...Beer Wars is documentary about the American beer industry and how the 3 largest US breweries try to drive out the competition. This documentary covers how lobbyists are used to control the beer market and drive out smaller breweries such as Dogfish Head Brewery, Stone Brewery, and Moonshot: all producers of craft beer. The documentary describes how a 3 tier system was put into place to separate the powers of selling beer and prevent a monopoly but the laws that were put into place to prevent the monopoly, infact, promoted the size and strength of the largest beer corporations. An oligopoly was formed and maintained between Anheuser Busch, Coors, and Miller. Porter’s Five Forces Model is a business strategy that was covered in Beer Wars. Anat Barron described how difficult it was for small craft beer makers to be new entrants to the beer industry. When Anheuser Busch felt the least bit threatened, they had the capital and access to distribution channels that the smaller breweries did not have. The craft breweries found it greatly difficult to compete with the big 3 because they were not a substitute for the Big 3’s product, they were a small competitor. Anheuser Busch controlled the bargaining power because they were able to keep prices down due to their size and pockets while small craft breweries had to be more expensive because of the quality and care that went into it on top of having to pay a higher rate for ingredients compared to the other large corporations. To...
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...South Delaware Coors Case South Delaware Coors Larry Brownlow was just beginning to realize the problem was more complex than hethought. The problem, of course, was giving direction to Manson and Associates regarding which research should be completed by February 20, 1989, to determine market potentialof a Coors beer distributorship for a two-county area in southern Delaware. With data fromthis research, Larry would be able to estimate the feasibility of such an operation before theMarch 5 application deadline. Larry knew his decision on whether or not to apply for thedistributorship was the most important career choice he had ever faced. LARRY BROWNLOW Larry was just completing his M.B.A. and, from his standpoint, the Coors announcementof expansion into Delaware could hardly have been better timed. He had long ago decidedthe best opportunities and rewards were in smaller, self-owned businesses and not in the jungles of corporate giants. Because of a family tragedy some three years ago, Larry foundhimself in a position to consider small business opportunities such as the Coors distributorship. Approximately $500,000 was held in trust for Larry, to be dispersed when hereached age 30. Until then, Larry and his family lived on an annual trust income of about$40,000. It was on this income that Larry decided to leave his sales engineering job andreturn to graduate school for his M.B.A. У The decision to complete a graduate program and operate his own business had beeneasy...
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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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...The family of beverages 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...
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...When Jeff Lebesch and his wife, Kim Jordan ， expanded from home beer brewing to commercial production in 1991, they envisioned two goals for their new company: they believed they could produce world-class beers and that they could do this while kindling social, environmental, and cultural change. By 2009 (Just 18 years later), their company, New Belgium Brewing Company (NBB) ， had become the third largest craft brewey in the United States and the seventh largest producer in the overall Industry. The brewery also stood as a corporate leader in environmental sustainability, and provided a prime example of how a company could incorporate environmental concerns into everyday business decisions. However, as NBB entered the new decade, the company faced a number of challenges In reaching its environmental goals, many of which could not directly control. History of NBB Jeff was inspired to found NBB While on a 1989 bike ride through the Belgain countryside. During his trek, he perceived a lack of flavor in Amencan beers compared to those he was drinking in Europe. When he returned home to Colorado, he set out on a quest to Introduce American beer drinkers to the unique essence found in traditional Belgain brews, from the tart framboise, the light saison, and the truly one-of-a-kind trappist ales. Using his home brewing exrience, Jeff was able to develop a distinctive recipe for traditional Belgian amber ale. The ale, dubbed Fat Tire in commemoration to the inspirational bike...
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...Case Study – Corona Beer (Modelo) Foreign Market Entry and Diversification BUS599 – Strategic Management Identify and discuss the trends in the global beer markets. Beer markets have been primarily a local industry, with only a few of the companies having international presence. “Beer was first brewed in the 14th century in Europe and developed different in every country in order to address local tastes and specific recipes” (Thompson, Strickland, & Gamble, 2010). There was an increase in industry consolidation, a development that took off in North America and Western Europe. “The consolidation began to include brewing companies in the growth markets of Eastern Europe, Asia and Latin America” (carlsberggroup.com). “The United States had the largest beer market in the world until China surpassed in 2003” (Thompson et al, 2010). In the past ten years, global consolidation has accelerated. Due to lack of transportation networks made exportation impossible and brewing remained a local industry. Other countries like Italy and France, they preferred wine over beer for consumption and then you had Germany and Ireland, who both have a few national beer brands. The trend of consolidation by national leaders started expanding in the 1990’s; “Interbrew acquired several breweries in 20 countries and expanded its sales to 110 counters, leaving local managers to control the local brands” (Thompson et al, 2010). The top 10 brewers accounted for 34% of the...
