Well now it is April 98 and time for PETE's new product drive...as mentioned in the following Press Release (note the date)
Tuesday January 20, 11:04 pm Eastern Time
Company Press Release
SOURCE: Pete's Brewing Company
Pete's Brewing Company CEO Announces Reinvention of Pete's Brand
PALO ALTO, Calif., Jan. 20 /PRNewswire/ -- Today Pete's Brewing Company (Nasdaq: WIKD - news) reported a number of new marketing initiatives that support the Company's strategic priorities. Beginning in April 1998, the start of the summer beer-selling season, the Company will execute its plans to:
* Reposition the Pete's brand to become more relevant to consumers as
supported by consumer research findings;
* Introduce a new product, Pete's ESP Lager, and promote it as a priority
alongside the Company's flagship, Pete's Wicked Ale; and
* Streamline Pete's product portfolio to improve focus among Pete's
constituencies and reduce complexity in the Company's operations.
''Across many dimensions, we consider this to be a positive reinvention of the Pete's brand, an initiative that is supported by strategic analysis and consumer insight. We are bringing positive news to the marketplace with today's announcement as there are significant long term business advantages as a result of these brand initiatives for our company, for our wholesaler and retail customers, and for beer drinkers,'' said Mr. Jeff Atkins, CEO.
As part of the change in brand positioning, the Company will increase its emphasis on and involvement of Pete Slosberg in its marketing communications. Research results confirm that only 25% of consumers know that Pete is a real person who founded the company and created Pete's Wicked Ale. Those consumers, who know or learn more about Pete, find his entrepreneurial story aspiring and respond well to him. With Pete Slosberg as a visible icon in marketing, packaging and communications, consumers translate their positive perceptions of him to the brand.
Also as part of the brand positioning, the Company is evolving its brand name from Pete's Wicked to Pete's. According to management, the word ''Wicked'' will appear on Pete's Wicked Ale only, as it is an integral equity to that product and reinforces the heritage of the Company's flagship brand. The ''Wicked'' element has lost some of its brand relevance for consumers, while Pete, the founder, promotes the appropriate and differentiating brand imagery and recognition for consumers today.
''Improving our focus and support behind core products like Pete's Wicked Ale and emphasizing Pete Slosberg's knowledge and passion for great beer will provide more relevant reasons for consumers to be a consistent part of our franchise. Our goal is to offer consumers of better beers a strong reason to adopt and remain with Pete's as part of their regular portfolio of brands,'' said Mr. Atkins.
In April 1998, Pete's Brewing Company will unveil significant changes made to its packaging to complement the Company's new brand positioning, including new graphics and logo treatment that feature Pete Slosberg prominently. Other changes include the transition to a shorter bottle format from its current longneck bottle. Driven by consumer insight, the change to heritage bottles further differentiates the brand from its primary competition.
Concurrently, Pete's Brewing Company will introduce a new product, Pete's ESP (Extra Smooth Pub) Lager. The new product is a lighter styled, golden colored craft beer. Research shows that 61% of Pete's target consumers drink primarily premium domestic brands while 39% drink primarily craft, specialty and import brands. For the target consumer, golden beers represent a significant volume segment, one in which Pete's has been under-represented in the past. Pete's ESP Lager was developed after significant consumer and in-market research over the past 12 months. Moreover, to support its April introduction, Pete's will begin an outdoor advertising campaign in select markets across the country.
''We are very excited about the positive feedback we've received about Pete's ESP Lager from consumers, wholesalers and our sales force. When we decided to come up with a brew more people could enjoy all year round, we created this extra smooth pub lager that I believe will leave even the most serious craft beer drinkers with smiles on their lips. Beginning immediately, Pete's ESP Lager is a priority for us as we head into the summer selling season and, ongoing, it will be supported alongside the flagship, Pete's Wicked Ale, the original and America's leading brown ale,'' said Pete Slosberg, co-founder.
Also in April, the Company plans to realign the Pete's portfolio of brands to focus on its core products, including the award winning Pete's Wicked Ale. Four products, which comprised less than 7% of total 1997 sales, will be discontinued from the product line. Those products are Multi Grain, Maple Porter, Amber Ale and Pale Ale. According to Pete's management, this brand rationalization will help focus consumers on Pete's core products in a currently over-proliferated craft beer market, while still providing them a reasonable variety of quality better beer choices.
''We are taking aggressive, positive steps to streamline the Pete's brand and portfolio to resume growth in the better beer category. By proactively decreasing the complexity of our portfolio, we are better able to invest in and focus on our strongest core brands. In addition, this realignment provides efficiencies in our operations, facilitates improvements in customer service capabilities, and provides a less complex portfolio for our retailers and wholesalers to manage,'' said Mr. Atkins.
Pete's Brewing Company, the second-largest craft brewer in the United States, will report its fourth quarter and year-end 1997 earnings on February 23, 1998. The company distributes its flagship Pete's Wicked Ale and other distinctive craft beers in 49 states, the District of Columbia and the United Kingdom.
The above release contains certain forward-looking statements that involve a number of risks, uncertainties and factors that could cause actual results to differ materially, including but not limited to fluctuation in quarterly operating results dependence on the Stroh Brewery Co., competition, dependence on distributors, product concentration, development of new products, change in government regulations and dependence on key personnel. Refer to the Company's risk factors cited in the 1996 annual report, pages 25-29; and the Form 10-Q for the third quarterly period ended September 30,1997, pages 14-17 in conjunction with this release. |
