Beer Brewing

In: Other Topics

Submitted By superb0y
Words 439
Pages 2

Bettina Bastian wrote this case solely to provide material for class discussion. The author does not intend to illustrate either effective or ineffective handling of a managerial situation. The author may have disguised certain names and other identifying information to protect confidentiality.
This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western
University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e);
Copyright © 2014, Richard Ivey School of Business Foundation

Version: 2014-07-30

“I should have stayed in my own bar and had a beer,” Mazen Hajjar thought over carrots, nuts and a mojito when listening to the boisterous mix of post-punk and Arabic classics at a popular bar in Beirut’s main nightlife quarter, Gemmayze. It was an evening in February 2009, and Hajjar, one of the founders and owners of 961 Beer — 961 is Lebanon’s country code, hence the name for the first craft brewing company in the country — tried to gather his thoughts for a strategy meeting he would have with his partners the next day. Being disappointed with the quality of local beer, he had started his own brewery from scratch in 2006. The start-up phase took place under the most adverse conditions in terms of security and economic challenges. Bombs were shattering Beirut International Airport when Hajjar went ahead and registered his company. Although the 2006 war would negatively affect the country’s entire infrastructure and paralyze much of its economy,…...

Similar Documents


...History Beer began to be exported to India in the early days of the British Empire, including porter and India Pale Ale, also known as IPA. Although as alcohols are not unknown to India thousands of years ago.It is mentioned in some epics of India like The Mahabharatha, called "sura paniyam", which means a liquid that can potentially make the drinker unconscious. The first brewery in India was set up in Kasauli, in the Himalaya mountains, near Shimla, in the late 1820s by the Englishman Edward Dyer. Dyer's brewery produced Asia's first beer, called Lion. The brewery was soon shifted to nearby Solan (close to the British summer capital Shimla), as there was an abundant supply of fresh spring water there. The Kasauli brewery site was converted to a distillery which Mohan Meakin Ltd. still operates. Dyer set up more breweries at Shimla, Murree,Rawalpindi and Mandalay. Another entrepreneur, H G Meakin, moved to India and bought the old Shimla and Solan Breweries from Edward Dyer and added more at Ranikhet, Dalhousie, Chakrata, Darjeeling and Kirkee. In 1937, when Burma was separated from India, the company was restructured with its Indian assets as Dyer Meakin Breweries, a public company on the London Stock Exchange. Following independence, in 1949 N.N. Mohan took over management of the company and the name was changed to Mohan Meakin Ltd. The company continues to produce beer across India to this day and Lion is still available in northern India. Lion was changed from an......

Words: 2841 - Pages: 12


...Decision to be made Mountain Man Brewing Company is a family owned business that brewed one beer, Mountain Man Lager, also known as “West Virginia's beer”. Mountain Man Lager held the top position among lagers in West Virgina for almost 50 years and had respectable market share in most states. The company over the years relied on its history and its status as an independent, family owned brewery to create an aura of authencity and position the beer with its core drinker – blue collar, middle to lower income men over age 45. However, Mountain Man Lager was a legacy brew in a mature business. By 2005 Mountain Man generated revenue of just over $50 million and primarily distributed Lager in Illionis, Michigan, Ohio and its native West Virgina. However, the recent changes in the beer drinkers' preferences, the company is experiencing decline in sales. Over the previous six years light beer sales in the United States had grown at a annual rate of 4% while traditional premium beer sales had declined annually by same percentage. With this on going trend Mountain Man Brewing Co. was set to loose 2% each year annually, see section A. for projections for next 4 years. In the lights of such industry trend Chris Prangel, needs to decided whether to produce Mountain Man Light, a light beer formulation of Mountain Man Lager, in the hopes of attracting younger drinkers to the brand. Alternatives Mountain Man Brewing Co. has been facing serious challenges from maturing market and new...

Words: 1368 - Pages: 6


...Mountain Man Brewing Company: Bring the Brand to Light SWOT Analysis: Strengths Evidence Implications Well-known brand and experience Reputation; known as a quality beer. Enable to meet the needs of the consumers. Reduce take-up risk by customers Easy to convince retailers to stock your beer extensions. Introductory marketing need not create awareness. Possible packaging and labeling efficiencies. Brand loyalty With a rate of 53% in the East Central region. Mountain Man brand loyalty rate is higher than that of competitors (42% Budweiser and 36% for Bud light) Strong associations to Mountain Man Lager Brand Defined as for working-class, tough, down-to-earth and not ‘corporate’ but local, authentic brand with strong heritage. The young would not like to be associated with a “tough” and “old brand, while the old would not like to be associated with the young drinking “tasteless” beer. Weaknesses Limited economic resources Limited geographic coverage Strategy is not updated to the current market needs to reach Is this essay helpful? Join OPPapers to read more and access more than 650,000 just like it! get better grades out to potential customers. Grass-root marketing in building brand awareness. Mountain Man had always relied on grass roots marketing to spread its beer quality message by word of mouth. Opportunities New product (light beer) Overall shift of market to light beer due to changes in beer drinkers’ preferences. Light Beer......