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...Case: Mountain Man Brewing Company 1. What has made the Mountain Man Brewing Company successful? What is distinctive about MMBC’s product, customers and brand equity? Reasons why MMBC has been successful: * MMBC used their history and status as an independent family owned brewery to enhance the feeling of authenticity of their brand, which resonates with its core drinkers – blue collar, middle to low income men over the age of 45. * MMBC has very high brand awareness – in a recent study, MMBC Lager was rarted as the best known regional beer, unaided response rate of 67% from the state’s (WV) adult population * There is also a high perception of quality with MMBC Lager * MMBC has won multiple awards: * In 2005, won “Best Beer in West Virginia” for the 8th year in a row * In 2005, won “America’s Championship Lager” at the American Beer Championship What is distinctive about MMBC’s: * Product * Smoothness and drinkability * Distinctive bitter flavor * Slight higher than average alcohol content * Bottle also enhance overall image of product * Original 1925 design with coal miners authenticity and history * Brown bottle accentuating the beer’s dark color taste, ‘strong’ * Customers * In stark contrast to other domestic beers, drinkers of Mountain Man Lager skews heavily towards male, 81% compared to 58% for domestic light beers and 68% for domestic premium beers * Drinkers...
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...Running Head: FOREIGN MARKET ENTRY AND DIVERSIFICATION Foreign Market Entry and Diversification: Corona Beer (Modelo) Case Analysis Shirley Saucer Strategic Management BUS 599 Strayer University Professor Petty Introduction Corona Beer is the flagship for the Modelo Company brand. With ninety years of relevance in the alcohol beverage industry, undoubtedly Modelo has set certain standards and criteria, which many have taken notice. The Modelo Company has easily earned its stake within this industry, persevering through strife’s such as the prohibition era. In operation since March of 1922, Modelo has solidified what it means to be a top contender in the imported beer market. In fact they are one of the only brewing companies that are still family owned and operated. Within this paper we will discuss the trends in the global beer market, Modelo's international expansion, as well as challenges that they face from competitors such as the InBev Company and whether or not they should diversify their business strategy which has made them so successful. Beer has been brewed since around the 14th century when it got its beginnings in Europe. Beer comes in many flavors and shades and is varied depending on regional brewing methods. A lot has...
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...Has the “Most Interesting Man in the World” crashed CORONA’s beach party? [pic] [pic] Marketing Management May 29, 2010 The ongoing hard fought battle in the US between Mexican beer brewed rivals CORONA and DOS EQUIS (XX) has turned the tide and now DOS EQUIS has a 51 to 49 advantage over CORONA. We define success not simply by who is the biggest or who sales the most, but also with who is taking the correct strategic steps to grow faster and increase their domestic beer market share. Beer is one of the world's oldest and most popular beverages with the history of beer dating back to the 6th millennium BC, and being recorded in the written history of Ancient Iraq. It is a product which people tend to differentiate by four primary reasons – taste, availability, price and/or marketing message. It is by no means a true commodity but a singular object in which accessibility and availability is key to use. If price is not a factor, for most beer drinkers it is an instant decision – they either stick to one beer or select one randomly from a list of names they enjoy. Today, the brewing industry is a global business, consisting of several dominant multinational companies and many thousands of smaller producers ranging from brewpubs to regional breweries. More than 35 billion gallons are sold per year—producing total global revenues of $294.5 billion in 2009. In the...
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...SWOT Analysis report for the Product of Jackie O’s This SWOT report is going to analyze the product point of Jackie O’s company, which is a bar and restaurant in Athens, Ohio. Jackie O’s is a specific and very local company in Athens, Ohio. In addition, Jackie O’s has two different locations in Athens: the Brewery and the Brewpub. The Brewery is manufacturing Jackie O’s own beer, and the Brewpub is selling beers that came from the Brewery. In addition, its objective is clear and simple: the hope is that everyone drinks beer from Jackie O’s company in Athens, Ohio. As a result, after our group did a simple survey, there are four parts that our team tried to analyze Jackie O’s company on strengths, weaknesses, opportunities and threats, because those can help our group get useful and helpful plan of how to make a recommendation for the Jackie O’s owner. Strengths In the aspects of products, the most important preponderance of Jackie O’s is its special products: beers. It is extraordinary, because Jackie O’s company has its own beer factory, the Brewery. The Brewery offers more than 34 types of beers, which comes from the Brewery of Jackie O’s. According to Brumfield (2012), Jackie O’s imported the new facility in the Brewery, that leads Jackie O’s to become a producing and marketing by oneself company in Athens, Ohio. Moreover, the brand of beer is very multitudinous, so there has three parts of beers: core beers, seasonal beers and imperial beers, which they offer for customers...
