Mooseheadrsquos Entrance into the US Market

Jordana Hoppe Thomas Kurian Kate Robb Zafreen Zaheer

1865 Susannah Oland sailed from England to Nova Scotia with her family and lucky for us with her recipe for a rather delicious brown

October ale

A Brief History of the Brew

bull 1865 Susannah Oland sailed from England to Nova Scotia with her family and lucky for us with her recipe for a rather delicious brown October ale

bull 1867 ndash Susannah her husband and 9 employees form ldquoThe Army and Navy Brewery ldquo ndash after a few deaths and disasters and name changes they eventually settle on ldquoMoosehead Breweries Ltdrdquo named after their signature Moosehead Pale Ale

bull By 1962 Moosehead had seen its 4th generation of Olands run the brewery

bull The Moose is Loose Moosehead decides to grow by launching its signature lager to the south

3 Key Reasons Why Moosehead Moved to the South

1) Interprovincial trade barriersndash required a brewer to have production facilities within a province ndash Moosehead was a small ampprivately owned they simply didnt have

the capital to build additional facilities to serve the other Canadian provinces

2) Size of American beer marketndash Canadian market consumed roughly 20 million hectoliters of beer a

yearndash the US market was ten times the size of the Canadian domestic market

3) Growing US import market ndash The tastes of American beer consumers was changing from the

traditional lighterdrier beers (eg Miller Busch) which created room for more niche products

ndash Key imports like Heineken wersquore building a strong base

Moosehead principles to enter the US market

1 32

4 5

Monitor and research market trends and enter a growth segment Drinking age ndash 35 year old American Male

Position the brand correctlyIn the premium Space

Get the product right for the market changes to packaging

Maintain consistency in graphics and advertising focus on the Moose + Canada

Create strong distribution partners Connect with a reputable and established distributer

The Distributor Years

bull Moosehead worked with 3 different distributors from 1978 -2006bull Distributors ldquoownedrdquo the brand in the USA pricing and marketing

1978 ndash 1990 All Brand Distributors

1990 -1997 ndashAll Brand was purchased by Guinness Imports

1997 -2007 Gambrinus

Key Mistake bullCanadian head office continued to focus on Canadian OperationsbullWhen import market declined in late 80rsquos distributor dropped pricing to compete with domestics

Moving Back Up Market

bull Moosehead recognized the distributors error in moving the product to the domestic segment

bull Worked with distributor to move Moosehead back into the Premium Import Space in the USA

bull Introduced campaigns eg ldquoheed the Callrdquo to attract a younger demographic (avg age in late 1980rsquos was 44)

bull Move from Guinness Imports to Gambrinus was an attempt to ally with a distributor with more expertise in the premium import space (Gambrinus had expertly introduced Corona to the US)

bull Gambrinus introduced new marketing programs to give a premium association with the Moosehead product eg Shirt Campaigns

Moosehead USA subsidiary of Moosehead Canada

bull March 31 2007 Moosehead decided to break its contract with Gambrinusndash Andrew Oland had just ascended as the head of Mooseheadndash Gambrinus had not been giving the needed attention to

Mooseheadbull Moosehead believed it could do a better job selling its own beer

ndash Leverage marketing campaigns North and South of the borderbull Choose Key wholesalers amp have full control of distribution

networksndash Alter distribution strategyndash Target new cities amp focus on more profitable areasndash develop relationships with additional retail stores and bars

directly to dismissed the need for some wholesalersbull Improve margins by eliminating the distributor

Moosehead Today

Moosehead sits in a Unique tierbull Moosehead has an attractive offering and is an appealing

acquisition for the large tier competitorsbull Low desire from the Oland Family to be acquired

Moosehead is proud to be Canadarsquos oldest independently owned Brewery

MarketingAd spend

Uni

ts S

old

US there are two tiers of breweries1) Largepublicly traded 2) small low tier

breweries including Shiner and Bridgeport

Moosehead USA amp Canada Working Together

USA amp CanadabullUse the same marketing assets and campaign messages (small tweaks)bullMeet monthly in Toronto to collaborate on Marketing initiativesbullUSA President is accountable to Moosehead Canada for Marketing amp Sales

Canada USA

Key target market

drinking age ndash 35 males drinking age ndash 35 males

Value Prop premium domestic in most of Canada (domestic in Maritimes)

import

Pricing amp Distribution

Government Controlled Moosehead must sell to the retailer + customer More POS advertising

An Example

Canada ldquoCottage Liferdquo focus

USA Moose Focus

Outer-self much more heavily promoted in Canada

Recommendations for the Future

Moosehead should continue to focus on1 Targeting the drinking age ndash 35 year old male

ndash Top beer consuming group in the US2 Moving the brand into the premium space

ndash Continue to fund POS and advertising activities that promote a premium image3 Further developing new and existing relationships with retailers in the North Eastern

