...Case 4: New Belgium Brewing One of the Nation’s third-largest craft breweries, based out of Colorado, New Belgium Brewing Company, Inc. (the Company). The Company was founded in 1991, a privately held corporation. Its first operation started off in the basement of Jeff Lebesch (founder). The Company prides itself on its branding strategies “triple bottom line” and social responsibility which focuses on economic, social, and environmental factors. New Belgium’s marketing strategy links the Company’s viewpoint to the quality of its products. The Company continues to support the community, giving back & advocating positive change. However for continued success, New Belgium has to continually analysis its situation in the marketplace, identifying issues, and in-turn address their longevity through growth. The New Belgium Brewing Company faces increased competition from other craft breweries as it still remains behind Boston Beer Co. and Sierra Nevada, other craft breweries. In examining New Belgium’s distribution territories, there are still “open markets” which pose opportunities to the Company. This especially holds true as New Belgium tries to expand its operations, specifically in the Northeast. How can Belgium leverage its resources which requires longer distances? The Company strives for environment responsibilities which it has successfully built into the brand. What alternatives are out there to decrease the use of resources such as fossil fuels during expansion...
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...Case Update and SWOT Research and update the case information as much as possible with current research, and then conduct a comprehensive SWOT analysis for New Belgium Brewing. As of 2013, defined by the Brewers Association New Belgium Brewery is the 3rd largest craft brewery and the 8th largest overall. Annual production of beer is less than 6 million barrels. Currently New Belgium sells beer in 31 states and the District of Colombia. In 2013 they began shipping to Alaska and Louisiana and Florida is soon to follow. They have seen consistent growth year over year. In 2006 NBB produced 437,000 barrels of beer. In 2011 the company produced 713,000 barrels. The company waste diversion efforts are paying off. In 2011 94.38 the latest waste diversion is 94.38% diverted and 5.62% landfill as opposed to 88% diverted and 8.5% landfill in 2009. Energy consumption is seeing a reduction each year. Energy reduction has gone from 158MJ/hl in 2008 to 138MJ/hl in 2011. This can be partially attributed to the November 2009 implementation of the largest private array of photovoltaic solar panels in Colorado. The 870 panels mounted atop the bottling plant produce 200kW of power output helping to reduce power consumption from the grid. In March of 2012 New Belgium Brewery launched it can line to tap into a new market. In April of 2012 the company chose Asheville North Carolina as the site for their East Coast Brewery. In January of 2013 New Belgium Brewery became 100% employee...
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...New Belgium Brewery | A new approach | | | GM591 Course Project GM591 Course Project TABLE OF CONTENTS I. INTRODUCTION II. PROBLEM STATEMENT III. LITERATURE REVIEW IV. ANALYSIS V. SOLUTIONS VI. REFLECTION VII. REFERENCES I. The New Belgium Brewing Company in Fort Collins, Colorado was founded by Jeff Lebesch in 1989. The highly motivated entrepreneur started with a different yet simple concept; brew a better beer than anyone else. So Jeff went into the basement of his home and started working on several different brews, but specifically worked to perfect his two signature beers and the first mass produced products; Abbey and Fat Tire. It took just two years for the company to grow large enough that the basement was no longer sufficient and New Belgium moved into its first commercial brewing space and has continued to grow from there. The brewery has grown to the size that produced and sold over 580,000 barrels of beer in 2009 and expects to sell over 700,000 barrels in 2010 (JUICEBOX, 2010). The revenue generated by New Belgium has helped to make the brewery the 8th largest in the United States (JG Press, Inc, 2003). New Belgium beer is brewed exclusively at the Fort Collins location and is now available in 26 states from coast to coast (JUICEBOX, 2010). The company has grown from a dream in a man’s basement to currently utilizing over 200 employee owners and boasts sales of over 32 million dollars in 2009 (JUICEBOX, 2010). NBB...