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...Remember that one serving of alcohol equals 12 oz. beer; 1.5 oz. (1 standard bar shot) distilled spirits; and 5 oz. table wine. Here is a list of calorie counts for various alcoholic beverages. Note that the greater the alcohol content of the liquor, the more calories per ounce. These calorie counts are approximate and may vary depending on ingredients and portions. Alcoholic Beverage Serving Size (ounces) Calories Beer 12 oz. 150-200 Light Beer 12 oz. 95-136 Wine (white/red) 5 oz. 90-120 Wine Spritzer 5 oz. 100 Distilled spirits (scotch, Vodka, bourbon, gin, rum, etc) 1.5 oz. 85-115 Piña Colada 6 oz. 378 Margarita 8 oz. 280 Mojito 8oz. 214 Cosmopolitan 4 oz. 200 Martini 2.5 oz. 160 Bloody Mary 5 oz. 120 Champagne 5 oz. 106-120 Coffee Liqueur 3 oz. 348 Gin and Tonic 7 oz. 200 Long Island Iced Tea 8 oz. 780 Vodka and Tonic 8 oz. 200 Rum and Coke 8 oz. 185 Rum and Diet Coke 8 oz. 100 Mai Tai 6 oz. 350 White Russian 5 oz. 425 Mimosa 4 oz. 75 Screwdriver 8 oz. 190 Eggnog with Rum 8 oz. 370 Chocolate Martini 6 oz. 438 Standard drinks guide Full Strength Beer 285ml Full Strength Beer 4.8% Alc./Vol 1.1 standard drinks...
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...Andre Castillo Prof. Rogers Democracy, 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...
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...1) Describe fundamental issues in foreign market analysis for a firm like Heineken? To successfully increase foreign market share, firms must assess alternative markets, evaluate the prospective costs, benefits and risk of entering each and select those that hold the most potential for entry of expansion. • Levels of Competition – firm must consider the current and future level of competition in foreign markets. Assessing their competitive environment should identify the number and size of firms already competing in the potential market. • Legal and Political Environment – it is important for a firm like Heineken to understand the host country’s policies and laws especially dealing with alcohol. There was an example with Egypt where Muslims are forbidden to drink alcohol and it is obvious that Heineken did their research because there was an option in producing non-alcoholic beer. • Sociocultural Differences – Sociocultural differences should also be considered when assessing foreign market. In many cases firms will attempt to minimize the potential impact of sociocultural differences by initially focusing on countries that are culturally similar to their home markets and that is what Heineken did. It imported beer to Spain, Italy, England and Germany. • Evaluating Costs, Benefits and Risks – there was an example where Heineken could buy breweries in the United States and produce it there which would lead to reduction in production cost but they didn’t want to make same...
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...Heineken Organizational strategy: Heinekens strategy is based on six business priorities they found most important. 1. Grow the Heineken brand 2. Consumer-inspired, consumer-oriented and brand-led 3. Capture the opportunities in emerging markets 4. Leverage the benefits of Heineken’s global scale 5. Drive personal leadership 6. Embed and Integrate Sustainability Considering these six priorities and adapting the strategic types from Miles and Snow, we think Heineken is a prospector. Due to their continued search for market opportunities in emerging markets, Heinekens on-going search of new ways to connect with the consumers and the personal drive of leadership. One of their first major international successes was after World War 2, when the German beer brewers still had to build up a brand. Heineken took their beer overseas to the Unites States of America. There Heineken became an exclusive beer, imported beer was not for everybody. They got this image of an exclusive beer because a Heineken beer was twice as expensive as a normal beer. Heineken distinguished it self in the American market because the Dutch beer had an alcohol percentage of 5%, whereas the American beers had a percentage of 3%. Heinekens break through found place in the ’70, when the prosperity in the USA rose, the people could afford the exclusive Heineken beer. Heineken did not only have successes in emerging markets or with introducing new products. One of their failures was the introduction...
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...Are you looking for a great paying job in a fun, fast paced work environment?! WELCOME TO HOPCAT! HopCat will be opening their 16th location in Port St. Lucie, FL and will have 80+ craft beers on tap, a custom cocktail menu, and a full food menu. They are on the prowl for great employees for their newest HopCat in Port St. Lucie, specifically, a cool cat who loves beer and can join our family as a Beer Program Lead. To get a feel of who they are and what they do, check out some footage from previous Grand Openings below: HopCat Royal Oak, MI Grand Opening: https://www.youtube.com/watch?v=xi2HneP2HUI&t=8s HopCat Minneapolis, MN Grand Opening: https://www.youtube.com/watch?v=VHq2j-suttE&t=51s Beer Program Lead Duties: Handles beer and alcohol inventory and ordering. Coordinates with Regional Beer Program Manager and GM to develop and execute unique monthly beer events. Updates beer menus, social, website and marketing materials as needed. Coordinates with Kitchen Manager and Back of House team to develop and execute monthly beer dinners. Supports and monitors performance of bartenders, barbacks, and charlies. Handles bar walk through inspections. Serves as the point person on all bar and keg room related R&M. Come work for the company consistently rated among the nation's best places for craft beer. They offer a casual, fun, fast-paced work environment with opportunities for growth. They consider their team family, so they want people who plan on sticking around. Your resume...
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