New Belgium Brewing Company Case Study

In 1844, the Empire Brewery was founded by Jacob Best and his sons in Milwaukee, WI. In 1860, Jacob’s son Phillip took over and renamed the brewery the Phillip Best Company. Phillip’s daughter, Maria married a steamship captain, Frederick Pabst. Captain Pabst sold his shipping interest and bought a partnership stake in the brewery. In 1872, Captain Pabst became President of the company. In 1889, he renamed the business the Pabst Brewing Company.

Boston Beer’s strategy is primarily focused on growth through differentiation. The sources of its competitive advantage can be classified as a company that provides high quality beer with unique flavors, a market driven approach, and a very efficient contract brewing strategy.

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).

Patriot Brewery is a beer manufacturing plant located in Hagerstown, Maryland. We will be an importer of yeast, priming sugar and malt extract. We will be locally sourcing our hops from the west coast and our aluminum cans from Pennsylvania. We plan to sell our beer domestically to local retailers and distributors. Our core competencies include our procurement strategies, cost-effective manufacturing strategies. We will be taking advantage of the low unit costs of ingredients we need produced in the countries both foreign and domestic that produce them at greater economies of scale in order to sell our craft beer domestically for cheaper. We will do this by finding some of the biggest suppliers available for all our various materials. We specifically

An important factor in any business is the branding of that business. A company such as New Belgium Brewery, which obtains a strong slogan, uses their brand to gain new customers. In any grocery store, there is more than likely a New Belgium Brewery product on their shelves. New Belgium is an employee based company that allows their employees to be themselves. Also, the founders of New Belgium teaches their employees to work for them with passion and not just for a paycheck (Goodman, 2015). New Belgium Brewery has to create a strategy to keep the same branding when it decides to take its business globally. However, for them to accomplish this, New Belgium Brewery will have to keep its employees passionate about working for them. Also, New Belgium will have to advertise their brands of beers to their targeted buyers. To reach more people all over the world, New Belgium Brewery has created websites to allow its customers to interact with their brands (Ferrell & Hartline, 2014). Also, New Belgium can think about building a brewery overseas to gain more customers in different countries.

By implementing advertisements on television to create awareness and interest in the company, New Belgium Brewing (NBB) can craft their image as a first impression to a new market. Looking back and reflecting on the previous television ad that ran for a short time long ago, some things would have to change, but the music, the bike, the beer, must remain the same. Creating a television ad should be a major project that deserves careful attention to detail to exhibit the values of the company through fun and folly, sophistication, and long lasting endurance.

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,

The New Belgium Brewery Company divides the importance of profitability and social responsibility to become one of the largest “craft breweries” in the nation. The New Belgium Brewery re-discovered the art of creating an experience matched by too few in the craft beer industry. I, along with many others, have taken vacations to Denver, Colorado and always seem to find myself among the large groups of tourists that visit the famous Ft. Collins, New Belgium Brewery. The core values of the New Belgium Brewery are what drive the innovative streak that has quickly turned this uncommon brew into a household brand customers enjoy daily. In addition, the New Belgium Brewery considers their mission in the craft brew sector to be a decision of purpose

The Coors Brewing Company was founded back in 1873 by two German immigrants Adolph Coors and Jacob Schueler. The two combined invested $20,000, $18,000 of which came from Schueler and the other $2,000 from Coors. The location of the brewery was in the mining town of Golden, Colorado. This location was picked because Mr. Coors believed the key ingredient in beer was the water source. The river that flowed through this mining town was perfect for his beer. The two investors worked together for seven years until Coors bought out Schueler and became the sole owner of the brewery in 1880. When prohibition finally hit Colorado in the year 1916, Mr. Coors was forced to find other means of making money. The brewery was converted to produce malted milk which he would then sell to candy companies. Four years after Adolph Coors passing, in 1929, prohibition is ended and his son, Adolph Coors Jr., takes over the family business. The distribution range of the company quickly expands and by 1948, it stretches across 11 states. It would remain this way for almost 30 years before they start to expand to try and reach a nationwide audience. In 2005, now in its fourth generation of Coors family management, the Coors Brewing Company votes to merge with Molson Brewing Company in Canada to form the Molson Coors Brewing Company. Together they are the world’s seventh largest brewer. Two years later

New Belgium’s social responsibility seems to be its most important cornerstone and a strategy of focus for the company. Corporate social responsibility (CSR)—company actions that advance social good beyond that which is required by law continues to draw interest from practitioners and academics alike (Charles, K., Germann, F., & Grewal, R. (2016). The company focuses a lot on being socially responsible. Not when it comes to making beer also in the communities that they are in. The New Belgium Brewing Company does thing like donate its used barley to local farm to use a pig food for free. The company also donated more than $2.5 million to philanthropic causes through grant programs. In addition helping out the community the company is environmentally

Here at Moore Beer, Inc., we are faced with some unsettling decisions that has impact our organizational dynamic structure. Due to some recent changes within our organization process and organization directions, the opportunity to exploring the technology world has trumped our business needs to more ways than one, which leads to our more recent decision to benefit our organization needs. At Moore Beer, Inc., we have determined our sources for the technology industry is yet to overcome a few propositions to extend our business via internet. In addition, to the technology world, we at Moore Beer, Inc. have determined a restructuring layout that will affect several of our members. Now, as we moved forward into our future endeavors, we will now have to reduce our workforce.

Have you had a beer at your local brewery? There is a man that spends the better part of his time in a partial-glass room on 4th Avenue brewing, fermenting and aging 4 to 6 different kinds of beers while managing this multi-story restaurant. This man’s name is Erik Slater, and addition to owning the place he is the brewer, executive Chef, and marketing manager for the Seward Brewing Company. His head Chef Shawna McIntyre runs the kitchen while Erik creates local brews from scratch. One batch of beer takes 14 days to a month from start to finish. The brewing process takes 7-8 hours, and the fermentation period lasts 7 – 14 days. Aging the beer takes another 7 days and by the end you have hoppy,

New Belgium Brewing Company’s marketing strategy has always included being socially and environmentally responsible. They have accomplished this in many ways. The New Belgium Brewing Company has a policy of fiscal transparency. This concept and practice of open-book management creates and encourages trust among its employees and customers. They also voted in 1998 to switch to wind power. By 1999 the company was 100 percent wind-powered. New Belgium was the first in the United States to switch to wind power.

The brewing industry was once held to competition among many breweries in small geographic areas. That was almost a century ago. The U.S. brewing industry today is characterized by the dominance of three brewers, which I will talk about in this paper. There are many factors today that make the beer industry an oligopoly. Such factors include various advancements in technology (packaging, shipping and production), takeovers and mergers, economies of scale, barriers to entry, high concentration, and many other factors that I will cover in this paper. Over the course of the paper I will try to define an oligopoly, give a brief history of the brewing industry, and finally to show how the brewing industry today is an oligopoly.

This assignment is based on the case example ‘Global forces and the European brewing industry’ and relates to two questions raised in chapter 2 at the end of the case example (Johnson et al. 2008, p. 91) of the book ‘Exploring Corporate Strategy: Text and Cases’ by Johnson, Scholes and Whittington.