Islands and Beers: Toasting a Discriminatory Approach

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provided by OAR@UM Asia Paciﬁc Viewpoint, Vol. 51, No. 1, April 2010 ISSN 1360-7456, pp61–72

Islands and beers: Toasting a discriminatory approach

to small island manufacturingapv_1414 61..72

Godfrey Baldacchino Island Studies Program, University of Prince Edward Island, 550 University Avenue, Charlottetown, PE, Canada C1A 4P3. Email: [email protected]

Abstract: This paper explores the relationship between beers and island development, using a global sweep but with a special reference to the insular Paciﬁc. It adopts a discriminatory approach, touching upon the role and impact that niche and bouquet beer manufacturing can have on the socioeconomic development of small islands. It departs from a personal observation: many small island jurisdictions have their own brewery. Indeed, the brewery could also be the island territory’s largest indigenous manufacturing concern. While small islands are associated with low manufacturing capacity and diseconomies of scale, nevertheless ‘a local brewery’ comes across, in many cases, as a proﬁtable and glaring exception that speaks to the attractions and virtues of locality branding.

Keywords: beer, branding, brewery, islands, manufacturing

Introduction without invitation; during which time the guests expect to be fed, to drink beer and be bought Kabutaulaka (2005: 88–89) provides anecdotes new things. Social and cultural practices aside, of men from Malaita and Guadalcanal, proudly local beers however also perform a vital, and showing off that they can afford to buy and drink perhaps under-appreciated, economic function the Solomon Islands beer, Solbrew.The alcoholic to small island territories. drink becomes the commodity around which the Since we all need to drink to survive, bever- lucrative logging industry revolves. ‘It dictates ages accompany human consumption regularly. the nature of logging negotiations, state policies, Among beverages, beer is allegedly the world’s and the relationship between landowners and oldest and most widely consumed alcoholic the different stakeholders in the forest industry’ beverage, and the third most popular drink (Kabutaulaka, 2005). overall in the world, after water and tea (Arnold, The drinking of beer performs multiple roles 1911/2005; Nelson, 2005: 1). in Paciﬁc society. Early missionaries took This paper is the result of a remarkable extreme lengths to enforce prohibition and amalgam of cultural tourism, academic inquiry stamp out the practice of kava drinking; and the and a personal appreciation for good cold beer. secret production of strong local ‘bush beers’ As an ‘island studies’ scholar, I have been to was a natural reaction. This may explain why various island jurisdictions around the world, beer, like yaqona/kava, is often consumed col- and a request to sample ‘the local beer’ is one of legially in the region in elaborate and entertain- my standard obligations. The question is some- ing ceremonies, which could involve music, times met with incredulity: why try the local, sir, dancing and prayer. The tunumu or ‘bush beer when we have imported, foreign brands? At drinking schools’ are still relatively non- other times, the sad answer is that none is avail- commercial and add a relaxed event of tradi- able. But: where the request is met, I have rarely tional entertainment to a Cook Island holiday been disappointed. I now have a modest collec- (Rowlands, 2007). Town dwellers on most tion of colourful aluminium beer cans and beer Paciﬁc islands can expect to host guests from bottle caps as hard evidence of my triumphant their village, for long periods, unexpectedly and consumption of local cultures.