US to increase marginsndash NE has the most profit because of close proximity to St Johns (lower

transportation costs)ndash Lower barriers into key distribution points (south is dominated by supermarkets

with strong relations with larger breweries)4 Introducing products into the NE USA that leverages the Moosehead brand image

ndash Mooseheadrsquos core competencies are beer and marketingndash Mooseheadrsquos Canadian image can easily be translated to another new product

eg Cracked canoendash Cracked canoe would make an ideal transition beer for maturing customers

• Slide 1
• Slide 2
• 3 Key Reasons Why Moosehead Moved to the South
• Moosehead principles to enter the US market
• The Distributor Years
• Moving Back Up Market
• Moosehead USA subsidiary of Moosehead Canada
• Moosehead Today
• Moosehead USA amp Canada Working Together
• An Example
• Outer-self much more heavily promoted in Canada
• Recommendations for the Future

1865 Susannah Oland sailed from England to Nova Scotia with her family and lucky for us with her recipe for a rather delicious brown

October ale

A Brief History of the Brew

bull 1865 Susannah Oland sailed from England to Nova Scotia with her family and lucky for us with her recipe for a rather delicious brown October ale

bull 1867 ndash Susannah her husband and 9 employees form ldquoThe Army and Navy Brewery ldquo ndash after a few deaths and disasters and name changes they eventually settle on ldquoMoosehead Breweries Ltdrdquo named after their signature Moosehead Pale Ale

bull By 1962 Moosehead had seen its 4th generation of Olands run the brewery

bull The Moose is Loose Moosehead decides to grow by launching its signature lager to the south

3 Key Reasons Why Moosehead Moved to the South

1) Interprovincial trade barriersndash required a brewer to have production facilities within a province ndash Moosehead was a small ampprivately owned they simply didnt have

the capital to build additional facilities to serve the other Canadian provinces

2) Size of American beer marketndash Canadian market consumed roughly 20 million hectoliters of beer a

yearndash the US market was ten times the size of the Canadian domestic market

3) Growing US import market ndash The tastes of American beer consumers was changing from the

traditional lighterdrier beers (eg Miller Busch) which created room for more niche products

ndash Key imports like Heineken wersquore building a strong base

Moosehead principles to enter the US market

1 32

4 5

Monitor and research market trends and enter a growth segment Drinking age ndash 35 year old American Male

Position the brand correctlyIn the premium Space

Get the product right for the market changes to packaging

Maintain consistency in graphics and advertising focus on the Moose + Canada

Create strong distribution partners Connect with a reputable and established distributer

The Distributor Years

bull Moosehead worked with 3 different distributors from 1978 -2006bull Distributors ldquoownedrdquo the brand in the USA pricing and marketing

1978 ndash 1990 All Brand Distributors

1990 -1997 ndashAll Brand was purchased by Guinness Imports

1997 -2007 Gambrinus

Key Mistake bullCanadian head office continued to focus on Canadian OperationsbullWhen import market declined in late 80rsquos distributor dropped pricing to compete with domestics

Moving Back Up Market

bull Moosehead recognized the distributors error in moving the product to the domestic segment

bull Worked with distributor to move Moosehead back into the Premium Import Space in the USA

bull Introduced campaigns eg ldquoheed the Callrdquo to attract a younger demographic (avg age in late 1980rsquos was 44)

bull Move from Guinness Imports to Gambrinus was an attempt to ally with a distributor with more expertise in the premium import space (Gambrinus had expertly introduced Corona to the US)

bull Gambrinus introduced new marketing programs to give a premium association with the Moosehead product eg Shirt Campaigns

Moosehead USA subsidiary of Moosehead Canada

bull March 31 2007 Moosehead decided to break its contract with Gambrinusndash Andrew Oland had just ascended as the head of Mooseheadndash Gambrinus had not been giving the needed attention to

Mooseheadbull Moosehead believed it could do a better job selling its own beer

ndash Leverage marketing campaigns North and South of the borderbull Choose Key wholesalers amp have full control of distribution

networksndash Alter distribution strategyndash Target new cities amp focus on more profitable areasndash develop relationships with additional retail stores and bars

directly to dismissed the need for some wholesalersbull Improve margins by eliminating the distributor

Moosehead Today

Moosehead sits in a Unique tierbull Moosehead has an attractive offering and is an appealing

acquisition for the large tier competitorsbull Low desire from the Oland Family to be acquired

Moosehead is proud to be Canadarsquos oldest independently owned Brewery

MarketingAd spend

Uni

ts S

old

US there are two tiers of breweries1) Largepublicly traded 2) small low tier

breweries including Shiner and Bridgeport

Moosehead USA amp Canada Working Together

USA amp CanadabullUse the same marketing assets and campaign messages (small tweaks)bullMeet monthly in Toronto to collaborate on Marketing initiativesbullUSA President is accountable to Moosehead Canada for Marketing amp Sales

