...help form a strategic analysis of the macro-environment; the outside factors beyond the control of a company. It categorises the environmental influences into six groups: political, economical, socio-cultural, technological, environmental and legal; making up the acronym PESTEL. Analysis Political factors Europe has traditionally been seen as the centre of the beer brewing industry. However, the level of alcohol consumption is gradually declining. This is because many of the key markets within Europe are increasingly more aware of the social and health issues caused by excessive alcohol consumption. Governments are actively campaigning against the abuse of alcohol and the possible consequences of drunk driving, ‘binge drinking’, and the long-term effects related to health. These key factors relate directly to government policies and their decisions towards the European beer market. Economic factors As a result of government intervention, there has been a marked decrease in product sales in public premises. As people are more and more likely to drink at home rather than out to bars, the alcohol sales has shifted from ‘on-trade’, where beer is consumed on public premises, to ‘off-trade’, where beer is purchased by retail and consumed on private property (e.g. at home). This has resulted in the increase of supermarket sales, along with the added incentive of discounted offers made by the competing chains (e.g. Tesco and Carrefour). These factors deal with money and...
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...Year of establishment and very brief history Heineken International is a Dutch brewing company, founded in 1864 by Gerard Adriaan Heineken in Amsterdam. It owns over 190 breweries in more than 70 countries and employs approximately 85,000 people. Cruzcampo, Tiger Beer, Żywiec, Starobrno, Zagorka, Birra Moretti, Ochota, Murphy’s, Star and Heineken Pilsener are some of it’s well known brews all over the world. Milestones of Heineken history; 1864 Gerard Adriaan Heineken buys the Haystack brewery on February 15th 1873 On January 11, HEINEKEN’s Bierbrouwerij Maatschappij N.V (HBM) is established. 1889 HEINEKEN is honored with the "Diplome de Grand Prix" at the World’s Fair in Paris 1900 HEINEKEN imports first beer into Africa. 1932 HEINEKEN co-founds Malayan Breweries and starts to brew Tiger for the first time 1933 After 13 years of prohibition, Heineken® sets foot on American soil 1937 HEINEKEN’s Nederlandsch-Indische Bierbrouwerij Maatschappij, Multi Bintang, begins operation 1939 HEINEKEN is listed on the Dutch stock exchange 1946 HEINEKEN enters Nigeria 1968 HEINEKEN acquires Amstel, its major rival in The Netherlands 1974 HEINEKEN acquires a majority stake in the Dreher Group 1975 A new Dutch brewery opens in Zoeterwoude, the largest modern brewery in all Europe at the time. 1991 The former Amsterdam brewery on the Stadhouderskade is converted to a Heineken museum which was renamed Heineken Experience in 2001. 2003-20010 HEINEKEN acquires Brau Union...
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...Belgium Brewing: Ethical and Environmental Responsibility Small companies sometimes make big contributions to surrounding communities, and become leaders as they set social agendas and enact initiatives to address community issues. Such is the case for the New Belgium Brewing Company (NBB), which has gone to great lengths to incorporate environmentally sensitive and energy-saving alternatives into its brewery process. For example, it was the first brewery in America to be completely wind powered, and its brewery is LEED certified. The company is constantly experimenting with ways to reduce water consumption and waste, and to recycle a greater proportion of waste products. Currently, the company recycles around three-quarters of all of its waste. The brewery even donates barley and hop mash leftover from the brewing process to local pig farmers to use as feed. NBB has developed an organic wheat beer, making it one of the largest craft brewers in the country to do so. Beyond its commitment to the environment, New Belgium Brewing has become a model for social responsibility as a result of its philanthropic efforts in the states in which it is distributed. For example, for every barrel of beer sold, NBB donates $1 to a philanthropic cause within that state, amounting to nearly a half a million dollars annually. NBB also donates 1 percent of its profits to environmental causes. Because its primary product is beer, New Belgium focuses a lot of efforts on education about alcohol abuse...
