Dogfish Head Beer

Agenda

• Company Overview• Objectives• Target Market• Products• Pricing Strategy• Distribution• Promotions• Key Message• Campaigns• Recommendations

Company

• Founded in summer of 1995 by Sam Calagino to be served in the Dogfish Head brewpub

• Brought original beer, great food and local music to Rehoboth Beach area

• Began bottling in 1996 as demand grew through the Eastern US

• 400% growth between 2003 and 2006

• Production of 75,000 barrels of beer annually

• The name takes its origin from Dogfish Head, Maine

Objectives

•Initially, to bring original beer and great food to Rehoboth Beach area

•Maintain local customer loyalty

•Grow non-local interest and awareness in Dogfish Head beers

Target Market

• Initially, to bring original beer and great food to Rehoboth Beach area

• Due to increasing demand the target market has increased to over 25 states

• Target Market:

o Consumers willing to pay more for unique taste

o Pub goers with draft beers

o Non-pub goers with bottled beers

Target Market

Target Market

1997 2002 2007 2012 2017 $-

$2.00 $4.00 $6.00 $8.00

$10.00 $12.00 $14.00 $16.00 $18.00

Craft Beer Market by Dollar VolumeIn Billions

* Total Beer Market in 2012 was valued at $78 Billion

Target Market

* 84% of Beer Consumers are Millennials and Gen Xers

Mass Market– Beer drinkers

Niche – Local area beer drinkers

Group – Local Premium beer drinkers

Individual – Local Artistic individuals interested in

premium beers

Segment – “On the fence” Beer Drinkers

Core Product Line

• BEER- Year Round Beers- Occasional Rarities- Seasonal Beer- Draft Only Beer- BrewPub Exclusives- Collaborations- “On Hiatus” Beer- Tour Beer

Spirits- Rums- Vodka- Gin

Core Product Line

Year Round BeersOccasional RaritiesSeasonalDraft OnlyBrew Pub ExclusivesCollaborations"On Hiatus" BeerTour BeerJinRumVodka

31%

14%

3%

21%7%7%

9%

4%

3%

Average Product Growth Across all Product Lines was 37% for 2012

Pricing Strategy

Product Glass 6-PackSpeciality (750mL) Case

Year Round Beers$1.79 - $3.99

$8.99 - $14.99 N/A $35 - $89

Occasional Rarities

$2.89 - $7.99

$9.99 - $17.99 $11.99 - $18.99 N/A

Seasonal$2.49 - $8.99

$8.99 - $14.99 $13.99 - $21.99 $35 - $75

Draft Only$2.79 - $3.99 N/A N/A N/A

Brew Pub Exclusives

$2.79 - $3.99 N/A $23.99 - $32.99 N/A

Collaborations N/A N/A $12.99 - $17.99 N/A

"On Hiatus" Beer$2.79 - $8.99 N/A Growler N/A

Tour Beer$2.49 - $3.99 N/A Growler N/A

Pricing Strategy

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

BrooklynDogfish HeadHarpoonSam AdamsSierra NevadaStone Brewing

Pricing – KPI’s

• 60 and 90 Minute IPA’s up 28% and 24% respectively.

• 52% of Dogfish Head is sold 150 miles from DE.– Top Markets: Pennsylvania, Maryland, New York Virginia,

Florida

• 750mL Specialty offerings has increase 80%• 171,000 Barrels shipped in 2012

Product – “Tangents”

• Randal the Enamel Animal• Randal the Enamel Animal Jr.• Books• Pints and Paddles• Dogfish Bocce

Distribution – 3 Tier Model

Brewers

Distributors / State Gov.

Consumers

- Beer Dinners- Beer Festivals- Beer Tastings- Promos- Events- Special Events- Beer Tours

- Bars- Restaurants- Grocery Stores- Liquor Stores- “State” Stores

Retailers / Wholesale

Promotion Strategy

“Off-centered ales for off-centered people”

Dog Fish organizes many local events to increase awareness

Beer DinersBeer FestivalsLive MusicDog Fish MoviesDogFishDash- The Dogfish Dash is annual 5k &

10k that supports the Delaware Nature Conservancy

DogFish Tour: Tours of our Milton, DE brewery include samples, a guided tour, and a chance to pick up some off-centered merchandise

Promotion Strategy

Social mediaYouTube Channel – “Quick Sip Clips”FaceBook Page – MOST RECENT: Pumpkin

Carving ContestTwitter

360° ExperienceDog Fish partnered with the Inn At Canal Square and Quest Fitness/Kayak for an experience that will invigorate all your senses

"Who would have thought the most civilized hotel bedroom in the U.S. could be called the Dogfish Brewmaster's Suite? Had I stayed more than one night, I would have been in severe danger of learning to relax." - Michael Jackson, The Beer Hunter

Key Message

Find It , Get It, enjoy It , repeat.

Campaign

URKONTINENT - The life of DogFishUrkontinent is a social collaboration of worldwide proportions.A small team from the brewery (and a few of our beer- loving tech friends) then ‐

narrowed the list to five: wattleseed from Australia, toasted amaranth from South America, rooibos tea from Africa, myrica gale from Europe and honey from the United States.

http://www.youtube.com/watch?v=RiFewPyLlQA&list=TLPUlqqSzXYuWJQg0kX3sHCU7YbYaTo9E1

Recommendations

Recommendations

Capita/ Craft Brewery Rank State Total Craft

BreweriesCapita / Craft

Brewery1 Vermont 25 25,0302 Oregon 140 27,3653 Montana 36 27,4844 Alaska 22 32,2835 Colorado 151 33,3066 Maine 37 35,9027 Wyoming 15 37,5758 Washington 158 42,5609 Idaho 29 54,055

10 Wisconsin 83 68,518

Recommendations

Key ExpansionStates

MontanaColoradoWyomingWisconsinNevada

Recommendations

• Enhanced Social-Responsibility Marketing – local green campaigns and/or recycling programs

• In-Store positioning with end caps and smaller liquor bottles

• Target partnerships with local sports teams

• Enhance artistic involvement and affinity to the brand

• Target a celebrity chef who cooks with beer / Food Network programing “Best Thing I Ever Ate.”

Q&A??