External and Internal Factors in Opening a Brewery

One of the reputed benefits which have allowed the new craft beer industry to grow and thrive is the better profit margins possible for making beer and ale on premises. Business scholars Kleban & Nickerson (2011) have noted that “Since 2006, the craft beer industry has been able to

New Belgium is, however, the third-largest craft brewery in the nation, with estimated sales of over $100 million, equaling approximately 700,000 barrels of beer per year. An analysis of the craft beer industry as a whole suggests that there is continued growth potential for New Belgium. Exhibit 5.1 of the New Belgium Brewing (B) case shows that craft beer is the fastest growing segment of the U.S. alcoholic beverage market, with an increase in market share of over 100 percent from 1999-2011. It is also an industry whose customers tend to be extremely loyal, making them less likely to view craft beer as a commodity. Consequently, craft beer has a higher probability of being immune to competition from inferior goods and substitutes. This is particularly applicable to New Belgium’s target market of “beer connoisseurs” that appreciate the high quality and taste of craft beer and who include “executives, lawyers, and accountants” with the continued ability to pay higher prices for craft beer, enabling the craft beer industry to achieve gross margins of up to 30 percent (Clark & Rogler, 2013).

As of June 2015, there are eight breweries in Huntsville, soon to be nine. This smallish southern city, population 180,000, has undergone a total transformation as far as its craft brewing industry is concerned. Like so many other American cities, beer has come into the vogue, but few if any can claim to have experienced such as a rapid, radical, city-defining seismic shift. In just five years, “old veteran” brewing presences have been established and a younger generation has come along to reap the rewards of a clientele that continues to refine its taste. It’s still very much a work in progress, but to compare the “before” and “after” statistics is shocking. Thanks to a timely repeal of some antiquated laws that held the brewing industry back-a home brewing ban, an ABV cap, a ban on large-format bottles-craft beer is now free to thrive.

The craft-brewing segment of the beer industry has experience fluctuations in demand from a high of 58% growth in 1995 to a decline of 5% annually from 1997 to 2003 (Gilinksy et al., 2014, p. C-92). However, it is now experiencing rapid growth. At the commencement of 2012, 6.5% of U.S. beer sales were generated by craft brewers and that number increased by 15% by the conclusion of the year (Gilinksy et al., 2014, p. C-92). The growth of the market presents LBC with an opportunity to generate additional revenue.

The adult consumption of alcohol, in moderation and in a responsible manner, is perfectly fine. Issues arise when the consumption of alcoholic beverages are done so in a way that is excessive, risky, done so as a coping mechanism, illegally, and done so in an irresponsible manner that could cause harm to other. The public’s health is the main concern of the health care field and to identify risks factors that affect our nation’s safety and health. Exposing what is causing health issues and finding

The age of technology has brought about many changes in today’s society. With the advent of social networking sites companies are able to get their product advertised and marketed in many more ways than in the past. Sites like Facebook and Google+ have made it possible for companies to market their products to millions of people for cheap advertising on these sights. Craft beer is becoming very popular among younger adults around the world. Over the last decade, craft beers have gained in popularity in the brewing industry, and their reputation hasn’t stopped rising. They are the hottest trend in beer today. (nyfb.org, 2010). Microbreweries have a strong presence in the social networking community. Craft brew

Despite the strong brand and strategic position that MMBC created, the company experienced a decline in revenue of 2% in 2005 (Abelli, 2007, p. 4). The decline is due to changes in beer drinking patterns, markets, and demographics in the region as well as the U.S. in general. The change in beer drinking in 2005 included a decrease in intake of beer in general. This was due to competition from wine and spirits as well as new national health recommendations to decrease alcohol consumption for improved health (Abelli, 2007, p. 4). Premium beer consumption was down 4%, but light beer use was up 4% (Abelli, 2007, p. 10). This movement of consumer purchasing practice, makes adding a light beer product attractive. Overall beer consumption was down in the U.S., and this trend was true in MMBC’s region as well. See Figure 1. This graph shows beer consumption in West Virginia, MMBC’s home state,