The challenge mountainous or landlocked. In spite of the real difficulties associated with developing manu- How does one transform small size and relative facturing capacity on small island economies – isolation into a powerful combination for (Baldacchino, 1998; more on this below) – this sustainable growth and prosperity? The clutch of does not mean that there are no small island winning tools and strategies necessary for manufactures; and some of these can also be achieving this desirable goal include the brand- competitive, appealing to both local and foreign ing of niche products and services (Baldacchino consumers. Thus, in various island jurisdictions et al., 2009). This paper explores one product that I have visited – including Åland, Barbados, that appears to lend itself handsomely to this Bermuda, Cyprus, Fiji, Iceland, St Lucia and the task. This is accomplished by virtue of a broad Seychelles–Ihavecome across an island appeal, an explicit affiliation with the locality brewery. Moreover: where it is produced, the relative ease of it being ‘import substituted’, and the ability to tap into On Prince Edward Island, Canada’s smallest both tourist and diaspora export markets. province with a population of 140 000, the The perspective is a welcome shift of perspec- Gahan Pub has its own microbrewery, productive from the rather pessimistic approach to ing handcrafted ales since 2000 (http:// small island development that has continued to www.gahan.ca/). dominate the literature, until very recently. A In the sovereign island state of Malta, with its small (often island) economy is recognised as population of 410 000, the largest indigenous having an ability to adjust fast and well to (in this case, Maltese owned) manufacturing sudden changes: an ability which larger, lum- group of companies is the Farsons Group. It is bering economies might not have. This has very the only locally owned manufacturing firm much been the only recognised asset among a which employs more than 500 employees in whole litany of woes for small economies; and a the country. The first locally brewed beer – rhetorical one at that, not subjected to rigorous Farsons Pale Ale – was launched in 1928 testing. The list of ‘chronic vulnerabilities’, (http://www.farsons.com/). meanwhile, is extensive: it includes the relative A hundred years ago, Bornholm, the island inability to reap economies of scale, a poorly municipality of Denmark, with its some diversified economic structure, a high exposure 40 000 inhabitants, boasted more than 40 to foreign trade risks, a large brain and skill local breweries. In the late 1950s, the last one drain, relatively high transport costs, and (par- closed, and mainland Denmark’s giants – ticularly in the Caribbean) a high susceptibility Tuborg, Carlsberg and Faxe – took over. But a micro-brewery has re-opened in the town of to environmental hazards (e.g. Dolman, 1985; Svaneke recently. With its special brew of Briguglio and Kaminarides, 1993). Kaminarides Bornholmer Bryg, this is the fourth mini- (1989: xii–xiv) must hold the record, outlining brewery in Denmark today. In 2003, Svaneke no less than 29 different ‘characteristics’ of Bryghus won the ‘beer of the year’ award and it small, mainly island, economies ‘which tend to is known nationwide. The brewery offers act as development constraints’. guided tours, beer tasting and a restaurant Such sweeping statements, however, are not (http://www.svanekebryghus.dk). useful explanatory tools when it comes to Founded in 1890 as a brewery, San Miguel looking at the opportunities that may result from Corporation is the largest publicly listed food, economic policy or private entrepreneurship. beverage and packaging company in the Phil- With their broad strokes, they are unable to ippines. As of 2001, its business generated discriminate in favour of the evidence for devel- 3.6% of the Philippines’ GDP and 4.5% of the opment ‘on the ground’. Many small island state’s tax revenue. It is one of the Philippines’ jurisdictions perform well economically, in biggest private sector employers, with over spite – or because? – of all these obstacles. 25 000 employees (http://www.sanmiguel. Armstrong and Read (2006) argue that island- com.ph/). ness is indeed a positive contributor to the economic development of small jurisdictions, as A look at the http://www.beerme.com website – against such other geographic features as being ‘the most complete source of brewery informa-

62 © 2010 The Author Journal compilation © 2010 Victoria University of Wellington Islands and beers tion worldwide’ – reveals that many of the state bureaucracy turned such projects into world’s small island states and territories have at glaring and expensive failures, even in large least one brewery. The main exceptions are economies (e.g. Thorp, 1992). those islands whose population is very small,1 Admittedly, some of the world’s smallest where alcohol may be banned for religious jurisdictions did bravely attempt to follow their reasons,2 or else otherwise not tolerant to the alleged destiny into industrialisation: for drinking of alcoholic beverages.3 example, the Seychelles, an archipelago with a total population of around 80 000, set up two plastic manufacturing plants which ended up Looking for explanations producing ‘inferior, unprinted containers for Rs But why should many small island jurisdictions 0.25 and Rs 0.36, whereas imported printed have a brewery? A closer scrutiny reveals more- containers, duty paid, cost Rs 0.19’ (Kaplinsky, over that many of these breweries on small 1983: 205; ‘Rs’ stands for Rupees, the Seychel- island territories exist where other manufactur- lois currency). ing concerns do not. In some cases, the brewery represents the largest manufacturing concern on A different development path the island; and perhaps the only one of signifi- cance from an employment perspective. In practice however, economic development This could very well happen because indus- has unfolded rather differently in the world’s trialisation and small islands do not sit well smallest jurisdictions. together. Industrialisation has occupied an Profitable import substituting industries have iconic presence in most development theory; largely proved very difficult to set up on small indeed, in the context of modernisation theory, islands because of the constraining and cumu- development has often been seen as synony- lative effects of diseconomies of scale, market mous to industrialisation. It was the obvious, fragmentation (especially in archipelagos), most conspicuous and crucial magnet to attract limited labour supply and skills, high costs for ‘unproductive labour’ away from stagnant agri- energy and raw material, few local inter- culture or underproductive rural livelihoods industry linkages, inadequate access to technol- (Streeten, 1993); it was the intended provider to ogy and investment capital and – once in place mass, well-paying and non-seasonal employ- – massive political pressures to maintain ineffi- ment for both men and women in urban sur- cient industries as heavily subsidised and pro- roundings; it would develop a pool of skilled, tected white elephants (Selwyn, 1975; disciplined and technologically savvy labour; it Ramsaran, 1989: 1; McKee and Tisdell, 1990: would be the site for locally derived value 18; Connell, 1991, 139; Fischer and Encontre, added, reducing the drain of foreign currency in 1998; Prasad, 2004: 45–48). the context of a broader import substitution The establishment of viable export-oriented strategy; it would create additional economic industries has proved just as exasperating: com- demand both upstream and downstream in the pounded by precarious environmental condi- product cycle (e.g. Lewis, 1954; Seers, 1982: tions, fluctuating commodity prices, inadequate 74; Arndt, 1989: 57). The path to industrialisa- access to markets, and high labour and unit tion was not just desirable; it was also allegedly transport costs (Jalan, 1982; Dommen and unavoidable, a natural progression on an evo- Hein, 1985). Of course there are exceptions: lutionary path to progress from which there there are a few examples of remarkable success were no short cuts (Hyden, 1983). This mantra in export-oriented manufacturing on the back of was so entrenched that many developing coun- jurisdiction-specific institutional opportunities: tries adopted an ‘import substituting industriali- such as export processing zones in Mauritius sation’ policy to set up and protect infant local (Subramaniam and Roy, 2001); and garment manufacturing industries, hoping that they manufacturing for the US market in the Com- would eventually graduate and mature into monwealth of the Northern Marianas, where internationally competitive firms (Hoshino, cheap Asian migrant workers can be recruited 2001). Most often, politically entrenched ineffi- outside the US visa border while the production ciencies, an inability to tap export markets and occurs inside the US customs frontier (Bertram