Canada USA

Key target market

drinking age ndash 35 males drinking age ndash 35 males

Value Prop premium domestic in most of Canada (domestic in Maritimes)

import

Pricing amp Distribution

Government Controlled Moosehead must sell to the retailer + customer More POS advertising

An Example

Canada ldquoCottage Liferdquo focus

USA Moose Focus

Outer-self much more heavily promoted in Canada

Recommendations for the Future

Moosehead should continue to focus on1 Targeting the drinking age ndash 35 year old male

ndash Top beer consuming group in the US2 Moving the brand into the premium space

ndash Continue to fund POS and advertising activities that promote a premium image3 Further developing new and existing relationships with retailers in the North Eastern

US to increase marginsndash NE has the most profit because of close proximity to St Johns (lower

transportation costs)ndash Lower barriers into key distribution points (south is dominated by supermarkets

with strong relations with larger breweries)4 Introducing products into the NE USA that leverages the Moosehead brand image

ndash Mooseheadrsquos core competencies are beer and marketingndash Mooseheadrsquos Canadian image can easily be translated to another new product

eg Cracked canoendash Cracked canoe would make an ideal transition beer for maturing customers

• Slide 1
• Slide 2
• 3 Key Reasons Why Moosehead Moved to the South
• Moosehead principles to enter the US market
• The Distributor Years
• Moving Back Up Market
• Moosehead USA subsidiary of Moosehead Canada
• Moosehead Today
• Moosehead USA amp Canada Working Together
• An Example
• Outer-self much more heavily promoted in Canada
• Recommendations for the Future

3 Key Reasons Why Moosehead Moved to the South

1) Interprovincial trade barriersndash required a brewer to have production facilities within a province ndash Moosehead was a small ampprivately owned they simply didnt have

the capital to build additional facilities to serve the other Canadian provinces

2) Size of American beer marketndash Canadian market consumed roughly 20 million hectoliters of beer a

yearndash the US market was ten times the size of the Canadian domestic market

3) Growing US import market ndash The tastes of American beer consumers was changing from the

traditional lighterdrier beers (eg Miller Busch) which created room for more niche products

ndash Key imports like Heineken wersquore building a strong base

Moosehead principles to enter the US market

1 32

4 5

Monitor and research market trends and enter a growth segment Drinking age ndash 35 year old American Male

Position the brand correctlyIn the premium Space

Get the product right for the market changes to packaging

Maintain consistency in graphics and advertising focus on the Moose + Canada

Create strong distribution partners Connect with a reputable and established distributer

The Distributor Years

bull Moosehead worked with 3 different distributors from 1978 -2006bull Distributors ldquoownedrdquo the brand in the USA pricing and marketing

1978 ndash 1990 All Brand Distributors

1990 -1997 ndashAll Brand was purchased by Guinness Imports

1997 -2007 Gambrinus

Key Mistake bullCanadian head office continued to focus on Canadian OperationsbullWhen import market declined in late 80rsquos distributor dropped pricing to compete with domestics

Moving Back Up Market

bull Moosehead recognized the distributors error in moving the product to the domestic segment

bull Worked with distributor to move Moosehead back into the Premium Import Space in the USA

bull Introduced campaigns eg ldquoheed the Callrdquo to attract a younger demographic (avg age in late 1980rsquos was 44)

bull Move from Guinness Imports to Gambrinus was an attempt to ally with a distributor with more expertise in the premium import space (Gambrinus had expertly introduced Corona to the US)

bull Gambrinus introduced new marketing programs to give a premium association with the Moosehead product eg Shirt Campaigns

Moosehead USA subsidiary of Moosehead Canada

bull March 31 2007 Moosehead decided to break its contract with Gambrinusndash Andrew Oland had just ascended as the head of Mooseheadndash Gambrinus had not been giving the needed attention to

Mooseheadbull Moosehead believed it could do a better job selling its own beer

ndash Leverage marketing campaigns North and South of the borderbull Choose Key wholesalers amp have full control of distribution

networksndash Alter distribution strategyndash Target new cities amp focus on more profitable areasndash develop relationships with additional retail stores and bars

directly to dismissed the need for some wholesalersbull Improve margins by eliminating the distributor

Moosehead Today

Moosehead sits in a Unique tierbull Moosehead has an attractive offering and is an appealing

acquisition for the large tier competitorsbull Low desire from the Oland Family to be acquired

Moosehead is proud to be Canadarsquos oldest independently owned Brewery

MarketingAd spend

Uni

ts S

old

US there are two tiers of breweries1) Largepublicly traded 2) small low tier

breweries including Shiner and Bridgeport

Moosehead USA amp Canada Working Together

USA amp CanadabullUse the same marketing assets and campaign messages (small tweaks)bullMeet monthly in Toronto to collaborate on Marketing initiativesbullUSA President is accountable to Moosehead Canada for Marketing amp Sales

