Spring 2017 | V.93 ORIGLIO BEVERAGE Delivering Excellence Seasonals The Beer Guy New Products Programs SLY FOX BREWERY’S SRT ALE | SPRING SELECTIONS | IT’S SESSION BEER SEASON Letter toTHE TRADE Premium + Sessionability = Profits Dear Valued Customer, In This very edition of Heady Times features two retailers – one ISSUE on-premise, the other off-premise� These “Spotlights” E give owners or beverage managers a platform to discuss what makes their business successful, even unique� Delivering the People talk about customer service and the importance of a Taste of Excellence ���������������1 knowledgeable staff, but Patrick Ryan’s answer to a very simple question really caught my attention� Cover Story �������������������������2 Heady Times asked him how the beer selection at his family’s pubs in West Chester and Phoenixville changed over the years� He replied: Brewer Highlight �����������������4 “You have to have balance. We’re not one of those bars with the motto, if you’ve heard of it, we don’t have it… in order to please everyone you King of Prussia Beer Outlet ��5 have to carry well known domestics and imports in addition to the IPAs and other crafts people ask for these days.” Ryan’s Pub & PJ Ryan’s ��������6 This guy really gets it, I thought to myself� No wonder the Ryan family has operated successful pubs since 1952� Longevity in the restaurant business New Products ���������������������7 doesn’t happen by accident� Assembling a balanced portfolio makes sense� But is it as easy as it sounds? Seasonal Selections ���������� 11 What kinds of beer and malt-based beverages do you need to carry to have a balanced selection for your customers? Available Year-Round Jon Collins, an on-premise beverage alcohol analyst for Nielsen, has some Perfect for the Season ������� 21 advice� Speaking at a Beer Business Daily conference a few weeks ago, Collins said that any retailer looking for guidance when trying to assemble a balanced portfolio needs to focus on two beverage alcohol categories – premium Programs ������������������������� 23 and sessionable� According to Collins, premium products of all stripes have grown by 30% The Beer Guy ������������������� 29 since 2013 and he believes this trend will only accelerate� Collins explains, “Consumers want quality and great taste. Right or wrong, they think that a premium product (in our business that means anything over $25 per case) Web ordering is now available to gives them what they are looking for, and they don’t mind paying for it.” all Origlio Beverage customers. At the same conference, Tom Fox, a recognized leader in Retail Sales and To place your beer order online, Category Management for the CM Profit Group, addressed sessionability (ABV contact your Origlio sales rep today! of 5% or less)� “Not enough of these beers are offered at the bar which is a mistake� Tasty, sessionable beer is a growing category and they keep To receive weekly emails butts in seats because you can drink a couple of them. We see demand of upcoming releases from in the off-premise too. Of the top 25 national, best-selling beers, 13 Origlio Beverage, please send have an ABV of 5% or less. Some are craft beers, 9 are FMBs and 8 are your email address and the Mexican imports. What they all have in common is flavor – as in they name of your account to don’t taste like water.” [email protected] or This edition of Heady Times features lots of products that are both premium and text ORIGLIOBLAST to 22828. sessionable� Spring is here and summer isn’t far behind� Now is the perfect time to reconsider your assortment, to give your customers the flavorful, high-end products they are looking for� If you need some help evaluating your beverage lineup, contact your Origlio sales representative� As ever, thanks for your business� ® Sincerely, Heady Times is published five times a year, courtesy Dominic Origlio of Origlio Beverage. President DeliveringTHE TASTE OF EXCELLENCE Find Out More About Origlio’s Employees James (Bubba) Kelly Delivery Service Representative How long have you been with Origlio Beverage? Three years� What areas do you service? Old City and Center City neighborhoods in Philadelphia� How do you provide the best service to customers? I pay close attention to customer requests and other delivery details and I take pride in organizing the products that are being delivered� I also aim to reach my customers within a timely manner� I know they greatly appreciate that� What do you like to do when you’re not working? When I’m not at work, I’m usually with my family; family is very important to me� My fiancée and I enjoy crabbing and fishing� Ken Steward District Manager On-Premise Sales, Philadelphia How long have you been with Origlio Beverage? Five years� What positions have you held since you started with the company? I started at Origlio as an on-premise sales rep in the city of Philadelphia� My territory covered North Philadelphia, Mt� Airy and Germantown, as well as some accounts in Chester� In 2015, I transitioned into the Center City territory� I called on accounts in Center City for about a year and a half before