© 2010 The Author 63 Journal compilation © 2010 Victoria University of Wellington G. Baldacchino and Poirine, 2007: 333–334). Otherwise, ments, tourism receipts or migrant remittances. limited success has been achieved in Indeed, economic success on small islands geography-sensitive operations (mining of gold, often means an ability to tap value added gen- phosphate, nickel); or in cash crops (sugar, erated elsewhere via rentier income: for geo- copra, bananas, pineapple, tea, cocoa, nutmeg) strategic military or financial services and real – but these activities occur in the primary and estate; fishing, berthing and landing rights; bun- natural resource extraction sectors which kering and transhipment, along with tourism involve limited local value added and high and inward capital flows via individuals (remit- dependence on global market forces; moreover, tances, sustained by relatively large and affluent they do not correspond to manufacturing activi- diasporas), organisations and/or governments ties. Consider the Solomon Islands by way of an (aid, sustained by active para/diplomacy) example: the export of timber (the main (Bertram and Watters, 1985; Kakazu, 1994; product), palm oil and kernels, copra, cocoa Baldacchino and Bertram, 2009). and fish constitute the bulk of the country’s trade – all cash crops with low value added. A case for some optimism Other exported products which are traded in relatively smaller quantities include outboard And yet, within this scenario, nurturing success- canoes, furniture, wooden carvings...and ful manufacturing firms in small economies is beer (Encyclopedia of the Nations, 2010). certainly possible. Manufacturing products Overall, the general understanding of the which benefit from locally available, raw mate- development prospects for small island econo- rial input and association can be viable business mies in some academic and policy quarters ventures, especially if there is a strong branding remains that of a chronic condition of vulner- of the product with the respective locale and its ability, based on features such as remoteness associated characteristics: just think of a few from key markets, diseconomies of scale, imper- examples from the food and beverage category: fect local competition, openness to the vagaries Italian pasta, French Champagne, Greek ouzu, of international trade and prices and limited Japanese sake and Scotch whisky (see Bal- diversification of economic output (Briguglio, dacchino, 2010). The chances of business 1995; Atkins et al., 2000; Crowards, 2000). success are increased with a free-riding on the Moreover, as if this tragic picture is not tourism industry and limited local firm rivalry enough, a heightened pace of transition to a (Fairbairn, 1988; Baldacchino, 2005; Punnett knowledge-based economy presents still more and Morrison, 2006). Another form of ‘free bad news for small islands. Global competitive riding’ – on those foreigners working within a trends are leading to a greater concentration of former colonial administration or a military resources, or clusters àlaMichael Porter (1998), establishment – could have been the historical associated with the modern economy (high- antecedent from which the acquired taste for tech industries, flexible IT-skilled labour pools, beer may have been originally derived. Such research and development institutes, ICT- would certainly help to establish a local beer specialising universities) in large, urban centres market. Goods – and services – can be provided and metropolitan areas – robbing the small by entrepreneurs based on small islands to islands on the periphery even of the hope of captive, privileged markets: in the sense that development (Amin and Thrift, 1994: 14–15). these markets comprise centres of consumption Island depopulation, already a real threat, is which have a disposition to purchase goods exacerbated by the dynamics of the contempo- from the island site, not primarily because of rary knowledge economy (Polèse and Shearmur, any inherent quality or price competitiveness of 2002; Baldacchino, 2008). the goods or services; but because these are That only a few small island economies fund marketed as belonging specifically to that dis- their export requirements from merchandise tinct location (Fairbairn, 1988: 75 my empha- export earnings is today a ‘familiar, stylized fact’ sis). Through such a ‘marketing of identity’ (Bertram and Poirine, 2007: 342). Income from (Fairbairn, 1988), the structural disadvantages of abroad, in the case of small island economies, is the added costs of production and disecono- much more likely to come from aid disburse- mies of scale are somewhat neutralised, com-

