Competing in a Mature Industry – Craft Breweries & Micro-Distilleries

Craft breweries and micro-distilleries have popped up all over the Greater Edmonton Area in the past few years. Based on recent trends, including larger disposable incomes and a shift in preferences, the craft beer market share continues to grow, and the “craft” alcohol market is forecast to see consistent craft alcohol market growth forecast for 2018-2019.

To match increased demand for micro-brewed deliciousness, new players continue to enter the consumer market hoping to find their niche. Strategic marketing is essential for success, whether the competition comes from locally owned startups or major brands like Molson.

“Successful branding through label design and heavy marketing is critical to success in a brand-centric market.”
IbisWorld.ca – Breweries in Canada 2018 Report

Given the strict liquor advertising rules, brand positioning and visual branding are crucial elements for business success. Alcohol brands can utilize various marketing tactics, including storytelling, emotional appeals through color and sound, lifestyle promotion, and compelling taglines – these define a successful brand building strategies for marketing.

The importance of aggressive marketing and brand development is also evident when you consider the numbers. Consumer demographics and behavior patterns indicate that the Canadian standard for percentage of revenue spent on marketing across all industries is approximately 1.3%. The Canadian Brewery Industry spends 4 times that amount – 5.2% of total revenue on marketing.

Invest in Your Customers Now, Save Money Later

To compete in a cutthroat craft beer industry without totally breaking the bank, consider taking your customers out on a date, share your hopes and dreams. Spend quality time understanding who craft beer consumers are:

Why do craft beer consumers drink craft or micro-brewed products instead of easily accessible, cheap mass produced beer?
How do they find out about the newest IPA that’s made with their favourite hops? (Citra is probably my fav, in case you were wondering)
Are craft beer enthusiasts young professionals who are always online or are they a bit older and still watch non recorded TV and suffer through the commercials?

Understanding Craft Beer Consumer Demographics

Recent studies on this particular demographic—craft beer drinkers specifically—provide interesting, however unsurprising, high level insights (infographic sourced from NLogic.ca):

Taking the time to get to know your customers typically saves digital marketing dollars in the long term. It prevents the whole “well, I hope this works” method of marketing. Get your marketing strategy right the first time (hopefully), and you save by not executing campaigns that don’t align with your customers. Learn more about gaining valuable customer insights.

Accelerating Customer Acquisition Through Digital Marketing Strategies

Moving directly to awareness or customer acquisition campaigns via paid advertising (PPC), SEO, or social media can definitely yield results, but why not take out the guesswork? Marketing ROI and metrics show that a digitally savvy brewery brand strategy combined with persona insights, informs next steps related to marketing channels, brand messaging, and targeting and removes most of the uncertainty. Discover how to build a lasting brand connection. In a mature industry full of competition and marketing restrictions, the initial investment to establish a brand and understand your customers may be the make it or break it difference when trying connect with the target market thirsty for your products. Learn effective digital marketing strategies for your business.

Want to chat with us more about marketing for the craft beer and micro-distillery industries? I would love to make this a two way conversation. Top Draw is hosting an event on June 7th. RSVP come check out our amazing patio!

If you’re shy and prefer not to socialize, that’s cool too. Contact Top Draw for craft brewery marketing expertise – let’s set something up.

Important Information about Craft Brewery Marketing

Based on industry data, approximately 75% of craft breweries in Edmonton successfully operate beyond their first year, with proper marketing being a key success factor.
Digital marketing investment for craft breweries typically ranges between 6-8% of total revenue to remain competitive in the local market.
Social media and local event marketing generate the highest ROI for Edmonton craft breweries, followed by email marketing and SEO.
Micro-distilleries can measure marketing ROI through direct sales tracking, social media engagement metrics, and customer acquisition costs.
Research shows craft beer drinkers develop brand loyalty through unique taste profiles, authentic brand stories, and local community engagement.
Instagram and Facebook lead engagement for brewery marketing, with Twitter and TikTok showing growing importance for younger demographics.
Successful craft breweries build brand identity through consistent visual design, compelling origin stories, and strong community connections.
On average, 45% of craft brewery sales come from taproom and direct-to-consumer channels.
Successful micro-distilleries typically allocate 8-12% of their annual revenue to marketing initiatives.
The Edmonton region has seen 15 new craft brewery openings since 2022.

Key Takeaways About Craft Brewery Marketing

The craft beer market in Edmonton keeps growing as more people want unique, local drinks.
Strong branding and digital marketing help new breweries stand out in a busy market.
Craft breweries need to spend more on marketing than other industries to succeed.
Top Draw helps craft breweries build strong brands that connect with local beer lovers.
Understanding customer preferences leads to better marketing results and saves money.
Digital marketing strategies work best when based on solid customer research.
Successful breweries combine online marketing with strong community connections.