2007-03-25

Toronto Brewery Targets Hamilton

David Cooper, Toronto Star
Steam Whistle beer: Toronto


Steam Whistle eyes Lakeport drinkers
By Lisa Grace Marr
The Hamilton Spectator
(Mar 23, 2007)
Steam Whistle is preparing to woo Hamilton's beer drinkers if they waver in the face of Labatt's multimillion-dollar takeover bid for their hometown brand, Lakeport.

Greg Taylor, vice-president of Steam Whistle, said while he respects Lakeport chairman Teresa Cascioli's business acumen and ability to kick butt against the big guys, the micro brewery plans a series of overtures to Hamilton's beer drinkers this spring.

Steam Whistle's success has rested on focusing on one product -- its premium pilsener -- and an experiential marketing campaign.

In Hamilton, that means hosting a booth at Hamilton's Food & Drink Fest March 31 and April 1 (Lakeport will be there too) and sponsoring community events such as Artopia, hosted by Hamilton Artists Inc., in April.

Then there's the coup d'etat: securing the sponsorship of this year's Ticat Grey Cup party.

Peter Holden, an industry analyst with Veritas Investment Research, said many expect Labatt will phase out Lakeport's discount brands.

"One of the reasons Teresa's been so successful is that she's been able to harness that hometown brewer thing.

"It's reasonable to expect that that market, however big that is, is up for grabs as Lakeport becomes part of Labatt."

Holden said Steam Whistle is small compared to Lakeport, tiny compared to Labatt and Molson.

"I suppose they can pitch the Ontario brewery thing, but if you want to sell here in Hamilton, being from Toronto is not necessarily a good thing," he said.

Taylor agreed with a laugh.

"Being from Toronto is kind of a strike against you anywhere, Hamilton, Vancouver, Ottawa, P.E.I.," he said, suggesting that by word of mouth and community event sponsorships Steam Whistle hopes to win over Hamilton.

"Hamilton's just a great city as far as beer drinkers and premium-beer drinkers are concerned," said Taylor.

"If Lakeport closes down and people start changing loyalties, we'd like to be considered."

But Holden said the real proof is still in the price.

"No one knows what Labatt will do when they get it, but it's reasonable to expect they'll raise the prices, that a lot of their motivation here is to stop losing mainstream beer drinkers to the buck-a-beer market.

But the buck-a-beer market will not disappear if Lakeport does.

Jim Brickman, president of Brick Brewery in Kitchener-Waterloo, has vowed to capture and keep the discount beer market and play up the Canadian-owned aspect of the public craft brewery.

Cascioli shrugs off talk of increased competition.

"This is not the first time another brewery has tried to come on to our turf," she said, making a reference to Labatt's swarm of "honey bees" in downtown Hamilton in the summer of 2005.

"We've had incredible success. I think our results speak for themselves.

"We're just going to keep on doing what we're doing."

lmarr@thespec.com

905-526-3992

Used with permission from The Hamilton Spectator, www.thespec.com Copyright The Hamilton Spectator. All rights reserved.