E-Malt.com News article: Jamaica: Kingston pilsner beer gains ground

After only six months on the Jamaican market, Kingston Pilsner Beer, the new entrant in the beer category from Lascelles deMercado, is well on its way to accomplishing its mission, Jamaica Observer published May 18. Kingston Pilsner was launched on November 4, 2006, with the stated objective of taking a premium position in the J$8.5 billion domestic beer market and 10-15 per cent market share in its first five years.

"We are on track to achieve our initial goals and are overwhelmed by the consumer and trade acceptance to date," said Andrew Desnoes, general manager, Lascelles Ltd. "We knew going into the beer category that consumers were starved of choice and looking to trade up, but we did not anticipate this tremendous response. We have achieved 90 per cent of our targeted distribution and have close to 100 per cent reorders with volumes growing. You can't write a better six month script than that," Desnoes said.

Kingston Pilsner's launch and marketing efforts have been somewhat unconventional to date, with no billboard, television, radio or print advertising. In speaking to this, Andrew Desnoes stated : "Rather than utilising mass communication, we took a targeted, direct approach that allowed us to showcase the quality of the brew, and consumers have been able to interact with Kingston Pilsner on a one- on-one basis. This takes more time, is more costly, but is a far more lasting approach that has been proven to work for premium brands."

An example of this is Bachannal Carnival, where Kingston Pilsner was the "official" beer.

"Kingston Pilsner Beer was a positive and energetic association for Bacchanal Carnival. We saw the brand's young, fresh and fun image as a perfect fit for carnival. The faithful bacchanal revellers embraced the product with great acceptance. This was by far the highest beer consumption we've experienced in the past five years in the Mas Camp and all of the Bacchanal Carnival parties," said Michael Ammar, director, Bacchanal Carnival.

Financial analysts have also taken note of the existing and potential impact of Kingston Pilsner.

In its December 2006 Lascelles deMercado quarterly review, First Global Financial Services stated:"The entry of Kingston Beer into the market, while competing with the renowned Red Stripe, caters to the 'pilsner' beer drinker, thus providing another option to local consumers."

Additionally, according to Mark Croskery, deputy general manager of Stocks and Securities Ltd, "One cannot tell from the current segment analysis how Kingston is doing so far - but it seems to be a great addition to Lascelles, and more importantly, it does not cannibalise their existing business. If Kingston captures 5 per cent of local beer sales within 3-5 years, this would equate to (with 10 per cent category growth rate) sales of roughly 575 million.. Also, besides the numbers, it is great to see what is happening on the street. One can already see that Kingston beer is accessible, patrons are ordering it, and bartenders and waiters note the demand for the product."

Kingston Pilsner is also gaining traction outside of its core Kingston and St Andrew market. André Dixon, chief operating officer of Margaritaville Ltd, notes the following:
"Margaritaville is a progressive company with a large and diverse clientele. We are always looking for better options to address the needs of our customers, particularly in the premium beer category. When Kingston Pilsner Beer was launched in the Jamaican market, we saw it as a great beer alternative: the look, the imagery and the taste. We introduced it through Margaritaville and Blue Beat, and our customers agreed, in fact it exceeded our expectations in both sales and acceptance."

Speaking with Caribbean Business Report, Kingston's brand manager Ayanna Kirton said: "The last six months, while very encouraging, have certainly presented challenges. Not least of which is gaining acceptance in a market dominated by one major brewed product for generations. We've successfully presented our product as the premium Jamaican choice, and our sales indicate that consumers agree. We've enrolled loyal supporters across the island so we're extremely satisfied with the results. The introduction of any new product presents a learning curve, as you'd imagine, but we've seen where the brand resonates with consumers, so all indicators point to continued growth."

Lascelles is very serious about this brand and will be duking it out for greater market share. Indeed it is encouraged by its performance and is committed to it. The brewed product landscape looks set for permanent change.


18 May, 2007