Words: 328 - Pages: 2

Hudepohl Brewing

...Changing Environment of the Brewing Industry Consumer preferences are changing in the brewing industry. In 1978 total beer sales are as follows: premiums 48%, popular 30%, lights 10%, super premiums 5%, malts and ales 4% and imports 3%. The distribution channels for beer are also changing. 1978 retail sales are food stores 60%, on-premise sales 25%, other retail establishments 9% and liquor stores 8%. The demographics of beer drinkers are also changing with increased sales to women and white-collar workers. The sale of beer in kegs is declining. The top six brewers sell 10% of their beer in kegs. Large brewers that spread fixed costs over higher production dominate the brewing industry. The industry is moving toward vertical integration with brewers growing their own grains and producing their own cans. The break-even point for capacity utilization for breweries is 80%. Hudepohl’s Current Market Situation Hudepohl Brewing has been operating at 40% of its one-million barrel capacity since 1978 and net income had decreased by 35% from the previous year. Hudepohl’s current brewing costs are competitive with the national average. The majority of Hudepohl’s sales were in the city of Cincinnati (55%) and the metropolitan area (80%). Hudepohl markets five brands of beer. Tap, Hudepohl and Burger are popular priced beers and accounted for 80% of Hudepohl’s sales in Cincinnati. Hudy Delight, the Hudepohl’s recent entrant in the light beer field accounted for......

Words: 778 - Pages: 4


...master Frank Foulbert. (Green beer) The brewery is actually owned by the Mark Anthony Group, the leading distributor of wine and beer in Canada. Some people point out that Stanley Park Brewery is not a craft brewery at all, but a division of the same Canadian beverage giant that makes Mike’s Hard Lemonade and dozens of other products. (Green beer) Stanley Park was created over a century ago by an individual interested in protecting and dedicating land - “to the use and enjoyment of people of all colors, creeds and customs for all times.” –Lord Stanley Governor General of Canada, 1888.When the Belgian pioneer brew master frank Foubert established Stanley Park Brewery in 1897, he provided more than refreshment to park visitors. In doing so he became part of BC’s early economic foundation.(Stanley park brewery) The Stanley park brewery is a strange company, however it as the first sustainable brewery in Canada, I would like to share some information about its product to everyone. Though these information I know why people call the Stanley park brewery is the sustainable brewery. First of all they used the Shakes beer Mash Tun, it can reduce energy. Second they used Krones Lauter Tun, it can reduces effluent load on the waste stream. Third, Pre-run Tank can reduce energy consumption. Fourth, Stromboli Kettle can make lower worth evaporation. Fifth, Whirlpool can reduce effluent load. (Stanley park brewery) SWOT Analysis: Strengths 1. Brewing System: The Stanley......

Words: 3774 - Pages: 16


...Classification of Beer What's more refreshing on a hot summer day than a nice cold beer? Or how about drinking a nice cold one with some buddies after work at a local bar, sound nice doesn?t it? Beer has been around for many years and will probably be around for many more. A beer is any variety of alcoholic beverages produced by the fermentation of starchy material derived from grains or other plant sources. The production of beer and some other alcoholic beverages is often called brewing. Most every culture has there own tradition and the own take on beer, thus producing many different styles and variations. Simply put, a beer style is a label given to a beer that describes its overall character and often times its origin. It's a name badge that has been achieved over many centuries of brewing, trial and error, marketing, and consumer acceptance. There are many different types of beer, each of which is said to belong to a particular style. A beer's style is a label that describes the overall flavour and often the origin of a beer, according to a system that has evolved by trial and error over many centuries. According to the type of yeast that is used in the beer's fermentation process, most beer styles fall into one of two large families: ale or lager. Beers that blend the characteristics of ales and lagers are referred to as hybrids. An ale is any beer that is brewed using only top-fermenting yeasts, and typically at higher temperatures than lager yeast.......

Words: 1336 - Pages: 6

Aldrige Beer

...ALRIDGE BREWING COMPANY 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...

