The Bar Towel

Here is another interesting way to curb macro beer sales in Ontario.

Has anyone else ever noticed how cans of imported german lagers typically sell for ten to twenty percent less than buying macro beers at the beer store? And that is by comparing the best value: 24 cans of macro (ie molson canadian, blue, bud, go to the beer store website and choose a macro - wildcat and crystal even), comparing with 1 can of german lager available at the liquor store.

Beers such as Warsteiner, Wernesgruner Pils, Lowenbrau, Bitburger etc are selling for much less than our big profit driven bland beer producers.

For example, right now the least expensive beer in all of ontario is (tied) Warsteiner and Wernesgruner both selling at 1.75$/500ml. At that price, the equivalent volume for a standard case of 24 canadian macros (8.1 liters) costs only 28.65$. Molson Canadian for example is listed on the website as 34.45$, a savings of 5.80$. Seen another way, Canadian costs 20.2% more than
Warsteiner. When you compare the same price for a six pack, Molson Canadian costs 9.95$ and Wasteiner & co. costs 7.16$. In this case Molson Canadian costs 36% more than Warsteiner.

For your info, at 34.00$/24 pack, the equivalent 500ml can would cost 2.07$. So any beer less than that in the liquor store (there are several) is less than the price of Molson, Coors, AB and Labatt products sold in packs of 24. When you compare the price for a six pack (9.95$ for Molson Canadian), the price jumps up to 2.43$/500ml! I don't believe that there is one beer in 500ml cans in the liquor store that costs more.

This is just another argument you can use to pry some business away from the macros (read convince people not to buy them). Doing that alone could help increase the demand for better beer (german lagers are far superior to our macros).

Of course support for our Micros should be a priority. Many of them are selling their products at the same price as the macros (Black Oak, Camerons, Niagara brewery to name a few).

Cheers,

Daniel

Personally, I think trying to convince the average Ontario beer drinker to drink 500ml cans of German Lager because it's cheaper than Ontario Macro products is misguided. Beer pricing in Ontario is pretty complex as it is because of tax laws and price floor restrictions set by the government among other things. The last thing you really want is for the Macros, Micros and Imports to get into purely priced based competition. There is no doubt the Micro's would loose such a battle.

I don't believe the Micro industry wants or needs to attract the "average" ontario drinker. You want to attract a more "sophisticated" drinker, one who values taste and quality over price and brand name/lifestyle marketing and is willing to pay the extra dollars to get it. Product differentiation based upon value, freshness and true variety (as opposed to a multitude of big brand choices of labels that essentially give you the same thing), not price is what I feel is necessary.

But that may just be me.

A six-pack of Molson's costs ten bucks? Holy crap that's a ripoff. But then, you see people plunking down $10-15 for deep-fried dog food at many drinking establishments in this town. I was told the other day that you can feed people anything and serve them anything to drink, charge them whatever and they won't care. Sadly, it's true.

Thankfully there are those of us out there who know better, and there are establishments out there that cater to our need for quality food and drink at non-exorbitant prices

This is my 1st post so hopefully it comes out.
During round 2 of the beer wars with the macro's in the US, Stroh's reported that the primary reason they wanted into this market so badly was that a case sold here was 6X more profitable than a case sold south of the border (I think I still have that article).
In response to this, we ended up with the industry standard bottle as the big guys answer to how to restrict trade. Molson and Labatt don't ever agree on anything. To this day I am convinced that it was more protecting their profit margin than the propaganda I heard about efficiencies and protecting the environment.
So it doesn't surprise me that we see cheaper Euro imports in the LCBO. We also hear a constant tirade about taxes (which are really, really high) yet the macro's don't want to complain too much. It may not be greener on the other side of the fence.

I have many times tried to draw attention to the incredible fact, that Warsteiner and others are better value than Coors' Light. Incidentally, Rob:-
If this is your first post, where is the other one?
Respectfully,
Michael Hancock


<font size=-1>[ This Message was edited by: the.brewer on 2003-08-13 00:36 ]</font>

I've found it; It is in the Granite Brewery thread. Ignore my second comment, Rob.
M.H.

<font size=-1>[ This Message was edited by: the.brewer on 2003-08-13 00:43 ]</font>

Not to quibble but the LCBO website shows a 24 of Molson Canadian at $33.95 which would include bottle deposit of $2.40 making the net price $31.55, still more expensive than the Germans...

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Personally, I think trying to convince the average Ontario beer drinker to drink 500ml cans of German Lager because it's cheaper than Ontario Macro products is misguided.
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It is a good reason in my books, especially since a beer like Warsteiner is a far superior product. Turning Canadian drinkers (branded) onto other products can lead to a little experimentation and eventual sophistication of the palate.

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I don't believe the Micro industry wants or needs to attract the "average" ontario drinker.
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Common, that's absurd. They are hurting for cash and if the average ontario drinker got a little beer education, their taste would migrate to the type of products micros produce.

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You want to attract a more "sophisticated" drinker, one who values taste and quality over price and brand name/lifestyle marketing and is willing to pay the extra dollars to get it.
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"sophisticated" - That is a little snobby. In the case of the german lagers I would argue that you are getting both, price and quality.

There is nothing more iritating than a branded beer drinker - one that drinks only one brand of beer because he has always done so. These german lagers are a logical stepping stone for canadian lager drinkers since it embodies many of the same qualities, such as drinkability. They also tend to have a much better flavour overall. Taking a staunch Canadian or Molson drinker away from his staple beer is always a good thing, especially if it can lead to bigger better things.

Daniel

On 2003-08-14 09:49, dhurtubise wrote:

It is a good reason in my books, especially since a beer like Warsteiner is a far superior product. Turning Canadian drinkers (branded) onto other products can lead to a little experimentation and eventual sophistication of the palate.

Yes, I think you're right of course. However, my point is that people who choose there beer because it's "cheap" aren't generally the type of consumer who's interested in the sophistication of their palate.

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I don't believe the Micro industry wants or needs to attract the "average" ontario drinker.
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Common, that's absurd. They are hurting for cash and if the average ontario drinker got a little beer education, their taste would migrate to the type of products micros produce.

Again, I agree with your basic premise. However, if the average beer drinker in this province is the lowlife that the Molson/Labatt "dumb guy" ads are geared toward - and I think the numbers probably say the "average" is just that - he's not likely to be persuaded by the quality side of the ledger. I simply believe the craft brewer needs to target above "average".

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You want to attract a more "sophisticated" drinker, ....
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"sophisticated" - That is a little snobby. In the case of the german lagers I would argue that you are getting both, price and quality.

There is nothing more iritating than a branded beer drinker - ..... Taking a staunch Canadian or Molson drinker away from his staple beer is always a good thing, especially if it can lead to bigger better things.

Sophisticated was perhaps not the best choice of words - chock it up to my being vocabularily challenged I guess. I was looking for a way to characterize the beer drinker a step or two above the "dumb guy" average the macro's seem to feel most beer drinkers are. I am in complete agreement with your entire last paragraph.