Canada USA

Key target market

drinking age ndash 35 males drinking age ndash 35 males

Value Prop premium domestic in most of Canada (domestic in Maritimes)

import

Pricing amp Distribution

Government Controlled Moosehead must sell to the retailer + customer More POS advertising

An Example

Canada ldquoCottage Liferdquo focus

USA Moose Focus

Outer-self much more heavily promoted in Canada

Recommendations for the Future

Moosehead should continue to focus on1 Targeting the drinking age ndash 35 year old male

ndash Top beer consuming group in the US2 Moving the brand into the premium space

ndash Continue to fund POS and advertising activities that promote a premium image3 Further developing new and existing relationships with retailers in the North Eastern

US to increase marginsndash NE has the most profit because of close proximity to St Johns (lower

transportation costs)ndash Lower barriers into key distribution points (south is dominated by supermarkets

with strong relations with larger breweries)4 Introducing products into the NE USA that leverages the Moosehead brand image

ndash Mooseheadrsquos core competencies are beer and marketingndash Mooseheadrsquos Canadian image can easily be translated to another new product

eg Cracked canoendash Cracked canoe would make an ideal transition beer for maturing customers

• Slide 1
• Slide 2
• 3 Key Reasons Why Moosehead Moved to the South
• Moosehead principles to enter the US market
• The Distributor Years
• Moving Back Up Market
• Moosehead USA subsidiary of Moosehead Canada
• Moosehead Today
• Moosehead USA amp Canada Working Together
• An Example
• Outer-self much more heavily promoted in Canada
• Recommendations for the Future

Moosehead principles to enter the US market

1 32

4 5

Monitor and research market trends and enter a growth segment Drinking age ndash 35 year old American Male

Position the brand correctlyIn the premium Space

Get the product right for the market changes to packaging

Maintain consistency in graphics and advertising focus on the Moose + Canada

Create strong distribution partners Connect with a reputable and established distributer

The Distributor Years

bull Moosehead worked with 3 different distributors from 1978 -2006bull Distributors ldquoownedrdquo the brand in the USA pricing and marketing

1978 ndash 1990 All Brand Distributors

1990 -1997 ndashAll Brand was purchased by Guinness Imports

1997 -2007 Gambrinus

Key Mistake bullCanadian head office continued to focus on Canadian OperationsbullWhen import market declined in late 80rsquos distributor dropped pricing to compete with domestics

Moving Back Up Market

bull Moosehead recognized the distributors error in moving the product to the domestic segment

bull Worked with distributor to move Moosehead back into the Premium Import Space in the USA

bull Introduced campaigns eg ldquoheed the Callrdquo to attract a younger demographic (avg age in late 1980rsquos was 44)

bull Move from Guinness Imports to Gambrinus was an attempt to ally with a distributor with more expertise in the premium import space (Gambrinus had expertly introduced Corona to the US)

bull Gambrinus introduced new marketing programs to give a premium association with the Moosehead product eg Shirt Campaigns

Moosehead USA subsidiary of Moosehead Canada

bull March 31 2007 Moosehead decided to break its contract with Gambrinusndash Andrew Oland had just ascended as the head of Mooseheadndash Gambrinus had not been giving the needed attention to

Mooseheadbull Moosehead believed it could do a better job selling its own beer

ndash Leverage marketing campaigns North and South of the borderbull Choose Key wholesalers amp have full control of distribution

networksndash Alter distribution strategyndash Target new cities amp focus on more profitable areasndash develop relationships with additional retail stores and bars

directly to dismissed the need for some wholesalersbull Improve margins by eliminating the distributor

Moosehead Today

Moosehead sits in a Unique tierbull Moosehead has an attractive offering and is an appealing

acquisition for the large tier competitorsbull Low desire from the Oland Family to be acquired

Moosehead is proud to be Canadarsquos oldest independently owned Brewery

MarketingAd spend

Uni

ts S

old

US there are two tiers of breweries1) Largepublicly traded 2) small low tier

breweries including Shiner and Bridgeport

Moosehead USA amp Canada Working Together

USA amp CanadabullUse the same marketing assets and campaign messages (small tweaks)bullMeet monthly in Toronto to collaborate on Marketing initiativesbullUSA President is accountable to Moosehead Canada for Marketing amp Sales

Canada USA

Key target market

drinking age ndash 35 males drinking age ndash 35 males

Value Prop premium domestic in most of Canada (domestic in Maritimes)

import

Pricing amp Distribution

Government Controlled Moosehead must sell to the retailer + customer More POS advertising