joining the Origlio management team at the beginning of this year� What do you like most about your job? sales manager is a leader� To quote Origlio is an organization with great people� My co-workers are some of the best leadership expert, speaker and in the beer business and I enjoy being around them� On top of that, we have author John C� Maxwell, “A leader is great brands to sell� Our suppliers are awesome and their reps are great partners one who knows the way, goes the in the marketplace� way and shows the way�” What does it take to be a top-notch sales manager? What do you like to do when I believe a good sales manager is one who mirrors the core values of their company� you’re not working? They should be energetic, passionate and committed to being their best� They I enjoy watching movies with my should approach challenges and difficult situations with confidence and optimism� A children, traveling and DJ’ing� www.origlio.com HeadyTimes v.93 1 CoverSTORY It Pays to Celebrate Cinco with Corona and Modelo igh-end imports Corona and Modelo Especial, about anything that sells for at least distributed in the U�S� by Constellation, are synonymous $25 per case� These beers are exactly with Cinco de Mayo festivities� But did you know that what millennial drinkers are looking for� H They want authenticity, more flavor and these brands – which post double-digit gains year after year something they can drink more than one – are growing faster than craft beer and spirits? of� And sessionability is key� I can’t tell you “No matter which channel your business competes in, job one for any how many times I see LDA consumers start retailer is increasing traffic and boosting the bottom line,” says Mike the party with a higher octane craft beer Kugler, Origlio Brand Manager of the Constellation portfolio of beer� and then switch to a Corona or Modelo for “From what I see, the best way to do that in these challenging times – the rest of the night� Plus, these consumers restaurant traffic is down and craft beer sales aren’t what they used to don’t want the cheapest thing out there� be – is to strategically promote brands that are driving growth and profit� They want quality and they don’t mind Corona Extra, Corona Light and Modelo Especial are the fastest paying for it� And, they think these beers growing, high-end brands in the country. The demand is there and are cool – worthy of a post on Instagram�” it is accelerating. To get job one done, why wouldn’t you make the most of Cinco and these best-selling, high-end beers?” Cinco de Mayo has grown into one of America’s most popular beer- More beer is sold on drinking holidays – with revelers consuming more beer on this day than on the Super Bowl or St� Patrick’s Day� Cinco, which falls on a Friday this Cinco de Mayo year, is a bona fide occasion that consumers want to celebrate� It kicks off Corona’s “120 Days of Summer” and gives people a reason, or even than on the Super Bowl permission, to socialize with friends and family over a couple of beers� And when they do, they want authentic, sessionable Mexican beers like or St. Patrick’s Day. Corona Extra, Corona Light and Modelo Especial� The proof is in the numbers… These days it’s hard to predict with Last year according to Nielsen, Americans bought more than $735 million any certainty what consumers want to worth of beer during Cinco� Eighty percent of all the Mexican beer sold purchase� Fifty to seventy percent of all during that time frame was from the Corona and Modelo Brand Families� buying decisions are made at retail, after the customer walks through the door� There These brands are on fire and here’s why… is tremendous opportunity to influence what “Six of the top eight, fastest growing imports are Constellation brands, they purchase� Why not get them to ‘trade- that means they don’t just sell during Cinco,” explains Kugler� “Yes, up’ to Constellation’s high-end beers? The they are Mexican beers, but that’s not the only reason why they are demand is already there� Why wouldn’t the fastest growing, high-end brands, and by high-end I’m talking you feature these beers prominently? Why 2 HeadyTimes v.93 www.origlio.com CoverSTORY High End & Growing devote tap handles or shelf space to brands Corona Extra 5.4% that don’t move quickly? “There hasn’t been a ton of good news Modelo Especial 18.4% lately about beer or restaurant activity,” says Origlio Sales Manager for the Corona Light 5.4% on-premise Tim Stammen� “Craft beer sales have slowed dramatically and National Modelo Negra 9.9% Restaurant News [a magazine devoted to all things important to that channel] Pacifico 17.6% published an article in February titled ‘Restaurant Traffic Won’t Improve in 2017’� Victoria 2.0% The one bright spot I see is imported beer – make that Constellation beers, imported from Mexico�” Let Cinco de Mayo be your green light to stock up and feature Corona Extra, Corona Light and Modelo Especial� It’s an easy way to get “job one” done� New summer Modelo Especial has posted The number one graphics reinforce the double-digit growth for 31 imported beer continues “vacation” imagery.