Katie Tassi

PRS 340
Narragansett Beer
25 October 2016
Overview - Founded in Cranston, R.I. in 1890, Narragansett Beer is New Englands oldest beer,
and in 1914, it officially became the largest brewery in New England. The brewery has had many
ups and downs between its beginning in 1890 and its recent reestablishment as a classic
American lager; facing prohibition, fires, demolition, company moves and near bankruptcy.
Despite this, the organization is still extremely successful.
In 1914, Narragansett Beer was considered the #1 New England beer from the 1890s
through the 1970s, and has undergone many organizational changes that has since brought it
back to the top of the market. In 1920, prohibition was in full effect, however, Narragansett Beer
was granted permission by the IRS to brew and sell its beer for medicinal purposes. In 1933,
prohibition was repealed and Rudolf F. Haffenreffer, a industrialist and philanthropist with
brewing interests, became the president and owner of Narragansett Beer. A year later,
Haffenreffer hired Dr. Seuss to create an icon, as well as many other advertisements, for the
company. It began a 31 year relationship with baseball in 1944, starting with the Boston Braves
and the Red Sox; introducing the combination of hot dogs, peanuts and lager beer to America.
Falstaff Brewing Company purchased Narragansett Beer on July 15, 1965 for $17 million
in cash and $2 million in Falstaff common stock, the deal taking 9 years to finalize. By 1972, the
company was producing 1.7 million barrels a year. The original plan was that the brewery would
continue to operate as a wholly owned subsidiary of Falstaff under Haffenreffer management,
and that the brand would be retained and promoted. However, under Falstaff leadership

Narragansett Beer began to lose its identity. The production moved to Indiana, the Red Sox
sponsorship ended, and they let go of valuable salesman. When the production moved, customers
felt the quality of the beer was not the same, and thus sales declined. In 1983, the company
closed its doors and in 1998 demolition begins.
After changing hands, Narragansett beer was bought in 2005 by investors led by Mark
Hellendrung, whose goal was to re-establish the identity of the brand. Former brewer Bill
Anderson helped the brand return to its origins. In 2010, the brand sold its 1 millionth case since
reforming, and celebrated its 120th anniversary, followed by a 2011 gold win at the Great
International Beer Competition, and Narragansett light and all four seasonal beers won silver at
the World Beer Championships. Since the purchase, the brand has re-established itself as a
classic American heritage lager by coming back to its roots and bringing back its original recipe,
and is once again available throughout New England and beyond.
Narragansett beer has been available since spring of 2006, producing lager and light
beers, as well as summer ale, a cream ale and other seasonal products. Its now the 37th largest
brewing company in America, as well as the fastest growing in the Northeast.
Narragansett Beer is an organization that uses the philosophy Made on Honor, Sold on
Merit. To its employees, this is a hugely impactful aspect about the company. Made on Honor
means that the company is putting the best possible ingredients and effort into what they are
creating, and that they really care about the quality that goes into the process. The company has a
noticeable footprint and a very strong community relations philosophy. Narragansett Beer puts a
lot of focus and energy on the impact they have on its community. The company has teamed up
with several charities to donate money, and also hosts many festivals and hosts beer tasting

events. Additionally, a girl gets elected a Gansett girl every month who help to promote the
brand and attend events.

Recommendations The public that Narragansett Beer has been targeting are effectively driving sales and
creating revenue. However, to increase sales and establish brand loyalty, the publics that
Narragansett Beer should target are the following:

Women in Rhode Island

According to the US Census Bureau, women in Rhode Island make
up 52% of the population, which is over half of the general population. The
general women population in 2010 was around 545,000 people, while men was
504,000. For Narragansett beer, that is an additional 41,000 people to target.
Another reason women are a key audience for Narragansett to
target is because they are a large part of the working industry. Since women are
working long days, especially in urban areas, there is a big chance they might be
attending happy hour or going out with their coworkers after their shifts. Women
are also becoming business leaders and owners more often. According to the US
Census Bureau, there were 30,484 women-owned firms in 2012, which is a
continuously growing number.

College Students, ages 21-24

According to suburbanstats.org, there are 15,000 males and
females the age on 21 in Rhode Island, and 42,000 males and females between the

age of 22 and 24. College students, who are the legal drinking age, could be a
huge asset to Narragansett Beer. There are 13 colleges in Rhode Island, and
having brand loyalty from legal students at all of these schools would increase
sales tremendously.
According to brewersassociation.org, 57% of craft beer drinkers
are Millenials. This is a great demographic to focus on as the audience is more
than half of the market.
Based on a study done by Geoff Smith, Millennials are the most
loyal generation to their favorite brands, with 51% saying that they are loyal to
their favorite brands. According to the CrowdTwist study, 43.5% of Millennials
said they use social media to spread the word about products or services,
meaning that friends, family and followers can all see what they are buying. Not
only would targeting this audience of Millennials drive sales, it would also benefit
in ways of free promotion if the subjects shared on their public sites what they
liked about the company and why.
Hispanics
Similar to women in the workforce, the population of Hispanics in
Rhode Island is rapidly growing. According to the US Census in 2015, the
Hispanic community reached 15% of the population, which is a huge number
compared to other race subsets in Rhode Island. Even more importantly, the
number is still growing. Targeting this audience will provide Narragansett with a
large subset that will continue to grow and promote brand loyalty.
Brewersassociation.org reveals that one in five weekly beer
drinkes and weekly craft drinkers are Hispanic, making them the second largest
cultural group amont craft beer appreciators.

 Additionally, the US Census shares that 21% of the Rhode Island

population speaks a language other than English. By reaching out to this target
audience, Narragansett Beer will be able to bridge the gap between the language
barriers and establish brand loyalty with other publics.
Competitive AnalysisCitizens Bank
Citizens Bank is the 13th largest retail bank in the United States, serving over five
million individuals, companies, not for profits and institutions. The headquarters are
located in Providence, Rhode Island, where it began in 1828.
Citizens Bank realizes that giving back to its community makes its company
stronger. They even use the slogan Citizens Helping Citizens to prove it. The company
partners with local nonprofits to build relationships and help the community. Citizens
Banks community programs help those in need receive food, clothing, affordable
housing, develop skills and expand their financial literacy. Its community relations efforts
include Financial Literacy, Champions in Action, Corporate Giving and local
partnerships.
The company makes sure to recognize its employees community involvement.
Last year alone, colleagues volunteered for over 70,000 hours and matched $900,000 in
donations. Citizens Helping Citizens was honored with an International Sponsorium
Award for improving the quality of community.
Citizens Banks community impact combined with its ability to provide customers
with great service has led it to become an extremely successful company.