Words: 5809 - Pages: 24

961 Beer: Launching a Lebanese Brewing Company

...Developing business in the brewing industry as thousands of tradition, always face of intense competition from existing competitors as well as new entrants. In additional, any manufacturers have difficult in expending production capacities and resources. This report aims to recommend how to continue growing business without compromising on quality in high competitive market and limited production capacities and resources. After four year growth in volume, from 6,000 cases in 2008 to 200,000 cases in 2012, the 961 volume of beer sold increased dozens of times. The various products of 961 beer have presented and its retailers network have expanded to variety channel such as bars, restaurants and local supermarkets, even it opened a beer pub by the company. This pub has been an exciting successful case and also has given hints for next periods. However, the company faced of limited capacity for the production of larger volumes while the team operated in small volume and even a new bottling machine had to be ordered. The company had strategically become one of biggest Lebanese brewing company and had prepared for huge competition from Almaza who is also local company dominated the Lebanese market. In additional, by being acquired by Heineken in 2002, this closet competitor took on hand many advantages in technology, experiences, alternative famous brand from the No. 1 worldwide brewing corporation. While the company has built all things from zero. Its largest early customer......

Words: 404 - Pages: 2

Backgroud of Beer

...generally referred to as "beer" has been brewed for centuries. Beers are obtained by the yeast fermentation of malted cereal grains, to which hops and water have been added. Brewing has evolved from a cottage craft into a modern industry where large breweries export their beers worldwide. On a per capita basis, Germans consume the most beer at about 40 gallons (151 1) per person per year. Beer drinkers in the U.S. rank fourteenth in the world, with American breweries producing approximately 156,900 million barrels of beer a year. Each barrel is the equivalent of 117 liters or approximately 31 gallons. The true origin of beer can only be conjectured. Early attempts at brewing occurred around 7000 B.C. in Mesopotamia. The Egyptians and Greeks also brewed alcoholic beverages by various methods, but the term "beer" did not appear in these early languages. The Babylonians offered brewing recipes, and there are various references to beer in the Bible. The English word "beer" seems to stem from the Celtic word "beor," which referred to a malt brew made by monks at a North Gaul monastery. In the Middle Ages, monasteries were the leading producers of beer, and monks are credited with many early brewing techniques, such as the addition of hops to improve the aroma and help preserve the beer. The distinction between ales, lagers, and darker bock beers began to appear in French and Irish writings in the 13th century. It is generally accepted that the modern beers as we know them today......

Words: 372 - Pages: 2

Brewing Industry

...Introduction to USA Brewing Industry: * The Economic impact of brewers, distributors, retailers, our supply-chain partners and induced industries totalled more than $246.5 billion dollars in 2012.  * The industry today includes more than 2800 brewers and importer establishments and over 3,700 beer distributor facilities across the country * The Brewing industry employs more than 2 million Americans, providing nearly $79 billion in wages and benefits. * The industry pays over $49 billion in business, personal and consumption taxes. * Each year U.S. brewers, importers and distributors pay over $3.6 billion in federal excise taxes and almost $1.7 billion in state excise taxes. * Brewing industry has over 129,500 people work for distributors and more than 900,000 work for retail outlets that sell beer * The American brewing industry has now crossed more than 3,000 breweries which is a biggest milestone in the history of brewing industry 1. Threat from potential new entrants * Every business do have the entry barriers but in Brewing Industry there are some unique challenges like creative thinking and sustaining in the competitive market * Creating the market space and brand in the brewing industry for the new entrants is very difficult as there are many such existing companies. * Brewers should follow the government regulations and other state legislative rules like the three tier rule of production and sales. * At the federal......

Words: 1380 - Pages: 6

Beer-Brewing: the Reason for Social Polarization

...Rights, and Empire 4 November 2013 Beer-Brewing: The Cause for Social Polarization Let’s say you have a favorite locally owned ice cream shop in your hometown. You love all their flavors and the shop’s intimate atmosphere. You prefer it to any other ice cream shop, even over big name shops like Baskin Robbins or Coldstone Creamery. The taste of their ice cream is way better than from any other place that you know. Unfortunately however, your favorite shop closes three years after its inception, and you are heartbroken. How can the best ice cream shop shut down? They made way better ice cream than all of the other guys! Judith Bennett, the author of Ale, Beer, and Brewsters in England, can explain how this phenomenon occurs through the start of beer brewing in the 14th – 15th century in England. The introduction and commercial expansion of beer brewing allowed for more efficient trade and sale of their products, which also was beneficial to its consumers. However, this terribly hurt the many small market of ale-brewers because they did not have the opportunities of capital-investment that beer-brewers had. Thus, less people were able to succeed in this particular industry, causing a polarization of social classes. This large commercialization of beer brewing found in England represented the capitalistic advantages that large corporate businesses have over smaller business that sell the same good. The commercial expansion of beer brewing was beneficial because it brought......

