Premium Essay

Aldrige Beer

In: Business and Management

Submitted By rajeev78
Words 5809
Pages 24

Craft Brewing Goes Public In August 1995, Paul Shipman, the CEO of Alridge Brewing (AB) prepared himself to enter uncharted territory. A craft brewing operation had never before been taken public in the United States, and he and his management team were about to do just that. Sure, there were massive large-batch breweries like Anheuser-Busch and Miller Brewing Company that were profitable, publicly traded firms—but there was something different about Alridge: it embodied the ethos and grassroots beginnings of the microbrew movement, and Shipman was confident that widespread market demand for craft beer was set to explode. He and the team had steadily developed their premium-quality handmade ales for nearly fifteen years, and their loyal customer base was strong. In the last year alone, he’d forged alliances with both Starbucks (for the purposes of co- branding a coffee- flavored brew) and A-B that had purchased a capped 25% interest in AB in exchange for access to its national distribution networks and accounting systems. Shipman had overseen significant capacity increases, with plans on the horizon for yet another brewery in Portsmouth, New Hampshire. He had worked hard to position AB favorably for expansion, and the public offering would provide the necessary capital. But how would the “microbrew” feel of AB translate to the largescale commercialization and growth pressures of the open market? Producing and distributing microbrews on a large scale was a new concept—and like any new concept, it would have to be sold. Shipman hoped to sell craft beer—and lots of it—in the heartland of America. Revolutionary Beginnings Shipman thought back through the determined, tumultuous beginnings of the company he had helped to found after graduating from the Darden School of Business at the University of Virginia in 1980. AB was brought to life in 1981...

Similar Documents

Free Essay


...but rather the emotional turmoil that may occur. Consequences are always inevitable and may change a person’s life forever. To drink underage because it is seen as “cool” is not reason enough to risk changing one’s life. First, drinking before the age of eighteen brings emotional consequences involving parents, teachers, and other adults, along with the possibilities of getting in trouble with the law. Once the choice to drink while underage is made, it opens life up to more difficult decisions later on. For example, one Saturday night in the middle of winter, we planned a party on Buck Hill. We called such events “kegger parties” while I was in high school: a social interaction for those who wanted to drink and could go where the beer was available. We partied until the keg was gone, and all the rest of the alcohol that was around was cashed. I could not drive home; I could barely climb the hill to the car, much less drive. I got home safely anyway, and before curfew. I was freezing, though, and I thought, “What better way is there to warm up but with a hot bath?” I made it past Mom and Dad, stumbled up the stairs, and started my bath. The next thing I knew, my mom was shaking me awake. I discovered I had passed out in the bathtub—so much for making it past Mom and Dad. I got in a lot of trouble. I definitely learned from the...

Words: 277 - Pages: 2

Premium Essay

Corona Beer

...Corona Beer "A multi-country strategy is appropriate for industries where multi-country competition dominates and local responsiveness is essential. A global strategy works best in markets that are globally competitive or beginning to globalize." Corona Extra has been the world’s fourth best selling beer in terms of volume in 2005 due to its strategy in differentiation. Corona marketing campaign of “fun in the sun” and its light and citrus flavor helps products to expand its target customers far beyond its competitors. However due to merger and acquisition that occur in the industry, Corona needs to adjust itself in order to sustain its growth and improve its competitive position. 5-Force Analysis Rivalry (High Threat) * There is competition from both domestic products and import products as well as threat from merger and acquisition which large company may dominate the industry as they might gain advantages from cost efficiency and market share after merging. New Entrants (Low Threat) * There is low threat from emerging entrants since the large companies will have advantages in economy of scale. Also new entrants will need to have heavy start-up cost of capital. Substitute (High Threat) * High threat from substitute because there are various kinds of liquor in the market. Altogether with non-liquor drinks in the market are also considered as substitutes for beer. Consumer (Moderate) * Since there is price sensitive for beer in the market, company needs......

Words: 417 - Pages: 2

Premium Essay


...Greaves Brewery is a small producer of lagers and ales located m Trinidad. Alex Benson, the purchasing agent, IS trying to determine how many reusable bottles to order from Greaves Brewery's German glass supplier. The decision this year is complicated by the possibility that a new bottle design could be introduced that would make all existing bottle inventories obsolete. In the past, however, Benson had delayed production by not ordering enough bottles to keep up with demand. The case provides an opportunity to employ a number of forecasting methods and the challenge of integrating the forecast with the bottle purchase-quantity decision.  The case study should consist of a three to five page paper, double-spaced pages of narrative in 12-point font. Exhibits in the form of calculations, tables, charts, graphs, etc., may be added to the five page narrative to enhance your discussion.  See “Case Analysis and Presentation” for guidance  1. Investigate the potential to apply various time series forecasting approaches, including exponential smoothing.  2. Discuss the benefits and limitations of time series forecasting for this application.  3. Introduce the challenges involved in managing reusable inventories that spend most of their time in the possession of customers.  4. How many thousand cases will Greaves Brewery sell in the next year?  5. Map the flow of reusable bottles.  6. Use the map, the forecast and other relevant case facts to predict the......