An Example

Canada ldquoCottage Liferdquo focus

USA Moose Focus

Outer-self much more heavily promoted in Canada

Recommendations for the Future

Moosehead should continue to focus on1 Targeting the drinking age ndash 35 year old male

ndash Top beer consuming group in the US2 Moving the brand into the premium space

ndash Continue to fund POS and advertising activities that promote a premium image3 Further developing new and existing relationships with retailers in the North Eastern

US to increase marginsndash NE has the most profit because of close proximity to St Johns (lower

transportation costs)ndash Lower barriers into key distribution points (south is dominated by supermarkets

with strong relations with larger breweries)4 Introducing products into the NE USA that leverages the Moosehead brand image

ndash Mooseheadrsquos core competencies are beer and marketingndash Mooseheadrsquos Canadian image can easily be translated to another new product

eg Cracked canoendash Cracked canoe would make an ideal transition beer for maturing customers

• Slide 1
• Slide 2
• 3 Key Reasons Why Moosehead Moved to the South
• Moosehead principles to enter the US market
• The Distributor Years
• Moving Back Up Market
• Moosehead USA subsidiary of Moosehead Canada
• Moosehead Today
• Moosehead USA amp Canada Working Together
• An Example
• Outer-self much more heavily promoted in Canada
• Recommendations for the Future

The Distributor Years

bull Moosehead worked with 3 different distributors from 1978 -2006bull Distributors ldquoownedrdquo the brand in the USA pricing and marketing

1978 ndash 1990 All Brand Distributors

1990 -1997 ndashAll Brand was purchased by Guinness Imports

1997 -2007 Gambrinus

Key Mistake bullCanadian head office continued to focus on Canadian OperationsbullWhen import market declined in late 80rsquos distributor dropped pricing to compete with domestics

Moving Back Up Market

bull Moosehead recognized the distributors error in moving the product to the domestic segment

bull Worked with distributor to move Moosehead back into the Premium Import Space in the USA

bull Introduced campaigns eg ldquoheed the Callrdquo to attract a younger demographic (avg age in late 1980rsquos was 44)

bull Move from Guinness Imports to Gambrinus was an attempt to ally with a distributor with more expertise in the premium import space (Gambrinus had expertly introduced Corona to the US)

bull Gambrinus introduced new marketing programs to give a premium association with the Moosehead product eg Shirt Campaigns

Moosehead USA subsidiary of Moosehead Canada

bull March 31 2007 Moosehead decided to break its contract with Gambrinusndash Andrew Oland had just ascended as the head of Mooseheadndash Gambrinus had not been giving the needed attention to

Mooseheadbull Moosehead believed it could do a better job selling its own beer

ndash Leverage marketing campaigns North and South of the borderbull Choose Key wholesalers amp have full control of distribution

networksndash Alter distribution strategyndash Target new cities amp focus on more profitable areasndash develop relationships with additional retail stores and bars

directly to dismissed the need for some wholesalersbull Improve margins by eliminating the distributor

Moosehead Today

Moosehead sits in a Unique tierbull Moosehead has an attractive offering and is an appealing

acquisition for the large tier competitorsbull Low desire from the Oland Family to be acquired

Moosehead is proud to be Canadarsquos oldest independently owned Brewery

MarketingAd spend

Uni

ts S

old

US there are two tiers of breweries1) Largepublicly traded 2) small low tier

breweries including Shiner and Bridgeport

Moosehead USA amp Canada Working Together

USA amp CanadabullUse the same marketing assets and campaign messages (small tweaks)bullMeet monthly in Toronto to collaborate on Marketing initiativesbullUSA President is accountable to Moosehead Canada for Marketing amp Sales

Canada USA

Key target market

drinking age ndash 35 males drinking age ndash 35 males

Value Prop premium domestic in most of Canada (domestic in Maritimes)

import

Pricing amp Distribution

Government Controlled Moosehead must sell to the retailer + customer More POS advertising

An Example

Canada ldquoCottage Liferdquo focus

USA Moose Focus

Outer-self much more heavily promoted in Canada

Recommendations for the Future

Moosehead should continue to focus on1 Targeting the drinking age ndash 35 year old male

ndash Top beer consuming group in the US2 Moving the brand into the premium space

ndash Continue to fund POS and advertising activities that promote a premium image3 Further developing new and existing relationships with retailers in the North Eastern

US to increase marginsndash NE has the most profit because of close proximity to St Johns (lower

transportation costs)ndash Lower barriers into key distribution points (south is dominated by supermarkets

with strong relations with larger breweries)4 Introducing products into the NE USA that leverages the Moosehead brand image

ndash Mooseheadrsquos core competencies are beer and marketingndash Mooseheadrsquos Canadian image can easily be translated to another new product

eg Cracked canoendash Cracked canoe would make an ideal transition beer for maturing customers

