...New Belgium Brewing (A) SWOT Analysis New Belgium Brewing is a relatively young brewery in Colorado. With our SWOT analysis, we intend to highlight the internal and external environments of the firm using analyses of the internal strengths and weaknesses that New Belgium possesses, while also highlighting the external opportunities and threats. We will also avoid the criticisms that the SWOT analysis faces, by giving the analysis serious consideration of the issues, and by diving deeper than a, “sterile academic exercise of classifying data and information”, as noted in the text (pg. 122). Strengths New Belgium Brewing has numerous aspects or traits that they do well as a company. Their most effective advertising comes from, “customers’ word of mouth” (text pg. 471). This is due to the fact that New Belgium Brewing does an exceptional job of building relationships with customers, then allowing customers to provide word of mouth advertising for the company. New Belgium has established, “environmental and ethical business practices (text pg. 472), along with community service programs (Tour De Fat, donations to pig farmers, and Best Damn Bike Tour) and donations. Through their business practices, programs, and an emphasis on the environment, New Belgium Brewing has allowed their reputation to be one of their strengths, and created a “very loyal following (text pg. 477). Customer and public relations, are certainly a strength for New Belgium Brewing, and certainly can be...
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...Case 4: New Belgium Brewing One of the Nation’s third-largest craft breweries, based out of Colorado, New Belgium Brewing Company, Inc. (the Company). The Company was founded in 1991, a privately held corporation. Its first operation started off in the basement of Jeff Lebesch (founder). The Company prides itself on its branding strategies “triple bottom line” and social responsibility which focuses on economic, social, and environmental factors. New Belgium’s marketing strategy links the Company’s viewpoint to the quality of its products. The Company continues to support the community, giving back & advocating positive change. However for continued success, New Belgium has to continually analysis its situation in the marketplace, identifying issues, and in-turn address their longevity through growth. The New Belgium Brewing Company faces increased competition from other craft breweries as it still remains behind Boston Beer Co. and Sierra Nevada, other craft breweries. In examining New Belgium’s distribution territories, there are still “open markets” which pose opportunities to the Company. This especially holds true as New Belgium tries to expand its operations, specifically in the Northeast. How can Belgium leverage its resources which requires longer distances? The Company strives for environment responsibilities which it has successfully built into the brand. What alternatives are out there to decrease the use of resources such as fossil fuels during expansion...
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...Corporate Social Responsibility of New Belgium Brewing Company In 1989, a man, by the name of Jeff Lebesch, rode his bike with flat tires through European villages known for their delectable beer. In the confines of his basement, he had his own ideas brewing. With some added time, his idea has turned into a renowned figure, New Belgium Brewing Company was born (New Belgium, 2014). Every company should give back to the community. In this analysis, there will be an analysis of New Belgium and their investments back into the community. Some companies choose not to give back whatsoever, however this is not the case with New Belgium. The goal of this writing is to express the charitable giving, view of environmental responsibilities, policies of technology, and approach to customer service of New Belgium Brewing Company. To begin, an analysis of their charitable giving is in order. Based on their website, New Belgium Brewing Company has a genuine compassion for what they do. They are not only delivering product to their customers, they are giving back to the community. New Belgium has numerous charitable programs. One of the larger ones, known as the Philanthropy Program has been giving back to the community since 1995. One dollar is given for every barrel of beer sold. In total, since its rise as a company, New Belgium has donated over five million dollars (New Belgium, 2014). Not only does this company donate money based on their performance, but they also help fund educational...
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...Timmins Analysis of New Belgium Brewing Company’s Corporate Social Responsibility Legal and Social Environment of Business, Professor Ruud 3/12/15 New Belgium Brewing Company New Belgium Brewing Company was started by Jeff Lebesch in 1991 in Fort Collins, Colorado. He made his first two brews, which are still around today, in his basement and now they are embarking on opening their second brewery later this year in Asheville, NC. New Belgium Brewing Company not only makes multiple types of brew but they set their standards high when it comes to corporate social responsibility. New Belgium Brewing Company has a large arm span when it comes to charitable giving. They give grants to various organizations ranging from Youth Environmental Education to Water Stewardship. There are four funding programs in which they donate over $6 million as well as their co-workers donating enormous amounts of time. In 2014, the workers donated 2500 hours of volunteer time through their community (Philanthropy, 2015). The company has been, since 1993, donating $1 for every barrel brewed the prior years to charities within their area (Wann, 2015). In the year 1999, that equated to $104,000 being spread to organizations like The Nature Conservancy, Emily Griffith Center, The Hope Center, and other non- profit organizations (Wann, 2015). As you can tell charitable giving is a big part of the New Belgium Brewing Company. The technology is always improving at New Belgium Brewing Company....
