Brewing Change at Breckenridge Brewery INTRODUCTION Breckenridge Brewery is a craft brewer which was established by Richard Squire. Richard turned his passion for brewing good home made beer into a lucrative business. In 1989, he started his first Breckenridge Brewery and Pub at Breckenridge which has a production capacity of 3,000 barrels per year. During his first two years in business, he sold out the brewery's annual maximum capacity. He opened a second brewery and brew pub in Denver in November 1992. By the end of 1994, even this brewery failed to satisfy the increased demand and plans were made for a new brewery which opened in May 1996 in Denver. This brewery had a maximum output of 60,000 barrels per year after expansion. In the mid 1990s, Breckenridge Brewery started expanding eastwards and their first brewpub outside Colorado opened in Buffalo, New York in December 1995. Five other brewpubs were subsequently opened in other states. However, from its opening till 1997, the brewpubs have not turned in a profit although the main brewery was making money. Richard believes that his vision for the company, a two-tiered concept with a top microbrewery producing fresh, quality beer and a chain of brewpubs, has potential. However, due to the more complex nature of running a restaurant, he believes that the company has yet to figure out how to run its restaurant business profitably. The company is now at the crossroads. Richard is in a dilemma as to whether to continue the brewpub business or to give it up and just concentrate just on brewing beer. He is also unsure about bringing in new leadership to help solve the company?s performance problems. THE EXTERNAL ENVIRONMENT A firm?s external environment is divided into three major areas : the general, industry and competitor environments. Below is an elaboration in further detail regarding the firm?s opportunities and threats in these three environments. Opportunities in the General Environment The United States of America has a population of 260 million people. This is a big market with substantial purchasing power. As of 1997, Breckenridge Brewery has only expanded eastwards and the west side of the country is relatively untouched. According to Exhibit 2 in the case study, there were only distributors in 32 states and that leaves a potential to sell to the other 19 states as w... ... middle of paper ... ... a year. To cater to increased demand, the company can consider acquiring other breweries that are going out of business and that will see substantial savings on capital investments. It will be advantageous for the company if they can project themselves as responsible corporate citizen and an environment friendly company. Social enrichment schemes, recycling schemes and educational funds can be initiated to cater to this cause and long term goal. CONCLUSION Breckenridge Brewery has a strong business in brewing beer. Due to the lack of professional management expertise and venturing into the wrong business, the company has not been able to turn in a profit. It is important that the company try to resolve these problems as soon as possible. Only then, will the company get out of the red and hopefully, move on to a higher level. Works Cited: 1. Hitt, Ireland and Hoskisson (2005), Strategic Management : Competitiveness and Globalisation, 6th Edition, Thompson & South-Western. 2. Thompson and Strickland (2002), Strategic Management: Concepts and Cases, 13th Edition, Chicago Irwin Publications. 3. Yip, G.S (2003), Total Global Strategy, Prentice Hall.
The company launched an initiative collaborating with the “Lyft”, which will provide free rides for drunk customers [8]. This indicates the amount of dedication the company has towards its customers. It also provides tours to customers across the 12 flagship breweries in the United States [9] and would also help customers with samplers. Any company that values its customers would become a great success and Anheuser Busch has proved this again. It also values its employees making sure every one of them feels like an owner and everybody would work as considering the results to be personal [10]. All these put together has helped the ANHEUSER BUSCH to brew beers that are loved by their customers and in making it the leader of its domain of
This report addresses the issue of whether Amsterdam Brewery should invest and promote new products or continue to focus on current products. And, whether Jeff Carefoote should pay attention to whole brands or spent expense to increase brewing capacity. The report describes a strategic plan to ensure Amsterdam Brewery’s competitiveness in the market.
Anheuser-Busch has been the nation’s largest brewer for more than 40 years. In the mid-1800’s Adolphus Busch became familiar with the beers of a small Bohemian town called Budweis. After immigrating into the United States he married into the Anheuser brewing family. In the 1870’s Adolphus Busch registered Budweiser as a trademark in the U.S. Adolphus Busch dubbed his company Budweiser, “the king of beers.” Budweiser is a registered trademark of the St. Louis-based Anheuser-Busch, One Busch Place, St. Louis, Missouri 63118-1852, which is the world’s largest brewing company. Budweis is a small brewing town in the Czech republic. The town has a 700-year-old history of beer brewing. The brewing company Budvar of Budejovice registered Budweiser as a trademark in Europe in 1895. Budvar’s Budweiser is considered by beer experts to be a greater beer than the American Budweiser. Czechs are very proud of the Budvar brewery and considers its beer to be a national treasure. In the days before a global marketplace, the American Budweiser and the Czech Budweiser have never really competed with each other. However, in the 1990’s with increased global competition in the beer market, this dispute over who actually owns the Budweiser name takes on increased importance. According to a 1958 agreement signed by the Czech government, brand names that denote geographic origin are protected. So the Czech government which owns Budweiser believes that they should be the only ones allowed to carry that name in Europe. However the United States did not sign that treaty in 1958, so they do not agree with this. They have decided that it was no longer necessary for them to have a trademark settlement to develop the American Budweiser business in Europe.