• Slide 1
• Slide 2
• 3 Key Reasons Why Moosehead Moved to the South
• Moosehead principles to enter the US market
• The Distributor Years
• Moving Back Up Market
• Moosehead USA subsidiary of Moosehead Canada
• Moosehead Today
• Moosehead USA amp Canada Working Together
• An Example
• Outer-self much more heavily promoted in Canada
• Recommendations for the Future

Moving Back Up Market

bull Moosehead recognized the distributors error in moving the product to the domestic segment

bull Worked with distributor to move Moosehead back into the Premium Import Space in the USA

bull Introduced campaigns eg ldquoheed the Callrdquo to attract a younger demographic (avg age in late 1980rsquos was 44)

bull Move from Guinness Imports to Gambrinus was an attempt to ally with a distributor with more expertise in the premium import space (Gambrinus had expertly introduced Corona to the US)

bull Gambrinus introduced new marketing programs to give a premium association with the Moosehead product eg Shirt Campaigns

Moosehead USA subsidiary of Moosehead Canada

bull March 31 2007 Moosehead decided to break its contract with Gambrinusndash Andrew Oland had just ascended as the head of Mooseheadndash Gambrinus had not been giving the needed attention to

Mooseheadbull Moosehead believed it could do a better job selling its own beer

ndash Leverage marketing campaigns North and South of the borderbull Choose Key wholesalers amp have full control of distribution

networksndash Alter distribution strategyndash Target new cities amp focus on more profitable areasndash develop relationships with additional retail stores and bars

directly to dismissed the need for some wholesalersbull Improve margins by eliminating the distributor

Moosehead Today

Moosehead sits in a Unique tierbull Moosehead has an attractive offering and is an appealing

acquisition for the large tier competitorsbull Low desire from the Oland Family to be acquired

Moosehead is proud to be Canadarsquos oldest independently owned Brewery

MarketingAd spend

Uni

ts S

old

US there are two tiers of breweries1) Largepublicly traded 2) small low tier

breweries including Shiner and Bridgeport

Moosehead USA amp Canada Working Together

USA amp CanadabullUse the same marketing assets and campaign messages (small tweaks)bullMeet monthly in Toronto to collaborate on Marketing initiativesbullUSA President is accountable to Moosehead Canada for Marketing amp Sales

Canada USA

Key target market

drinking age ndash 35 males drinking age ndash 35 males

Value Prop premium domestic in most of Canada (domestic in Maritimes)

import

Pricing amp Distribution

Government Controlled Moosehead must sell to the retailer + customer More POS advertising

An Example

Canada ldquoCottage Liferdquo focus

USA Moose Focus

Outer-self much more heavily promoted in Canada

Recommendations for the Future

Moosehead should continue to focus on1 Targeting the drinking age ndash 35 year old male

ndash Top beer consuming group in the US2 Moving the brand into the premium space

ndash Continue to fund POS and advertising activities that promote a premium image3 Further developing new and existing relationships with retailers in the North Eastern

US to increase marginsndash NE has the most profit because of close proximity to St Johns (lower

transportation costs)ndash Lower barriers into key distribution points (south is dominated by supermarkets

with strong relations with larger breweries)4 Introducing products into the NE USA that leverages the Moosehead brand image

ndash Mooseheadrsquos core competencies are beer and marketingndash Mooseheadrsquos Canadian image can easily be translated to another new product

eg Cracked canoendash Cracked canoe would make an ideal transition beer for maturing customers

• Slide 1
• Slide 2
• 3 Key Reasons Why Moosehead Moved to the South
• Moosehead principles to enter the US market
• The Distributor Years
• Moving Back Up Market
• Moosehead USA subsidiary of Moosehead Canada
• Moosehead Today
• Moosehead USA amp Canada Working Together
• An Example
• Outer-self much more heavily promoted in Canada
• Recommendations for the Future

Moosehead USA subsidiary of Moosehead Canada

bull March 31 2007 Moosehead decided to break its contract with Gambrinusndash Andrew Oland had just ascended as the head of Mooseheadndash Gambrinus had not been giving the needed attention to

Mooseheadbull Moosehead believed it could do a better job selling its own beer

ndash Leverage marketing campaigns North and South of the borderbull Choose Key wholesalers amp have full control of distribution

networksndash Alter distribution strategyndash Target new cities amp focus on more profitable areasndash develop relationships with additional retail stores and bars

directly to dismissed the need for some wholesalersbull Improve margins by eliminating the distributor

Moosehead Today

Moosehead sits in a Unique tierbull Moosehead has an attractive offering and is an appealing

acquisition for the large tier competitorsbull Low desire from the Oland Family to be acquired