Words: 548 - Pages: 3

Premium Essay

Should the Drinking Age Be Lowered to 18?

...the U.S. should be lowered to eighteen for the sake of the people, the economy, and safety. When a male or female turns the age of 18, they now reserve the right to serve in the military. When war broke out with Iraq, people were chosen to go over that just turned the age of 18. In the book “An Angel in Hell” by Ryan A. Conklin, he stated “he would always wake up hoping that that day was not the last day he would be on this Earth. He was always on high alert while on patrols, dodging bullets and shooting his own gun just to stay alive.” He also said, in his book, “that he found it odd and annoying that he could see all of these horrific things while being deployed in Iraq but since he was only 20 years of age he could not enjoy a simple beer when he would return to the states on leave.” This is one reason why the drinking age should be re-evaluated for change. Men and women in the army deserve a privilege when they return. Because they can go fight in a war at 18, they should be able to...

Words: 1623 - Pages: 7

Premium Essay

Global Forces and the Western Euoropean Brewing Industry

...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 al (2008), Porter’s five forces framework was developed as a way of assessing the attractiveness (profit potential) of different industries. They......

Words: 1160 - Pages: 5

Premium Essay

South Dakota Microbrewery

... As Exhibit 1 shown, I first calculate the predetermined overhead rate, which is $15.57 per direct labor hour. And I distributed the dollar amount to different proportion based on Direct-Labor hours to get the overhead cost. Sum the overhead and direct cost to get the total cost; this will be the total cost of producing a batch of beer label. Therefore, we need to divide them up by the bottle per batch in order to know the cost per each bottle for each label. As shown in Exhibit 2, I have determined the allocation rate of each cost driver, and that will allow me to assign them to different cost pool; base on the activities. Adding up all the number I assigned, will give me the overhead cost for each label of a batch. Sum the number up with the direct cost as I did in Exhibit 1, in order to get the cost per batch and per bottle for each beer label. 2. To find gross margin for each batch, we need to know how much they earn by selling one single beer. Use the information from Exhibit 1 and 2; we can know the total cost of each bottle of label. Take away the cost from the selling price, and it will give us the gross margin of selling one beer. Multiply the number to the “number of bottle in a batch”, to get the gross margin for a batch. 3. The benefits of using Plant-wide allocation based method are that, it is simple and easy to calculate. It doesn’t give a really terrible result, it is totally usable with a smaller size companies with smaller amount of......

Words: 1726 - Pages: 7

Premium Essay

Alcohol Advertising

...Alcohol Advertising Television is the number one spot where advertisements are released because of the variety of age groups that it reaches throughout the United States. “Average number of hours per week that American youth ages 12-17 watch television: 20 hours, 20 minutes,” (CERC, 1998). Although Television is the most effective way to advertise products because of how much it is consumed and how large of an audience it captures, does it attract individuals who were not intended to be targeted when it comes to alcohol advertising? Advertisements centered on alcohol have proven to attract all races, both the male and female gender, and all age groups, especially those who are underage. The marketers of alcoholic products have succeeded with these advertisements, but have also created a negative impact to many individuals that have experienced this product. Although it is clear that alcohol industries aim to only increase market share and not necessarily increase the number of underage drinkers that their commercials attract, research has stated that this is, in fact, the direct outcome. Alcohol advertising has also shown to attract low income and minority groups. The television networks are fully aware that because of this specific advertising, it could be causing greater harm then what is intended. “Alcohol marketers say they have voluntary standards that prevent them from targeting consumers younger than the legal purchase age. They claim to avoid pitches that primarily......

