Date post: | 18-Dec-2014 |
Category: |
Business |
Upload: | marketing-week |
View: | 376 times |
Download: | 5 times |
Tim Cooper
Positives in an economic downturn
Background
Impact on beer sales & home brew
Australian beer market snapshot
Importance of advertising
Environmental sustainability
Philanthropy
Early Times
• Thomas Cooper (shoemaker/stonemason) emigrated in 1852 from Skipton, Yorkshire
• Commenced brewing Norwood 1862; Kensington 1870; Leabrook 1881
• 12th of 15 Breweries in 1894
• Partnership of brothers until incorporation in 1923
Home Brew
• Coopers entered market in 1977 after change in legislation
• Originally 20 L bag of wort in a box with yeast sachet
• Low temperature evaporation plant in 1984 reduced volume of wort to 1.25 L
• Innovative packaging facilitated export
Today Coopers is the world’s largest manufacturer
and exporter of home brew kits
Domestic distribution through all major supermarket
and discount variety stores
Home Brew
Malt Extract
• Evaporation plant allowed Coopers to make malt extract
• Natural flavouring and colouring food product in the baking, confectionery and cereal industries
• Coopers now largest supplier in Australia and NZ
• Exported to major food and beverage companies in Asia
• Home brew and malt extract “backbone” before 1995 • Interstate beer focus: from 5% in 1970’s to 45% by 1990
• Draught beer (kegs) introduced 1983 • Beer growth from 1995
Post-recession premium beer market
LNA purchase of SAB
Sale of 120 hotels
KWP! advertising
Incremental gains in quality
Survival after 1970’s
The “Coopers” Advantage
• Independence and family ownership
• 147 yr heritage - “Hand-made by the Cooper Family”
• Brewing Products Division – extract evaporation
• Product Difference – cloudy, natural ales
• Interstate Distribution – Premium Beverages
• Passionate about our product & its quality
Positives in an economic downturn
Background
Impact on beer sales & home brew
Australian beer market snapshot
Importance of advertising
Environmental sustainability
Philanthropy
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 20090
10000000
20000000
30000000
40000000
50000000
60000000Coopers Annual Beer Volume
Financial Year to end June
Lit
res
1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-090
50000
100000
150000
200000
250000
300000
350000
400000
Total Pale Alehl
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
0
2000
4000
6000
8000
10000
12000
14000
Outside SA/NT
SA/NT
Total Customers
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 20090
1000000
2000000
3000000
4000000
5000000
6000000
Financial Year to end June
Kil
og
ram
s
Annual Home Brew & Retail MaltSales Volume
Positives in an economic downturn
Background
Impact on beer sales & home brew
Australian beer market snapshot
Importance of advertising
Environmental sustainability
Philanthropy
Australian Beer Market 1987-2009F
International Premium Beer Category
Lion Nathan Beer Volumes
Company share of domestic beer promotional advertising
Source: Citi ‘Thirsty Thoughts’ Market Data
LNA Beer Pricing vs CPI
LNA EBITA1987 -2009f
Positives in an economic downturn
Background
Impact on beer sales & home brew
Australian beer market snapshot
Importance of advertising
Environmental sustainability
Philanthropy
Promotional focus on mature brands
has fallen significantly
Source: Citi ‘Thirsty Thoughts’ Market Data
Low carb brands are attracting
biggest gains in promotional focus
Link between promotional activity and short term volume performance
Source: Citi ‘Thirsty Thoughts’ Market Data
Synovate survey (500 beer drinkers)
Advertising awareness: 1st mentioned awareness:
• Becks - 54% - 18%
• Stella - 49% - 37%
• Carlsberg - 21% - 21%
• VB - 35% - 3%
• Pure Blonde - 5% + 65%
• James Boag -10% + 23%
Why choose Coopers?
Importance of advertising
Being relevant to consumer
Engaging and aspirational
Creating a point of difference
Opportunity to belong
Advertising Campaigns
Year to Date Export Sales – June 2009
Total Sales $7,271,945
$1,100,000
BeerHome BrewMaltMisc
Why choose Coopers?
Importance of advertising
Being relevant to consumer
Engaging and aspirational
Creating a point of difference
Opportunity to belong
• Overtures to stop Court action, 2003-04
• JV offer, June 2005; Bid, 1st Sept 2005
• Shareholders subjected to LNA pressure
• Seven court actions brought by LNA
• Two EGMs December 2005
• 93.4% to 6.6% to remove LNA from Constitution
• Coopers shareholders focus on loyalty and tradition – “It’s not about the money!”
Lion Nathan Takeover Bid
Positives in an economic downturn
Background
Impact on beer sales & home brew
Australian beer market snapshot
Importance of advertising
Environmental sustainability
Philanthropy
Environmental Improvements
• Modern brewhouse – recycling of heat & water
• Vapour condensation
• Energy savings (~15%)
• Reduction in solid – NPC
• Cogeneration Plant (2003)
• Focus on carbon lifecycle footprint
Cogeneration Plant
• Annual power generation of 24,000 MWh
• 16,500 MWh exported to grid
• Long term certainty of pricing and security of supply
• Full redundancy for power and steam generation
• With co-generation, energy represents some 7% of the total emissions footprint - industry standard of ~ 20%
AIR INLET
FILTER
DIVERTERDAMPER
GENERATOR
STEAMHRSG
DUCTBURNER
GAS TURBINE
Cogeneration Plant
Aquifer usage with reverse osmosis
• 350 ML of River Murray water saved each year
• Water extracted from T2 Aquifer 200m below site
• Ground water too saline for direct use
• Reverse osmosis desalination plant
• Retentate pipeline to Barker Inlet wetlands
Positives in an economic downturn
Background
Impact on beer sales & home brew
Australian beer market snapshot
Importance of advertising
Environmental sustainability
Philanthropy
Introduction
Established in 2006, the Coopers Brewery
Foundation is the philanthropic arm of Coopers
Brewery, reinforcing the Cooper family traditions
of community involvement and social
responsibility. It represents a commitment by
Coopers Brewery to the welfare of Australians –
‘brewing support for the community’
Thomas CooperFounder
Cardiovascular Research Centre
Funds Received
32%
27%
18%
9%
14%
$597K since inception
Donations (incl Coopers & Staff)
Brewery Recycling (Coopers)
Brewery Tours (Coopers)
Speaking Engagements (Coopers)
Misc Fundraising, Bank In-terest, etc
Funds Distributed
28%
16%
15%
12%
14%
9%
6%
$543K since inception
Health
Medical Research
Community Groups
Education
Welfare
Children
Disabled
Why choose Coopers?
Importance of advertising
Being relevant to consumer
Engaging and aspirational
Creating a point of difference
Opportunity to belong
Thank you