drinkers who also enjoy beer: 89.
  • Percentage of regular wine drinkers who are also “core” beer drinkers: 43.
  • Tickets sold for the 2014 Michigan Brewers Guild Winter Beer Festival: 6,000.
  • People who tried to buy tickets: 18,000.
  • Hours it took to sell out the festival: 3.
  • Current federal tax on each barrel of beer: $7.
  • Proposed federal tax on each of the first 60,000 barrels made by a small brewery: $3.50.
  • D.G. Yuengling & Son’s production in 2012: 2.8 million barrels.
  • Its production in 1993: 245,000 barrels.
  • Estimated value of a bar’s tap handle: $11,700.
  • Average number of tap handles at a bar: 18.
  • Annual staff turnover at the average bar: 400 percent.
  • Budweiser Platinum’s sales in 2012: 1.8 million cases.
  • Bud Platinum’s sales’ rank among mainstream beer brands: 19th.
  • Bud Platinum’s alcoholic content by volume: 6 percent.

Fire Damages Yuengling’s Tampa Brewery

Last night, fire damaged D.G. Yuengling & Son’s Tampa brewery. The two-alarm blaze, which investigators have ruled accidental, began in the brewery’s storage building. It caused an estimated $1 million in damage, and resulted in one Tampa firefighter sustaining a minor injury.

Powered by WordPress