...Cresente G. Siglos Jr. MBA 231- StratMan Brewing Change at Breckenridgre Brewery Summary of the Case Back in the 1980s, founder Richard Squire was your typical ski bum – with one significant difference. He had a knack for making extraordinary home brews. For years, only his closest friends were able to enjoy his creations, but it didn’t take long for Richard to realize that his talents needed to be shared with the world. Craft Brewing represented a “blend of art and science” where focus was on variety, freshness, and quality. By only using the purest and finest ingredients, no adjuncts, and no pasteurization, these brewers felt that the quality of craft beers stood apart from the mass production of other more prominent beers. In 1994, Ed Cerkovnik joined Breckenridge Brewery as a 50/50 partner. Most of the people at Breckenridge Brewery agreed that Ed was “brilliant” and looked to for leadership.” Since his arrival at Breckenridge Brewery, Ed had provided legal counsel, credibility with various sources of financing, as well as deals structuring and negotiating skills, and had been looked to as the unofficial COO of the company. Ed had been a partner in the law firm that represented Breckenridge Brewery when he decided to make the move from law to business. Richard provided a great deal of vision and creativity while Ed provided discipline and strong analytical skills. Ed’s first tasks were to consolidate ownership, raise new capital, and solidify license and development...
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...African Breweries 1. How is the competitive environment changing in South Africa and Tanzania for the brewing industry? 2. Complete a strategic assessment of SA Breweries. 3. What do they need to do to adapt to the changes in the environment and develop a sustainable competitive advantage in Tanzania? 4. Figure out the most important strategic actions that need to be done. Why are these actions the most important strategic actions? 5. Plan out the strategic actions for implementation over the next several years. Operational Excellence – to put affordable beer within arm’s reach of all consumers by means of efficient beer production and distribution. Benchmarked against worlds largest brewers. Invested a lot in production and the packaging process. Now among the world’s most efficient brewers. They could lower the cost of beer. 1970-1990s beer prices dropped by 1/2 . early 1990s they developed a system for tracking beer products through the entire chain from brewery to retain outlet. They promoted from within and gave people the opportunity – many of their distributers were former employees who they gave a chance. They were faster which was in line with their “emphasis on product quality and freshness”. Distribution strategy facilitated segmatenation of their customers 2 segments of customers 1. on-premise concumption (sheneems, pubs and resto) 2. off-premise consumption (liquor stores, small shops) segmentation gave them into on the changing...
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...Opening the third brewery would bring exciting opportunities as well as challenges. It depends on outweighing the pros and cons, such as how the new leadership will function. Advantages and disadvantages will help determine if the new brewery should be opened or not. There are several pros to expanding into a third brewery such as a decrease in traveling distant for the dispensing of the merchandise, therefore receiving the shipment fast and reduce fuels as well (Ferrell & Hartline, 2014, p. 359). Jobs will increase tremendously which will increase sales and revenue for the company and the local town (Ferrell & Hartline, 2014, p. 359). When you have an increase in sales the encounter remains to stay culturally authentic, challenging and to continue to develop yet stay humble to the genuine quality product that the company started with initially (Ferrell & Hartline, 2014, p. 359)....
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...30 Stephen E. Barndt aul Shipman, Chief Executive Officer of Redhook Ale Brewery, knew that he needed to reevaluate his strategy and its execution. Redhook's rapid growth had ended shortly after it invested in a major increase in production capacity. Operating at about 50% of production capacity, the company suffered a net loss in 1997 that continued into 1998. Redhook brewed only specialty beer, referred to as craft beer. Craft beer is a more flavorful, fuller bodied premium beer. follows traditional old world brewing methods. and uses high-quality materials. The company started as a microbrewery but grew continually and reached national status by the end of 1996. Shipman, one of Redhook's founders, had guided the company from a small player in one city to a leading position as a national competitor and aimed at dominating the craft beer segment of the domestic beer industry. The company's three small-batch breweries. two in the Pacific Northwest and one in the Northeast, had a combined design capacity of 575.000 barrels (each containing 31 gallons) per year of Redhook branded beer to tap a growing market for craft beer. However, growth in the craft beer market attracted attention, and competition grew from other microbreweries, brewpubs, regional specialty brewers, and from large mass-market brewers. With increased competition, 1996 saw the beginning of a downturn with a reduction in sal•• ~and profitability. P I Ccmpany History Redhook was started in 1981 by Paul...