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...Case Study Analysis New Belgium Brewing Company is a regional brewery located in Fort Collins, Colorado. It opened in 1991 after Jeff Lebesch, the brewery's founder, took his home-brewing passion commercial. In 2009, it produced over 582,000 barrels of its various labels. As of 2010, it was the third-largest craft brewery and seventh-largest overall brewery in the United States. The brewery was founded by husband-and-wife (now divorced) team Jeff Lebesch and Kim Jordan in 1991 and emphasizes eco-friendly practices and employee ownership in its marketing materials. It is located in northeast Fort Collins near the Cache la Poudre River on the grounds of the former Great Western Sugar plant. In 2008, New Belgium Brewing Company was named the best place to work in America by Outside Magazine. This could be attributed to the brewery's efforts to ensure the " happiness of their employees. Once a month the brewery's Wellness Committee meets to discuss activities, such as bike tours, for employees to contribute in. New Belgium Brewery has made it a objective to be entirely wind-powered. Rather than directly using wind-generated power, the brewery elects to pay an increased rate for their electrical energy, which is supplied by the City of Fort Collins Utilities to ensure it comes from the cleanest source possible. About 10% of the brewery's power comes from methane gas created as a byproduct of their on-site water treatment plant. goal. In 2008, New Belgium Brewing Company was...
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...Case Study: New Belgium Brewing: Ethical and Environmental Responsibility Globe University Business Ethics Professor E. Craig Morris May 12, 2012 Case Study: New Belgium Brewing: Ethical and Environmental Responsibility 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? Probably, the environmental issues need to be addressed by the New Belgium Brewing (NBB) is cost-efficient energy-saving alternatives. ‘In 1998, the NBB commissioned study found that the largest amount of CO2 actually came from the coal-fuelled power plant that supplied the brewery with electricity’ (Melanie Drever, 2006). As a result, the company’s employees entirely agreed to invest in a wind turbine, making the company 100% wind energy brewery because CO2 emissions have bought to serious global warming, and air pollution, affecting the normal lifestyle of people throughout the world. At the same time, the disposal of hot water or polluted water from the process of brewery will create thermal pollution, and water pollution respectively. Those problems will impact the ecosystem composition of aquatic animals or organisms by decreasing the oxygen supply in the river. Therefore, NBB also purchased and developed...
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...Case 05 New 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...
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...Timmins Analysis of New Belgium Brewing Company’s Corporate Social Responsibility Legal and Social Environment of Business, Professor Ruud 3/12/15 New Belgium Brewing Company New Belgium Brewing Company was started by Jeff Lebesch in 1991 in Fort Collins, Colorado. He made his first two brews, which are still around today, in his basement and now they are embarking on opening their second brewery later this year in Asheville, NC. New Belgium Brewing Company not only makes multiple types of brew but they set their standards high when it comes to corporate social responsibility. New Belgium Brewing Company has a large arm span when it comes to charitable giving. They give grants to various organizations ranging from Youth Environmental Education to Water Stewardship. There are four funding programs in which they donate over $6 million as well as their co-workers donating enormous amounts of time. In 2014, the workers donated 2500 hours of volunteer time through their community (Philanthropy, 2015). The company has been, since 1993, donating $1 for every barrel brewed the prior years to charities within their area (Wann, 2015). In the year 1999, that equated to $104,000 being spread to organizations like The Nature Conservancy, Emily Griffith Center, The Hope Center, and other non- profit organizations (Wann, 2015). As you can tell charitable giving is a big part of the New Belgium Brewing Company. The technology is always improving at New Belgium Brewing Company. The...
