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WETBEER makes waves
By: Cal Stone, Insider Business Journal

Photo by Cal Stone
Steve Brown is hoping his entry in the beverage business - WETBEER - makes sense to consumers. His Brighton-based product has sold well since hitting the market May 1.
Steve Brown
Think about this for a moment. Would you be willing to quit a great-paying job, remortgage your house and sell off your prized possessions to start a company that has no real product? Sure, Seinfeld made a million or two on a show about nothing, but he had NBC backing him up ­ you've got nobody.

That's the boat Steve Brown jumped in, but he's actually hoping to fall in and get all WET, and here's how it all started.

Brown took his bachelor's degree in telecommunications from Michigan State University in the mid 1980s and entered the corporate publicity world. He served as public relations director, first for Fosters Beer's Indy race team and then for Penske Speedways. In those 11 years, he learned how much the two industries-- breweries and racing ­ are intertwined and dependent upon publicity.

"I've watched the beer industry battle it out ­ tastes great/less filling, talking frogs, silver bullets. It's all about hooks, gimmicks and clever promotions," said Brown.

While he admits he's not a beer drinker per se, maybe one or two a week, Brown says he does know the difference between a good beer and a bad one. About two years ago, he cracked open a bottle of Dry, and hit upon the latter.

"Subconsciously I'm thinking, 'This is a dumb idea. Whoever pushed the button to launch this?'" said Brown. "So, if they can market beer, which is 90 percent water, as Dry, look what you could do with Wet beer. It just hit me like that. That's what you think of when you think of beer ­ wet! This thing smacked me like a ton of bricks."

Brown started tapping his connections who know the industry, and they all agreed that he had something. In the true entrepreneurial spirit, he started jotting down ideas and coming up with 'wet' creations. Pretty soon he had a 15-page plan for a 'virtual' company.

He approached an Ann Arbor company that specializes in trademarks and patents and plunked down his plan.

"The guy says, 'You've got something here, but we need to find out if you're protected,'" said Brown. "To my total amazement, none of the major breweries had protected wet beer. They had everything else ­ lite, dark, red, pale, draft, non-alcoholic ­ but not wet."

After several months of research and paperwork explaining why he felt he came up with the wet beer concept, Brown owned the rights.

But he knew the beer business was brutal, and there was no way he could compete with companies that spend millions of dollars every day on promotions.

"I figured I can't get into their business. I'm just one little guy," he said. "But, I can start a web site company with fun things to do and jokes and things to sell. It's similar to the No Fear bumper stickers you see. It's really just an attitude. There's all these companies that have created frenzies out of nothing."

In August 1997, Brown launched a basic web site and catchy logo, designed by Tony Tonna of Pinckney. He created a 'virtual company' based on Wet Beer ­ although he had no actual beer ­ and began selling shirts, hats and mugs with an eye-catching logo aimed at the 21 to 35-year-old market.

"The one thing I realized is brand image," he said. "A logo is huge and you've got to keep it consistent."

The multi-purpose logo took several months to evolve, and is most impressive when one calls up Brown's web site at www.wetbeer.com. The WET wording flows like a wave and actually shimmers on a reflection underneath. In fact, it has brought in 2,000 visits ­ not hits, but visits ­ per month to the site. Responses have come from as far away as Brazil and Denmark.

But while Brown was enjoying the traffic and selling items here and there, he noticed something else happening. People were e-mailing messages asking where they could buy an actual 'Wet' one.

"I'm thinking, 'Hey, I've got something here,'" said Brown.

Last fall, Brown started meeting with microbreweries in Michigan and Ohio, but could find no one to support his idea. Neither could he find investors who were willing to share his vision and passion.

"Long story short, you need a ton of capital to get into business," said Brown, who instead of going into detail just says he experienced the "entrepreneurial risk portion" or financial battles associated with such a venture.

The turning point came when he was referred to Dennis Whitney, director of Livingston County's Small Business Development Center. By then, Brown had a well-developed business plan in hand, something that's equally as important as money.

Brown owned 100 percent of his company and was hesitant about bringing in outside financial resources, but needed them to survive. Whitney sent him to an attorney and an accountant who took his business plan and developed it into an investor's kit. Brown began contacting friends, family and past associates, and in two-weeks had sold off 45 percent of the company. By mid-January, the money was in the bank.

All the while, he had started meeting with large regional breweries, but still had no takers. He would have loved to have his beer brewed in Michigan, the wettest state, but Brown eventually wound up at a Cold Springs, Minnesota major brewery that had been around since the 1870s ­ Gluek. Although well-established, they had just hired a 26-year-old to bring in some new concepts when in walks Brown. Perfect timing.

They had several recipes available, and he settled on a golden lager that has just a hint of sweetness. He brought samples back home and tested it against current popular brands. "And it won and won again," said Brown. "So it's not just a cool idea."

Brown spent a small fortune on printing the bottle labels, which had to meet strict federal requirements, and all the in-store promotional materials, known as Point Of Purchase or Point Of Sale.

With a good product, a great concept and some money to back him up, Brown hit the bricks and began knocking on distributors' doors all over Michigan. He spent the entire month of March on the road in each of the state's 15 key territories, a chore not so pleasant for a family man who wants to be home with his wife and three young children.

He eventually found 14 distributors who believed in him.

"A lot laughed at me or wouldn't return my phone calls, but the ones who gave me 10 minutes are going to be glad they did," said Brown.

One of those is Ron Baetens, owner of the family-run Oak Distributing Company Inc. in Waterford. He signed on for a portion of Brown's original 2,800-case order from Gluek, and is distributing it throughout Oakland, Genesee, Shiawassee and Lapeer counties.

"It's a great concept with nice graphics and a lot of neat slogans," said Baetens, "and Steve's got the enthusiasm. Plus, we can merchandise it in a number of ways. And it's the whole idea ­ beer is supposed to quench your thirst. Everything there is positive. Now we need to get it in front of the public and see what the response is."

Baetens said there was a boom of new beers a while back, but lately the new entries have been much fewer. At $6 a six pack, Wet Beer is priced slightly above the big names, yet just below the micros.

WETBEERBrown's entry officially hit the market May 1. Soon afterwards, he received an e-mail message from Todd Cole, owner of the River Street Station bar in Manistee. Five hours later, Cole picked up the phone and personally called. He had sold two and a half cases of Wet Beer. Normally, he's lucky to sell a six pack of a new brew ­ and it's the off season up north right now.

Steve Widman, vice president of sales and marketing for "the wettest distributor in the state," Silver Foam in Jackson, said they've sold about 300 cases in 15 days.

"Not bad for a startup that's just waiting to be discovered. It's fun," Widman said. "People don't drink beer when they're not having fun. It attracts consumers who don't even drink beer."

Widman, whose company handles Livingston, Washtenaw, Lenawee, Barry, Calhoun and Jackson counties, said he's deluged with requests every day from people trying to get him to handle their newest products.

Bars throughout the state are holding 'launches' to unveil Brown's new product. Dave Beauchamp, owner of Champ's in downtown Brighton for the past 17 years, held one such event May 7. There was a good turnout and, as usual, his place was jumping. He's sold nine of 15 cases so far and feels Brown's got a winner, although it may take some time for the advertising to hit.

"It's really a pretty good beer," said Beauchamp. "On a hot day, it'll taste pretty good."

And really, in the end that's all you can ask of a cold Wet one.


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