64 © 2010 The Author Journal compilation © 2010 Victoria University of Wellington Islands and beers pensated for by the captive, special and families left stranded at home. They may be differentiated, ‘niche’ nature of the market. tapped further: both as a lucrative market for Specialised niche markets are especially exported ‘genuine island products’; as well as attractive to producers based on small islands the transposed sites for productive, island-led because: (i) they are small (they are often not investment. Indeed, what may prove uneco- of interest to larger mass producers); (ii) they nomical in the small island setting may prove are of such a size that small producers can worthwhile in, and for, those metropolitan meet their demand; and (iii) once in operation, locations where the number of immigrant entry costs for potential competitors are pro- islanders may far exceed the number left at hibitive, leading to a condition of ‘natural home and where per capita purchasing power monopoly’ (e.g. Tisdell, 2006: 10), which is typically much higher (Lowenthal, 1987: translates into a viable form of protectionism. 41–43; Watters, 1987: 36–38; Spickard et al., Such markets are based on differentiation, not 2002). cost/price. Which is why ‘smaller producers In this exercise, islands start with a net advan- with relatively high unit costs (of production, tage: the word ‘island’ is one of the most heavily of distribution, of marketing ...)canbecom- romanced, certainly in the English language. petitive; and sales of small numbers at high Along with the forest, the seashore and the margins can be profitable’ (Punnett and Mor- valley, the island is a natural environment ‘that rison, 2006: 351). has figured prominently in humanity’s dreams There are two main types of such ‘privileged of the ideal world’ (Tuan, 1990: 247). The asso- export’ niches: one is the transitory tourism ciation with mystery, fantasy, redemption, para- market. Island tourists are typically richer than dise and refuge is a long-lasting one that resident consumers, having managed to make it continues to be exploited by global media (such to relatively remote and more expensive desti- as Fantasy Island, Blue Lagoon, Castaway, Lost nations. Once there, they may be swayed to ...), literature (such as the Robinsonnade indulge in local food or drink sampling, savour- genre, starting with Robinson Crusoe, then ing a more authentic island experience by Swiss Family Robinson, The Mysterious Island appreciating and adopting local consumer ...),andthe global tourism industry. Islands habits, albeit for fun and for a short time: espe- suggest themselves as empty spaces, waiting cially if they appeal to the drifter and geocentric and wanting to be possessed and tinkered with. oriented tourist types that are out to find and They enjoy a lingering ‘charm’, ‘lure’ and ‘fas- trial such local uniqueness (Perlmutter, 1969; cination’ (Weale, 1992: 93; King, 1993; Baum, Cohen, 1972). The transaction is also one which 1996), ideally suited to tempt and taunt visitors allows the local entrepreneur to avoid packing desirous of refreshment, salvation or reinvigora- and transportation costs or foreign currency tion. The island is so thoroughly seeped in ‘emo- exchange fees on the goods being sold: these tional geography’ (Stratford, 2008) that it is costs are often glibly incurred by the tourist perhaps impossible to disentangle its ‘realities’ purchaser. from its ‘dreams’ (Royle, 2001: Chapter 1), its One component of the tourist market – and geographical materiality from its metaphorical one more likely to see long stay and repeat allusions. visitation – consists of former residents and And so, islands have been branded long their relatives. This leads us to the second before the concept found its way into manage- aspect of the ‘privileged export’ niche: the ment schools and contemporary marketing dis- diaspora of islanders and their families living course. Already in the 10th century, Eric the abroad. Along with seashells and postage Red, an early settler on a large and remote stamps, emigrants are already part of the island, is reported in old Icelandic sagas to have unlikely exportable commodities of small named that new territory Greenland in order to islands. They constitute a deliberate loan of attract other settlers there. Five hundred years human capital, a critical component of the ago, it was claimed that one could harvest cod ‘trans-national corporation of kin’ (Bertram from Newfoundland waters simply by lowering and Watters, 1985: 499, my emphasis) which a basket into the sea. Perhaps we can consider contributes significant remittances to those islands as prototypes, targets for some of the