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...New Belgium Brewing: Ethical and Environmental Responsibility1 Although most of the companies frequently cited as examples of ethical and socially responsible firms are large corporations, it is the social responsibility initiatives of small businesses that often have the greatest impact on local communities and neighborhoods. These businesses create jobs and provide goods and services for customers in smaller markets that larger corporations often are not interested in serving. Moreover, they also contribute money, resources, and volunteer time to local causes. Their owners often serve as community and neighborhood leaders, and many choose to apply their skills and some of the fruits of their success to tackling local problems and issues that benefit everyone in the community. Managers and employees become role models for ethical and socially responsible actions. One such small business is the New Belgium Brewing Company, Inc., based in Fort Collins, Colorado. History of the New Belgium Brewing Company The idea for the New Belgium Brewing Company began with a bicycling trip through Belgium. Belgium is arguably the home of some of the world’s finest ales, some of which have been brewed for centuries in that country’s monasteries. As Jeff Lebesch, an American electrical engineer, cruised around that country on his fat-tired mountain bike, he wondered if he could produce such high-quality beers back home in Colorado. After acquiring the special strain of yeast used to brew Belgian-style...
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...New Belgium Brewing (A) SWOT Analysis New Belgium Brewing is a relatively young brewery in Colorado. With our SWOT analysis, we intend to highlight the internal and external environments of the firm using analyses of the internal strengths and weaknesses that New Belgium possesses, while also highlighting the external opportunities and threats. We will also avoid the criticisms that the SWOT analysis faces, by giving the analysis serious consideration of the issues, and by diving deeper than a, “sterile academic exercise of classifying data and information”, as noted in the text (pg. 122). Strengths New Belgium Brewing has numerous aspects or traits that they do well as a company. Their most effective advertising comes from, “customers’ word of mouth” (text pg. 471). This is due to the fact that New Belgium Brewing does an exceptional job of building relationships with customers, then allowing customers to provide word of mouth advertising for the company. New Belgium has established, “environmental and ethical business practices (text pg. 472), along with community service programs (Tour De Fat, donations to pig farmers, and Best Damn Bike Tour) and donations. Through their business practices, programs, and an emphasis on the environment, New Belgium Brewing has allowed their reputation to be one of their strengths, and created a “very loyal following (text pg. 477). Customer and public relations, are certainly a strength for New Belgium Brewing, and certainly can be...
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...Case New Belgium Brewing (B) New Belgium Brewing: Developing a Brand Personality * Background NEW BELGIUM’S INITIAL MARKETING STRATEGY The idea for the New Belgium Brewing Company began with a bicycling trip through Belgium. Belgium is arguably the home of some of the world’s finest ales, some of which have been brewed for centuries in that country’s monasteries. As Jeff Lebesch, an American electrical engineer, cruised around that country on his fat-tired mountain bike, he wondered if he could produce such high-quality beers back home in Colorado. After acquiring the special strain of yeast used to brew Belgian-style ales, Lebesch returned home and began to experiment in his Colorado basement. When his beers earned thumbs up from friends, Lebesch decided to market them. The New Belgium Brewing Company opened for business in 1991 as a tiny basement operation in Lebesch home in Fort Collins. Lebesch wife, Kim Jordan, became the firm’s marketing director. New Belgium beers quickly developed a small but devoted customer base, first in Fort Collins and then throughout Colorado. The brewery soon outgrew the couple’s basement and moved into an old railroad depot before settling into its present custom-built facility in 1995. The company’s standard line has grown to include Sunshine Wheat, Blue Paddle Pilsner, Abbey Ale, Trippel Ale, 1554 Black Ale, and the original Fat Tire Amber Ale, still the firm’s bestseller. Today, New Belgium Brewing is America’s third largest...
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...Corporate Social Responsibility of New Belgium Brewing Company In 1989, a man, by the name of Jeff Lebesch, rode his bike with flat tires through European villages known for their delectable beer. In the confines of his basement, he had his own ideas brewing. With some added time, his idea has turned into a renowned figure, New Belgium Brewing Company was born (New Belgium, 2014). Every company should give back to the community. In this analysis, there will be an analysis of New Belgium and their investments back into the community. Some companies choose not to give back whatsoever, however this is not the case with New Belgium. The goal of this writing is to express the charitable giving, view of environmental responsibilities, policies of technology, and approach to customer service of New Belgium Brewing Company. To begin, an analysis of their charitable giving is in order. Based on their website, New Belgium Brewing Company has a genuine compassion for what they do. They are not only delivering product to their customers, they are giving back to the community. New Belgium has numerous charitable programs. One of the larger ones, known as the Philanthropy Program has been giving back to the community since 1995. One dollar is given for every barrel of beer sold. In total, since its rise as a company, New Belgium has donated over five million dollars (New Belgium, 2014). Not only does this company donate money based on their performance, but they also help fund educational...
