...University of New Hampshire University of New Hampshire Scholars' Repository Honors Theses Student Scholarship Spring 2012 Microbrewing in the US: An overview of the microbrewery industry and a business plan for future success Kevin Lapoint University of New Hampshire - Main Campus Follow this and additional works at: http://scholars.unh.edu/honors Part of the Entrepreneurial and Small Business Operations Commons Recommended Citation Lapoint, Kevin, "Microbrewing in the US: An overview of the microbrewery industry and a business plan for future success" (2012). Honors Theses. Paper 9. This Senior Honors Thesis is brought to you for free and open access by the Student Scholarship at University of New Hampshire Scholars' Repository. It has been accepted for inclusion in Honors Theses by an authorized administrator of University of New Hampshire Scholars' Repository. For more information, please contact scholarly.communication@unh.edu. Microbrewing in the US An Overview of the Microbrewery Industry and a Business Plan for Future Success Kevin Lapoint Business Administration, Finance and Management Whittemore School of Business & Economics Kpe8@unh.edu (603) 988-3438 Advisor: Prof. Fiona Wilson Whittemore School of Business & Economics 5/5/2012 Kevin Lapoint Microbrewing in the US Acknowledgements I would like to thank my brother Douglas, my mother and father, and especially my brother Richard. Without their support, edits, and...
Words: 23149 - Pages: 93
...exported to India in the early days of the British Empire, including porter and India Pale Ale, also known as IPA. Although as alcohols are not unknown to India thousands of years ago.It is mentioned in some epics of India like The Mahabharatha, called "sura paniyam", which means a liquid that can potentially make the drinker unconscious. The first brewery in India was set up in Kasauli, in the Himalaya mountains, near Shimla, in the late 1820s by the Englishman Edward Dyer. Dyer's brewery produced Asia's first beer, called Lion. The brewery was soon shifted to nearby Solan (close to the British summer capital Shimla), as there was an abundant supply of fresh spring water there. The Kasauli brewery site was converted to a distillery which Mohan Meakin Ltd. still operates. Dyer set up more breweries at Shimla, Murree,Rawalpindi and Mandalay. Another entrepreneur, H G Meakin, moved to India and bought the old Shimla and Solan Breweries from Edward Dyer and added more at Ranikhet, Dalhousie, Chakrata, Darjeeling and Kirkee. In 1937, when Burma was separated from India, the company was restructured with its Indian assets as Dyer Meakin Breweries, a public company on the London Stock Exchange. Following independence, in 1949 N.N. Mohan took over management of the company and the name was changed to Mohan Meakin Ltd. The company continues to produce beer across India to this day and Lion is still available in northern India. Lion was changed from an IPA to a lagerin the 1960s, when due...
Words: 2841 - Pages: 12
...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...
Words: 1716 - Pages: 7
...Industry Overview: Craft Breweries & Microbreweries Craft breweries and microbreweries produce beer in limited quantities when compared to large breweries (generally under 10,000 barrels per year) and usually distribute their beer within a limited geographic region. Craft breweries often specialize in specific styles of beer, and focus on providing customers a superior product, using traditional brewing techniques. Certain craft breweries sell beer directly on their premises, and are called brewpubs. Craft breweries are known to develop clever marketing strategies with limited budgets in order to connect with their target markets. Industry Overview BC In 2009, 209 breweries were identified by Statistics Canada and 49 of those establishments were located in British Columbia. However, an article by The Province estimates that by the end of 2013 there will be more than 60 independent breweries (this number includes microbreweries, nanobreweries and brew pubs). This increase in breweries is mirrored by an increase of 6.4% of microbrewery beer sales in British Columbia in March 2007 to 12.7% in March 2011. In the last two years, this number have only grown. In an article published July 3, 2013, The Province asserts that craft beer is almost at 20% of the market share for beer in British Columbia, while BC Business cites the Craft Brewers Association of British Columbia in stating that the market share is currently around 15% but that many brewers are experiencing sales growth...
Words: 4038 - Pages: 17
...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...