Words: 2468 - Pages: 10

Premium Essay

Binge Drinking

...BINGE DRINKING I am a previous alcoholic. When I was in the service and before I met my wife, I could kill a 24 pack of beer every night. It caused me a lot of problems such as financially and socially. I was not as popular as I thought I would be if I drank a lot. The financial burden was the worst. I never bought anything, but alcohol. Also, I never had any money even though I just got paid because I had drunk away my whole paycheck. I honestly feel that if I had gone to college instead of joining the Army, I would have failed and ended up dropping out because of alcohol. I finally straightened up my act when I met my wife. I realized that I had someone else besides myself to take care of financially and emotionally. Yeah I have a beer or a drink about once a year, usually on my anniversary or birthday, but that is it. After realizing that I could live a fulfilling life without alcohol in it, I am much better off. Binge drinking is a major problem on college campuses. Yes, binge drinking can be fun. Binge drinking is a problem because it is very detrimental to your health, goals in life may also be affected, and social life being influenced. Some of the major health issues that are introduced by binge drinking are alcoholism, liver disease, alcohol poisoning, maybe even death. According to The Center for Disease Control (CDC) “It is estimated that more than 38 million US adults binge drink, about 4 times a month, and the largest number of drinks per......

Words: 778 - Pages: 4

Premium Essay

Community Health

...Community Health Advocacy Project: Teenage Substance Abuse NUR 544 October 1, 2012 Community Health Advocacy Project: Teenage Substance Abuse The aggregates teenagers/ adolescent and substance abuse the prevalence of alcohol use among teens mixing the effects of alcohol shifts teenagers toward risky and violent behaviors. Alcohol and any substance can cause impaired judgment and slow reaction time which provides more of a detailed explanation on why major factors have teen motor vehicles crashers, homocides, suicides, and drowning’s include some type of substance. Substance abuse among teenagers has been linked to early sexual intercourse, date and acquaintance rapes, unplanned pregnancies, sexually transmitted diseases, fights and community property damage (Nissen, L. (2007). To understand the community’s perspective of the health status, the services used or required, and concerns. Data collection is needed directly from the aggregate, which can be more insightful and accurate. The survey tool that is specifically created for the teenage aggregate population contains demographics data to help the researchers to determine if there is a gap in services that are needed. The tool created would be used in focus groups according to Nies and McEwen (2011), “these can be very effective in gathering community views, particularly for remote and vulnerable segments of a community and for those with underdeveloped opinions. Focus groups can produce greater interaction and......

Words: 2501 - Pages: 11

Premium Essay

Mountain Man Brewing Company

...decline in annual sales of 2% from 2004-2005 and is struggling to maintain its market share in the premium segment of the beer market, where other companies have disappeared. Chris is concerned if he could reposition the brand to drive sales of Mountain Man Light to young people without eroding the core brand equity of Mountain Man Lager (MM). 2. SITUATION ANALYSIS Company * Independent family business in West Virginia, with 1.4% market share and a well established reputation throughout the East Central region of the United States. * MM beer is recognized as a traditional high quality beer in the region, with high brand loyalty. * MM had not expended its product line beyond its flagship lager product. * Invested in a number of branding activities to build “brand equity” with core customers. * MM sold 70% of its production in off-premise locations through its small sale force. * Although MM is a brand with high awareness, it is not appealing to everyone. Customers * The core consumers are Blue-collar, middle to lower income men over the age of 45 in the East Central Region. * They have high brand awareness and 60% of them purchase their beer in off-promises locations. * They are in strong aging demographic tendency and spend less on alcohol than younger drinkers, between 21 -27 years of age Competition - The mature beer industry in the US falls into four categories and is highly competitive. 1. Major Domestic Producers (74% in......

Words: 1144 - Pages: 5

Premium Essay

Mountain Man Brewing

...Man Brewing Company’s (MMBC) one product offering-Mountain Man Lager. After reviewing MMBC’s current state of affairs and analyzing it with different marketing tools and financial forecasting, I recommend that MMBC move forward with a premium light beer product, start research and development on a recipe and retain a marketing firm to help build brand awareness in 2006 and launch in Q1 2007. A premium light beer will not only capture a new demographic by extending the MM Lager brand, but will steadily and profitably replace the 2% annual decline in Lager revenue. (See exhibit 3). In order to defend my recommendation, I utilized a few different assessment tools including a Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis (See exhibit 4). This analysis quickly pointed out areas of brand strength and the opportunities available in diversifying the product portfolio. Additionally, both the threats and weaknesses detail the unfavorable position the company faces when launching the light beer line. I also performed a portfolio analysis incorporating the product/market expansion grid which allowed me to outline market segmentation and product positioning. I concluded with the product lifecycle and the revenue light beer would generate by forecasting both Lager revenue decline and 5% and 20% cannibalization rates. (See exhibit 3). Recommendation Support MMBC has done a terrific job holding market share against better funded national brands with its core......

