Why beer brands side with gay community, not St. Patrick's parades
What鈥檚 better than getting your brand in front of the eyes of the millions of people that descend upon the south side of Boston and midtown Manhattan in New York City, two of the biggest St. Patrick鈥檚 Day parades in the country?
Doing right by the LGBT community, according to several beer companies.
Iconic Irish beer brand Guinness made waves after it pulled its sponsorship from New York City鈥檚 St. Patrick鈥檚 Day parade on Sunday, because the parade excludes LGBT groups. This move came just days after Boston Beer Co., the parent company of Sam Adams, announced it would pull its sponsorship from the Boston St. Patrick鈥檚 Day parade. Heineken pulled its sponsorship for New York parade for the same reason. Experts say generational shifts and the growing purchasing power of the LGBT communities and their allies has become too big a factor to ignore.
鈥淐orporations are much more engaged in LGBT life,鈥� says Bob Witeck, president of Witeck Communications, a marketing group focused on the LGBT demographic. 鈥淭hey are some of the biggest change agents in LGBT [communities], because they realize that gay people can be their biggest champions or biggest critics.鈥�
This year, LGBT rights issues have played prominently in headlines, from the knockdown of the federal Defense of Marriage Act聽to the legalization of gay marriage in a slew of states to the backlash over Russia鈥檚 antigay policies in Sochi. This, in turn, has put the spotlight on companies' LGBT rights policies more than ever before.
Much of this is due to a younger demographic where LGBT issues, like gay marriage, are overwhelmingly a nonissue. Nearly three-quarters of Millennials , according to a 2013 Gallup poll.
"[LGBT economic power] isn鈥檛 the overarching driver 鈥� it is generational,鈥� says Mr. Witeck. 鈥淲hat corporations see are the large numbers of younger consumers who are very passionate about human rights and nondiscrimination. Sending a message that anyone is not welcome is wrong.鈥�
That being said, the LGBT community is growing when it comes to purchasing power. Witeck鈥檚 firm estimates the LGBT buying power in 2013 was $830 billion, and that isn鈥檛 including LGBT allies who may also make purchasing decisions along these lines.
鈥淟GBT buying power is diverse in ethnicity and socioeconomic status, and we are an incredibly loyal constituency,鈥� Justin Nelson, National Gay & Lesbian Chamber of Commerce (NGLCC) co-founder and president. 鈥淎t NGLCC, we have more than 140 corporate partners that recognize not only the influence of the LGBT dollar, but the economics of inclusivity.鈥�
Within the alcoholic beverage world, being gay-friendly isn鈥檛 necessarily something new, says Mr. Witeck. For example, Absolut Vodka has been marketing to the , and Anheuser-Busch provoked controversy in antigay circles with its with the tagline 鈥淟abels belong on beer, not people.鈥� The backlash from antigay groups didn鈥檛 translate into lost sales.
鈥淭he blowback that Budweiser or that any companies had over the years didn鈥檛 dent sales,鈥� he says. 鈥淧eople made decisions based on a lot of things but not that Budweiser was a 鈥榞ay beer.鈥欌��
The beer companies' parade decisions did create some backlash, however.
Cornerstone Pub in South Boston says it is boycotting Sam Adams beer due to its decision, because pulling the sponsorship takes money away from veterans, which the parade benefits.
鈥淪am Adams doesn鈥檛 support South Boston,鈥� Tommy Flaherty Jr., co-owner of the Cornerstone Pub,聽鈥淭hey don鈥檛 want to support veterans like my father and uncle, so they can go sell their beer elsewhere,鈥� though he adds his family, and establishment, has no problem with gay people.
The controversy didn't seem to affect the New York and Boston St. Patrick's Day parades, which both drew .
There are mixed feelings about marketing alcohol to the LGBT community. the LGBT community has higher rates of substance abuse issues than other demographics. heavy marketing efforts by beer and liquor brands have played a role.