Moosehead is proud to be Canadarsquos oldest independently owned Brewery

MarketingAd spend

Uni

ts S

old

US there are two tiers of breweries1) Largepublicly traded 2) small low tier

breweries including Shiner and Bridgeport

Moosehead USA amp Canada Working Together

USA amp CanadabullUse the same marketing assets and campaign messages (small tweaks)bullMeet monthly in Toronto to collaborate on Marketing initiativesbullUSA President is accountable to Moosehead Canada for Marketing amp Sales

Canada USA

Key target market

drinking age ndash 35 males drinking age ndash 35 males

Value Prop premium domestic in most of Canada (domestic in Maritimes)

import

Pricing amp Distribution

Government Controlled Moosehead must sell to the retailer + customer More POS advertising

An Example

Canada ldquoCottage Liferdquo focus

USA Moose Focus

Outer-self much more heavily promoted in Canada

Recommendations for the Future

Moosehead should continue to focus on1 Targeting the drinking age ndash 35 year old male

ndash Top beer consuming group in the US2 Moving the brand into the premium space

ndash Continue to fund POS and advertising activities that promote a premium image3 Further developing new and existing relationships with retailers in the North Eastern

US to increase marginsndash NE has the most profit because of close proximity to St Johns (lower

transportation costs)ndash Lower barriers into key distribution points (south is dominated by supermarkets

with strong relations with larger breweries)4 Introducing products into the NE USA that leverages the Moosehead brand image

ndash Mooseheadrsquos core competencies are beer and marketingndash Mooseheadrsquos Canadian image can easily be translated to another new product

eg Cracked canoendash Cracked canoe would make an ideal transition beer for maturing customers

• Slide 1
• Slide 2
• 3 Key Reasons Why Moosehead Moved to the South
• Moosehead principles to enter the US market
• The Distributor Years
• Moving Back Up Market
• Moosehead USA subsidiary of Moosehead Canada
• Moosehead Today
• Moosehead USA amp Canada Working Together
• An Example
• Outer-self much more heavily promoted in Canada
• Recommendations for the Future

Moosehead Today

Moosehead sits in a Unique tierbull Moosehead has an attractive offering and is an appealing

acquisition for the large tier competitorsbull Low desire from the Oland Family to be acquired

Moosehead is proud to be Canadarsquos oldest independently owned Brewery

MarketingAd spend

Uni

ts S

old

US there are two tiers of breweries1) Largepublicly traded 2) small low tier

breweries including Shiner and Bridgeport

Moosehead USA amp Canada Working Together

USA amp CanadabullUse the same marketing assets and campaign messages (small tweaks)bullMeet monthly in Toronto to collaborate on Marketing initiativesbullUSA President is accountable to Moosehead Canada for Marketing amp Sales

Canada USA

Key target market

drinking age ndash 35 males drinking age ndash 35 males

Value Prop premium domestic in most of Canada (domestic in Maritimes)

import

Pricing amp Distribution

Government Controlled Moosehead must sell to the retailer + customer More POS advertising

An Example

Canada ldquoCottage Liferdquo focus

USA Moose Focus

Outer-self much more heavily promoted in Canada

Recommendations for the Future

Moosehead should continue to focus on1 Targeting the drinking age ndash 35 year old male

ndash Top beer consuming group in the US2 Moving the brand into the premium space

ndash Continue to fund POS and advertising activities that promote a premium image3 Further developing new and existing relationships with retailers in the North Eastern

US to increase marginsndash NE has the most profit because of close proximity to St Johns (lower

transportation costs)ndash Lower barriers into key distribution points (south is dominated by supermarkets

with strong relations with larger breweries)4 Introducing products into the NE USA that leverages the Moosehead brand image

ndash Mooseheadrsquos core competencies are beer and marketingndash Mooseheadrsquos Canadian image can easily be translated to another new product

eg Cracked canoendash Cracked canoe would make an ideal transition beer for maturing customers

• Slide 1
• Slide 2
• 3 Key Reasons Why Moosehead Moved to the South
• Moosehead principles to enter the US market
• The Distributor Years
• Moving Back Up Market
• Moosehead USA subsidiary of Moosehead Canada
• Moosehead Today
• Moosehead USA amp Canada Working Together
• An Example
• Outer-self much more heavily promoted in Canada
• Recommendations for the Future

Moosehead USA amp Canada Working Together

USA amp CanadabullUse the same marketing assets and campaign messages (small tweaks)bullMeet monthly in Toronto to collaborate on Marketing initiativesbullUSA President is accountable to Moosehead Canada for Marketing amp Sales

Canada USA

Key target market

drinking age ndash 35 males drinking age ndash 35 males

Value Prop premium domestic in most of Canada (domestic in Maritimes)

import

Pricing amp Distribution

Government Controlled Moosehead must sell to the retailer + customer More POS advertising

