Beer Wars: Molson takes Labatt to task

Molson Breweries has been less than subtle in taking competitor Labatt Breweries to task for its advertising launch of Kokanee beer in Ontario.

‘b.c. or b.s.?’ is the question asked by Molson in radio spots and full-page ads that ran earlier this month in major markets throughout Ontario.

The question refers to the fact that the Kokanee ads talk about b.c.’s mountain beer when, in fact, the beverage is brewed in Ontario for that province’s market.

Dave Minnett, vice-president of marketing for Molson Ontario, says the company has also filed a trade practices complaint with the Canadian Advertising Foundation about the campaign but there are no plans for legal action at this point.

While Minnett did not go as far as to call the Labatt campaign misleading, he says the advertising leaves the impression the beer comes from British Columbia, and that research commissioned by Molson from two independent firms supports that belief.

According to the research, 80% of beer drinkers aware of the launch in Ontario believed Kokanee was shipped in from b.c., says Minnett.

‘If you look at their advertising to date, on their four television commercials they use the tag lines, `b.c.’s mountain beer is here,’ and `Glacier fresh taste.’ If you look at the label of the bottle itself, it says `b.c.’s own clear, crisp, glacier taste.’ ‘ Minnett adds.

The Molson ‘b.c. or b.s.?’ advertising asks consumers if they’ve been led to believe Kokanee is brewed in b.c. and then tells them it is actually brewed in London, Ont.

The ads also feature a 1-800 number where callers can respond to the idea, ‘Maybe this kind of beer marketing is no big deal. Or maybe it’s just b.s.?’

At press time, Minnett says Molson had received more than 5,000 calls. He says many callers were under the impression Kokanee was brewed in b.c. and were upset to find out it’s not.

Kokanee, brewed by Columbia Brewery in b.c. since 1959, was introduced to Ontario by Labatt last month.

Bob Chant, Labatt director of public relations, says Labatt has been clear in its advertising and launch materials that Kokanee is brewed in London.

‘The imagery the brand brings with it from b.c. comes from its 20-plus year history in b.c., over 10 of which it has been the most popular beer in that province,’ says Chant.

‘The [mountain] imagery really reflects the active lifestyle of British Columbians.

‘At no time do we claim to use glacier water. Glacier beer refers to the fact Kokanee is named [for] the Kokanee Glacier.’

Chant says Molson is running the ads because Kokanee has been successful in Ontario and points out the ads began running the day Molson’s $100-million settlement with Coors was announced (see Coors story, p. 8).

Chant says Labatt has no plans to respond to Molson’s advertising or to make changes to its Kokanee campaign.