Missouri-based co-op brewery
unveils Pony Express line of beer
ransCon AG, a
Missouri-based newgeneration
grower
cooperative, is positioning
itself to
become the central business hub for
a variety of value-added agricultural
products. With a solid business plan
and a global marketing strategy, the
cooperative has launched a line of
specialty beers as its first products.
The beers include: Pony Express
Gold, Pony Express Rattlesnake
Pale Ale and Pony Express Original
Wheat. The beers are now selling in
Missouri and Kansas, and should be
available soon in California and
Arizona. Later in 2004, the co-op
plans to expand distribution to the
majority of the Midwest.
The grower cooperative is pursuing
international distribution through
office presence in Taiwan, China,
Japan and Mexico, according to Joe
Effertz, president of TransCon AG and
chairman of the board for the co-op’s
brewing operations. The co-op is
already shipping beer to China.
“China is a big market for soy-based
products, like Pony Express Gold a
soybean-based beer,” says Mark Vogel,
executive vice president for brand
management at Osborn & Barr in St.
Louis, the co-op’s strategic partner for
marketing. “Marketing research shows
that soy products are perceived as
healthy, so product perception of Pony
Express Gold is immediately high.”
Market demand could outpace production
capacity, currently limited to
15,000 barrels, although new equipment
is being purchased to double
capacity by the first quarter of next
year.
The TransCon AG cooperative was
formed by Missouri producers who
banded together to establish a valueadded
organization to improve the
profitability of their farm operations.
The co-op’s strategy may eventually be
centered around taking advantage of
the Kansas City SmartPort, located at
the old Richards-Gebauer airbase. The
KC SmartPort is designed to be the
major distribution hub of trade
between Mexico, Canada and the
United States through its strategic
location on the Kansas City Southern
Railway.
TransCon is initially focusing on
three areas of concentration: distribution,
malting and brewing operations.
TransCon has acquired the trademark
of the former Pony Express
Brewing Co. and is operating under
the name “Great Plains Brewing Co.”
The co-op has 153 members, 90
percent of whom are producers.
“The other 10 percent are
involved in other businesses which
add value in other ways that an everyday
producer could not, i.e., marketing,
finance, retail, distribution, etc.,”
Effertz says.
Stock sold at $10,000 per unit, with
the option to buy 1-3 units.
“We started our drive Jan. 1, 2003,
and we were funded by May 15th,”
Effertz says, adding that the co-op may
do an additional membership drive or
spin off one of its three operations into
a separate co-op.
TransCon is researching the opportunity
to malt alternative grains from
the fields of its producers. These
grains include sorghum, soybeans, rice,
corn, buckwheat and others. Having
the ability to distribute these grains,
whether in raw form or in any other
stage of production, down to a final
product, is the ultimate goal of the coop,
says Effertz.
Extensive research was conducted to
determine the initial product offering,
brand positioning and marketing
strategies. Consumer research was
conducted with key beer-market target
segments across the country and with
Chinese nationals. Research indicated
brand positioning that could have high
appeal with both young and more
mature beer drinkers.
The brand attribute most valued by
the target market is the brand’s
American persona. The distinction of a
brewery solely owned by the agricultural
producers of the ingredients is
greatly valued by beer drinkers and
seen as an additional assurance of quality
and freshness. The market research
led to a campaign focused on American
themes of patriotism and independence.
The label design and packaging feature
eye-catching photographs of grain
fields and patriotic imagery that position
Pony Express as an all-American
beer. In addition to glass bottles, polyethylene
terephthalate (PET) bottles
allow the beer to be sold at sports stadiums
and golf courses. The Pony
Express bottles use a multi-layer construction
that incorporates a patented
oxygen scavenger. In the past, beer in
plastic bottles had a short shelf life, but
the multi-layer technology keeps the
beer fresher longer by minimizing
light strike and oxygen ingress while
protecting against CO2 loss. The 16
oz. PET bottles were specifically
designed to run through existing glass
lines to minimize the cost impact of
adding PET bottles to the packaging
mix.
Minnesota ethanol co-op producing premium Vodka
Another farmers’ co-op has entered the “adult beverage”
industry with a premium vodka that has met with early success.
A farmer-owned ethanol plant in Benson, Minn., is using
a small portion of its distilling capacity to produce Shakers
Original American Vodka, which was unveiled last year. So far
it’s been a huge hit at least on its home territory. That success
has the co-op and the beverage company that markets
the vodka looking at much broader distribution.
Vodka is a sideline for Chippewa Valley Ethanol, which produces
the beverage through a subsidiary for Infinite Spirits of
Napa Valley, Calif. Just one month after its introduction, sales
of 500 cases in Minnesota exceeded first-year projections.
The potential market for premium vodka currently dominated
by European companies is a large. Last year, consumers in
the United States spent about $9.5 billion on vodka, including
about $950 million for premium brands.
Although sales have been focused in Minnesota, Shakers
vodka is now being introduced in 14 states, including
California. The goal is nationwide distribution this year.
Shakers is being promoted as the only ultra-premium vodka
made in the United States by the farmers who grow the grain.
The municipal liquor store in Benson, a town of 4,000, saw
gross sales jump by $100,000 this year, which the manager
credits to sales of Shakers vodka.
