Premium Essay

To Brew or Not to Brew

In: Business and Management

Submitted By tothanex
Words 1028
Pages 5
To brew or not to brew Beer is the world's most widely consumed alcoholic beverage, and is the third-most popular drink overall, after water and tea. It is thought by some to be the oldest fermented beverage. The brewing industry is a global business, consisting of several dominant multinational companies and many thousands of smaller producers.
We estimate that the global beer market represented approximately 1.85 billion hectoliters in 2010, producing total global revenue of approximately $160 billion. The most dynamically growing regions have been Asia Pacific and Africa/Middle East, which have seen the highest real GDP growth. The highest density of breweries in the world, most of them microbreweries, exists in the German Region of Franconia, especially in the district of Upper Franconia, which has about 200 breweries. In 2012 the four largest brewing companies controlled 50% of the market: Anheuser-Busch InBev, SABMiller, Heineken International, Carlsberg Group.
Using the PESTEL analysis, the political factors are the actions against overconsumption and the restrictions by government (prohibition, taxes), the economical factors are the cost reduction, rise prices of packaging, and economy crisis. The fitness and health, the face of customers drink more wine than before, and the demand for flavered beers are the social factors of beer industry. The technological ones are the new brands and flavors, the innovation in beer production, increase in efficiency, and the centralization of production and administration. The acquisition and mergers, the green companies, and the lower pollution are the environmental factors and the legal circumstances are the question of drink driving, the age restrictions, and the restrictions in advertising.
To analyse the industry we used Porter’s Five Forces.
Regarding rivalry amongst sellers it can be told that competition is…...

Similar Documents

Premium Essay

Trouble Brews at Starbucks

...Victor Huynh A00340857 MKTG 3379 INTRODUCTION Starbucks’ confirmed it’s trouble in 2007 when the company had experienced 2 quarters of flat growth in same-store sales, and then its first ever decline in the fourth quarter. Gas prices increased therefore their consumers’ like many other retailers felt the pain. Howard Schultz was Starbuck’s visionary leader and CEO from 1987 to 2000. Replaced by Jim Donald, Schultz is being brought back to aid in the restoration of Starbuck’s cachet as a premier brand. ANALYSIS The main vision of Howard Schultz was to create a romance with coffee. Similar to coffee bars in Italy he wanted a place where customers could have a relationship with the coffee and coffee bar. He believed that coffee was a social aspect which would create a link between the customer and Starbuck’s if done right. Where did Starbuck’s go wrong? Starbuck’s growth had become very rapid in order to please Wall Street. The fact that Starbuck’s had doubled its pace of expansion while already being rapidly growing changed the profile of consumers, as well as the brand perception. The store had no longer become the destination and relationship rather than a quick and grab and go process. The study showed that with more accessibility the stores became, the more the products were being consumed outside the store. The Starbuck’s drive-through convenience had soon become associated to fast food. An effort to reduce costs and improve operational efficiencies affected...

Words: 765 - Pages: 4

Free Essay

Business Report

...Addendums 1. COMPANY BACKGROUND Burgers and Brew is an innovative chain that is unlike any other restaurant in Chico. The first Burgers and Brew was established in 2000. The Chico location has been here since 2010 and is located in the historic downtown at 201 Broadway Street. The business is family owned and operated by Philippe and Derer Zawaydeh who are brothers that reside in the Folsom area. The first Burgers and Brew location was opened in Davis which is located at 403 3rd Street and the second location was opened in Sacramento located at 1409 R. Street. There is also one other Burgers and Brew restaurant that is inside of the Sacramento Airport, but it is a franchise, so it is not owned by the brothers. This sustainability report will focus on the Chico location and both the current and possible future sustainable practices that are practiced inside their restaurant. Burgers and Brew hours of operation are Sunday thru Wednesday 11am to midnight and Thursday thru Saturday 11am to 3am. Distinguishing themselves from restaurants with similar offerings through impressive customer service and satisfaction, Burgers and Brew caters to all by offering over 70 bottles of variety craft brews, 18 on tap, while serving nothing but high quality, healthy food with vegan options incorporated into the menu. With 15 burgers, 11 specialty entrees, soups, salads, fries, garlic fries, chili fries, curly fries ,onion rings, and desserts Burgers and Brew has set itself apart from the......

Words: 2877 - Pages: 12

Premium Essay

Case Study Analysis: Starbucks: Hr Practices Help Focus on the Brew, Weather the Recession, and Prepare for Growth

...Starbucks is one of the worldwide well-known multinational companies which are specializing in café business. Aside from the extraordinary coffee, Starbucks has made business out of the human connections, community involvement and the celebration culture. Employees at Starbucks described as an important asset of the company and they are important for the company’s growth. Starbucks use its Human Resources policies and practices as a strategy to gain competitive advantage within the international market and the retail industry. Through the enough implementation from Human Resource Management, it helps to attract and develop and retain committed employees. The greatest growth and positive results that Starbucks had achieved is due to the hardship and contribution of their employees. Effective of human resource management can eventually help to improve company performance. According to the given case study provided, there are some elements which Starbucks are more concern in handling their employees in order to success in their business. Benefits of the employees is the main element that be concerned by Starbucks. Starbucks treat their employees as their family members. They provide their employees a very comfort and supportive work atmosphere. Company treats their employees well by provide them with high level of benefits which including the part timers as well, this is to gain the loyalty from the employees to continue contribute their support to the company. All the......