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...Case Study Analysis New Belgium Brewing Company is a regional brewery located in Fort Collins, Colorado. It opened in 1991 after Jeff Lebesch, the brewery's founder, took his home-brewing passion commercial. In 2009, it produced over 582,000 barrels of its various labels. As of 2010, it was the third-largest craft brewery and seventh-largest overall brewery in the United States. The brewery was founded by husband-and-wife (now divorced) team Jeff Lebesch and Kim Jordan in 1991 and emphasizes eco-friendly practices and employee ownership in its marketing materials. It is located in northeast Fort Collins near the Cache la Poudre River on the grounds of the former Great Western Sugar plant. In 2008, New Belgium Brewing Company was named the best place to work in America by Outside Magazine. This could be attributed to the brewery's efforts to ensure the " happiness of their employees. Once a month the brewery's Wellness Committee meets to discuss activities, such as bike tours, for employees to contribute in. New Belgium Brewery has made it a objective to be entirely wind-powered. Rather than directly using wind-generated power, the brewery elects to pay an increased rate for their electrical energy, which is supplied by the City of Fort Collins Utilities to ensure it comes from the cleanest source possible. About 10% of the brewery's power comes from methane gas created as a byproduct of their on-site water treatment plant. goal. In 2008, New Belgium Brewing Company was...
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...ASSIGNMENT 1; GLOBAL FORCES AND THE WESTERN EUROPEAN BREWING INDUSTRY DATE OF SUBMISSION: 09/02/2012 1. (i) PESTEL ANALYSIS OF THE WESTERN EUROPEAN BREWING INDUSTRY The PESTEL framework provides a comprehensive list of influences on the possible success or failure of particular strategies (Johnson et al, 2008, p55). PESTEL stands for Political, Social, Technological, Environmental and Legal. Political- Governments in Europe were campaigning strongly against drunken driving. This affected the propensity to drink beer in pubs and restaurants. Economic- Some low consumption European markets have been showing good growth. Pubs have suffered as a result of large supermarket chains such as Tesco and Carrefour who often use cut price on beer to lure people into their shops. The result was that an average of about 50 pubs closed per week during the recessionary year 2009. Social- There was increasing awareness of the effects of alcohol on health particularly in the UK. This led to a growing hostility to excessive alcohol consumption in pubs. Beer consumption in the UK as well as in Germany began to fall as a result of this. Wines were becoming increasingly popular as Europe was turning off beer. There was an increasing demand for Exotic imported beer more especially in Belgium, Denmark, Finland and the Netherlands according to Table 2 of the case study. (ii) FIVE FORCES ANALYSIS OF THE WESTERN EUROPEAN BREWING INDUSTRY According to Johnson et...
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...New Belgium Brewery | A new approach | | | GM591 Course Project GM591 Course Project TABLE OF CONTENTS I. INTRODUCTION II. PROBLEM STATEMENT III. LITERATURE REVIEW IV. ANALYSIS V. SOLUTIONS VI. REFLECTION VII. REFERENCES I. The New Belgium Brewing Company in Fort Collins, Colorado was founded by Jeff Lebesch in 1989. The highly motivated entrepreneur started with a different yet simple concept; brew a better beer than anyone else. So Jeff went into the basement of his home and started working on several different brews, but specifically worked to perfect his two signature beers and the first mass produced products; Abbey and Fat Tire. It took just two years for the company to grow large enough that the basement was no longer sufficient and New Belgium moved into its first commercial brewing space and has continued to grow from there. The brewery has grown to the size that produced and sold over 580,000 barrels of beer in 2009 and expects to sell over 700,000 barrels in 2010 (JUICEBOX, 2010). The revenue generated by New Belgium has helped to make the brewery the 8th largest in the United States (JG Press, Inc, 2003). New Belgium beer is brewed exclusively at the Fort Collins location and is now available in 26 states from coast to coast (JUICEBOX, 2010). The company has grown from a dream in a man’s basement to currently utilizing over 200 employee owners and boasts sales of over 32 million dollars in 2009 (JUICEBOX, 2010). NBB...