Words: 1261 - Pages: 6
...April 2010 Project Advisor: Scott Noesen Disclaimer Unless otherwise explicitly stated, the views and opinions expressed herein do not necessarily represent those of the University of Michigan, the School of Natural Resources and the Environment, the Arbor Brewing Company, or any entity other than the members of the Green Brewery Project student team. This document contains many forward-looking statements, including predictions of project costs, payback periods, performance characteristics, incentive award amounts, etc. Such statements are the results of careful analysis by the team, using the best information available at the time, and based on certain expectations and assumptions which are identified wherever possible. A variety of factors could cause the actual results to differ from predicted outcomes. Advice from qualified professionals should be sought to complement the advice contained herein. The Green Brewery Project | Disclaimer i Acknowledgements The Green Brewery Project could not have been a success without the help of many people and organizations. First we would like to thank Matt and Rene Greff and all of the Corner Brewery Staff for allowing us to do this project and being cooperative with all of our questions and interruptions. Next we would like to thank our advisor Scott Noesen and consultant Greg Marker for helping us get started and guiding us along our journey. Thanks go to the Craft Brewer‘s Association, Laura Williams (University of Michigan...
Words: 3917 - Pages: 16
...global beer market Even though the United States has the largest beer market China surpassed them in 2003. Americans are drinking more beer and the consumption per capita remained almost six times higher in the United States than it is in China. There are three brewers controlling 80% of the U.S. market, Anheuser Busch with 45%, Miller Brew with 23% and Adolph Coors with 10%. There were also 300 regional craft breweries that struggled to make a profit because of vertical integration and economies of scale which were drivers of operating margins [ (Thompson, Strickland, & Gamble, 2009, pp. C-250) ] Mexico is one of the largest beer markets in the world. They have a variety of brands with lots of different taste. Even with the mix of taste, Mexico is split between two producers and few microbreweries. These companies are FEMSA and Grupo Modelo. Grupo Modelo captured 62.8 % of the Mexican market in 2007 while FEMSA captured the remaining 37.2% [ (Thompson, Strickland, & Gamble, 2009, pp. C-251) ]. As a whole, the beer industry is expected to post a third consecutive year of declining sales in the U.S. for the first time in more than 50 years. . Shipments from beer manufacturers to wholesalers, a standard industry measure, are expected to fall by as much as 2 percent in 2011, according to Beer Marketer's Insights [ (York, 2011) ]. “In June [2004], a commercial agreement was signed with Heineken [by FEMSA] to commercialize [their] beer brands in the United States...
Words: 1925 - Pages: 8
...Sohan Phal Dessai | Sec B | 2012112 Greaves Brewery: Case Analysis Abstract: Greaves Brewery enjoyed an excellent reputation as a maker of beer that had won both local drinkers and tourists who chanced to try out its bottled product during their trips. Located in Trinidad, a southern Caribbean island, Greaves Brewery was established in 1924 by John Greaves, its founder. Through the years, Greaves Brewery had steadily grown and eventually began to tap the export markets as well. The company reaped its highest level of sales in February 1991. The increased demand for Greaves beer called for prompt action for the company to improve its production operations to keep up with the favourable development. Issues of the Case: In the course of finalizing the design for an additional bottling line for Greaves Brewery , the company’s chief engineer , Lesley Simpson , had to decide on issues pertaining to how the bottled beer in cases should be placed on the pallets . The company was currently using manual labour for this part of the production line. Meanwhile, there is the available option to set up an automated system for it. Problem Statement: Increasing capacity to 1000 bottles/minute to meet increasing peak sales demands 4 times a year; Carnival (Feb), Easter (April), Independence Day (August), Christmas (December). Highest sales were during carnival. Material Handling is a problem so the manager is considering of setting up a automatic palletizer. The Bottling Process:...
Words: 738 - Pages: 3
...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 trip, became the brewery's flagship beer. By 1991, Jeff and Kim formally organized the brewery as NBB and began selling the first bottles of Fat Tire around their hometown of Fort Collins. Kim, Serving as the businessperson of the two, engaged...
Words: 601 - Pages: 3
...behind Gordon Biersch were two individuals, Dan Gordon; a qualified brewing engineer from the esteemed University of Munich, Germany, and Dean Biersch; who had a passion for food service and a vast experience in the food and beverage sector. Their unique idea of a microbrewery and fine dining restaurant stemmed from a law amendment of California in 1983 which allowed brewing and serving of beer in the same locale. They envisioned the concept of providing high quality fine dining with outstanding service in an attractive ambiance featuring exceptional German-style lagers in on-site breweries. Their target market was the fairly sophisticated, yet not so young natives of Palo Alto as well as the Stanford University faculty, staff and graduate student body. Their unique idea came to realization in July 1988 after rigorously detailed planning pertaining to atmosphere, food selection and German-style brewery. The capital was raised by the contribution of five investors, (Dean’s family friend...