© 2010 The Author 65 Journal compilation © 2010 Victoria University of Wellington G. Baldacchino earliest systematic attempts at branding: uniqueness is enhanced when they explicitly advancing, and romancing, a meaningful and connect or associate their product to the island desirable difference in a world crowded by on which they are based5: not just in their competitive categories (Martin, 1989: 201). choice of name, but in the very process of Thus, there are locally available species, production. craft or material with high levels of local input This association between product and island that are already deeply wedded to the endur- place tends to occur in two main ways. The first ing and endearing, iconic image of the island is by the explicit inclusion of home grown raw on which they are based. Think of: Barbados materials into the product mix. and Jamaica rums, Fair Isle sweaters, Fiji water, Gozo cheese, Guernsey cows, Islay whiskey, Beesting, a pale ale from Norfolk Island, is ‘. . . Madeira port, Prince Edward Island potatoes, brewed using unrefined Norfolk Island honey’ Shetland ponies, Texel sheep, Trinidad hot sau- (http://beer.nf/products.htm). ce...thename is synonymous with the place, Bornholmer Bryg, already referred to above, is and all that goes with it. In the Pacific, it is an unpasteurised and unfiltered beer that uses perhaps the region as a whole – with its trade water ‘from the bedrock of Bornholm’ (http:// mark indigenous history and culture – that www.svanekebryghus.dk). remains best branded, rather than its constituent members, whose diversity is blurred and Jamaica’s lager beer, Red Stripe, is brewed using ‘water from the [local] Liguanea allu- lost as a result (e.g. Hayward, 1998; Royle, vium aquifer’ (http://destinationbeer.com/ 2001: 193). This branding baggage is likely to beers/red-stripe). have persisting and long-term benefits: in terms of reputation, customer loyalty, visibility The ‘fabulous tasting natural spring water’ of and international recognition. In fact, a key the ‘nature isle of the Caribbean’ finds its way development trajectory for island economies into the production of such Dominica local beers as Kabuli (http://www.kubuli.dm/). would be to assess the ability to craft a robust and sweeping image for a particular island At the Kono Brewery, in Hawaii, ‘[w]e are jurisdiction that supports, and is supported by, fortunate to have an excellent source of its own products and services, while expand- pure Hawaiian water that lends a distinctive, ing the repertoire of the latter. Such holistic full flavour to our beers’ (http://www. konabrewingco.com/brewery). ‘brand consolidation’ (e.g. Knudsen et al., 1997) can be extremely effective because it The brews produced by the Quidi Vidi micro- provides consistent market signals and an brewery in Newfoundland, Canada, use accumulation of shared experiences across glacial ‘iceberg water’ sourced from the ice- product or service categories. It also offers an bergs that regularly float by that island’s coast opportunity to rationalise marketing costs and in spring (http://www.quidividibrewery.ca/ brands.php). support profitable brand growth and expan- sion.4 Note that many of the local products A brewery in Greenland is producing beer mentioned above are beverages. Speciality using water melted from the ice cap of the vast wines and spirits, teas, coffees and beers are Arctic island. The brewers claim that the water often made, at least partly, from local is at least 2000 years old and free of minerals and pollutants (BBC News, 2006). ingredients.

The second is by associating the product with The case for local beers an all-round, 360° experience, one that appeals Local beers lend themselves very well to this to as many of the senses as possible; grounding exercise in brand consolidation. They connect and framing it in a much wider, appreciative easily with a captive domestic market, espe- and multi-sensorial stance. All the senses are cially where importing already bottled beer may brought to bear, in a ritualised behaviour that be very expensive. They connect easily with speaks to collegiality, and completed trium- visiting tourists, who may typically enjoy sam- phantly by the sound of clanking beer mugs, pling local beverages. Their authenticity and and jovial beer toasts:

Here, And here are other examples of ‘brand romanc- With my beer ing’, this time from the Caribbean region: I sit, While golden moments flit: Kalik – the name of the local beer that com- Alas! mands half the Bahamas market – is the sound They pass made by cowbells, a key instrument used by Unheeded by: the bands in the Bahamas annual Junkanoo And, as they fly, Festival held during the Christmas and New I, Year’s season (http://www.bahamasgateway. Being dry, com/kalik_beer.htm). Sit, idly sipping here My beer. (George Arnold, n.d., Beer) Brewing Operations of the North Rock Brewing Company in Bermuda are, since Moreover, a beer can be romanced and 2007, located in the Victualling Yard of the mythologised, subtly or more explicitly associ- historical Royal Naval Dockyard (http:// ated with its island’s distinct history, tradition or www.northrockbrewing.com/index.php?p=1- endemic features of the natural environment 4_About). and culture.6 Here are some examples from the When Jamaica gained independence from Pacific: Britain in 1962, a columnist in The Daily Gleaner wrote that ‘the real date of indepen- Vailima, Samoa’s premier beer, is so named dence should have been 1928, when we estab- after the small mountain village where lished our self-respect and self-confidence Scottish novelist and travel writer Robert through the production of a beer ...’(http:// Louis Stevenson lived (http://apapaonline. www.caribbeanfoodemporium.co.uk/ org/APAPAnetwork/Meeting_Reports/files/ dgredstripe.htm). Auckland_Sept04/Alcohol_Marketing_Samoa. On the Cayman Islands, the Caybrew logo is a pdf). Vailima means ‘water from the hand’ and graphic representation of the Cayman Islands’ is from an ancient legend of someone carrying national tree, the Silver Thatch Palm, and three water in his hand to save another’s life (Beers in red stars depicting each of the country’s islands Paradise, 2004). (http://www.beerinfo.com/index.php/pages/ Matutu Brewing Company is based in Vaka cayman.html). Takitumu on the island of Rarotonga. “We are two families of patriotic Cook Islanders aiming This strategy may appear common sense, and to produce premium beers and beverages that there is nothing to lose and all to gain in adopt- will be iconic to the Cook Islands’ experience” (Matutu means emotional strength) (http:// ing it. And yet, not all the local breweries in the www.matutubeer.com/). region do so. Take for example, the Royal Beer Company in Tonga, producers since 1987 of Kona – which means lady – is Hawaii’s premier Ikale – which means eagle – ‘The taste of beer brand. It seeks ‘to create complex, full Tonga’. Here, the emphasis is on similarity tasting beers with a relaxed style and charm rather than distinction: that expresses our Hawaii based roots’ (http:// www.konabrewingco.com/beers). Here in Nuku’alofa, Kingdom of Tonga, the The logo of Hinano, ‘the beer of Tahiti’, sports brewing procedures are essentially the same two very local, and well recognized icons: a as those used for many years . . . (http:// vahine (a Polynesian woman, as immortalised www.royalbeer.to/manufacturing.html) by Gaugain’s paintings) and a motu (a coral islet). Both this beer’s glass bottles and aluminium cans are fancied as collectors’ items Moreover, tours of the brewery – perhaps inclu- (http://www.hinano.com). sive of a ‘Brew-seum’7 – provide an opportunity Drinking Steinlager, New Zealand’s premier for witnessing the production process first hand, export beer, may transport the drinker ‘. . . to a and the eventual sampling of (a now, more New Zealand mountaintop, such is the clear familiar) product can sublimate the process of crispness of the taste’ (http://australianfood. manufacturing into a service (and emotional) about.com/od/alcoholic/a/steinlager.htm). experience:

Cooks Lager is produced in a back room at the istics: they are no substitute for excellence, Bond Liquor Store in Avarua (Rarotonga) and especially when discerning customers, local or the brewmaster will show you around if you tourist, can freely choose between a locally pro- arrive close to 2:00 pm on a weekday other duced beer and an imported, global substitute – than Friday and ask nicely (Small Guide Travel, often enjoying higher social status and perhaps 2009). even produced under licence by the same local This experiential leap can cause substantial beer company. For example, the largest of three changes in consumer behaviour; the materiality micro-breweries on the French island territory and mundane nature of the beverage is trans- of New Caledonia produces Number One,a formed into a desideratum,amemorabilium,a local lager, but also distributes the imported souvenir of (one’s experience of) the island: Heineken, by whose producers it is owned (Heineken International, 2010). Moreover, in In this way, labour-intensive production various small and remote islands – such as Aus- . . . (and resulting higher production costs per tralia’s Lord Howe Island – local beer produc- capita and diseconomies of scale) is actually tion took off as a safeguard against infrequent transformed into a key selling asset, riding on ship deliveries. As a result, local alcohol was the bandwagon of the island’s appealing often a poor substitute.8 profile (Baldacchino, 2002: 256). A typical contributor to success may be the involvement of expatriate entrepreneurs or And yet, not all breweries are equally acces- indigenous entrepreneurs who have spent sible. From the episode below, you might think some time away: both of these can therefore that some producers are not too keen to sell command some knowledge of the outside their beer: world, its tastes, its competitive business environment, its diaspora communities, and the Discovering the Savusavu brewery in the port city of the same name [in the Fiji Islands] was potential customers, and competitive products, a pleasant surprise. We had no idea it existed for island beers. until we saw it on tap in our hotel....There The larger, global corporate businesses can was no tour available and the two brewery also not be discounted from venturing into workers were not very forthcoming. They did niche markets. They also have the ability to tell us that they had been in business for about develop specialised designer brews that seek to a year and produced 1500 litres of Savusavu appeal to specific market niches, posing as a natural beer a week that is only available on real threat to local products. draught locally. They were not inclined to give Island breweries can also fall victim to their us a sample . . . (Beers in Paradise, 2004). own success. Nevertheless, many successful breweries start as private ventures and stay private even though they may sense that they Dangers could go public to finance significant growth. It is important to note that island beer factories Many successful local breweries remain faithful can buck the trend against the dearth of any to their association with locality – they start and significant manufacturing investment from, or stay regional and grow slowly, if at all. on, small island economies. Nevertheless, such success is no foregone conclusion. Various Brand consolidation mishaps attempts to set up such businesses have failed: among the main reasons for this failure is a felt Meanwhile, the smooth piggy backing of the need for: (i) proper business acumen (which island beer brand with the island brand is hardly includes knowledge of beer brewing); (ii) the automatic and not without potential mishap. right blend of raw material inputs; (iii) a good Three broad dilemmas can present themselves and steady supply of good quality water; and here. (iv) a marketing strategy to tap the right ‘niche’ The first is a mismatch between how the markets. island may wish to depict itself and the brand- Moreover, locality and distinctiveness may be ing of the island beer. Such strategic necessary, but they are not sufficient character- co-branding works better if, say, a locale wants