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...Strategic Plan Part II Swott Analysis BUS/475 Ed Miller Strategic Plan Part II Swott Analysis Big Wheel Brewing is a new and innovative craft beer brewing company. Big Wheel Brewing is dedicated to bringing their customers craft brews of the highest quality. Big wheel beers are made for people who prefer quality over quantity. Taste is the most important thing when it comes to brewing fine craft ales. An internal and external analysis will be conducted to determine the factors that have an impact on the success of the company. A SWOTT analysis will also be conducted to determine the strengths and weaknesses of Big wheel brewing along with threats and trends in the brewing industry. When analysis is complete it will help Big Wheel brewing know what they need to do to stay successful in the brewing industry. SWOTT Analysis Conducting a SWOTT Analysis requires Big Wheel Brewing to answer questions necessary to properly evaluate the strengths and weaknesses along with the threats and trends. Assessment of factors that will play a role in profits and losses is imperative to how effective the SWOTT analysis will be. The internal factors such as marketing and advertising will play a role as well as external factors such as customer’s wants and needs. After figuring out what the company’s strengths and weaknesses are Big wheel must identify the opportunities that can be taken advantage of for future company growth, Trends in the beer industry such as the consumers every changing...
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...ASSIGNMENT 1; GLOBAL FORCES AND THE WESTERN EUROPEAN BREWING INDUSTRY DATE OF SUBMISSION: 09/02/2012 1. (i) PESTEL ANALYSIS OF THE WESTERN EUROPEAN BREWING INDUSTRY The PESTEL framework provides a comprehensive list of influences on the possible success or failure of particular strategies (Johnson et al, 2008, p55). PESTEL stands for Political, Social, Technological, Environmental and Legal. Political- Governments in Europe were campaigning strongly against drunken driving. This affected the propensity to drink beer in pubs and restaurants. Economic- Some low consumption European markets have been showing good growth. Pubs have suffered as a result of large supermarket chains such as Tesco and Carrefour who often use cut price on beer to lure people into their shops. The result was that an average of about 50 pubs closed per week during the recessionary year 2009. Social- There was increasing awareness of the effects of alcohol on health particularly in the UK. This led to a growing hostility to excessive alcohol consumption in pubs. Beer consumption in the UK as well as in Germany began to fall as a result of this. Wines were becoming increasingly popular as Europe was turning off beer. There was an increasing demand for Exotic imported beer more especially in Belgium, Denmark, Finland and the Netherlands according to Table 2 of the case study. (ii) FIVE FORCES ANALYSIS OF THE WESTERN EUROPEAN BREWING INDUSTRY According to Johnson et...
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...Introduction In this paper, I will be writing about case number 6.3 Speaking Out About Malt. I will be using Utilitarianism as my moral theory and will show that the principles of the case are acting morally. Summary of Case Mary Davis was an associate vice president for Whitewater Brewing Company. Her husband was working on his MBA and convinced her to take a night class with him. She enrolled in the class and had to write a term paper. She decided to write her term paper on the study of wine and beer marketing. In her paper, Mary spoke about the marketing of malt liquor, which is a beer brewed with sugar for stronger alcohol content. Malt liquor was bottled in a 40 ounce container and was sold for two dollars. The popularity of the 40s grew and became a favorite of the inner-city teenagers and the popularity later grew to suburbs. Malt liquor had strong alcohol content and the teenage drinkers fell in love with the quick drunk. It earned nicknames such as, “liquid crack” and “date rape brew”. Mary Davis’ paper was adored by her instructor and encouraged her to publish it in the newspaper. However, she was working for Whitewater Brewing Company and it brewed malt liquor also, called Rafter. The CEO of Whitewater claimed that Mary acted irresponsible and her paper damaged the company’s image. The CEO then ordered Mary not to comment publicly on the issue. She talked to her colleague about the situation and told her colleague that her paper contained true information...
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...and Tobacco Product Manufacturing. NAICS states that “Industries in the Beverage and Tobacco Product Manufacturing subsector manufacture beverages and tobacco products. The industry group, Beverage Manufacturing, includes three types of establishments: (1) those that manufacture nonalcoholic beverages; (2) those that manufacture alcoholic beverages through the fermentation process; and (3) those that produce distilled alcoholic beverages…” Although beer is within the same section as wine and distilled spirits, they do not consider them the same. Within section 312 they have five separate sections: Beer can be found under section 312120 Breweries. Within this section the term Breweries is comprised of “establishments primarily engaged in brewing beer, ale, malt liquors, and non-alcoholic beers”. However, Standard & Poor’s would say that distilled spirits, wine, beer and tobacco are all a part of the same industry the “Alcoholic Beverage and Tobacco Industry”. The question we must ask is who is right? How do we determine if beer is an industry on its own or...
