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October 2006 - Strategy Magazine
Tribute: Labatt Blue

Here's to real beer: 50 years of Labatt Blue
As Labatt Blue celebrates its 50th birthday, a new ad campaign recounts its past. Why go back in time? The strategy is simple: Tap history to elevate the brand's credibility and value

by Lisa D'Innocenzo
page 47

Back in the day, Canadians were as loyal to their beer brand as they were to their hockey team. However, in the last decade, with the introduction of imports, microbreweries and, most recently, low-price brands, that fierce loyalty has eroded.

That's probably why 50-year-old Labatt Blue's marketing strategy, which was so consistent in the '60s and '70s (see timeline), has been tinkered with time and again over the last decade, especially in the '90s. Last year, Labatt introduced a brand new campaign it hopes will have a long life, which carries the roots-proud tagline "Here's to real beer. John Labatt Blue."

Explains Harvey Carroll, VP marketing at Labatt: "The biggest change from the time Labatt Blue was introduced until now is increased competitiveness in the category - there's way more brand choice. There are more segments, and that has probably driven the biggest change in the beer industry. People are looking for different experiences. They're less brand loyal, and when that happens, brands that face the biggest challenge are brands with the biggest heritage."

Labatt's response to the market change is evident in the diversity and breadth of brands offered as part of parent company Inbev's portfolio. Labels like Stella Artois and Alexander Keith's make the company competitive in the imports and microbrewery categories. Meanwhile, Blue's new campaign is mainly a strike against its low-price competitors, the Lakeports of the world. The strategy is to focus on Blue's heritage to set it apart from latecomer brands. This entails reinforcing its roots in ways and means beyond advertising, such as strengthening its connection with traditional sports.

The goal, says Bob Shanks, partner - business of Labatt Blue's Toronto-based agency Grip, is to "differentiate vis-à-vis the discount brands...and align Blue to the higher end of the category by elevating the proposition and the value equation.

"People are prepared to buy your brand for an emotional reason," says Shanks, "but you need to give them a fact, so that when somebody challenges their purchase, [they have an explanation]."

The new advertising, introduced a year ago, aims to accomplish this by recounting the story of John Labatt, in particular the more interesting tidbits, such as the fact that he started as a farmer, had a large family, and withstood a brewery fire, kidnapping and prohibition to make his business a success.

It also touches on how Blue was named by the Winnipeg Blue Bombers football team not long after its launch. To highlight this fact even further, five years ago, Labatt Blue became the squad's title sponsor, giving the brand major signage in the stadium, and national exposure, since all games are televised.

"Those are legitimate factual events that start to build the character of the individual and as you build that hopefully that character gets assigned to the beer," adds Shanks, who points out that the message is factual, yet still entertaining - unlike beer advertising from the mid-eighties until recently, which was simply entertaining.

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