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...1. Company Introduction - TSINGTAO Brewery Co., LTD History. Tsingtao Beer, one of the oldest brewery brands in China, can trace its colonial roots back to 1903, when German forces occupied Qingdao (Coastal city located in Shandong province in China). Beer businessmen from Germany and British founded the Tsingtao brewery factory in Qingdao and started to brew in the European way. Since Japan seized China from Germany during the First World War Japanese took the control of Tsingtao from Germans and run the company in effect until 1945. As the People’s Republic of China was established in 1949, Tsingtao became state-owned enterprise. It was privatized in 1990s with the formation of Tsingtao Brewery Company Ltd. and then issued H-shares in Hong Kong which were listed on the Stock Exchange in 1993, being the first domestic enterprise listed on an overseas stock exchange. Following this, in the same year Tsingtao issued A-shares in China, which were listed on SSE. Shareholders. When Tsingtao was listed on Hong Kong stock market, Anheuser-Busch, the world biggest brewery, acquired 4.5% of shareholding in order to enter Chinese market and extended its shareholding to 27% in 2002. As the Interbrew, Belgium brewery company, merged Anheuser-Busch in 2008, Japanese Asahi group replaced ABInBev’s position with about 20% of shareholding, which is the 2nd largest majority shareholder after Tsingtao Group. (Please see the appendix 1, “Shareholders”) Performance. At present, Tsingtao...
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...Asahi Breweries Introduction Asahi Breweries is Japanese beer producer with a long history of operations since 1949. Prior to 1949 Asahi Breweries was a part of Dai Nippon, a large conglomerate of dif-ferent companies. After the defeat in World War II the allied forces forced Dai Nippon and other dominant companies to split. Dai Nippon Breweries was split into Sapporo Breweries and Asahi Breweries in 1949. At the time of split there were three major players in Japanese beer market – Sapporo Breweries, Asahi Breweries, and Kirin Breweries. Each of the brewer-ies roughly occupied about 1/3 of the market share. However in 30 years beer market in Japan has changed. Kirin Breweries was the biggest mover in the market during that period having increased its market share from 25.3 percent in 1949 up to 63.8 percent by 1976. Japanese culture is characterized by conservatism in everything even in beer. Lager beer has been the most popular kind of beer in Japan and by 1980s Kirin’s had used its commanding market share to capitalize on the lager beer and Kirin’s pasteurized lager beer became the industry standard. Asahi breweries in contrast were in a downward spiral – sales have been decreasing, expired inventories became a major problem that led to laying off 550 employees out of total 3200. Analysis Asahi Breweries were able to turn things around with the help of revolutionary presi-dents – Tsutomu Murai and Hirotaro Higuchi. Tsutom Murai became a president of Asahi Breweries in...
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...Asia Brewery 1. Short history/Milestones With Lucio Tan’s predominant desire to improve the Filipino beverage standards, he started out Asia Brewery, Inc. (ABI) and launched its first brand, Beer Hausen Pale Pilsen, in January 27, 1892 in Cabuyao, Laguna. In 1995, Manila beer was introduced, and 3 years after, Beer Pale Pilsen (now known as Beer na Beer), its most successful and most controversial brand, was launched. Due to the growing demand in the Mindanao market, ABI established its second brewery at El Salvador, Misamis Oriental, with a capacity of 2 million hectoliters of beer per annum. In the same year, the company expanded its product line from beer to non-alcoholic beverages, with the introduction of Summit Natural Drinking Water and Absolute Pure Distilled Drinking Water. The company further expanded its product line by introducing Colt 45, America’s Premium strong beer in 1995, which opened doors to many strong beer brand. In 1999, Beer na Beer was reintroduced in the market and won a gold medal in the Monde Selection in Brussels, Belgium. Pacific Iced tea was launched in the same year, which strengthened the position of the company in the market. In 2006, 100 Plus Isotonic Sports Drink and Cobra Energy Drink, both were targeted towards individuals with an active lifestyle, were launched. Further expanding its product line, the company introduced Coors Light and Coors Original in 2007 and Summit ZeroCal in 2008. Tanduay Ice was launched a year after, and the...
