Category Archives: market economy

Beer Stats in Canada

This is interesting. Was just looking for the latest figures on sales of alcoholic beverages in Canada and it turns out they were published yesterday.
Unfortunately, this report doesn’t break down the figures by beer types  (regional, craft…). Another publication, including figures by domestic and import sales should come out shortly.
A couple of quotes:
As usual, beer was by far the most popular beverage. In terms of dollar value, beer captured 50.4% of sales. However, wine accounted for 25.2% of sales compared with 24.3% for spirits, the first time wine has jumped into second place.

From 1994/1995 to 2004/2005, sales of imported beer increased at an annual average rate of 18.6%, nearly six times the rate of growth of only 3.2% for sales of domestic brands.

Of all imported beer in Canada, 23.4% came from the United States, 20.5% from Mexico and 19.3% from the Netherlands.

(So, even import beer is mostly from large breweries…) 

A few quick observations.

  • Quebec is the only province with a loss in “net income of provincial and territorial liquor authorities and revenue from the sale of alcoholic beverages” between 2k4 and 2k5. (Because of the SAQ strike.)
  • The only places where beer accounts for less than 50% of total sales of alcoholic beverages are Manitoba (46%), Alberta (47%), British Columbia (44%), and the Northwest Territories (49%).
  • Quebec is the province with the lowest percentage of spirits sales (11% of the total sales of alcoholic beverages).
  • These proportions are quite similar for 2k4.

Aren’t beer statistics cool?

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They Dropped The Other Shoe

[Disclaimer: I’m not necessarily an Apple fanboy but I have been an enthusiastic Mac user since 1987 and have owned several Apple products, from an iPod to a QuickTake camera. I also think that technology is having a big impact on arts, media, and entertainment.]

Just watched Apple’s "Showtime" Special Event. Didn’t really read or even listen to anything much about it yet. During that event, Apple CEO Steve Jobs introduced new versions of all the iPod models, a new version of iTunes, and the addition of movies to the iTunes store. In addition, Jobs gave a sneak peak of an upcoming box to link iTunes with televisions and stereo systems.

People are likely to have been disappointed by the announcements. They’re probably saying that Steve Jobs’s famous "Reality Distortion Field" isn’t working, or that he lost his "mojo." They might even wonder about his health. Again…

Not that the new products are really boring, but there tend to be high expectations surrounding Apple announcements. This one is no different as people expected wireless capabilities on iPods and recording capabilities on the new "media centre" box, which was in fact part of the expected new products from Apple.

But this event is significant in another way. Through it, Apple explained their strategy, revealed a number of years ago as the Digital Hub. What some have called "convergence," quite a few years ago. Nothing really new. It’s just coming into full focus.

Though we may never know how much of it unfolded as planned, Apple’s media/tech strategy may appear rather prescient in retrospect. IIRC, it started in 1996, during Gil Amelio’s tenure. Or, more probably, in 1997 during the switch between Amelio and Jobs. Even by, say, 1999, that strategy was still considered a bold move. That was before the first iPod which, itself, was before iTunes, the iTunes Music Store, and most other current media-centric technologies at Apple. It was also at a time when user-generated content was relatively unimportant. In other ways, that was during the "Web 1.0" Internet bubble, before the "Web 2.0" craze for blogs, podcasts, and "social networking."

Apple isn’t the only corporation involved in the changes in the convergence between technology and the world of "content" (arts, media, entertainment). But it has played a key role. Whatever his success as a CEO, Steve Jobs has influenced the direction of change and, to an extent, shape a part of digital life to his own liking. While he’s clearly not clueless, his vision of the link between "content" and technology is quite specific. It does integrate user-generated content of "varying degrees of professionalism" (which he joked about during his presentation) but it gives precedence to the "content industry" (involving such powerful groups and lobbies as WIPO, NAB, MPAA, RIAA, etc.). Jobs’s position at Pixar makes him a part of that industry. Which is quite different from what arts and expressive culture can be.

Jobs invites musicians on stage with him (John Mayer, Wynton Marsalis, John Legend). He respects musicians and he might even appreciate their work. But his view of their work is that they produce content to consumed. For Jobs, music tracks, audiobooks, television episodes, movies, and music videos are all "contents" to be enjoyed by consumers. Now, the consumer can enjoy content "anywhere" as Apple is "in your den, in your living-room, in your car, and in your pocket." But what about public spaces? Concert halls, churches, coffee shops, parks, public libraries, classrooms, etc.? Oh! Apple can be there too! Yeah, of course. But those are not part of the primary vision. In Apple’s view, consumers all have their own iTunes accounts, media libraries, preferences, and content-consuming habits. A nuclear family may count as a unit to a certain extent (as Bob Iger pointed out in his "cameo appearance" during Jobs’s event). But the default mode is private consumption.

And there’s nothing wrong with that. Even the coolest things online are often based on the same model. It’s just that it’s not the only way to do things. Music, for instance, can be performed in public. In fact, it can be a collaborative process. The performers themselves need not be professionals. There’s no need for an audience, even. And there’s no need to see it as "intellectual property." Music is not a product. It’s a process by which human beings organize sound.

Ah, well…

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African Ingenuity

Via BoingBoing.

Who says Africans lack business acumen?

(Actually, such methods of empowerment are quite common, throughout Africa. And many Africans are rightfully proud of being able to manage by themselves. When will people from OECD “nations” get this?)

Alcohol Marketing, Craft Beer, and Responsible Drinking

[UPDATE: Press release. Much clearer than the Hour article…]

This could potentially be big for craft beer. A code of ethics for alcohol adverts.