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...Blodgett New Belgium Case 1) Rather than use focus groups to test its branding and messaging, New Belgium used insiders in the bike community and brewery friends who had a personal history and knowledge of the brand. Evaluate this decision. Should New Belgium have used the more traditional approach to ensure the widest possible input to its marketing strategy? Discuss. Jeff Lebesch came back to Colorado with the idea to produce high quality beer and began experimenting in the basement of his home, he never anticipated owning the seventh largest brewery in the nation with sales of over 700,000 barrels of beer per year. With this being said, I highly doubt that Jeff and his wife Kim had the financial stability allowing them to spend money to market a home brewed beer that could have potentially failed. Jeff may have faced a little biased reaction from brewery friends and insiders in the biking community who knew what the brand stood for, but in the long run the “word of mouth” method works to their benefit and saved them countless amount of money. Some might say that people who already know the business can only help elaborate it, where people who are unaware of the business can bring new ideas to the table, but I believe that Jeff and his wife executed their marketing strategy the best to their ability. 2) New Belgium’s focus on sustainability, whimsy, and fun is clearly rooted in its Colorado-based culture and the ethos of its founders and employees. As New Belgium’s distribution...
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...Anthony Goerzen prepared this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. This material is not covered under authorization from CanCopy or any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. One time permission to reproduce granted to Interpretive for use in CountryManager by Ivey Management Services on Aug. 1, 2007. Copyright © 2000, Ivey Management Services Version: (A) 2006-08-29 In April 2000, Paul Cooke, chief marketing officer of Interbrew, the world’s fourth largest brewer, contemplated the further development of their premium product, Stella Artois, as the company’s flagship brand in key markets around the world. Although the long-range plan for 2000-2002 had been approved, there still remained some important strategic issues to resolve. A BRIEF HISTORY OF INTERBREW Interbrew traced its origins back to 1366 to a brewery called Den Hoorn, located in...
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...The term SWOT stands for analyzing strengths, weaknesses, opportunities, and threats (Ferrell & Hartline, 2014). The strengths of New Belgium Brewing are the quality of its products, its distribution network, and its social/environmental responsibilities. The weaknesses include its inability to penetrate the northeastern U.S. markets significantly, and its current infrastructure. The opportunities include growing its market share and penetrating the northeast markets. The threats include small and large competitors. The threats also include start-up breweries. The Chief Operating Officer has asked me for a list of pros and cons of opening a third brewery. The pros of opening a third brewery would be an improved distribution infrastructure,...
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...1. Nike: From Sweatshops to Leadership in Employment Practices 2. Starbuck’ mission: Social responsibility and brand strength 3. New Belgium Breweries: Ethical and Environmental Responsibilities You will be required to answer to the end of case questions. I expect personal opinion, don’t try to copy from a template somewhere Test 2: StarBuck Case 2 Starbucks’ Mission: Social Responsibility and Brand Strength Case Notes for Instructors: Students will likely have strong opinions regarding Starbucks. Many may be committed patrons who view Starbucks as a socially responsible company committed to green practices and free-trade coffee. Others might dislike Starbucks because it is a large chain that pushes out smaller local competitors. Another possible reason students may be opposed to Starbucks are its prices, which are higher than many of its competitors. Starbucks seems to be able to justify its higher prices because the company sells more than just coffee—it sells an experience. Starbucks patrons can order specialty drinks and hang out in what founder Howard Schultz envisioned to be the “third place” to be after home and work. Love it or hate it, Starbucks has been very successful at branding. Starbucks has had a profound influence on the U.S. coffee market. Before Starbucks came onto the scene, people perceived coffee as an uninteresting product largely consumed by older people in the United States. It did not have the “cool” factor or the cache that it does...
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