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...Green Flash Brewery ETH/316 November 22, 2013 Organizational Profile: Green Flash Brewery In the beautiful city of San Diego there is massive growth there for the beer industry. San Diego has become one of the leaders in craft beer in the entire world with nearly 100 breweries with many of those breweries containing highly sought after beer from connoisseurs all over the world. (San Diego Reader, 2013) One brewery in particular, Green Flash Brewery, places a very large focus on giving back to the community and the community has responded with an outpouring – pun intended – of support to the growing brewery. Green Flash Brewery was established in 2002 by former pub owners Mike and Lisa Hinkley and when a world renowned brewmaster Chuck Silva joined the company in 2004 the company grew exponentially and is now one of the largest breweries in San Diego. Green Flash Brewery specializes in bold beer that regularly wins awards and many beer festivals and competitions. The brewery didn’t really start to focus on giving back to the community until 2011 when their Director of Marketing was diagnosed with breast cancer. With the support of her family, co-workers, and surprisingly the beer community she was able to beat the cancer and the support from the community was not lost on Mike and Lisa Hinkley so they started their own beer festival called “Treasure Chest”. (KPBS, 2013) The brewery would reach out and create partnerships with other local breweries, restaurants...
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...Murai: (1982-1985) Very good as Instigator? Not much for vision; Used McKinsey work for strategy; Leadership style: - “Authentic?” - no prejudice; avoid “naked king” - Reputed as turnaround manager (Mazda experience) - Believed in empowering and people development? Vs. “upward looking” organization - “ignited middle management”, “prepares a positive environment and waits for subordinates to come up with the right idea”, ”accessible”, “cheerful”, “communicator”, “dauntless” - Decision by committee - Work by teams - Management by consensus – broad representation in surveys Accomplishments: - Focused on credo – highlighted organization departmental conflicts o Policies - 38 o Mission - 56 - Connected directly with managers; night time casual review of reading materials - Instigated action on McK recommendations - Setup action teams CI and TQC Financials: - Fixed culture and provoked action on turnaround - But neglected financials – not hands on enough Higuchi: (1986 – 1989) Leadership style: - Top-down, controlling - Ownership and decision making - Unconstrained scenario planning – “don’t worry about numbers”, “spend as much as necessary” o lowered personal risk (pg 60) - Emphasis on people – early raise, memorial, benefits - Personally managed investment portfolio Accomplishments - Action oriented...
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...New Belgium Brewery 1) What environmental issues does the New Belgium Brewing Company work to address? How has NBB take strategic approach to addressing these issues? Why do you think the company has taken such a strong stance toward sustainability? New Belgium Brewing Company strives to take an environment friendly approach to their manufacturing process and facility, focussing on reducing their carbon footprint and energy usage. They were the first-ever American brewery to fully incorporate a wind turbine as a power source versus the burning of coal. Other approaches included the addition of a steam condenser to recycle hot water for use around other areas of the plant and sun tubes which utilize natural sunlight to light the plant. Furthermore, their used hops and barley are saved for the use of feeding area livestock instead of being wasted. Employees are also encouraged to be individually conservative by riding their gifted “cruiser bikes” to and from work. It is our belief that the founder, Jeff Lebesch’s own personal values and love of the outdoors contributed to the company’s strong stance on sustainability. A long side that is the fact that adopting such sustainability measures will help to increase their bottom line. 2) Do you agree that New Belgium’s focus on social responsibility provides a key competitive advantage for the company? Why or why not? We believe that New Belgium’s emphasis on social responsibility provides a key competitive...
