RobW
The Little Abbotsford Craftbrewery
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Beer Barons fly high in US
The Age
Sydney-based Barons Brewing operates under the maxim ''if you brew a good beer it will sell.'' And sell it has. In Australia Barons is the largest independent craft brewer. In Russia it has 100 taps in St. Petersburg. Now in the tough US market Barons is flying rings round the competition.
For a company founded in 2005 the rate of climb has been rapid. In just nine months Barons has become one of the top 10 best selling craft brewers in the country. With product in 21 US states, sales are soaring.
Now American sales now account for 25 to 30% of Barons total turnover. By year's end Barons will be in all 50 states after signing a national distribution deal.
''When you start off you really think America is going to be easy. It isn't. But once you crack it the numbers are fantastic. It is a 300 million versus 20 million market. You don't really get it 'til you get there,'' says Sean Nylon Barons' head of international sales and marketing.
But Neylon says the company's US success hasn't occurred by accident.
In the crowded and fragmented US beer market the wholesalers, not the mega-brewers, are king. So Neylon has been clocking up air-miles to get in front of peoples' faces.
''It is like anything. You have to be in front of them, you got to be there, be seen to be servicing them. You're a partner in their success.''
He says it also means committing to cleaning up the wreckage of past failed attempts by Australian craft brewers to make it in America.
Apart from sheer determination Barons is relying on four secret weapons to out manoeuvre the opposition
The first weapon is the pulling power of 'brand Australia.'
''There is definitely a connection between Australia and the US when it comes to marketing product,'' says Neylon.
''They really love us there. They think Australia is the most fabulous place in the world.''
Second in the arsenal, is the product mix. Barons' native series, a range of beers using two unique Australian ingredients black wattle and lemon myrtle, is a hit with US drinkers.
''When we went to the US we really pushed (the Australia) angle. We have a unique selling point. We are just not another lager salesman. We are out there selling a little bit of Australia in every bottle.''
Now the native series makes up 50% of Barons' business in the US.
The third is market intelligence. Neylon says Barons' successful foray into the US market was 18 months in the planning.
Neylon spent that time travelling the US... ''getting to know people, researching the market, working it hard.''
The fourth weapon is working smart. Barons dramatically lowered its distribution costs by adopting the on-way-key technology perfected by Melbourne based company EcoKeg.
Neylon says using fully-recyclable PET plastic kegs to transport beer to distant markets not only cuts transport costs and the hassle of recovering empties but also reduces the businesses overall carbon footprint as well. Theft is also down. Metal kegs now fetch big money on the scrap metal market.
But says Neylon the really hard thing for any exporter is to make the leap of faith.
''That is hard for a small company, to expend the money. To believe that it will all pay off in five years time.''
Neylon also says the value of the company's on-the-ground investment has been boosted by Austrade. Barons' products have featured across the country at Austrade's G'Day USA networking events.
Neylon says deep down what really drives the company is passion and a sense of fun.
The sense of fun even extends to the job titles. Neylon the jet setting sales and marketing manager is the `international baron' while manager director and company founder Scott Garnett is the self styled 'boss baron'.
The brand's logo featuring an aviator cleverly plays on the Barons name and evokes the romance of a long-gone era when the barnstorming antics of ex- World War I flying aces captured the imagination of a generation.
Neylon says the ************************ industry owes a lot to Adelaide-based family brewer Coopers for inspiring people to have a go in a market dominated by two large players.
While Neylon says the big mainstream beer companies are good at what they do he thinks the only way is up for the independents.
And that passion and sense of fun has not gone unnoticed.
Barons' beers keep winning awards.
Neylon says in the US market where craft beer consumption is increasing at double digit rates the sky is the limit for a small company like Barons.
''I think it is. It just comes down to business management. Working at it. I am very excited by the future of the business there.''
The Age
Sydney-based Barons Brewing operates under the maxim ''if you brew a good beer it will sell.'' And sell it has. In Australia Barons is the largest independent craft brewer. In Russia it has 100 taps in St. Petersburg. Now in the tough US market Barons is flying rings round the competition.
For a company founded in 2005 the rate of climb has been rapid. In just nine months Barons has become one of the top 10 best selling craft brewers in the country. With product in 21 US states, sales are soaring.
Now American sales now account for 25 to 30% of Barons total turnover. By year's end Barons will be in all 50 states after signing a national distribution deal.
''When you start off you really think America is going to be easy. It isn't. But once you crack it the numbers are fantastic. It is a 300 million versus 20 million market. You don't really get it 'til you get there,'' says Sean Nylon Barons' head of international sales and marketing.
But Neylon says the company's US success hasn't occurred by accident.
In the crowded and fragmented US beer market the wholesalers, not the mega-brewers, are king. So Neylon has been clocking up air-miles to get in front of peoples' faces.
''It is like anything. You have to be in front of them, you got to be there, be seen to be servicing them. You're a partner in their success.''
He says it also means committing to cleaning up the wreckage of past failed attempts by Australian craft brewers to make it in America.
Apart from sheer determination Barons is relying on four secret weapons to out manoeuvre the opposition
The first weapon is the pulling power of 'brand Australia.'
''There is definitely a connection between Australia and the US when it comes to marketing product,'' says Neylon.
''They really love us there. They think Australia is the most fabulous place in the world.''
Second in the arsenal, is the product mix. Barons' native series, a range of beers using two unique Australian ingredients black wattle and lemon myrtle, is a hit with US drinkers.
''When we went to the US we really pushed (the Australia) angle. We have a unique selling point. We are just not another lager salesman. We are out there selling a little bit of Australia in every bottle.''
Now the native series makes up 50% of Barons' business in the US.
The third is market intelligence. Neylon says Barons' successful foray into the US market was 18 months in the planning.
Neylon spent that time travelling the US... ''getting to know people, researching the market, working it hard.''
The fourth weapon is working smart. Barons dramatically lowered its distribution costs by adopting the on-way-key technology perfected by Melbourne based company EcoKeg.
Neylon says using fully-recyclable PET plastic kegs to transport beer to distant markets not only cuts transport costs and the hassle of recovering empties but also reduces the businesses overall carbon footprint as well. Theft is also down. Metal kegs now fetch big money on the scrap metal market.
But says Neylon the really hard thing for any exporter is to make the leap of faith.
''That is hard for a small company, to expend the money. To believe that it will all pay off in five years time.''
Neylon also says the value of the company's on-the-ground investment has been boosted by Austrade. Barons' products have featured across the country at Austrade's G'Day USA networking events.
Neylon says deep down what really drives the company is passion and a sense of fun.
The sense of fun even extends to the job titles. Neylon the jet setting sales and marketing manager is the `international baron' while manager director and company founder Scott Garnett is the self styled 'boss baron'.
The brand's logo featuring an aviator cleverly plays on the Barons name and evokes the romance of a long-gone era when the barnstorming antics of ex- World War I flying aces captured the imagination of a generation.
Neylon says the ************************ industry owes a lot to Adelaide-based family brewer Coopers for inspiring people to have a go in a market dominated by two large players.
While Neylon says the big mainstream beer companies are good at what they do he thinks the only way is up for the independents.
And that passion and sense of fun has not gone unnoticed.
Barons' beers keep winning awards.
Neylon says in the US market where craft beer consumption is increasing at double digit rates the sky is the limit for a small company like Barons.
''I think it is. It just comes down to business management. Working at it. I am very excited by the future of the business there.''
