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The Honolulu Advertiser

Posted on: Saturday, June 11, 2005

Younger generation soaks up nostalgia

By Michael Hill
Associated Press

ALBANY, N.Y. — The line of taps pouring elegant brews from Bass to Blue Moon will beckon twentysomethings packed into Bomber's bar. But 21-year-old Elliot Cunniff orders something homier for himself and a friend.

Matt Brewing Co. in New York says its Utica Club beer sales are up 9 percent from last year. To push sales further, the brewer may revive Schultz and Dooley, its signature steins from the 1960s, in TV ads.

Jim McKnight • Associated Press

"Two Yuenglings," he tells the bartender, explaining the attraction after a sip from his pint glass.

"Price. Color. Flavor," he says.

"And the name alone, 'ying-ling.' "

Cunniff doesn't come out and say it, but it becomes apparent as other Yuengling orders roll in: Old-school brews are cool.

Just as young consumers might wear '70s-look sneakers, sip '50s cocktails or download '80s hair band tunes, many are bellying up to the bar for the beers Grandpa drank — maybe a Rheingold, a Leinenkugel's, or a Utica Club.

They're sometimes called "retro beers" — brands that might bring to mind old men in ribbed undershirts — and they're finding a new market among the young. It worked for Pabst Blue Ribbon and now others are playing the same nostalgic chords.

Getting new life from an old brand is a great deal for brewers because they avoid the cost of launching a new product. The trick is doing it right. Heavy-handed advertising can backfire. Word of mouth seems to work. Television commercials with the Swedish bikini team are a big no-no.

"That's the whole point of the retro thing, I think," said Eric Shepard of Beer Marketer's Insights. "The harder you try to push it, the more skeptical people are going to get."

These are not the happiest days for brewers. Sales are growing slowly and beer is losing ground to spirits as consumers turn more to mixed drinks. Beer's market share dropped from 56 percent in 1999 to 52.9 percent last year, according to the Distilled Spirits Council of the United States.

Among the recent bright spots was the quirky story of Pabst, which caught on early this decade with young hipsters in Portland, Ore. From there, its popularity spread out. Without initial prompting, "PBR" became a symbol of authenticity and cool. It has been enjoying double-digit growth every year since 2003, said Pabst brand manager Neal Stewart.

Consumers like these beers in part because they cost less than fancy imports or craft brews. They also can play on happy memories of simpler days — maybe of Granddad swigging a beer while barbecuing, said Darrell Jursa, managing partner with Liquid Intelligence, a Chicago marketing agency that has Pabst as a client.

Jursa also mentions that you are what you drink. Just as a club hopper ordering Grey Goose vodka could be signaling she's like the urban sophisticates of "Sex in the City," a Pabst drinker could be showing he is beyond the mainstream.

"You can pay a couple of bucks and you can hold a can in the air and it's a badge, 'I'm retro and I'm cool and I'm chic,' " Jursa said.

The challenge for brewers is to tap into that anti-establishment streak without seeming too establishment. Pabst managed by tailoring marketing to its young drinkers. It sponsored skateboarding film premieres, Vespa scooter rallies and art gallery openings.

"I had guys get in my face and tell me if we ever advertised on TV, they'd beat me up." Stewart said.

While Stewart doesn't think the Pabst playbook will work for every brand, other brewers are trying to see if they can capitalize on their own venerable names. Pabst's stable of brands also includes Seattle-based Rainier, which is running the nostalgia-soaked "Remember Rainier" campaign (the Web site suggests enjoying a retro can to the sounds of Led Zeppelin or Pink Floyd). Leinenkugel's, a Wisconsin-based subsidiary of Miller Brewing Co., introduced retro packaging this year. Even Anheuser-Busch rolled out a series of retro Budweiser cans this year and recycled a 1956 commercial featuring a crooning nightclub quartet.