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...Introduction The purpose of this briefing paper is to analyse the data given from the case study to determine the impact and consequences global forces have, by using the PESTEL framework. This framework is used to help form a strategic analysis of the macro-environment; the outside factors beyond the control of a company. It categorises the environmental influences into six groups: political, economical, socio-cultural, technological, environmental and legal; making up the acronym PESTEL. Analysis Political factors Europe has traditionally been seen as the centre of the beer brewing industry. However, the level of alcohol consumption is gradually declining. This is because many of the key markets within Europe are increasingly more aware of the social and health issues caused by excessive alcohol consumption. Governments are actively campaigning against the abuse of alcohol and the possible consequences of drunk driving, ‘binge drinking’, and the long-term effects related to health. These key factors relate directly to government policies and their decisions towards the European beer market. Economic factors As a result of government intervention, there has been a marked decrease in product sales in public premises. As people are more and more likely to drink at home rather than out to bars, the alcohol sales has shifted from ‘on-trade’, where beer is consumed on public premises, to ‘off-trade’, where beer is purchased by retail and consumed on private property...
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...The term SWOT stands for analyzing strengths, weaknesses, opportunities, and threats (Ferrell & Hartline, 2014). The strengths of New Belgium Brewing are the quality of its products, its distribution network, and its social/environmental responsibilities. The weaknesses include its inability to penetrate the northeastern U.S. markets significantly, and its current infrastructure. The opportunities include growing its market share and penetrating the northeast markets. The threats include small and large competitors. The threats also include start-up breweries. The Chief Operating Officer has asked me for a list of pros and cons of opening a third brewery. The pros of opening a third brewery would be an improved distribution infrastructure,...
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...Question 1 (i): Using the data from the case (and any other source available), carry out for the European brewing industry a PESTEL analysis. What do you conclude? Beer has been a part of the social fabric of cultures around the world for thousands of years. Even today beer ranks as the third most popular beverage in the world next to water and tea. Considered one of the oldest drinks, the origin of beer dates back to 6000 B.C. With low-cost strategies and lack of marketing and product innovations all created a very stable situation guaranteeing high returns on investments for most breweries in Europe. However, this situation has been changing dramatically and the industry has witnessed different brewing styles over the last decade. The market entry of large multinational breweries resulted in shrinking demand due to changing consumer preferences, the emergence of more aggressive competitive strategies and rapid changes in important distribution channels have created growing competitive pressures for European breweries. An industry that was used to stability must now find its way in an increasingly turbulent market environment. First of all, I need to evaluate the macro environment of the industry. The most suitable tool to analyze the broad macro-environment is the PESTEL analysis. In the PESTEL analysis environmental influences are categorized into political, economical, social, technological, environmental/ecological and legal aspects. It helps to identify how future trends...
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...rP os t 9-207-039 REV: JUNE 28, 2010 BELÉN VILLALONGA RAPHAEL AMIT SUN Brewing (B) op yo In late July 2004, Nand Khemka and his sons Shiv and Uday assembled in Paris to discuss their holdings in SUN Interbrew Limited (SIL), a leading Russian beer producer. SIL was a joint venture formed in April 1999 between their beer company SUN Brewing and Belgian beer giant Interbrew.1 SUN Brewing was part of SUN Group (SUN), an international commercial and investment group owned by the Khemka family. SUN’s shareholders were firm believers in the long-term growth potential of the Russian beer market and in the value creation potential of SIL. The family was extremely pleased with the recent success of the management team led by Joe Strella and felt they shared a common vision with the shareholders and management of Interbrew. However, the last few months had led SUN to consider carefully the situation in which they found themselves. First, the Alfa Group, a large financial and industrial conglomerate in Russia, had accumulated 15.8% of the voting stock in SIL, thereby becoming the third largest voting shareholder in the company.2 Alfa had approached both Interbrew and SUN separately and had expressed their desire to buy out SUN’s interest and to become a partner with Interbrew in the future growth of the business. SUN had also been approached by Interbrew about buying SUN’s stake. tC Although the family was keen to remain a long-term shareholder in the business, the present situation...
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...Analysis of the Anheuser-Busch Company Report by Valanium Analysts: Chris Rigopulos, John Schneider, Jayne Tan Investment Recommendation: MARKET PERFORM December 5, 2001 BUD – NYSE (11/30/01) 52 week range Revenue (2001E) Market Capitalization Share Outstanding $43.10 $36.75 – $49.00 $14.9B $38.2 B 884.3M EPS Forecast (FYE 12/30) EPS Ratios Trailing P/E Forward P/E Leading PEG M/B Price/Sales 1999A 2000A 2001E 2002E $1.49 $1.71 $1.89 $2.09 Dividend Yield 1.67% Avg. Daily Trading Volume (3mo) 2.13M Book Value per Share (mrq) Return of Equity (ttm) Return on Assets (ttm) Est. 5 Years EPS Growth Rate Sector: Consumer/Non-Cyclical Industry: Beverages (Alcoholic) $4.83 40.39% 10.71% 11.0% BUD 23.2 20.6 1.87 8.93 3.11 Competitors Avg. 17.4 15.9 1.37 3.10 1.21 Valuation Predictions Actual Current Price Trailing P/E Valuation Leading P/E Valuation PEG Valuation M/B Valuation Price/Sales Valuation EBO (Abnormal Earnings) Valuation DCF Valuation Performance (Trailing, Annualized) Return on BUD Return on S&P 500 Return on Competitors $43.10 $32.38 $33.24 $31.48 $14.95 $16.73 $19.25 $46.87 6 mo -2.1% 18.3% - 2.9% 12 mo 24 mo -7.4% 9.9% -13.4% -10.3% 2.1% 8.9% Source: finance.yahoo.com, Valanium analysis • • Our valuations reflect a range of predictions, all falling below the current price point with the exception of the DCF estimate. However, we believe that A-B’s brand value and domestic presence are not captured within the accounting numbers...
