...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 present situation...
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...1. Did Interbrew add value to SUN brewing? How? The Khemka family is evaluating multiple scenarios to decide what future action they want to proceed with in regards to their stake in SUN Interbrew. The Khemka family has identified their options and we are providing a discounted cash flow analysis to bestow insight as to what option is best. The income and cash flow projections as well as the balance sheet for Sun Interbrew (found in Exhibits 1 and 2, respectively) were used as a base for calculations. The assumptions necessary to evaluate the company are detailed in Exhibit 3 and are stated below for simplicity. The revenue growth was assumed to be 14.7% and the discount rate and expense growth rate to be 12% and 0% respectively. Also, our tax rate is assumed to be 28%. Furthermore, our robust checks include a low and high discount rate of 8% and 16% respectively. In addition, we assumed a minimum growth rate of 8.67% and maximum growth rate of 2.55% derived from Capex year over year. Notably, we believe these assumptions coupled with the financial data given provides a detailed analysis of fair evaluations for the Khemka family’s stake in SUN Interbrew. Prior to the joint venture of SUN Interbrew, SUN Brewing was the result of the Khemka family’s desire to take advantage of the small, yet rapidly expanding, Russian brewing industry. After the successful acquisition of several small breweries, SUN Brewing entered into a joint venture with Interbrew. T...
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...com/list-of-breweries-2/ 60 Current Breweries Different Brews: A Arizona Wilderness Brewing Co:12 B BJ’s: 22 Bad Water Brewing Company: 3 Barley Bros: 6 Barrio Brewing Co.: 9 Beast Brewing Co.: 4 Beaver Street Brewery: 8 Black Bridge Brewing: 5 Black Hole Beer Co.: 12 Borderlands Brewing Co.: 6 C Catalina Brewing Co.: 9 College Street Brewhouse & Pub: 8 D Desert Eagle Brewing Co.: 7 Devious Brewing Co.: 3 Dragoon Brewing Co.: 12 Dubina Brewing Co.: 6 E F Fate Brewing Co.: 6 Flagstaff Brewing Co.: 8 Four Peaks Brewing Co.: 8 Freak'N Brewing Co.: 9 G Gordon Biersch Brewery Restaurant: 5 Grand Canyon Brewing Co.: 14 Granite Mountain Brewing: 3 H Historic Brewing Company: 23 Huss Brewing Co.: 4 I Iron John's Brewing Company: 3 J K L Lumberyard Brewing Co.: 4 M Mother Brunch Brewing: 20 Mother Road Brewing Co.: 9 Mudshark Brewery: 10 N Nimbus Brewing Co.: 6 North Mountain Brewing Co.: 8 O O.H.S.O Eatery + nanoBrewery: 4 Oak Creek Brewery at Tlaquepaque: 9 Oak Creek Brewing Co.: 8 Old Bisbee Brewing Co.: 7 Old World Brewery: 8 Owl's Orchard Brewery: 6 P Papago Brewing Co.: 4 Peoria Artisan Brewery: 14 Phoenix Ale Brewery: 6 Pinetop Brewing Company: 5 Prescott Brewing Co.: 9 Prison Hill Brewing Co: 5 Pueblo Vida Brewing Co: 9 Q R Rock Bottom Brewery & Restaurant: 6 S SanTan Brewing Co.: 21 Sentinel Peak Brewing Co.: 8 Sleepy Dog Saloon & Brewery: 9 Sonoran Brewing Co.: 2 Sun Up Brewing Co.: 8 T Ten Fifty-Five Brewing Co.: 4 THAT Brewery: 10 The Beer Research Institute: 6 The Perch Pub...
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...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 taken such a strong stance toward sustainability? (1)New Belgium Brewing Co. (NBB) is a craft beer leader that embraces sustainability and corporate responsibility. For New Belgium, social, ethical, and environmental responsibilities are as important to the company’s operations as profitability. For New Belgium, business is as much about improving the local community as it is about making beer. From its inception, New Belgium Brewing has sought to minimize resource consumption, maximize energy efficiency, and redefine waste. In 1999, New Belgium became the US first brewery to subscribe to wind energy. By treating process waste water onsite, New Belgium is able to produce 15% of its total energy needs. In 2009, New Belgium implemented the largest private array of solar panels in Colorado; 870 panels mounted atop the bottling facility produce over 200 kW of power onsite. New Belgium has also adopted green building practices throughout the brewing facility and has incorporated innovative engineering and design in its operations. New Belgium believes that making choices that are environmentally sustainable or enriching for the society is just good business sense. New Belgium has taken such a strong stance toward sustainability based on its belief that doing the right thing pays. (2)New Belgium Brewing Company strives to...
