Eugene Kashper

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.

Pabst Brewing’s New Direction

In 2014, businessman Eugene Kashper and two other investors bought the Pabst Brewing Company for $700 million. Under the previous owners, Pabst was a virtual brewery; it contract-brewed all of its beer—Pabst and a variety of other “legacy brands”–at MolsonCoors facilities and marketed those brands using nostalgia rather than advertising.

Kahsper aims to take Pabst in a different direction. It will open a microbrewery and tasting room at the site of the former Pabst brewing complex in Milwaukee. The company will also revive more of the 77 brands that it owns. It will also delve into its collection of beer recipes and bring back classic beers, some of which were last brewed before World War II.

Pabst recently made news by acquiring Small Town Brewery, whose Not Your Father’s Root Beer was the industry’s surprise success story of 2015. The product helped raise Pabst’s overall sales in 2015 by 20 percent and pushed its market share up by a percentage point, even as sales of Pabst Blue Ribbon Beer itself fell off.

The Friday Mash (Liberator Edition)

On this day in 1783, Simon Bolivar, “The Liberator,” was born. Bolivar was instrumental role in making Bolivia, Colombia, Ecuador, Peru, and Venezuela independent of Spanish rule. Toast him with a glass of Polar beer, “The People’s Beer” of Venezuela.

And now….The Mash! 

We begin in Milwaukee, where Pabst Brewing Company is returning to its original location. Pabst’s owner, Eugene Kashper, says the brewery will new small-batch beers, based on Pabst’s archived recipes, while staying true to its roots.

A new Indiana law classifies retirement communities as homes, so they no longer need a liquor license to serve alcohol to residents. One problem not likely to occur: underage drinking.

Mark your calendars. Next year’s Beer Bloggers & Writers Conference will be held at the Tampa Marriott Waterside Hotel & Marina. The dates are July 8-10.

Jackie Speier, a congresswoman from California, announced on her Facebook page that she’s introduced legislation that would allow the U.S. Postal Service to ship alcoholic beverages.

The clever folks at Printsome.com have designed beer labels to match the personalities of Facebook, Google, Nike, and 14 other highly recognizable corporations.

Yes, you can get an India pale ale—along with a host of other craft beers—in India. The subcontinent’s first brewpub, Doolally in the city of Pune, opened its doors in 2009. A slew of others have followed.

Finally, the Buffalo Wild Wings in Tacoma displays a bottle of Corona with a lime slice underneath an American flag. An unidentified woman ordered the Corona and placed it in front of an adjoining seat in honor of her brother, who was killed while on duty in Iraq.

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