...erage, food and hospitality businesses. In 2012 the Samuel Adams Brewing the American Dream went national. In the year 2012 alone, along with one of their partners Accion, they were able to give out 83 loans which totaled approximately $830,000 to businesses in twenty-two states. This helped to create and retain over 300 jobs. In the five years since beginning this program, they have given out 220 loans that totaled almost $2 million. This is estimated to have created and retained 1,400 jobs. This would result in Boston Beer Company creating more jobs outside of the company than they did inside.
An evaluation of whether or not to launch Mountain Man Light. I will explore the pros and cons of creating a light version of the brew and other strategic options for growth if this brand extension is not launched or if the launch is unsuccessful. I will demonstrate that launching a light beer product shows promise for improved profit through 2010, but that another strategy should be under development during that time frame if MMBC wants to remain competitive for the long term.
Heineken was established in the United States in 1863 and in a short time it became the world’s largest brewer with 116.8 million barrels of beer sold.
The Boston Beer Company is able to obtain relatively low-cost funds for their working capital and expenditures. The company is constantly in search of the lowest cost items without suffering the quality of their products. The company has thrived and has been able to expand to become successful due to their ability to achieve this.
s New Belgium’s distribution continues to expand, their branding needs to continue to expand also. Their ability to sustain is partially due to good advertising and branding. Whimsy and fun are good focuses when it comes to beer. When one thinks of beer you think of having a good time. Good times, laughter, and entertainment all come to mind when thinking about advertising or branding of beer. Instead of focusing on their Colorado based culture, they should make this message of sustainability, whimsy, and fun a more universal one. Their advertising and branding setting should be based in a common place that can be Anywhere, USA.
In 1916, there were 1300 breweries producing full-strength beer in the United States; 10 years later there were none. (Blocker 6)
Adolph Coors is one of the most successful and long-standing brewing companies in the industry. Their ability to adapt to the changing dynamics and circumstances of their consumers has supported their achievements since their opening in 1873. Maintaining success in any industry for over a century requires constant innovation and a dedication to improvement and development. While Coors’ overall history depicts their evident care and ability to give consumers what they want, sometimes before they know they want it, there was a period in which their lag in progression could have more greatly affected their business. From 1975-1985, the fourth generation of the Coors family redeemed the company from their period of reactive business decisions
After 1996, the U.S. beer industry had consistent growth with about 3,500 brands on the market in 2002 (Alcoholic Beverages, 2005). The U.S. exported beer to almost one hundred countries worldwide. The beer industry peaked production with 6.2 billion gallons in 2003 (Alcoholic Beverages, 2005). The U.S. beer industry haws over 300 breweries. However, this industry is dominated by three companies: Anheuser Bush (45% of the industry), Miller Brewing (23% of the industry), and Adolph Coors (10% of the industry) (Overview of the U.S. Beer Industry, 2005).
Strives to be the leader in micro brewing while maintaining the core values it started with and had employee buy in even before it went” 100 % employee owned in2013” (Gorski, 2013).
Deutsche Brauerei has been a family owned and operated corporation for 12 generations, which has created a high level of focus and control. Each generation has kept the management and operations processes relatively simple, centered on brewing practices and quality. Deutsche Brauerei’s rapid growth in recent years can be attributed to several factors. First and foremost, the company’s success is centered on the product itself, which has won numerous quality awards and is quite popular in Germany. Another contributing factor to the recent growth may have been a bit inadvertent. The purchase of new equipment in 1994, which was necessary as a result of a fire that destroyed the old equipment, allowed the company to increase brewing capacity and efficiency. Finally, Deutsche Brauerei’s decision to enter the Ukranian market in 1998 contributed significantly to the rapid growth. The collapse of the U.S.S.R. brought market reforms, and Deutsche Brauerei jumped on the opportunity to enter the fragmented beer industry, capture the large population and capitalize on the prime location in Europe. Lukas Schweitzer was savvy enough to hire local expert Oleg Pinchuk away from a competitor as the marketing manager, and Oleg was instrumental in building the business in Ukraine by securing accounts and implementing the field warehousing to support distributors. Deutsche’s beer was hugely popular in the Ukraine almost immediately, and volume sales more than offset the depreciation of the Ukrainian currency. Sales in Ukraine accounted for 28% of Deutsche’s total sales, and skyrocketed from 4,262 euros in 1998 to 25,847 euros in 2001.
The Brewing Industry is a global business that produces and sells beer, with more than 133 billion litres of beer sold per year and revenues of $294 billion dollars in 2006. In 2015 there was a 12.8% rise in craft beer sales in the United States, with the craft beer market worth $22.3 billion dollars (The Brewers Association, 2015). The Brewing Industry is made up of numerous multinational companies that annually produce hundreds of millions of beer barrels, and just in the United States sells over $100 billion dollars in beer per year (Beer Institute Annual Report, 2014). In the United States, the individual who is in charge of the production of beer is known as the Brew Master. From 4% to 6% (abv) is the common strength
Hitt, M., Ireland, and Hoskisson, R. (2009).Strategic management: Competitiveness and Globalization, Concepts and Cases. In M. Staudt & Stranz (Ed.