| In about thirty years, between the early 1950's and | | | | I happened to learn this when I read Bill Leinenkugel's |
| 1980, the number of breweries in America | | | | obituary. His story got me thinking of all the small, |
| plummeted from about 350 to just 40. Large | | | | local businesses that have succumbed to large, better |
| companies became huge and forced out or bought | | | | capitalized, better managed, more aggressive |
| out companies that could no longer compete. Of | | | | businesses that move in and take over the territory. |
| course, this is nothing new; it has happened since the | | | | Leinenkugel must have realized that, if his company |
| advent of capitalism. Many smaller companies hold on | | | | was going to compete it would have to change. He |
| as long as they can, others capitulate early, and | | | | changed product offerings to appeal to markets his |
| some determine to fight back and a few of those | | | | competitor didn't go after and created new |
| fighters thrive. | | | | customers. |
| In the mid-1800's Leinenkugel brewery was founded | | | | Often the small business doesn't, or can't, reposition |
| to slake the thirst of Chippewa Falls, Wisconsin's | | | | itself and its products to outflank the competition |
| lumberjacks. It survived Prohibition by bottling soda | | | | successfully and they roll over. But, in every industry, |
| water and then, in the early 1960's powerhouse | | | | a few are able to figure it out and manage the |
| Schlitz Brewing introduced Old Milwaukee, a budget | | | | herculean task of being able to change enough to |
| brand that underpriced Leinenkugel and took market | | | | attract customers and grow even in the face of |
| share. | | | | daunting odds. |
| Determined to fight back and thrive, Bill Leinenkugel | | | | Obviously they have enough confidence, resources, |
| took some marketing classes, learned the concept of | | | | energy, vision, power-of-will, and a little luck to get |
| "Positioning" and developed a line of more expensive, | | | | the job done. The companies that figure it out are |
| "craft" beers outflanking the much larger and more | | | | icons that every small business should look to as |
| powerful competition. Eventually Leinenkugel was | | | | examples of "Vision" and "Position" to insure the |
| purchased by Miller Breweries now SABMiller PLC and | | | | future of the company. |
| has become a national brand. | | | | |