Words: 1257 - Pages: 6

Sun Brewing (a)

...Q1-1.What situation was Khemka family involve during the case? SUN Brewing was founded in 1992 by Shiv Khemka with Nand, his father, and his brother, Uday. The situation is set in March 1999, when the company was facing a major crisis. In 1998, the family had been planning to raise a $200-$400 million through equity and debt offering for the company on the NYSE (New York Stock Exchange), in aim to finance major investments because of the increasing competition from international beer companies in the Russian market. In August 1998, there was a massive devaluation of the rouble that led to a 90% decrease in the stock price of SUN Brewing listed on the Luxembourg stock exchange. The proposed NYSE listings have then been cancelled and there is a $40 million bridge loan outstanding that now needs to be repaid. Q1-2.What other options could they choose originally? Bring another strategic partner (and idea originally dismissed because the family didn’t want their power over the company threatened) Reinvest from the family pool (that option was highly overlook because the family already budgeted the project and they prefer to ensure a backstop reserve of capital for preservation and discipline, also for the family reputation. Quit the business (seriously consider if the best options for them is to move on to new opportunities in other industries. Q2.Why there are different financing ways in each period? There are many different stages of financing and......

Words: 1038 - Pages: 5

Sun Brewing

...rP os t 9-207-039 REV: JUNE 28, 2010 BELÉN VILLALONGA RAPHAEL AMIT SUN Brewing (B) op yo In late July 2004, Nand Khemka and his sons Shiv and Uday assembled in Paris to discuss their holdings in SUN Interbrew Limited (SIL), a leading Russian beer producer. SIL was a joint venture formed in April 1999 between their beer company SUN Brewing and Belgian beer giant Interbrew.1 SUN Brewing was part of SUN Group (SUN), an international commercial and investment group owned by the Khemka family. SUN’s shareholders were firm believers in the long-term growth potential of the Russian beer market and in the value creation potential of SIL. The family was extremely pleased with the recent success of the management team led by Joe Strella and felt they shared a common vision with the shareholders and management of Interbrew. However, the last few months had led SUN to consider carefully the situation in which they found themselves. First, the Alfa Group, a large financial and industrial conglomerate in Russia, had accumulated 15.8% of the voting stock in SIL, thereby becoming the third largest voting shareholder in the company.2 Alfa had approached both Interbrew and SUN separately and had expressed their desire to buy out SUN’s interest and to become a partner with Interbrew in the future growth of the business. SUN had also been approached by Interbrew about buying SUN’s stake. tC Although the family was keen to remain a long-term shareholder in the business, the......

Words: 7406 - Pages: 30

Cottrell Brewing

...Field Project – Cottrell Brewing Company Cottrell Brewing Company was established in 1996 by Charles Cottrell Buffum Jr who always had passion for beer. He first started to make his beer at home and was visiting a lot of brewing companies and learning what was involved in the process. Eventually began volunteering at the Ipswich Brewing Company and that has inspired him to open his own brewing business. He found a mill in Pawcatuck as a perfect place for his new company where also his great-great grandfather had his started his Cottrell Printing Press business. Since then, Cottrell Brewing Company has been family owned by Charles and his wife Ann and is a choice for many businesses in Connecticut and Rhode Island. The business mission is to provide to its customers, fresh and full of character beers at the top of their class. The owner believes that success lies in providing beers to a particular beer market. The idea is a small, regional, niche market with a focus on customers which enjoy craft brewed, quality beers, as opposed to a large mainstream high volume business catering the majority of the beer drinking public. The process of brewing beer, whether it is on a large scale or small, is the same. The main components of direct materials used to produce beer are; hops, barley, select spices and water. Because these ingredients are grown naturally and supply can changes based on growing conditions, they are a commodity, resulting in price fluctuations depending on......

Words: 883 - Pages: 4

Boston Beer

...1 The Boston Beer Company, Inc. Making a buck at craft brewing has been as easy as falling off a barstool the last few years. So Wall Street is now bellying up for a couple of IPO brewers. They’d better start chugging; the party won’t last long. The intoxicating roundup of offerings began in August when Redhook Brewing, a specialty beermaker started in Seattle by former wine marketer Paul Shipman and Starbucks co-founder Gordan Bowker, tapped the market. The stock was priced at $17, never traded below $24.75 and was recently at $27.25. Again, investors went on a bender last month when Pete’s Brewing Company hit the market. The stock, priced at $18 a share, closed its first day of trading at $25.25 and hasn’t sold below $23.75 yet. Boston Beer, of Sam Adams fame, will roll out in mid-December; the Northwest’s Hart Brewing, which makes Pyramid Ales, is not far behind. 1 Eileen Gunn Fortune Magazine, December 11, 1995 Company Background History Boston Beer Company (BBC) was founded in 1984 by Jim Koch, who was the sixth generation of his German family to become a brewmeister. During the early 1980’s, Koch observed the changing tastes of American beer drinkers toward more flavorful, bitter tasting beers which were offered initially only by import companies. Convinced by what he viewed as a compelling market opportunity and inspired by his family’s tradition, Koch decided to leave his $250,000 per year consulting job and start his own domestic beer company......

Words: 1542 - Pages: 7