Forked River Brewing Company Case Summary

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Key Issues One of the key issues Forked River Brewing Company will face is the distribution channels of bottled beers. Although the operations of retail sales ran smoothly in the past, the company still need to focus on the problem in the future. The sales through LCBO and Beer Stores are limited because of limited shelf space. In order to enlarge customer base and increase sales, the company should solve the problem in the future. Another key issue is the high tax rate on alcoholic drinks if they produce more than 50,000 hectolitres. If the company keep growing, they cannot control their production under 50,000 hectolitres in the long term. Therefore, the high tax rate cannot be avoided and the tax will have a big impact on the profitability of the company since they were paying only one-10th of what large beer enterprises pay.
Implementable Strategic Alternatives
Alternative #1: Focus differentiation and creating a joint venture with Molson Coors Canada with more than 51% of the total shares. The company will keep focus on the craft beer industry and differentiate their products in the short run. One of the weaknesses of Fork River is distribution, they could overcome the problem with a joint venture with Molson Coors Canada. Molson Coors is one of the shareholders of the Beer Store which has a monopoly on selling …show more content…

During the first two-year cooperation, the company should distribute its products to Eastern Canada. The joint venture should sell the craft beers to the whole nation and expand its customer base. The Molson Coors Canada could help Forked River to advertise its high-quality craft beers using its high brand awareness. Forked River should learn advanced brewing technologies from Molson Coors to increase production volumes, improve product quality and reduce manufacturing

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