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June 16, 2003 - Strategy Magazine
News

Steam Whistle goes west
Sponsorship strategy key to becoming a "community brewery" in Alberta too

by Kristen Vinakmens
page 3

Toronto's '50s-style microbrewer, Steam Whistle, is making tracks into Alberta and B.C.

The move is part of the brand's strategy to create "Canada's premium pilsner," says Toronto-based president and founder Cameron Heaps, and to ultimately make the brand the most sought-after Canadian pilsner internationally. Steam Whistle has been distributing in Germany since December, although there are no plans for further international expansion at this time.

The brewer established distribution in Alberta last April and Heaps says thus far sales are already "exceeding expectations." Marketing efforts are still in the preliminary stages, and won't be fully rolled out until next spring, but Heaps says it will be much like the grassroots approach the brand has taken in Ontario, where it is the number two independent brewer and has plans to own a market share of 0.25% by the end of the year.

Marketing efforts have ranged from using 1950s vintage vehicles as travelling billboards to focusing on event sponsorship to build brand buzz.

It's a challenge expanding a brand like Steam Whistle into new markets, since it has been known as a "community brewery," with its location at Toronto's historic railroad roundhouse building where it has held assorted events.

Heaps says the key is to remain focused on community involvement when taking the brand beyond Ontario limits. He believes awareness was strong even before Steam Whistle launched the brand further west, due to national press coverage it has received since its launch in 2000, and word-of-mouth from tourists travelling to and from Toronto.

The current focus in Alberta is on event sponsorship, organized by sales agents Beermeister Specialty Beverages of Calgary, and in particular creating a brand presence at cultural and arts-related events. In mid-June, Steam Whistle sponsored the opening of a sports bar owned by Alberta athletes in downtown Edmonton and also had exclusive rights to sponsor a major art exhibit in Calgary.

"Arts and cultural events are no-brainers for us," says Heaps. "A lot of our staff work in those areas and [cultural] groups have proven themselves to appreciate the support. They will return that support with loyalty."

He adds: "Any sporting activities are also good [tie-ins, because they] associate the brand with a fun environment." Steam Whistle recently sponsored the start of the Canadian Baseball League in London, Ont., at the end of May. Heaps says it's more effective to associate with a sports league than a team, since "you're not hanging your support on one small group of individuals."

The brand has also been involved in the music scene, and particularly with independent music. It recently sponsored the three-day music festival North by North East in Toronto, and it has its own summer outdoor venue, the Steam Whistle Indie Club, which is co-sponsored with Toronto-based alternative radio station The Edge 102.

Heaps says the association is a good fit for the brand, since he likens indie musicians with the small microbrewer as "underdogs against the big companies." Plus, the association with radio helps the brand to increase awareness, he says. Additional PR efforts are handled by Toronto-based GAT Productions.

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