New Belgium Brewing:

What environmental issues does the New Belgium Brewing Company work to address? How has NBB taken a strategic approach to addressing these issues? Why do you think the company has taken such a strong stance toward sustainability?

Many firms are learning that being environmentally friendly and sustainable has numerous benefits. (O.C Ferrell, Fraedrich, Ferrell, 2015). This could enable them to increase goodwill from various stakeholders and also save money in the long term. This will mean that they are being more efficient and less wasteful of resources, which will enable them to be more competitive by satisfying stakeholders. The CEO of

Consumer demand for robust ale was not being fulfilled with the current beers on the market. In 1991 Jeff Lebesch and his wife Kim started the company out of their basement. They focused on the rich flavor and unique concept. Their focus on social and environmental responsibility has set them apart from brewing companies on the market. Jeff and his wife wanted to promote a product while being innovative and socially responsible. They designed their core values and mission statement while hiking in a national park (Ferrell, 2010). In addition they wanted to promote the brand and corporate citizenship (Ferrell, 2010). Although the product is alcohol they encourage consumers to be responsible. Also, they have sponsored events, dinners and philanthropic causes to help gain consumer loyalty. In 2013, USA named NBB as 6 out of 15 best brewing companies (Franklin, 2013). Also, the company has increased is competitive advantage with is stance on environmental conscience brewing. They were the first brewery to utilize wind power generator, even with an increase cost of .025 per kilowatt (Asher, Bidner and Greene, 2003). Also, they utilize light tunnels, windows and recycled steam to reduce their carbon footprint (Gorski, 2013). In 2002 NBB participated in the LEED-EB pilot program (Ferrell, 2010). Furthermore, the company donates $1 for every barrel of beer sold to each of the 26 states territories and distributed $700,000 in 2012 (What we are about, 2013). Despite

or so many years our society has been thinking of forming new creative and innovative businesses, which would be more environmental and customer friendly. Nowadays a large number of different companies follow the social, ethical, as well as moral consequences when it comes to their decision making. One of the relatively new concepts involving economic and social concerns is Corporate Social Responsibility. Many of us apply this approach not only at work, but also in everyday life without even recognizing.

Bertrand Piccard quotes, “In the 21st century, the heroes will be the people who will improve the quality of life, fight poverty and introduce more sustainability. This is a powerful message, it sums up the concepts discussed throughout the course. Additionally, the case studies such as the New Belgium Brewery, SC Johnson and The Kimberly Clarke organization have been proven to practice this philosophy. As society progresses in its efforts to provide a more sustainable future, there is a fundamental foundation of principles that must be followed to ensure success. Sustainable business development takes into account the application of business operations as it relates to the three pillars of sustainability, which is a dynamic yet integrative place to begin this journey. DesJardins, (2006) calls for a re-imagination of the future to create a vibrant sustainable model; which forms similar beliefs to Piccard. In addition, organizations are more inclined to create sustainable practices based on consumer demand and the willingness of leadership to participate in sustainability programs.

Iron City Brewing Company made its way into Pittsburgh brewing scene in 1861 and was known as one of the first brewers in the city, accompanying Wainwright Brewery in Lawrenceville and M. Winter Brothers Brewery. Iron City Brewing Company was founded by Edward Frauenheim who was originally from Germany.

What environmental issue does the New Belgium Brewing Company work to address? How has NBB taken a strategic approach to addressing these issues? Why do you think the company has chosen to focus on environmental issues?

Frog Leap Winery utilized methods in order to become more sustainable and has been successful thus far. The company appears to be on the right track to becoming a fully self-sustainable company despite changes in the economy. The sustainable measure Frog’s Leap has implemented fail directly in line with the features of the triple bottom line. Frog’s Leap needs to measure “the impacts of their activities upon “people, planet, and profit – that is, how it created social, environmental, and economic value.” Leap Frog has managed to effectively make an impact on all of the aspect of the triple bottom line thus displaying the company’s progression towards self-sufficiency.

New Belgium brewery has increasingly grew throughout the years since their development in 1991. Despite the dominance of the “Big Three” (Budweiser, Miller, and Coors), NBB needs to be aggressive and strive to invest in the attractive beer industry in able to grow more. If positioned correctly, NBB and its main brand, Fat Tire, can continually grow. An evaluation of the industry, the business itself, its brands, and the customers and competitors is needed in order to be continuously successful.

Belgium is known for a culture of high-quality beer and this concept was formulated by an electrical engineer from Fort Collins, Colorado. The electrical engineer, Jeff Lebesch, was traveling through Belgium on his fat-tired mountain bike when he envisioned the same high-quality beer in Colorado. Lebesch acquired the special strain of yeast used in Belgium and took it back to his basement in Colorado and the experimentation process was initiated. His friends were the samplers and when they approved the beer it was marketed. In 1991, Lebesch opened the New Belgium Brewing Company (NBB) with his wife, Kim Jordan, as the marketing director. The first beer and continued bestseller, Fat Tire Amber Ale, was named after the bike ride in

1. What environmental issues does the new belgium brewing company work to address? How does NBB taken a strategic approach to addressing these issues? Why do you think the company has taken such a strong stance toward sustainability?

Competitive advantage is important in any company’s market structure. A good example of competitive advantage is when a customer asks why he or she should purchase this product over the company’s competitor’s product (Lambardo, 2017). For a company to obtain a substantial competitive advantage, a company has to gain a customer base that trusts their products over their competition’s product. For example, in the beer industry, Anheuser- Busch has created beer products that obtain a strong competitive advantage over their competitors. Budweiser was able to create this competitive advantage because they obtained a strong market structure. Also, there is a huge relation between company brand and competitive advantage (Abbas & Kraidy, 2017). For New Belgium brewing company, the brand and social responsibility are they key competitive advantages.

The recommendation provided to New Belgium is to hone in on the above mentioned environments. The Company, partakes in 1% for the planet, it once invested in wind turbine for their brewery. In fact the Company is the first to have a fully wind-powered brewery. The Company should look in other environmental savvy ways to invest funds, for insistence the growing trend of hybrid/electric. By using these technologies for transportation of their products as they continually expand. The Company can seek out strategic partnerships with other breweries in the areas of proposed expansion and “prototype” their product. In addition analyzing the competitors and customers. New Belgium should continue to make full use of marketing campaigns (i.e. Facebook, Twitter, and Instagram) as there is an increase cultural

Belgium is home of the finest ales and have been known to brew for centuries. So when Jeff Lebesch, an electrical engineer from Fort Collins, Colorado took a bicycle trip through Belgium it made him realize there may be a market back home to sell Belgian-style ale. Jeff returned home with hopes to experiment and brew his own beer in his basement from the various ingredients he received on his trip. When his friends approved of the ales he started marketing them to the local town. He later opened New Belgium Brewing Company in 1991. His wife, Kim Jordan was the company’s marketing director. They named their first brew “Fat Tire Amber Ale” after Jeff’s

Additionally, on a socio-cultural level, many consumers feel that restaurants partaking in green initiatives and operations are doing their part to not only help sustain the earth but also to conserving natural resources (Hu, Parsa & Self, 2010). “Going green” is not simply a trend in the food service industry but around the world and in all forms of business. Corporate companies consider “going green” as a sensible business strategy in building recognition for corporate social responsibility among consumers concerned with environmental conservation efforts. Lastly, technological initiatives such as Energy Star appliances (dishwashers, refrigerators, ice machines, etc.) and faucets that use less water must also be analyzed in their ecological conservation capability and weighed against their financial costs (University of Notre Dame, 2014).