Opportunities come from examining industry trends, consumer demographics, and marketing channels (Lavinsky, 2013). New Belgium’s Brewery opportunities include growth in untapped markets (Ferrell & Hartline, 2014). Further grow of organization globally (Ferrell & Hartline, 2014). Additionally, development of new technology in beer brewing that is environmentally friendly (Ferrell & Hartline, 2014). Finally, there is an opportunity to attack the market with new products (Ferrell & Hartline,

I don’t want to leave you with a bitter taste in your mouth about craft beer. Let me walk you through your first craft beer experience. You walk into your local grocery

As the craft beer trend rises, beer festivals are in high demand among Millennials. “Almost half of Millennials (47%) rank beer festivals first among their preferred event choices - that is

The UK population is ageing, with an expected 11% increase in the number of retirees by 2017, posing a challenge for beer, as consumers reduce drinking as they get older, often on health grounds. This is reflected in the consumer data for this report, with usage of lager dropping off dramatically among over-55s, while usage of stout/ales, drinks which have a strong heritage in the UK and appeal to older drinkers, falls slightly behind average.

AAA Brewing Company will promote sales by encouraging a sense of community in the surrounding area. While expansion in terms of distribution territory or physical space (to meet demand) is not considered, future expansion of fermentation and conditioning will take place modestly in pace with adjusted revenue and community engagement. Expansion goals include an additional program for mixed culture fermentations utilizing easily acquired wine/spirits barrels. A strategy of consumer education, local visibility and aggressive collaboration with neighboring breweries will not only create a destination for nearby beer enthusiasts, but define Greensboro as a craft beer destination.

Nationwide, binge drinking has not received the same awareness as other leading health risks. Binge drinking is the consumption of “four or more alcoholic drinks…for women...and five or more drinks…for men” per occasion(s) within a month (Kanny, Liu, Brewer & Lu, 2013, p. 77). According to data collected by the Behavioral Risk Factor Surveillance System (BRFSS) in both 2010 and 2011, the overall national prevalence of binge drinking was 17.1% and 18.4%, respectively (Kanny, Liu, Brewer & Garvin, 2012, p. 15; Kanny et al., 2013, p. 78). Both years listed the Midwest as an area with both the highest age-adjusted prevalence of adult binge drinking and the highest intensity (the amount of drinks per occasion within the past month) of binge drinking (Kanny et al., 2012, p. 16; Kanny et al., 2013, p. 78). As a state in the Midwest, Illinois should make efforts to decrease the prevalence of binge drinking in the state because nationwide binge drinking has shown to 1) cost the United States billions of dollars annually from lost productivity, health care, and crime, 2) increase a person’s risk for variety of health problems from diseases to injuries, and 3) account for more than 50% of the annual average deaths due to excessive drinking.

The New Belgium Brewing Company (NBB) started out as a small beer brewing concept in 1991, brewing beers out of their basement. Once they determined they had a product that could be marketable, they opened their first brewery in Ft. Collins Colorado and have been growing ever since, becoming the third-largest craft brewer in the country (New Belgium Brewing Company, 2014). But just as any business there is always competition and consumer opinion which allows a business to continue to develop and grow within their market. Competition in the microbrew arena has grown over the last decade and according to the Boulder, Colorado-based Brewers Association, the number of microbreweries has surged in the past five years 73% nationally (Olson, 2014). For the New Belgium Brewing Company, they have used their competitive advantage to continue to grow their business in a market that shows heavy increases of new competition. The concept of competitive advantage is, strengths possessed by the firm or real weaknesses possessed by rival firms (Ferrell & Hartline, 2011).

Residence Beer Making is way easier than you may realize. Lately, a customer requested me three issues that they should know before beginning their residence beer making adventure. My solutions?