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...Introduction Brewing beer is really a very simple process, a unique mix of art and science that consists of a number of key steps. Brewing begins with malted barley that is milled and mixed with hot water to form a mash. During mashing, the malt starches are converted to sugars. The sugar rich water is then strained through the bottom of the mash and is now called wort. The wort then goes to the brew kettle where it is brought to a boil. During this stage, hops are added at different times during the boil for either bitterness or aroma. The wort is then cooled and aerated, and brewers' yeast is added for fermentation. The yeast produces alcohol and carbon dioxide and other byproducts from the sweet wort. After fermentation the "green beer" undergoes maturation. The last step in the brewing process is filtration, and then carbonation. Next the beer is moved to a holding tank where it stays until it is bottled or kegged. For a more detailed description of the brewing process click "Continue." Barley Malt Barley malt is to beer as grapes are to wine. It is ideally suited to brewing for many reasons. Malted barley has a high complement of enzymes for converting its starch supply into simple sugars and contains protein, which is needed for yeast nutrition. Of course, one important element is its flavor. There are two types of barley: six-row and two-row. [pic] Pale Ale Malt Barley Malt Six-row Barley Malt Generally, six-row barley has a higher enzyme content...
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...Professor Lawrence Zimmermann Small Business Management and Entrepreneurship Week 5 paper for course project 6/2/2012 DeVry University Small Business Management and Entrepreneurship Week 5 paper for course project 6/2/2012 Brewing beer and business have a number of parallels, from the fine point you have to take into consideration, to the larger end product. Stephen Moss Brewing beer and business have a number of parallels, from the fine point you have to take into consideration, to the larger end product. Table of contents Cover Page I Table of contents 1 Introduction 2 Main Body 3 Conclusion 4 There are many parallels to be made between being an entrepreneur and brewing your own beer. Every time you begin steeping your base hops in the bag, and adding each ingredient to your future batch of beer, you must consider your past successes and failures, the future planned taste, and how your customers are going to react to it. The same goes with being an entrepreneur. Every decision you make for business can have an effect for weeks and sometimes years to come. Every business decision you make is going to have an impact on your bottom line one way or another. While speaking with McClernon, owner and operator of Kinetic brewing company, he showed me that there is stress, loss, and challenge when owning and operating your own brewery. He also showed me that there is success, pride, and many great times with family, friends, and patrons who end up becoming...
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...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 level...
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...Western European Brewing Industry Case Study Question: 2. For the breweries outlined above explain: (a) How these trends will impact differently on these different companies; and (b) The relative strengths and weaknesses of each company. (A) Impact of these trends. 1. InBev (Belgium/brazil) • INBev is a merger of two companies Anheuser and Busch and hold the top spot in the world’s top 10 breweries. • INBev is known for being the world’s largest brewing company through mergers and acquisitions and has a 25 percent global market share • By diversifying its enterprise into many countries outside of Europe (where the consumption of beer was increasing), has helped the companies continued success. • INBev are geographically diversified with a balanced exposure to developed and developing markets and leverages the collective strengths of its approximately 155,000 employees based in 25 countries worldwide. • The corporation has a significant position in the Latin American market. • INBev occupies 50% of the US market and 50% of the Mexican market. • The company is established in countries where the consumption of beer is rising. • Revenue of 47 billion US dollars in 2014 • INBev has around 200 beer brands and continues to forge strong connections with consumers. The global brands included are Budweiser, Corona, Stella Artois, Beck’s, Leffe, Hoegaarden, Bud Light, Skol, Brahma, Antarctica, Quilmes, Victoria, Modelo Especial, Michelob Ultra, Harbin, Sedrin, Klinskoye...