Words: 5459 - Pages: 22
...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 much like family and friends. He told me that when you begin the planning stages of your own business, be it beer or otherwise, the best ingredient you can possibly add to your future business mix is a solid plan. He had a business plan that carted nearly every bar in the entire valley for as far back...
Words: 1018 - Pages: 5
...Ltd) has a warning for those wanting to do business in China: “Many Chinese see it as their patriotic duty to shoot down foreigners, so you can be like a clay pigeon at target practice.” Despite this, Rod Zemanek has been successful in China and is responsible for the design of many of the country’s modern breweries. He was invited to submit a proposal for a huge Guangdong brewery by Dr. Pasteur Lai, the son of a former Chinese minister of health and now an Australian citizen. Lai had many connections deep within the Chinese government, had done his homework on Rod Zemanek, and was able to report to the Chinese that Rod Zemanek was the premier brewery designer and builder in Australia. The Scene Rod Zemanek was initially cynical. “We get a lot of ‘tire kickers’ in this business—people who aren’t serious about a project but just want to test the waters,” he explained. Rod Zemanek sent the Chinese a questionnaire, asking for information about specifications, resources, brewery capacity, products they planned to produce, budget, and business plans. The response he received convinced him to head to China to discuss a potential deal to build Guangdong province’s largest brewery—a $20 million project. But, having heard from others about their China experiences, he decided to pitch only for the business in which his company had special technology to offer. “One of the first things you need to understand about China is that you can’t compete against cheap, local rivals,” he advises. “The...
Words: 2508 - Pages: 11
...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...
Words: 3564 - Pages: 15
...essential ingredients. A 1660 map of New Amsterdam details twenty-six breweries and taverns, a clear indication that producing and selling beer were popular and profitable trades in the American colonies (Baron, Chapter Three). Despite the early popularity of beer, other alcoholic beverages steadily grew in importance and by the early eighteenth century several of them had eclipsed beer commercially. Between 1650 and the Civil War, the market for beer did not change a great deal: both production and consumption remained essentially local affairs. Bottling was expensive, and beer did not travel well. Nearly all beer was stored in, and then served from, wooden kegs. While there were many small breweries, it was not uncommon for households to brew their own beer. In fact, several of America's founding fathers brewed their own beer, including George Washington and Thomas Jefferson (Baron, Chapters 13 and 16). 1800-1865: Brewing Begins to Expand National production statistics are unavailable before 1810, an omission which reflects the rather limited importance of the early brewing industry. In 1810, America's 140 commercial breweries collectively produced just over 180,000 barrels of beer.[1] During the next fifty years, total beer output continued to increase, but production remained small scale and local. This is not to suggest, however, that brewing could not prove profitable. In 1797, James Vassar founded a brewery in Poughkeepsie, New York whose successes echoed far beyond the...
Words: 3090 - Pages: 13
...reported at 3.5%. “The largest contributors to this growth have been China (now the world's largest beer market), Africa and Eastern Europe” (SABMiller Investors, 2011). Another trend seen in the industry is consolidation. At the beginning of the twenty first century there were ten major brewers accounting for one third of the beer sales. Today there are four top brewers which include “Anheuser-Busch InBev, SABMiller, Heineken and Carlsberg – accounting for almost 50% of beer sales volumes and up to 75% of the global profit pool” (SABMiller Investors, 2011). This is due to the increase in consolidation. Another trend in the beer industry is premiumisation. This term refers to the sales of premium beer brands. “As economies improve, the trend towards premium will resume as consumers become more willing to pay for authentic, more image-oriented brands that reflect their socio-economic and lifestyle aspirations” (SABMiller Investors, 2011). Discuss how Modelo’s international expansion was made possible through strategic partnerships with experienced distributors in local markets. This is a case analysis of Corona Beer (Modelo). Cerveceria Modelo opened its first brewery in...
Words: 1526 - Pages: 7