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...Strategy Advantages v Disadvantages 28 Space matrix 29 SWOT Analysis 30 IFE Matrix 31 Company Overview As the largest brewer in the world, Anheuser-Busch InBev (AB/InBev) has had quite an intense but creative history. In 1852, George Schneider, St. Louis brewer and saloon operator opened the Bavarian Brewery. Four years later, he expanded into a larger location for his brewery to operate due to positive production. However, shortly after the second opening financial problems resulted in Schneider having to sell his brewery to various owners. In 1860, as the brewery reached a worsening financial position, William D’Oench, a local pharmacist, and Eberhard Anheuser, a wealthy German-born soap manufacturer, purchased the brewery and saved it from bankruptcy (Anheuser-Busch, 2012). After nine years, D’Oench sold his half of the business and Anheuser became the sole owner of the brewery. Eberhard Anheuser’s son-in-law, Adolphus Busch, immigrated to St. Louis Missouri from Germany years prior to marry Anheuser’s daughter. Busch served in the American Civil War and shortly after that became a salesman for the Anheuser brewery. Adolphus Busch...
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...considered mutual and compatible in this approach, instead of simply addressing them as separate things. In other words, one need cannot be gained at the expense of the other (Human Resource Management... 6). The human resource manager in charge of the corporate office of a large brewing company, and also the manager that I interviewed, is Lori Fulmer. Mrs. Fulmer is the benefits and risk manager of Gordon Biersch. Organization Information Dan Gordon and Dean Biersch founded their first restaurant in Palo Alto in 1988. What began as a single restaurant brewery collaboration soon turned into a chain. A little over two years ago, Trolley Barn Breweries Holding Company, which consists of many Big River Grille restaurants, Rock Bottom, A1A Ale House and Seven Bridges Bar & Grille, purchased the rights to the Gordon Biersch restaurants. The new company still retains the Gordon Biersch name. The two founding members still run the brewery based out of Las Vegas, Nevada. The lucrative merger blends the West Coast brewing style, which uses the unique German style of brewing, with the one of a kind microbreweries of the East. This merger...
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...brewers don’t offer, tempting Americans to choose one. What people don’t realize is that America has a lot of good quality micro brewed beer that comes in more flavors and styles than imports have to offer and is a better quality beer. With the craft beer market rising rapidly in the United States, there is a colossal variety of tasty brew to be had. The trademark of craft beer and craft brewers is innovation. When people accuse American beer of being dull and boring, the first thing that comes to mind is big name breweries like Budweiser, Miller or Coors. Al Davenport says “What they don’t know is that the U.S. has an extremely rich and diverse craft-brew industry that produces, by many accounts, some of the best, if not the best, beers on the planet” (Davenport, 2012). Top American microbreweries like Shipyard, Dogfish Head, Stone and Sierra Nevada brew at the level of excellence beer enthusiasts’ love and exceed the quality of the very best foreign breweries. Craft brewers interpret numerous styles with unique twists of flavors and develop new styles that have no comparison to any other beer. With all the new microbrews being created it’s almost impossible to not to find the same,...
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...then conduct a comprehensive SWOT analysis for New Belgium Brewing. As of 2013, defined by the Brewers Association New Belgium Brewery is the 3rd largest craft brewery and the 8th 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...
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...Boston Beer Company Case Study Boston Beer Co. is a craft brewery with primary location in Boston, Massachusetts, which sold about 3.8 million barrels of its products in 2017. Their production consists of over sixty beers under the Samuel Adams brand, over ten flavored malt beverages under Twisted Tea brand and five hard sparkling waters under the Truly Spiked & Sparkling brand name. Majority of the beers produced by the company is positioned in the Better Beer category which includes craft brewers, domestic specialty beers and most imports. While the overall consumption of beer declined in the past decade, the consumption of high quality beers slightly increased, but this increasing trend is accompanied by large increase in the number of...
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