Case: New Belgium Brewing

Lazy Magnolia Brewing Company, located in Kiln, MS, is the first microbrewery in the state and specializes in manufacturing and distributing beers with distinct southern flavors. The brewing company, established in 2003, has found success within its home state and within restaurants and retailers situated in eighteen more states. These locations include the surrounding southern states and states as far north as New York and Illinois according to its website, Lazymagnolia.com. The following SWOT analysis will evaluate the internal strengths and weaknesses of the company as well as the external opportunities and threats experienced within the market and business environment.

Both systems have their advantages and disadvantages, the labor-based allocation method provides a fast straightforward method for businesses with labor intensive processes that in many businesses make up the majority of these costs. For this microbrewery however, especially within overheads the percentage of costs labor attributes towards is relatively minimal. Therefore reducing the effectiveness of such a method. ABC however represents a more in depth look at cost allocation and within such a business where there are a huge variety of factors involved looking at a more segmented form of activity based cost allocation is extremely important.

New Belgium brewery has increasingly grew throughout the years since their development in 1991. Despite the dominance of the “Big Three” (Budweiser, Miller, and Coors), NBB needs to be aggressive and strive to invest in the attractive beer industry in able to grow more. If positioned correctly, NBB and its main brand, Fat Tire, can continually grow. An evaluation of the industry, the business itself, its brands, and the customers and competitors is needed in order to be continuously successful.

1. What environmental issue does the New Belgium Brewing Company work to address? How has NBB taken a strategic approach to addressing these issues? Why do you think the company has chosen to focus on environmental issues?

First, they can try to reduce carbon footprint by better processing and producing the beverages; before doing that, they should go through the Greenhouse Gas (GHG) emissions assessment to know the size of a carbon footprint in the brewery. Reducing electricity and water bills would benefit the company too since it will save them money and energy. The CEO should also encourage employees to carpool together or take the public transportation since it is more "green" than everyone commuting to work in separate cars. Finally, they could put solar panels on the building, but it may be an expensive option. While addressing to climate change shows that the brewery gives attention to preserving nature, they may have to spend more money and time which might be a financial risk to the brewery. However, they may gain more customers so they would earn much more money

Molson Coors is a thriving international brewing company that has nine Signature Brew drinks and 123 Special Brew drinks that ranges from non-alcoholic to alcoholic (Molson Coors Brewing Company, 2016b). They have multiple markets around the world which contributes to the success of the company in the brewing industry. This report analyzes Molson Coors’ internal and external environments which determines their position in the brewing industry. It also discusses strategies the company uses in order to be successful in their industry. Molson Coors shares the industry with its main competitors but has its own uniqueness that makes its business stand out. Molson Coors is a successful business that presents opportunities for economic growth.

1. What environmental issues does the new belgium brewing company work to address? How does NBB taken a strategic approach to addressing these issues? Why do you think the company has taken such a strong stance toward sustainability?

The Adolph Coors Case Study proved the dedication and self-reliance Coors brings to the beer industry. Having overcome great adversity by surviving the prohibition years, Coors durability and sustainability are also complimentary points on the structure of the company. Coors is a family owned company that had humble beginnings in Colorado and within 100 years grew into a multimillion-dollar company. Coors’ controlled manufacturing process is a sign of their individuality in the beer industry, this was not an unknown fact, however, as they were receiving orders to ship Coors beer all across the nation as of 1972. The case study allowed an internal and external point of view, which was highly beneficial to properly analyze their upcoming problem within the company.

Let us face the fact, the world will not be around forever, but with the right practices we can keep it around longer. Big companies use big energy, they provide the public with many services and products, but need more energy to do it. The push to become more self-sufficient and use more renewable energy is stronger than ever. We are seeing the “go green” movement taking the US by storm with more and more companies each year deciding to make the switch. Companies are seeing that the public is very receptive to companies that are environmentally focused and conscious about communities. The New Belgium Brewing Company is special

New Belgium has created a mission statement that is implemented in every facility and among every worker within the company. The company embraces the idea that they are a small company and promotes the sale of their products by creating a mission statement that is appealing to customers. A well thought of mission statement serves as a guide for the company and customers to understand the direction the company wants to progress in as well as develop a company purpose (Bartkus, Glassman, and McAfee, 2000). New Belgium’s mission statement is “to operate a profitable brewery which makes our love and talent manifest” (Ferrell and Hartline, 2005, p. 354). Therefore, the mission statement is one way for the company to express how whimsy and fun the

1.  What has made the Mountain Man Brewing Company successful?   What is distinctive about MMBC’s product, customers and brand equity?

     In this paper I will be talking about the U.S. beer industry and in short an overview of the brewing industry worldwide. I will talk about the barriers to entry, economies of scale, government intervention, pricing, current market trends, product differentiation, and imports. The focus being mainly on the U.S. brewing industry oligopoly. The U.S. brewing industry has three major players: Anheuser-Busch, SAB Miller, and Coors/Molson. Anheuser-Busch is currently the largest brewer in the world, producing over 100 million barrels a year. Anheuser-Busch currently owns over 50% of the market in the United States, with Miller trailing behind at 20% and Coors at about 11% with the rest of the market occupied by imports and craft breweries. When analyzing any industry, how easy it is for newcomers to enter the market is a great importance. If there are high barriers to entry

Throughout most of its history, the Coors Brewing Company (Coors) has been a regionalized brewer within the United States, specializing in high-quality beer through by virtue of its source water selection, stringent production standards, and cold filtered brewing approach. As the company expanded its distribution to new markets within the U.S. in attempt to gain market share, it made a strategic decision to maintain a majority of its brewing operations at its primary production facility in Golden, Colorado. This decision was based upon the desire to preserve its core production strengths through close family control. However, as the company desires to expand its market presence beyond the

New Belgium Brewing Co. (NBB) is a craft beer leader that embraces sustainability and corporate responsibility. For New Belgium, social, ethical, and environmental responsibilities are as important to the company’s operations as profitability. For New Belgium, business is as much about improving the local community as it is about making beer.

Through their brand recognition, New Belgium Brewery has won the beer battle between most of their competitors. Beer connoisseurs know New Belgium Brewery by their infamous New Belgium Fat Tire. Fat Tire has helped New Belgium gain a competitive advantage because of the beers high demand. Also, New Belgium’s social responsibility is a major part of why they obtain the competitive advantage over their competitors. New Belgium is a simple company that portrays an economical friendly production, a strong family back- round, and consumer-based market strategy. New Belgium focuses on three responsibilities, social responsibility, employee responsibility, and environmental responsibility. Also, because of their focuses, they have become one of the top competitors to other craft beer