YOUNGSTOWN, Ohio – Penguin City Brewing Co. is lowering the price of its two flagship beers to be comparable with market leading domestics such as Budweiser, Coors and Miller.
The price drop will go into effect Thursday, May 1, for Penguin City Golden Ale and Penguin City Light.
The brewery’s marketing strategy for its flagship beers was always to be competitive with the national lagers. But it wasn’t possible until now.
“When we started Penguin City [in 2017], that was the goal, to be at that price point,” said Aspasia Lyras Bernacki, who co-owns the company with her husband, Richard Bernacki. “We wanted to be at a price where it could be enjoyed by everyone, but with a small brewery we realized it wasn’t possible. We had to work ourselves up to doing that.”
Penguin City moved production downtown to a massive former warehouse building in 2022, and opened its first taproom there. Since then, the space has become a popular site for nightlife and events, hosting festivals, boxing and MMA bouts, meetings, fundraisers and makers markets.
“We [now have] the space, and we can lean on other [revenue sources],” Lyras Bernacki said. “So now we can offer [Penguin City and Penguin City Light] at the price that we always wanted it to be.”
The price of the brewery’s seasonal and specialty brews, including Winter Warmer, Oktober Festbier, Honey Dark Lager and Midwest IPA, will remain at higher price points, similar to other craft beers.
“It’s like we’re splitting in two,” Lyras Bernacki said. “We’ve always had people say the Golden Ale and the Light are more on the domestic side, and Winter Warmer and Oktoberfest are on the craft side.”
Penguin City products are sold in kegs and cans. The company hopes to one day add a bottling line, but that is not in the cards at this time, Lyras Bernacki said.
The labels on the cans will remain the same after the price drop.
Chris Crowell, editor of craftbrewingbusiness.com, said the timing is right for Penguin City’s decision.
“The last few years, craft breweries have started to offer more easy drinking light lagers and pilsners to appeal to customers burned out on typical heavy craft beer,” Crowell said. “Many of these are well executed and taste great, but winning this category at retail isn’t easy. It is more dependent on price point and brand loyalty.”
Penguin City has done a good job establishing its brand in its market, Crowell said.
“If it can also be price competitive with the Big Beer brands, I think that’s a big deal,” he said, “especially announcing it now, when prices for literally everything are going up.”
Penguin City beers can be purchased in more than 500 bars and retail stores in western Pennsylvania (Mercer, Lawrence, Butler, Venango, Armstrong and Crawford counties), the West Virginia panhandle and much of Ohio, including the Cleveland market.
“We just picked up Butler County [Pennsylvania], which puts us in Cranberry, and there are a lot of accounts there,” Lyras Bernacki said. “We hope to inch our way into the Pittsburgh market next year.”
The beer is also “starting to have a presence in the Columbus market,” she said. “We are picking up steam there.”
The price drop should necessitate a rise in sales and production.
Penguin City is on pace to brew between 1,500 and 2,000 barrels this year, but it has the capacity to brew at least 5,000 barrels per year.
“We would love to double our output,” Lyras Bernacki said. “We definitely have enough fermenters.”
To spread the word, Penguin City will mount an advertising campaign that will include billboards, video ads and in-store displays.
“We will keep driving the message of price change,” Lyras Bernacki said.
Penguin City’s distributors will play a role in the effort. “There will be signage in stores, and they will let the bars know, too, because our draft beer will be priced lower.”
The marketing effort will also include a more personal approach.
“This summer we will be at a lot of festivals, including Ribs ’n’ Rock and the Greater Youngstown Italian Festival, and we will be in front of a ton of people,” Lyras Bernacki said.
Company representatives will set up tables at the events where visitors can take a taste challenge. “We will have the labels covered on cans of a [national] domestic beer and our beer, and invite people to try them both,” she said. Those who take the challenge will receive a small prize.
“We hope people try it,” Lyras Bernacki said. “If they were hesitant to buy it before because of the price, I hope they give it a try now.”
With the playing field leveled as far as pricing goes, Penguin City is hoping community pride comes into play.
“If you are in a store and see that all the prices are the same, we hope you pick the one that is brewed in Youngstown,” Lyras Bernacki said.
Pictured at top: A poster that will be used in Penguin City marketing efforts to announce the price drop.