...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 operating...
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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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...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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...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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...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 changed since the humble beginnings of beer brewing as a craft. With that being said a lot has to be done in order to effectively market such a unique beverage in different markets. When most American's think of beer, they often reflect upon the Anheuser Bush Company (InBev) which has been in operation since 1852. Although...
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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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...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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...CRAFT BREWERS ALLIANCE, INC. 2010 Annual Report UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2010 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to ______________ Commission File Number 0-26542 CRAFT BREWERS ALLIANCE, INC. (Exact name of registrant as specified in its charter) Washington (State of incorporation) 929 North Russell Street Portland, Oregon (Address of principal executive offices) 91-1141254 (I.R.S. Employer Identification Number) 97227-1733 (Zip Code) (503) 331-7270 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of Each Class Common Stock, Par Value $0.005 Per Share Name of Each Exchange on Which Registered The NASDAQ Stock Market LLC Securities registered pursuant to Section 12(g) of the Act: None. (Title of Class) Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act...
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...Light VS Dark XOXOXO ENG/220 October 30, 2014 XOXOX Light VS Dark “Light beer has no flavor”, “dark beer is too heavy” common arguments that are made in the ongoing battle of light versus dark beer. With a recent boom in the craft beer breweries and mega breweries that have been known for years, there are more choices now than ever. Some people choose to have a cool, refreshing light beer, while others choose a bold, flavorful dark beer. The truth is, it is all relative to a person’s personal preference. There are many differences between the two types of beers, but three of the main differences are the way they are brewed, marketed to the public, and the culture associated with each beer. The Brewing Process It is the grain that really makes the difference in the color of the finished beer; this is true whether the beer is made in a large scale brewery or in a mom and pop outfit. Of course, most beer is made from the same grain (barley), though others are brewed with wheat, oats, rye, rice, quinoa and virtually any other grain available, all of which impart their own character to the brew. However, how darkly the malt has been roasted is what gives color and body to the beer. The darker the roast, the darker the beer that results from this ingredient. The roast affects the color of the finished beer as well as the body and many of the flavors in the brew as well. For example, a dark beer tends to have a deeper, more complex set of...
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...1.1. BACKGROUND OF THE STUDY In order to stay profitable and competitive in today’s market, satisfying customer is vital. So as to meet this goal, understanding the customers’ behaviours should be given a top priority. These days, organizations are expected to perform more than producing products and delivering services. Before producing products or delivering services, there is a need to do customer research. The customer research enables to answer questions like what the market buys, why the market buys, who participate in the buying, how the market buys, when the market buys, where the market buys and the like. But learning about the whys of consumer buying behaviour is not so easy the answers are often locked deep within the consumer’s head. Marketing is the art of creating, attracting, and keeping customers, in order to convert occasional purchasers in to brand loyalists; habits must be reinforced by appealing to the factors that shape consumer behaviours which include the cultural, social, personal and psychological characteristics; because they hold the key to success or failure of any product. Among the aforementioned factors which influence consumer purchases, this research focuses on the psychological factors particularly attitude and perception. Consumer’s attitudes towards a product according to Kotler and Armsrong (2006) is being shaped and influenced by psychological factors such as motivation, perception, learning, personality, attitude and belief. Perception...
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...Introduction The purpose of this briefing paper is to analyse the data given from the case study to determine the impact and consequences global forces have, by using the PESTEL framework. This framework is used to 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...
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... Apparently that drinking beer has positive effects to our health as long as normally consumption though consuming of beer has the bad effects too such as bad habit, hangovers, and addiction. However, several study says that benefits of beer consumption is able to minimize some of disease symptoms. Beer consist of 5 main ingredients (Water, Malt, Barley, Hops, Yeast), but some sources says that 3 of the ingredients (Water, Malt, Yeast) are useful to reduce the risk of kidney stones, diabetes, and gastric acid, which means has certain good effects to our body. The first main ingredient that are useful for beer is 93 percent comes from Water. Water in beer should free and clean from bioligical, physical, and chemical contamination in brewing. Water containing oxygen and soda in beer which able to allow oxygen to the kidney so it will help avoid kidney disease, and give fresh oxygen to kidney stone. You can imagine how importants it is for our body. Researches from Finland has completed their study and says that drinking beer can reduce the risk of kidney stones by 40 percent. The connection between beer and kidney stones is to reduce the formation of calcium in human body. The second useful ingredient is Malt. It contains with Vitamin B12, B6, zinc, and magnesium as well as some amino acid that are useful for the body to build proteins and prevent the symptoms of diabetes. Malt is the main ingredient used in the process of...
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...Bachelor of Technology (Hons) Degree in Food Processing Technology NAME TICHAONA VUDZIJENA REG # H1010724M COURSE INDUSTRIAL BIOTECHNOLOGY LECTURER M TITLE ASSIGNMENT TITLE Determination of the alpha and beta amylase activity (diastatic power) of Rapoko and Sorghum malts using the Fehling’s solution procedure. AIM To determine the diastatic power of malts OBJECTIVES * to be able to determine the diastatic power of sorghum and rapoko malts * to be able to compare the diastatic power between rapoko malt and sorghum malt SUMMARY Sorghum and rapoko malts were produced by grinding using pestle and mortar until 25g of the malt was obtained for each sample, transferred to 500ml flask and 0.5% NaCl was added , the mixture was closed and swirled. Time was noted and the infusion was left to stand for 2,5 hours at 20°C agitating it by rotation at 20 minutes intervals. Infusion was filtered thereafter through 32cm fluted filter and first 50ml was returned to filtrate and the final 20ml was transferred to a 100ml volumetric flask and was diluted to the mark with 0,5% NaCl .10ml of solution was pippeted to a 250ml flask and brought to 20°C. 200ml of starch solution was added to the flask and maintained at 20°C for 30 minutes. 250ml of 0.5N NaOH was added and mixed by inverting the flask, and topped to the mark with distilled water. A blank solution was prepared . 10ml of Soxhlet solution and 10ml of water were added to a 200ml volumetric flask and boiled....
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