An Example

Canada ldquoCottage Liferdquo focus

USA Moose Focus

Outer-self much more heavily promoted in Canada

Recommendations for the Future

Moosehead should continue to focus on1 Targeting the drinking age ndash 35 year old male

ndash Top beer consuming group in the US2 Moving the brand into the premium space

ndash Continue to fund POS and advertising activities that promote a premium image3 Further developing new and existing relationships with retailers in the North Eastern

US to increase marginsndash NE has the most profit because of close proximity to St Johns (lower

transportation costs)ndash Lower barriers into key distribution points (south is dominated by supermarkets

with strong relations with larger breweries)4 Introducing products into the NE USA that leverages the Moosehead brand image

ndash Mooseheadrsquos core competencies are beer and marketingndash Mooseheadrsquos Canadian image can easily be translated to another new product

eg Cracked canoendash Cracked canoe would make an ideal transition beer for maturing customers

• Slide 1
• Slide 2
• 3 Key Reasons Why Moosehead Moved to the South
• Moosehead principles to enter the US market
• The Distributor Years
• Moving Back Up Market
• Moosehead USA subsidiary of Moosehead Canada
• Moosehead Today
• Moosehead USA amp Canada Working Together
• An Example
• Outer-self much more heavily promoted in Canada
• Recommendations for the Future

An Example

Canada ldquoCottage Liferdquo focus

USA Moose Focus

Outer-self much more heavily promoted in Canada

Recommendations for the Future

Moosehead should continue to focus on1 Targeting the drinking age ndash 35 year old male

ndash Top beer consuming group in the US2 Moving the brand into the premium space

ndash Continue to fund POS and advertising activities that promote a premium image3 Further developing new and existing relationships with retailers in the North Eastern

US to increase marginsndash NE has the most profit because of close proximity to St Johns (lower

transportation costs)ndash Lower barriers into key distribution points (south is dominated by supermarkets

with strong relations with larger breweries)4 Introducing products into the NE USA that leverages the Moosehead brand image

ndash Mooseheadrsquos core competencies are beer and marketingndash Mooseheadrsquos Canadian image can easily be translated to another new product

eg Cracked canoendash Cracked canoe would make an ideal transition beer for maturing customers

• Slide 1
• Slide 2
• 3 Key Reasons Why Moosehead Moved to the South
• Moosehead principles to enter the US market
• The Distributor Years
• Moving Back Up Market
• Moosehead USA subsidiary of Moosehead Canada
• Moosehead Today
• Moosehead USA amp Canada Working Together
• An Example
• Outer-self much more heavily promoted in Canada
• Recommendations for the Future

Outer-self much more heavily promoted in Canada

Recommendations for the Future

Moosehead should continue to focus on1 Targeting the drinking age ndash 35 year old male

ndash Top beer consuming group in the US2 Moving the brand into the premium space

ndash Continue to fund POS and advertising activities that promote a premium image3 Further developing new and existing relationships with retailers in the North Eastern

US to increase marginsndash NE has the most profit because of close proximity to St Johns (lower

transportation costs)ndash Lower barriers into key distribution points (south is dominated by supermarkets

with strong relations with larger breweries)4 Introducing products into the NE USA that leverages the Moosehead brand image

ndash Mooseheadrsquos core competencies are beer and marketingndash Mooseheadrsquos Canadian image can easily be translated to another new product

eg Cracked canoendash Cracked canoe would make an ideal transition beer for maturing customers

• Slide 1
• Slide 2
• 3 Key Reasons Why Moosehead Moved to the South
• Moosehead principles to enter the US market
• The Distributor Years
• Moving Back Up Market
• Moosehead USA subsidiary of Moosehead Canada
• Moosehead Today
• Moosehead USA amp Canada Working Together
• An Example
• Outer-self much more heavily promoted in Canada
• Recommendations for the Future

Recommendations for the Future

Moosehead should continue to focus on1 Targeting the drinking age ndash 35 year old male

ndash Top beer consuming group in the US2 Moving the brand into the premium space

ndash Continue to fund POS and advertising activities that promote a premium image3 Further developing new and existing relationships with retailers in the North Eastern

US to increase marginsndash NE has the most profit because of close proximity to St Johns (lower

transportation costs)ndash Lower barriers into key distribution points (south is dominated by supermarkets

with strong relations with larger breweries)4 Introducing products into the NE USA that leverages the Moosehead brand image

ndash Mooseheadrsquos core competencies are beer and marketingndash Mooseheadrsquos Canadian image can easily be translated to another new product

eg Cracked canoendash Cracked canoe would make an ideal transition beer for maturing customers

• Slide 1
• Slide 2
• 3 Key Reasons Why Moosehead Moved to the South
• Moosehead principles to enter the US market
• The Distributor Years
• Moving Back Up Market
• Moosehead USA subsidiary of Moosehead Canada
• Moosehead Today
• Moosehead USA amp Canada Working Together
• An Example
• Outer-self much more heavily promoted in Canada
• Recommendations for the Future