Hour.ca – News – Alcohol marketing becomes ethical

A bit like video game manufacturer who propose rating systems for their own games, members of the alcoholic beverage industry in Quebec are trying to regulate their own advertising practises. According to the article:

Under the new code, the following has been forbidden:

  • Using alcohol content as a sales argument
  • Associating alcohol with violent or asocial behaviour, or with illicit drugs
  • Sexism or the association of the product with sexual performance, sexual attraction or popularity
  • Implications that the product improves physical or intellectual capacities, or has health benefits
  • Encouraging drinking games or excessive drinking
  • Making the product particularly attractive to people under 18
  • Showing images of people who look younger than 25
  • Showing disrespect for those who choose not to drink

By proposing such a code of ethics, the industry may possibly bypass government regulation. It also shows that its members are willing to go some distance in changing their practises.

Educ’alcool‘s message, associating responsible (moderate) drinking with taste, is well-established in Quebec culture and this code goes in the same line. By contrast, in the U.S., advocacy for responsible drinking is criticized by academics and health specialists. IMHO, this criticism has the effect of encouraging younger people to binge drink, with sad consequences. Educ’alcool and Quebec’s alcoholic beverage industry are probably trying to avoid such a situation. Although it might sound counter-intuitive, binge drinking is not beneficial to their bottom line. After all, nobody wants to get sued for the death of any of consumers.

The main apparent target of this code is beer advertising, especially on television. While Quebec has its share of beer ads with scantily clad women, even ads for some of InBev’s Labatt products are somewhat more subtle. In fact, the French-speaking versions of commercials for Labatt bleue have, over the years, represented an alternative to the typical "beer gets you laid" message. As typical of Quebec culture, these ads have used humour to carry their message, often with puns and other word play. For instance, one of the most recent ads uses a zeugma and the names of several parts of Quebec (strengthening the association between the beer and Quebec cultural identity). It also describes the beer in its association with food.

Which brings me to the interesting point about craft beer. While beer advertisement is typically full of what this new code of ethics seeks to prohibit, craft beer positions itself in exactly the same line as Educ’alcool and this code of ethics: taste and responsible drinking. The only television ads I’ve seen for craft beer were made by Boston Beer company for their Samuel Adams products. These ads usually emphasize the brewing craft itself and have been discussed by many members of the craft beer crowd. An important point is that they’re quite effective at delivering the message about taste, quality, sophistication, and responsibility. (Actually, I wore a Samuel Adams t-shirt yesterday, after reading about the new code of ethics. Didn’t even notice the possible connection!)

Any craft beer person will argue that craft beer always wins on taste. So if the new marketing message needs to focus on taste, craft beer wins.

It’s quite striking that the code of ethics mentions people looking older than 25. IMHO, it’s overstating the case a bit. IMHO, nothing is to be gained by avoiding the portrayal of members of the 18-25yo age bracket in advertising for responsible drinking. This demographic is not only very important for the alcohol industry but it’s one which should be targeted by the responsible drinking movement. Educ’alcool does target people who are even younger than that, so that they "do the right thing" once they’re old enough to drink, but there’s no reason to let people down once they start drinking. Eighteen-year-olds are not only learning the value of responsible drinking, they’re integrating responsible drinking in their social lives. And they’re learning how to taste alcoholic beverages.

Apart from age, characteristics of craft beer people are usually the same as those of the target market for beer in general. But their emphasis is really: taste, distinctiveness, sophistication, and responsibility. Again, perfect for the new type of ads.

Speaking of beer marketing, the issue of Montreal’s Hour indie weekly also has a piece on the importance of beer sponsorships for the success of events in the city. Coincidence?

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Medici and Innovation

First encountered the notion of the Medici effect through this interview with Frans Johansson in Ubiquity, a journal frequently mentioned on the Humanist Discussion Group.
A recent article about important changes coming from simple ideas made me post a short blog entry about changes from simple ideas. Interestingly enough, Johansson himself posted a comment to that entry.
This is in fact a frequent stream of thought, for me. In both business and academia, we tend to live through ideas. Specific ideas. Especially those which can generate money or research projects. An important dimension of the “Medici Effect” seems to be that simple ideas can lead to great accomplishments. Another important dimension is that ideas are both generated in and implemented by groups. Some social contexts seem especially conducive to new ideas. This perspective is well-known enough that even Denys Arcand’s Invasions Barbares had something to say about it.
There’s a lot of directions one could take to talk about innovation from that point. Among the possible threads: artistic creativity, personal innovation, sense of discovery, the economies of ideas, ideas come from the people, “intellectual property,” fluid/organic innovation, boundless ideas, innovation through links between ideas, Lavoisier on ideas (nothing is created or lost, everything is transformed, including ideas), and so on and so forth.
My personal feeling is that the very concept of innovation has become something of a “core value” for a number of people, especially in industrialized society. The type of “newer is better” view of “progress” in both society and technology.
In my mind, the best thing to do is simply to bring ideas together, a “shock of ideas” («le choc des idées»). Hence the long list of tags… 😉

"Memetic Marketplace"

In a court ruling on information about Apple's Asteroid device leaked by bloggers, a judge talks about the "memetic marketplace."

Richard Dawkins' meme concept combined with a notion of market economy in a jural context? Fascinating, though maybe a bit awkward. After all, though Dawkins does relate to economy, his basic metaphor is biological/organic, not financial. (In other words, the markets might function, in Dawkins' model, through memes but memes aren't primarily an economical notion.)

Come to think of it, there should be a debate between Dawkins and John Nash…