As a longtime industry consultant, Ella Parlor has coined a phrase about beer brands: “I often say, ‘celebrity faces don’t sell cases,’” she said. Consider that chalk-board material for Jason Kelce and Mr. Taylor Swift, Travis Kelce, regarding their latest business venture.
Truth be told, Garage Beer has a lot going for it. The backing of NFL icons – Kansas City Chiefs star Travis Kelce, and his recently retired brother, Jason, formerly of the Philadelphia Eagles. Support from Travis’s fiancée (the aforementioned music superstar). Plus, the list of American rivals in the beer sector has dwindled.
Garage Beer recently claimed a $200 million valuation thanks to a pledge from private equity investor Durational Capital Management, according to The Wall Street Journal. But will Garage Beer find long-term success? Some industry experts are skeptical.
“I’ve spent nearly 20 years running commercial strategy at big beer, wine, and spirits brands,” said Parlor, the founding partner at EP Consulting. “The only key to success is distributor support, repeat purchase, and retail execution.
“Launching during peak NFL season, plus the Swift spotlight, could garner attention, but … beer is too margin-thin to survive on celebrity buzz alone.”
While Garage Beer benefits from the Kelce brothers’ investment and outsized social appeal, the brand’s messaging is rather understated. On its website, the brand wrote: “We just really like beer. So, we made one that we think brings you back to the way American beer used to be made. … Garage Beer is crisp, refreshing, and 95 calories. It’s Beer Flavored Beer.”
The Classic version is a light beer that’s just 4% ABV, with 3G carbs. Its packaging is quite unassuming: white, with black lettering.
“Michelob Ultra is their clear competition; the 95 calories make it obvious,” Parlor said. “Ultra’s parent company – A-B – has a long-standing, multimillion-dollar contract with the NFL; Garage Beer will have to play nice in that sandbox.
“Garage Beer will eventually face too choices: sell, or fail.”
Three and Out?
Experts feel Garage Beer must overcome three major hurdles if it hopes to survive long-term:
NFL rules. The league’s regulations regarding alcohol promotions limit how visibly tied to the beer brand that Travis Kelce can be, given his status as a current player.
Jason Kelce, whose playing days are in the rearview mirror, will have far more freedom to appear in the beer brand’s advertising. “Think of Peyton Manning with Bud Light,” Parlor said, alluding to one of America’s most ubiquitous pitchmen these days.
It’s tough to match Anheuser-Busch’s marketing power. “The Kelce brothers can’t ‘out-meme’ a $7 billion machine like A-B,” Parlor said, in reference to the parent company of the top-selling American beer brand, Bud Light.
Distributor loyalty. Typically, beer reps care most about “who shows up and puts money in their pocket,” Parlor said. “Garage Beer will need sales incentives and trade programs to keep cases moving. The unsung battlefield is the sales team.
“If the Kelce brothers don’t support the men and women stocking shelves at 3 a.m., this brand won’t last two seasons.”
The Current Playbook for Brand Success
While the Kelce brothers’ upstart brand isn’t without challenges, it could find a fast track to success due to a couple factors. First, of course, is the fact Garage Beer benefits from enormous star power. Secondly, the 95-calorie beer plays into a movement toward health-consciousness that’s spurred by the likes of older members of Gen Z.
Garage Beer stands a decent chance of appealing to not just sports fans but “another group of women and younger generations who adore Taylor Swift,” said Michael Della Penna, the chief strategy officer at InMarket.
Experts say the fledgling beer brand will need to focus on value in its messaging, while also highlighting differentiators like healthier offerings. But, in the wake of Travis Kelce and Taylor Swift’s engagement heard ‘round the world, Garage Beer feels like an underdog with bite.
“Any brand with a partnership or ties to Travis Kelce is undeniably reaping the benefits of the engagement news,” Della Penna said. “This can be great for short-term buzz and brand awareness, but to keep that attention, marketers need to play the long game.”