68 © 2010 The Author Journal compilation © 2010 Victoria University of Wellington Islands and beers to project itself as a fun-loving touristy destina- I had purchased a can of ‘Raro – Cook Islands tion, or one peddling a pub, beer loving, Beer’ in another liquor store. Upon closer culture; in such cases, the island beer brand inspection, I discovered the beer had been could ride on the cachet of the supportive island brewed and canned in New Zealand (Beers in ‘umbrella’ brand, or even vice versa, for syner- Paradise, 2004). getic benefit (Knudsen et al., 1997: 192). (Perhaps the Republic of Ireland, with at least Co-branding initiatives can face other risks. 16 breweries, does this best.) These include: (i) a tendency to have a dilutive Second, a regional or nationwide brand may effect, especially in the short term, since the be more powerful than a local, island based one. exercise hopes to spreads the credit for a posi- It is fairly difficult to single out, say, Piton – a lager tive experience across two or more brands beer from St Lucia – in the context of the very- where normally there is only one; (ii) while the well branded Caribbean region. And a local point of the exercise is synergy – the whole brew can be easily lost and drowned in the should be greater than the sum of the constitu- noise of other national brands – Denmark, for ent parts – there is to some extent an unavoid- example, has at least 110 breweries (http:// able reliance on the existing equity of one or beerme.com/region.php?163). All the more more other brands; (iii) while many brands reason for a micro-brewery to concentrate on the share similar characteristics, no two brands are specificity of its locale and not to give way to the exactly alike; and (iv) brand complementarity is temptation to go for reckless growth. A similar important: thus, co-branding ice cream and root problem affects archipelagic jurisdictions where beer appears, for example, as a ‘natural’ one particular island brand may find itself com- (McKee, 2009). peting with a brand from an adjacent island, belonging to the same political territory.9 Epilogue Third, watch out for fake attributions. An island beer may be less than what it claims to You can’t be a real country unless you have a be. Many so-called ‘island beers’ are produced beer and an airline – it helps if you have some kind of a football team, or some nuclear elsewhere; others, while produced locally, may weapons, but at the very least you need a beer be owned by off-island companies, and so are – Frank Zappa in Zappa and Occhiogrosso less local than they appear. For example: (1990: 231).

Tiger Beer, the most popular beer in Singapore, Frank Zappa is perhaps, best not to be taken too is locally brewed but it is owned by Asia Pacific seriously. But beers can be or become iconic, Breweries, a major player in the South Pacific flagship brands for the countries and economies beer market. The majority shareholder is Hei- with which they are associated. Like other neken, with a 42.5% shareholding (http:// premier beverages, signature foods or dishes, www.apb.com.sg/brand-KeyBrands.html). a local beer can serve to develop a multi- Made by Vanuatu Brewing, Tusker is the local sensorial connection between product and con- beer and preferred brew....[A]lotofwork sumer, usurping its mundane trappings as just has gone into producing the ‘bia blong yumi’ another shelf product, and is thus more likely to (the beer for us). Pripps from Sweden owns seal a bond that may survive in the long term. 50% of the business...(Vanuatu A-Z Visitors’ Like wine, its long-standing competitor, beer is Guide, 2010). not just beer anymore: consumers of (especially) Island Summer Ale, from the Virgin Islands, is – micro-brewed beer are increasingly compared according to its label – actually brewed and with premium wine drinkers in their sophistica- bottled by Shipyard Brewing out of Portland tion of taste. Such changing tastes and prefer- ME, USA (http://thebrewclub.com/2009/07/ ences of beer drinkers makes the micro-brew 27/beer-review-virgin-islands-brand-island- industry an excellent opportunity for entrepre- summer-ale/). neurs to profitably showcase their creativity. In spite of the powerful trends of globalisation As an unsuspecting tourist ‘beer-hound’ – or perhaps because of them – there is an comments: emergent cultural and consumer interest in