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...Liqui-Cel® Membrane Contactors are widely used in the soft drink and brewing industries to Control dissolved gasses Gas control is an important concern in the beverage industry. Oxygen in the water can oxidize flavor components and shorten the shelf life of the product. Carbon dioxide can also have an impact on taste and pH of the product. Liqui-Cel Membrane Contactors utilize a hydrophobic polypropylene membrane to remove dissolved gasses from water. Water flows on one side of the membrane and a vacuum or strip gas is passed on the other side of the membrane. By controlling the pressures of gasses in contact with the water, a highly efficient method for gas control can be achieved. Membrane contactors are widely accepted to control gas levels in liquids used in the soft drink and brewing industries. Some of the applications that membranes have been used for in these industries are listed below. Brewing O2 removal from blending water • Oxygen can break down the final product if it is not removed from the water used in the blending process. For this reason, O2 specifications are typically less than or equal to 10-ppb. O2 removal of pushing water • In breweries, large volumes of product is left in DE filters and piping. In order to collect and use the product, the brewery will pump water through the system to “push out” the beer. • The O2 specification here is also less than or equal to 10-ppb. Low O2 concentrations are important because the product will absorb any gasses present...
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...Company Analysis The Boston Beer Company- Britton McGlachlin As a relatively new entrant into the beer brewing industry, the United States has often been poked fun at and considered to be an inferior beer brewing country among global competitors. Up until 1984, most domestic beer options were pale lagers produced by the mass market brewers. If a person wanted to get a full and flavorful beer, it was considered that importing was the only option with beers such as Heineken and Beck’s establishing themselves as the premium beer leaders. American craft beers were virtually non-existent other than a few small basement and kitchen operations, and there were no widely distributed micro brewed, now known as craft, beers available. (History) In the early 1980s, Jim Koch, a would be sixth generation beer brewer, was convinced that he could find a niche in the competitive beer market for a high-quality American beer. In 1984, Koch used his great-great grandfather’s 150 year old recipe called “Louis Koch Lager” to brew his first batch of what eventually became Samuel Adams Boston Lager. (About) Jim began to take bottles of his beer bar-to-bar for tasting and received excellent feedback about the quality and flavor of his beer, which used all natural ingredients with no adjuncts. In 1985, Jim decided to debut in the Boston market with small batches focusing primarily on quality. Six weeks after its introduction, Samuel Adams was selected as “The Best Beer in America” in The...
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...Philippe Kechichian Food and Beverage What is beer? “Beer is produced by the saccharification of starch and fermentation of the resulting sugar. The starch and saccharification enzymes are often derived from malted cereal grains; most commonly malted barley and malted wheat. Un-malted maize and rice are widely used adjuncts to lighten the flavour because of their lower cost. The preparation of beer is called brewing. Most beer is flavoured with hops, which add bitterness and act as a natural preservative, though other flavourings such as herbs or fruit may occasionally be included.” Beer definition Beer is the most consumed alcoholic beverage in the world and the third-most drink overall after water and tea. The strength of beer is usually around 4% to 6% alcohol by volume although it may vary between 0.5% (dealcoholized) and 20%. Beer forms part of the culture of beer-drinking nations and is associated with social traditions such as beer festivals, as well as a rich pub culture, involving activities like pub crawling and pub games such as billiards. History The history of beer is linked with the one of its components and with the technological advances. The first cultures of cereals, especially the barley and wheat, were discovered in Mesopotamia and dated at around 8000 years before J.-C. Historians think beer was discovered 6000 years before J.-C. The first real proofs of its existence were discovered in the province of Sumer and are back to the 4th millennia...
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...Kevin Keleghan Strategy Final 1) I view the distributors as the buyers for reviewing the buyer element. Buyer Concentration: There are approximately 2500 beer distributors in the North American market. As a result, this is a very competitive market, with most distributors willing to do anything to replace an incumbent Anheuser-Busch (AB) distributor. The only counter balance to this is that since AB has such large market share, the AB distributors are very large with great local economies of scale compared to the average distributor. In addition, they will most likely have better relationships with the various retailers in the local market. Overall, AB has the most leverage in the relationship since it is more likely that they can find a suitable alternative for distribution compared to the distributor finding anything close to AB as a manufacturer. Buyer Volume: The implications for this element are very similar to buyer concentration. AB typically looks to develop an exclusive arrangement with their distributors. As a result, the volumes with each distributor (buyer) are very large which gives them some leverage. Once again, since there are so many distributors in the marketplace, AB has the greater leverage in the relationship. Switching Costs: The switching costs are prohibitive for the distributors. Since AB has approximately 50% market share, moving to a competitor would result in financial devastation. In addition, over the past several years, AB has developed...
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