"The sport of hockey still has a Canadian connotation (in the US). It's considered a Canadian import, just like Labatt Blue is," says Nigel Miller, Toronto-based director of public affairs for Labatt Breweries of Canada.

The 157-year-old brewery has built up the hockey connection on two fronts. First, it has associated itself with the sport at the grassroots level in both countries by sponsoring the Canadian Adult Recreational Hockey Association and its American counterpart, USA Hockey.

"That's very relevant to friends. One of the most popular ways for friends to get together is to play some hockey and get together for a couple of beers afterwards," Miller says.

Second, Labatt is one of the primary sponsors and advertisers on the most watched television show in Canada: the Saturday evening staple that airs from October to June, “Hockey Night In Canada.”

"That's a great way for us to communicate our message," Miller says. "The most important time is during the playoffs when people are watching hockey more than ever."

Miller says the packaging is largely the same on both sides of the border but Labatt plays up Blue's nationality more in the US to ensure consumers know it's part of the import segment of the market—one of the few growth areas in the beer industry.

"Our research tells us [import status] continues to be relevant for beer drinkers that are looking to step up from their domestic premium beer in the US. They're prepared to pay a little more for something that is distinctive, for something that comes from somewhere else, a country they consider makes very good beer," he says.

A seemingly incredulous challenge for the company is the delicate positioning within Canada of the Labatt Blue brand. In Quebec, the country's second most populous province but where many of the French-speaking majority are separatists, Labatt is careful to take an apolitical stance. The Maple Leaf, a long-time symbol of Canada that is displayed prominently on bottles in the rest of the country and the US is absent on packaging in Quebec.

Miller notes while Labatt emphasizes friendship, male bonding and sociability with the product in both countries, it has a "little more fun" with the positioning in the US via a very human-like Canadian black bear. The English-speaking omnivore has been seen in advertising spots during the past few years in all kinds of social settings, such as in bars and restaurants, having regular conversations with his non-bear friends.

"The humorous part is he doesn't act like a bear. He acts like a guy in a bear suit. He doesn't realize he's a bear," Miller says. "The bear is a great symbol of the Canadian outdoors. It's very self-effacing. The bear has become an icon for the brand in the US."

Bill Chisholm, a beer industry analyst at Dundee Securities in Toronto, says Labatt is trying to position its product with what US consumers would perceive as being truly Canadian. "That's hockey and black bears," he says.

He says there is more potential for Labatt to increase sales of Blue in the US, where the imported segment represents more than ten percent of the total, and is roughly equal to the entire Canadian market.

Miller notes Labatt has made a slight departure from its traditional advertising and promotion of Blue in Canada during the last 18 months, moving away from lifestyle imagery to concentrating on the beer itself.

He says Blue has scored well with beer drinkers in blind taste tests against domestic and imported competitors in the past couple of years. "That was a reminder to us that the beer is of high quality. We decided we needed to focus more on the beer rather than having all of our eggs in the lifestyle basket," he says.

To complement this push, Labatt launched a 1450-ml champagne-type "celebration" bottle that was sold individually in liquor stores in select markets around the country. It also installed new draft towers in bars, pubs and restaurants across Canada last year for Blue and Blue Light.

"We serve it at the perfect temperature and with two thumbs of head," Miller says. "We've done ourselves a disservice in the past because we haven't concentrated enough on the on-premise experience for consumers. That often helps them to decide what they'll choose at retail."

Geoff Kirbyson is a business reporter with the Winnipeg Free Press in Canada.