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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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...Foreign Market Entry and Diversification Georgia Jefferson Strayer University Abstract This paper will discuss and identify the trends in global beer markets. It will discuss how Modelo’s International expansion was made possible by building strategic partnerships with experienced distributors in local markets. The paper will focus on how Modelo should enter in the foreign market and what is the best strategy. Modelo will face many challenges from his competitors and make the decision whether the company should diversify the business to promote growth. Identify and discuss the trends in the global beer markets. The global beer markets have four main trends and they are consolidation, international expansions, mergers and acquisitions. Consolidation with the beer industry broadens the area of sales and exposes brewers to more opportunities for growth of its company. Expansion of any company can be a positive attribute to overall success for the most obvious reason, revenue. The trend of breweries expansion might be credited to the very expensive initial startup cost of a brewery. In this area of the beer industry having more than one area of cash flow assists with the maintaining the fluctuating price of resources. (Thompson, Strickland III, & Gamble, 2009) International expansion can be a major attribute to a company’s success through seeking proficient production efficiencies. Some beer companies will produce their beer within its country than export...
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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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...) What environmental issues does the New Belgium Brewing Company work to address? How has NBB take strategic approach to addressing these issues? Why do you think the company has taken such a strong stance toward sustainability? New Belgium Brewing Company strives to take an environment friendly approach to their manufacturing process and facility, focussing on reducing their carbon footprint and energy usage. They were the first-ever American brewery to fully incorporate a wind turbine as a power source versus the burning of coal. Other approaches included the addition of a steam condenser to recycle hot water for use around other areas of the plant and sun tubes which utilize natural sunlight to light the plant. Furthermore, their used hops and barley are saved for the use of feeding area livestock instead of being wasted. Employees are also encouraged to be individually conservative by riding their gifted “cruiser bikes” to and from work. It is our belief that the founder, Jeff Lebesch’s own personal values and love of the outdoors contributed to the company’s strong stance on sustainability. A long side that is the fact that adopting such sustainability measures will help to increase their bottom line. 2) Do you agree that New Belgium’s focus on social responsibility provides a key competitive advantage for the company? Why or why not? We believe that New Belgium’s emphasis on social responsibility provides a key competitive advantage for their...
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...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 global market in 1998 and by 2008 it had grown by 25%. According to Carlsberg...
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...Give me skies of green and red, cold winds will make it real. Storms are brewing deep within of hurt and loss of pride. It's good to see the world in pain when I take a walk outside. When it rains, I don't mind being lonely. I cry right along with the sky. When it rains, I don't pretend to be happy. I don't even have to try. when it rains, some people get down to sportin' a frown. So I fit right in. Yeah the sun may brighten your day but if I had my way I'd take the rain. I don't care about politics or the hypocrites on my T.V. I'm not mad at the girl who left because she couldn't be with me. So make up the theories about the scandals and the lies. Start out depressed, everything comes as a pleasant surprise. When it rains, I don't mind being lonely. I cry right along with the sky. When it rains, I don't pretend to be happy. I don't even have to try. When it rains, some people get down to sportin' a frown. So I fit right in. Yeah the sun may brighten your day but if I had my way I'd take the rain. When it rains, I don't mind being lonely. I cry right along with the sky. When it rains, I don't pretend to be happy. I don't even have to try. When it rains, I don't mind being lonely. I cry right along with the sky. When it rains, I don't pretend to be happy. I don't even have to try. when it rains, some people get down to sportin' a frown. So I fit right in. Yeah the sun may brighten your day but if I had my way I'd take the...
