Sierra Nevada’s willingness to enter new segments and styles hinges on a pair of key factors, CEO Pryce Greenow told Brewbound.
“If we can bring premium and craft to any beer category, we’re interested in it,” he said. “If that’s not the defining part of why consumers are interested in that beer style, it’s not for us.”
This philosophy is what made pilsner an intriguing innovation play with the draft-only launch of Pils this past spring – a style that Sierra Nevada founder Ken Grossman had always wanted to explore.
Pils offered Sierra Nevada a year-round lager in a space where the company had not previously competed, aside from its seasonal portfolio. In less than a year, Pils has ascended to be among the company’s top-four priorities.
“We always said that this was a brand that we were going to build for the long haul,” chief commercial officer Ellie Preslar told Brewbound. “We wanted, in seven or eight years, to talk about it like we talk about Hazy in its seventh or eighth year of growth.”
In some of Pils’ initial draft markets, the brand’s rate of sale was on par and sometimes outpacing Hazy Little Thing, Preslar said.
Initial sales trends and consumer demand in those markets reinforced the company’s belief that Pils could be among its top brands, leading to the roll out of 8.4 oz. can 8-packs in off-premise retailers in 22 states. The packs are line-priced with Sierra Nevada’s flagship Pale Ale and Hazy Little Thing 6-packs. A national launch is slated for January.
Several differentiators helped gain buy-in from retailers for the fall resets. Preslar pointed to the style, unique packaging format and premium brand positioning, which nods to European tradition.
“Frankly, it’s different, and sometimes different can be really good,” she said. “In a category maybe where it’ll stand out and cause people to pause and reassess and reconsider a different way for them to enjoy versus that standard 12 oz. or 16 oz. offering that we’ve tied ourselves into for a long time.”
Being a family-owned business, Sierra Nevada has the luxury of time to build the brand without answering to shareholders. However, Preslar and Greenow acknowledged that the company’s retailers and wholesalers may not be as patient should the brand not meet expectations.
“We are not putting undue pressure onto the goals for future years,” Greenow said. “We want to build a sustainable, new foundation in our portfolio.”
The 4-pack 16 oz. IPA space – which holds an 8.5% share of craft sales – also interested Greenow as an untapped avenue for Sierra Nevada. The company plans to introduce West Ghost Modern West Coast IPA (7.5% ABV) in the format in select markets, such as the Northeast where 4-packs maintain relevance.
“If we can show that Sierra Nevada is excited to help drive growth in that segment, I’m all for it,” Greenow said.
West Ghost is among the top sellers and often sells out in Sierra Nevada’s taprooms, which offered enough proof of concept to take the brand elsewhere.
“It’s the first barrel to go,” Greenow said.
Pils and West Ghost are about maintaining relevance with drinkers.
“That’s something that concerns us a lot,” Greenow said. “No one owes us a living. We have to earn that trust all the time. We’re very lucky we have some brands with incredible resonance. But to grow, we have to go beyond our loyalists, which is why we’re trying to do Pils and other pieces.
“But it’s got to have that premium craft feel, otherwise we shouldn’t do it,” he continued. “Because if it’s not worth paying more for, we shouldn’t be in that category. Or if we can’t establish that with a consumer, it’s not for us and that’s just not who we are.”
“One of the hardest things to crack is to keep brands relevant over time,” Preslar added.
Retaining “top of mind awareness” and relevance over time with consumers inundated with new offerings in and outside of the beer category is always a challenge. When Sierra Nevada drinkers approach Preslar and express their love for Pale Ale, her follow-up question is always “When was the last time that you either bought some or drank one?” Their response is often an “Oh,” followed by “I gotta pick that up next.”
Programs such as Pale Ale’s National Parks program and packaging has helped tell the brand’s story, Preslar said.
“It’s very true to who we are and what Pale has been about for years, but in a way that resonates across generations,” she said. “And that’s the piece that we have to continue to figure out with Pale and some of our craft pioneers like seasonals and Torpedo, whereas Hazy, just naturally by the whole brand, tone and nature is a little bit more appealing and approachable.”
Catch up on Brewbound’s previous coverage:
Sierra Nevada Unveils West Ghost IPA, New Spring Seasonal, Hazy Rotator, Juicy Non-Alc & More
Sierra Nevada’s Craft Commitment, Hazy Priority and Pale Ale Mission