Words: 2261 - Pages: 10

Premium Essay

Mountain Man Brewing Company Case Study

...has caused MMBC’s decline in spite of its strong brand? 3 Should MMBC introduce a light beer? 4 Is MM Light financially feasible for MMBC? 5 Break-Even Point (BEP) Analysis 6 MM Lager Cannibalization 6 MM Light Marketing Strategies 7 Exhibit 1 – SWOT Analysis 9 Exhibit 2 – Financial Data and Assumptions 10 Exhibit 3 – Break-Even Point (BEP) Analysis Calculations 11 Exhibit 4 – MM Lager Cannibalization Calculations 12 Exhibit 5 – MM Light Marketing Strategy 15 What is the current situation? Mountain Man Brewing Company (MMBC) is a family business founded in West Virginia in 1925 by Guntar Prangel. The company is now operated by Guntar’s grandson, Oscar. Oscar’s son, Chris, is slated to inherit the business in five years when his father retires. Mountain Man (MM) Lager is the flagship product and the only beer currently produced by the company. The recipe for the lager was based on a refined family recipe and is known for its flavorful, bitter taste. By the 1960s, the lager had established itself as a legacy beer with a rich history, and the company continues to maintain its independent, family-owned status which appeals to its core drinkers. By 2005, the popularity of MM Lager in the East Central region of the U.S. had grown to generate revenues of just over $50 million, and the beer held the top market position among lagers in West Virginia. MM Lager won “Best Beer in West Virginia” in 2005 for the eighth year in a row. What has made MMBC......

Words: 3340 - Pages: 14

Premium Essay

New Belgium Brewing Case Analysis

...largest overall.  Annual production of beer is less than 6 million barrels.  Currently New Belgium sells beer in 31 states and the District of Colombia.  In 2013 they began shipping to Alaska and Louisiana and Florida is soon to follow.  They have seen consistent growth year over year.  In 2006 NBB produced 437,000 barrels of beer.   In 2011 the company produced 713,000 barrels.  The company waste diversion efforts are paying off.  In 2011 94.38 the latest waste diversion is 94.38% diverted and 5.62% landfill as opposed to 88% diverted and 8.5% landfill in 2009.  Energy consumption is seeing a reduction each year.  Energy reduction has gone from 158MJ/hl in 2008 to 138MJ/hl in 2011.  This can be partially attributed to the November 2009 implementation of the largest private array of photovoltaic solar panels in Colorado.  The 870 panels mounted atop the bottling plant produce 200kW of power output helping to reduce power consumption from the grid.  In March of 2012 New Belgium Brewery launched it can line to tap into a new market.  In April of 2012 the  company chose Asheville North Carolina as the site for their East Coast Brewery.  In January of 2013 New Belgium Brewery became 100% employee owned and lastly in April 2013 they completely commit to the technology trend by releasing a mobile app for Android and iOS.([->0]) Strengths Strong brand loyalty Well treated employees who enjoy their job Extensive line of different beers Respected company because......

Words: 2316 - Pages: 10

Premium Essay

Business Plan

...2011 Business Plan B.O.S.S. Brewers – Brew On Site Specialists Retail Brewers Supply Company GM600 – Capstone Instructor – Rich Ottum June 18. 2011 Management Team Charles, Mills, Todd Powell DeAdria Walton, Julie Weglewski Daniel Zimbardi B.O.S.S. BREWERS BUSINESS PLAN Table of Contents June 18, 2011 Executive Summary................................................................................................................. 4 Overview............................................................................................................................. 4 Vision and Mission .............................................................................................................. 4 Marketing P lan .................................................................................................................... 4 Operations Plan ................................................................................................................... 4 Financial Plan ...................................................................................................................... 5 Marketing P lan ........................................................................................................................ 8 Marketing Opportunity ........................................................................................................ 8 Service Description.........................................................................................

Words: 13887 - Pages: 56

Premium Essay

Labatt Blue Case Study creating an image to attract a target market. Budweiser and Bud Lite are popular brands in the NFL and NASCAR, and true fans will then purchase those specific brands. It becomes their brand of choice. Labatt Blue had sponsorship ties with the NHL and Canadian teams and the CFL and several teams but recently, Molson has taken over the sponsorship of The Toronto Maple Leafs, which Labatt used to have. This was a huge loss for the company as Toronto is the largest city in Canada and generates one-fifth of the gross domestic product of Canada. This being said, The Air Canada Center sells Molson Canadian rather than Labatt at hockey games. There are 18,800 seats at the Air Canada Center, and say at least 16,000 people purchase at least one beer, which costs $8.00, that is $128,000 in sales that Labatt...

Words: 2004 - Pages: 9