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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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...Identify SABMiller's Strategic position: In order to Identify the company's position; it is important to carry out its Business external analysis; it is also essential to identify its core competences and capabilities as well as stakeholder expectations in order to successfully identify the company's strategic position. SABMiller's External Analysis: In order to asses SABMiller's external analysis; I have constructed a PESTEL analysis (appendix 1); Porters 5 forces (appendix 2); THE BCG matrix (appendix 3) and its competition Analysis (appendix 4). After conducting Porter's five forces of the Brewing Industry; I have found many interesting outcomes relating to SABMiller as the overall markets of the brewing industry aren't clearly attractive; its performance depends on the ability to expand its market share and exploit opportunities in the emerging markets. However, the brewing industry in growing markets, which SABMiller operates, is highly attractive but not for new entrants; it's especially attractive for the dominant players in the Industry; which in this case SABMiller is one of them. After analysing my Porter's 5 forces; it is conclusive that it would be extremely hard for new entrants to compete in these emerging markets due to the high dominance of the main competitors. I have also observed other good points such as the low level of power within suppliers; however the power of suppliers is increasing especially in USA due to the rising costs of energy and Aluminium...
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...MarketLine Industry Profile Alcoholic Drinks in China February 2012 Reference Code: 0099-2201 Publication Date: February 2012 WWW.MARKETLINEINFO.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED China - Alcoholic Drinks © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0099 - 2201 - 2011 Page | 1 EXECUTIVE SUMMARY Market value The Chinese alcoholic drinks market grew by 9.8% in 2011 to reach a value of $96.5 billion. Market value forecast In 2016, the Chinese alcoholic drinks market is forecast to have a value of $145.6 billion, an increase of 50.9% since 2011. Market volume The Chinese alcoholic drinks market grew by 5.7% in 2011 to reach a volume of 53.2 billion liters. Market volume forecast In 2016, the Chinese alcoholic drinks market is forecast to have a volume of 67.6 billion liters, an increase of 27.1% since 2011. Category segmentation Beer, cider & FABs is the largest segment of the alcoholic drinks market in China, accounting for 65.1% of the market's total value. Geography segmentation China accounts for 38.7% of the Asia-Pacific alcoholic drinks market value. Market share SAB Miller is the leading player in the Chinese alcoholic drinks market, generating a 17% share of the market's value. Market rivalry Growth within the alcoholic drinks market has been robust and steady within the last few years, which tends to reduce the rivalry to some extent and attract...
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...The World Famous San Diego zoo is the second best zoo in the country, and is partnered with the Safari Park in northern San Diego. These parks offer a peak of animals in replicated natural habitats and have everything from tigers to the famed Pandas. Another hot spot is Sea World, which has many aquatic animals and lots of animal shows. These are great for the whole family but be warned if you sit in the splash zone at a show, you will get wet! While the parks might be great for hanging out with the family during the day, the real fun happens when the sun goes down. San Diego has a number of great areas for night life, but the top destination is downtown in the Gaslamp District. The Gaslamp has a number of bars and restaurants lining a couple of densely packed streets, and is always exciting on Friday and Saturday nights. Clubs, bars and restaurants offer specials and it's a great place to take that special someone or meet the next special someone. The Gaslamp also has a number of upscale hotels so in case you have a little bit too much to drink you can walk home or hop in a bicycle powered taxi carriage. Another great location for entertainment is Little...
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...New Belgium Brewery 1) What environmental issues does the New Belgium Brewing Company work to address? How has NBB take strategic approach to addressing these issues? Why do you think the company has taken such a strong stance toward sustainability? New Belgium Brewing Company strives to take an environment friendly approach to their manufacturing process and facility, focussing on reducing their carbon footprint and energy usage. They were the first-ever American brewery to fully incorporate a wind turbine as a power source versus the burning of coal. Other approaches included the addition of a steam condenser to recycle hot water for use around other areas of the plant and sun tubes which utilize natural sunlight to light the plant. Furthermore, their used hops and barley are saved for the use of feeding area livestock instead of being wasted. Employees are also encouraged to be individually conservative by riding their gifted “cruiser bikes” to and from work. It is our belief that the founder, Jeff Lebesch’s own personal values and love of the outdoors contributed to the company’s strong stance on sustainability. A long side that is the fact that adopting such sustainability measures will help to increase their bottom line. 2) Do you agree that New Belgium’s focus on social responsibility provides a key competitive advantage for the company? Why or why not? We believe that New Belgium’s emphasis on social responsibility provides a key competitive...
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