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...Addis Ababa University Collage of Business & Economics School of Commerce Bmmusiness Policy & Strategy Strategic Management & Business Policy Home Take Exam Instruction: Attempt All Questions (Each 10 Points) Case I: Rupbani Beverage Limited Rupbani Beverage Limited entered the Indian wine industry in 1975 by acquiring the Mastana Wine Company of Shimla and two other smaller wine companies at Kalka for Rs. 50 lakh. Despite hostility expressed by other wine makers and predictions that Rupbani would very soon fail as other outsiders such as Parminder Wine Company had, the entry succeeded. Rupbani Limited performed the unheard of feat of establishing a volume of 30 lakh cases within two years and taking the market share away from premium brands such as the National Wine Company of Bombay, Pearl Drink Limited of Pune and Syndicate Cola Limited of Madras. Rupbani advertised heavily and incurred Rs. 10 lakh in one year and standardised the taste of its wines with considerable success. It also invested Rs. 48 lakh in a large, new winery at Ahmedabad. A Rupbani Executive said, "By 1995, consumption of wine in India will be a liter per capita, compared with half a liter today." The industry reacted to Rupbani's presence by doubling and tripling advertising expenditure. ABC and Company began a costly campaign to market premium and varied wines while reducing marketing emphasis on its cheap wines such as Nahan Drinks and the Gola Beverage. ABC maintained its 25 percent market...
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... It’s North European, it’s a fantastic product, it’s got unimpeachable brewing credentials and authenticity and credibility. And it’s a damn good product. So for anybody interested in developing their premium beer business, this is an absolute peach of a brand to get hold of… we see huge potential for it in our global footprint, particularly in markets like Latin America and Africa where we’ve got a strong route to market but where the premium beer business is still in its infancy.”2 Grolsch had hitherto focused on developed markets, particularly the UK, US, Canada, Australia, New Zealand and France, in pursuit of its goal of becoming one of the world’s top 10 global beer brands. Groslch was already the world’s 21st largest global brand, measured by international (nondomestic) volume (see Exhibit 1). International volume had grown to account for slightly over onehalf of total volume and, going forward, seemed to offer much more potential. Drinkers often rated Grolsch higher than larger brands, including Heineken, the top global brand as well as the leader in Grolsch’s home market (see Exhibit 2). And Grolsch had started up a state-of-the art brewery in 2004 that could be expanded at little incremental cost. The acquisition closed and in February 2008, Grolsch became an independent subsidiary of SABMiller. Rob Snel, head of Grolsch International since 1999 and an employee since 1984, was named Grolsch’s new CEO shortly thereafter. He...
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... It’s North European, it’s a fantastic product, it’s got unimpeachable brewing credentials and authenticity and credibility. And it’s a damn good product. So for anybody interested in developing their premium beer business, this is an absolute peach of a brand to get hold of… we see huge potential for it in our global footprint, particularly in markets like Latin America and Africa where we’ve got a strong route to market but where the premium beer business is still in its infancy.”2 Grolsch had hitherto focused on developed markets, particularly the UK, US, Canada, Australia, New Zealand and France, in pursuit of its goal of becoming one of the world’s top 10 global beer brands. Groslch was already the world’s 21st largest global brand, measured by international (nondomestic) volume (see Exhibit 1). International volume had grown to account for slightly over onehalf of total volume and, going forward, seemed to offer much more potential. Drinkers often rated Grolsch higher than larger brands, including Heineken, the top global brand as well as the leader in Grolsch’s home market (see Exhibit 2). And Grolsch had started up a state-of-the art brewery in 2004 that could be expanded at little incremental cost. The acquisition closed and in February 2008, Grolsch became an independent subsidiary of SABMiller. Rob Snel, head of Grolsch International since 1999 and an employee since 1984, was named Grolsch’s new CEO shortly thereafter. He...
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