© 2010 The Author 69 Journal compilation © 2010 Victoria University of Wellington G. Baldacchino locality and identity. Even global brands strive islands by the prohibition of alcohol (Culture of Kiribati, to adapt to local peculiarities in order to protect 2009). Alcohol consumption has been a ‘public health problem’ in parts of Papua New Guinea (Marshall, or expand market share. This occurs in part 1988). recognition that global industries produce, con- 4 For example, Skärgårdssmak is a network of local res- solidate and thrive on difference, variety and taurants, food stores, food producers and handicraft ‘multiple identities’, apart from similarity artists from the Åland Islands, providing local food and (Foster-Carter, 1978; Massey, 1994: 153). Like handicrafts of top quality (but, apparently, not beer or any other beverage). http://www.skargardssmak.com/ other products that have a natural disposition start.con for association with the local – from constituent 5 Cook’s Lager is feted as ‘Made right here in Rarotonga’ raw ingredients to history, from tradition to (http://www.beercoasters-oceania.com/Cook%20 culture – beer can experience, and benefit from, Islands%20Rarotonga%20Rarotonga%20Breweries.htm). such a renaissance. Local breweries, particu- The sound-bite for Goddard’s Beers is ‘Isle of Wight born and brewed’. It is also quite common to have the name larly but not exclusively in the island Pacific, of the island, or its stylised rendition (as in a map can benefit handsomely from this development outline, or its coat of arms), on the beer bottle or can. and, in turn, they can contribute to sustainable 6 An association with cultural and sport events – as via socioeconomic development: building syner- corporate sponsorship – is common but not always con- gies with tourism, catering and other local sidered appropriate, since the promotion may be seen to be unduly encouraging youth towards alcoholic drink. industries; providing business opportunities for And, by the way, Mythos is a Greek beer brand: http:// the local entrepreneurial elite; and champion- www.mythosbrewery.gr ing the development of local identity/ies; apart 7 As available at Banks Beer Brewery, Barbados- http:// from creating all-year-round employment and www.barbadosbarbados.com/Banks-Beer-Tour.cfm? nurturing viable export products. The alleged linkId=2 8 I am grateful to Philip Hayward for this information. tyranny of geography can be overcome. Perhaps 9 This is well illustrated by the case of whisky and Scot- most island territories could, and should, have land. Various distillers compete for market share and their own beer. seek a measure of differentiation; but they also comple- Let’s drink to that...responsibly. ment each other in providing whisky trails, and all benefit from co-branding with the marketing of Scotland as a whole. Acknowledgments References My thanks to the director and staff at the Centre for Regional and Tourism Research, Bornholm, Amin, A. and N. Thrift (eds.) (1994) Globalization, institu- Denmark, organisers of the North Atlantic tions and regional development in Europe. Oxford: Forum (September 2009), for the opportunity to Oxford University Press. Armstrong, H.W. and R. Read (2006) Geographical ‘handi- develop and present this paper. I am grateful to caps’ and small states: Some implications for the John Connell, David Fabri, Philip Hayward, Pacific from a global perspective, Asia Pacific View- Stephen Royle and Giannis Spilanis, as well as point 47(1): 79–92. Executive Editor Warwick Murray and reviewers Arndt, H.W. (1989) Economic development: The history of for Asia Pacific Viewpoint, for comments on an an idea. Chicago, Illinois: University of Chicago Press. Arnold, G. (n.d.) Beer. Retrieved 2 March 2010, earlier, and much weaker, ‘isles and ales’ draft. from Website: http://www.csufresno.edu/folklore/ The usual disclaimers apply. drinkingsongs/html/recitations/short-recitations/toasts/ great-toasts/toasts-about-alcohol/toasts-about-alcohol- beer.htm Notes Arnold, J. (1911/2005) Origin and history of beer and brewing: From prehistoric times to the beginning of 1 Anguilla, American Samoa, Falklands, British Virgin brewing science and technology. Cleveland, Ohio: Islands, Ascension, St Helena, Niue, Tokelau are not BeerBooks. listed as having a brewery. Atkins, J.P., C. Easter and S. Mazzi (2000) ‘A Common- 2 Bahrain, Brunei, Comoros, Mayotte and the Maldives wealth Vulnerability Index for Developing Countries: are not listed as having a brewery; they all have prima- The Position of Small States’. Commonwealth Secre- rily Moslem populations. The drinking of alcohol is also tariat Economic Paper 40. London: Commonwealth banned on Pitcairn Island, where the population is Secretariat. Seventh Day Adventist. Baldacchino, G. (1998) The other way round: Manufactur- 3 For example, drunkenness is a widespread problem in ing as an extension of services in small states, Asia the Kiribati archipelago and this is dealt with on some Pacific Viewpoint 39(3): 267–279.

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