Advertising and Marketing A blue-collar beer goes upmarket

The above advertisement appears on the inside front cover of the current issue of Window of the South (南风窗), a respected biweekly business magazine. At first glance it looks like an ad for a wine or a brandy, but closer inspection reveals the actual brand: Pabst Blue Ribbon Beer 1844. 1844 was the year that the Pabst Brewing Company was established in Milwaukee, Wisconsin. In the US, the beer's lack of pretension led to a recent upswing in popularity among hipsters. With 1844, the brand seems to be targeting a different demographic in the Chinese market. The ad copy (on the facing page) begins with comparisons to the finest of alcohols: It's not just Scotch that's put into wooden casks. There's also Pabst Blue Ribbon Beer 1844 Many world-famous spirits

Are matured in precious wooden casks

Scotch whisky, French brandy, Bordeaux wine...

They all spend long days inside wooden casks It goes on to describe how the premium wood and craftsmanship of the casks creates the beer's wondrous color and flavor, and ends by calling Pabst "truly a treasure among beers." Does Pabst Blue Ribbon 1844 truly merit such comparisons? It'll cost you around 300 RMB to try a bottle for yourself, according to a Beijing Youth Daily article from last November, when the product was launched. The article quoted Ni Chunlin, head of Blue Ribbon Beer, which produced Pabst in China: "China's beer market has an annual sales volume of 40 million tons. So why is the price of beer always around 5 or 10 yuan?"

...

Ni Chunlin said that the release of Blue Ribbon 1844 is aimed at changing consumers' ideas about beer. "The high-end market is occupied by baijiu and wine. Chinese people can afford to drink baijiu that costs tens of thousands, and I believe that a 300-yuan beer won't be a problem either." Update (2010.07.21): Evan Osnos points to an interview with Alan Kornhauser, Pabst Brewmaster-Asia, from the July issue of All About Beer magazine: I still like formulating specialty beers. In fact, with Pabst, I just made the first specialty beer in Mainland China. There’s almost no ale in China: I had to smuggle the yeast into the country. I formulated a special high-gravity ale called “1844.” It’s all malt, and we use caramel malts from Germany. The initial aging is dry-hopped rather heavily. Then we do a secondary aging in new uncharred American oak whiskey barrels. We bought 750 brand new barrels to the tune of $100,000. This is a very special beer; it’s retailing for about over $40 U.S. for a 720 ml bottle. There’s an audience there for it? There’s the nouveau riche, and in China, perception is everything—look at me, I’m rich. Then also, there is another group that may be part of our market, and that’s state banquet dinners. Normally, you’d drink brandy, and this beer kind of has the look of brandy—it’s a reddish-brown color, but it won’t hurt you as much. Links and Sources Blue Ribbon Beer website (Chinese): 1844

Beijing Youth Daily via Xinhua (Chinese): At 300 RMB a bottle, who is Blue Ribbon 1844 meant for?

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