Words: 783 - Pages: 4

Premium Essay

My Starbucks Idea Brews Customer Feedback at Starbucks

...My Starbucks Idea Brews Customer Feedback at Starbucks Starbucks Corporation is an international coffee and coffeehouse chain based in Seattle, Washington, United States. Starbucks is the largest coffeehouse company in the world, with 16,120 stores in 49 countries, including around 11,000 in the United States, followed by nearly 1,000 in Canada and more than 800 in Japan. The company culture focuses on customers and what they have to say. And here Starbucks faced the challenge: how to shape conversations with customers, partners and employees from all over the world, and capture the best ideas. The company decided to take its customer oriented culture online - build an online community that would allow it to engage with customers in a dynamic way. To implement this decision Starbucks required community management tools to track and implement the best ideas. Starbucks decided to implement Salesforce CRM Ideas application to harness the energy of online communities to drive brand perceptions and gain key customer insights. Salesforce CRM Ideas provides connect with employees, customers, and partners in a constructive dialogue. Salesforce CRM Ideas actively engages users by letting them vote on the top ideas. It bubbles the best ideas to the top, so it’s easy to put them into action that drives innovation. Salesforce CRM Ideas provides an easy transition to project management to help the company act on the top ideas from the community. Salesforce CRM Ideas also provides a......

Words: 324 - Pages: 2

Premium Essay

Financial Audit

...#8) In this financial analysis, I will investigate Craft Brew Alliance (BREW). They are a brewing company that is on the verge of becoming a true American craft brewer that is taking full advantage of the flourishing craft-beer industry. By definition there is only one publically traded American craft brewer. This company is The Boston Brewing Company (SAM). Defined by the Brewers Association an American craft brewer is small, independent and traditional. Craft brewers can produce 6 million barrels or less, less than 25% of the brewery is controlled by an alcoholic beverage industry company who is not a craft brewer and has either an all malt flagship beer or has at least 50% of its volume in either all malt beers or in beers which use adjuncts to enhance rather than lighten flavor. Craft Brew Alliance is a small and traditional brewer, but 32% of the company is owned by Anheuser-Bush Inbev (BUD). The Boston Brewing Company has been herald to have made microbrewers relevant in today’s society. They are the standard for publically traded craft breweries and will be used for comparison in this financial analysis. Current Ratio: Similarly to SAM, BREW has shown an overall increase dating back from 2008. In 2010 a distribution agreement was reached with BUD, reducing current liability. This directly increased the current ratio. Debt/Equity Ratio: Ratios for both companies follow similar trends. In 2010, BREW opted to invest $8 to $10 million in brewing......

Words: 740 - Pages: 3

Premium Essay

Mountain Man Brew Company

...Mountain Man INDIAN INSTITUTE OF MANAGEMENT INDORE Marketing Management–II Case Analysis Mountain Man Brewing Company: Bringing the brand to Light Section C - Group 01 Introduction The case focuses on the concept of Line Extension in the context of Mountain Main Brewing Company. The background emphasizes on the dilemma of the protagonist as to whether or not to introduce a new product line by en-cashing on the existing brand value. Case Facts: Existing Product: Mountain Man Lager Product Features : * Strong bear with a bitter taste due to high alcohol content. * Strong local brand association and high brand loyalty from middle aged men * Popular among low middle class men and blue collar males * Perceived image of a tough rugged drink and popularly known as “working man’s beer’ Problem Incurred * Company is facing declining sales at the rate of 2% annually since its inception * Restricted target market of 45+men Problem Statement analysis: Some of the possible reasons are : Environmental Factors | * Stringent federal excise tax rules * Changing demography into a much younger group | Competition | * Heavy competition from wine and other spirit based drinks * Competition from existing beer market | Consumer | * Increasing health concern * Newly developing personal responsibility | Changing drinking patterns | * With increasing youngsters into the......

Words: 624 - Pages: 3

Free Essay

Brew Til Shakira

...E-mail To: shakira@mail.com. From: Rasmus Andersen, Hispanic Heritage Foundation. Date: 8 October 2014 Subject: Aware of the increasing number of hate crimes ________________________________________________________________________ Dear Ms Shakira. I am a young employee of the Hispanic Heritage Foundation. My colleagues and I are working on a campaign to make people aware of the increasing number of hate crimes, and what disadvantages the Arizona law has. We have over the last few weeks talked a lot about what would give the best result, and we have found that our best bet would be through an advertisement. We have seen a television program where you talks about your opinion about the Arizona law, and we find you very interesting. We are particularly impressed about your good arguments. We do agree with most of your arguments, and work primarily out of the same arguments as you do. We believe that their great popularity around the world would be able to help us to get our message out to a larger group of people. We think you can be a good role model because many young people look up to you, and your high popularity can help us to attract a lot of positive attention, and therefore would we like to ask you to help us to get our message out to as many people as possible. We are not demanding any financial support from your side, that part takes my colleagues and me. We look forward to hear from you again, and we hope you think it sounds like......

Words: 279 - Pages: 2

Premium Essay

Irac Week 3

...identified the second shooter as “Mookie”…[who] hangs in the 2700 block of the Alameda (Baltimore Brew, 2013). Based on previous encounters with Jefferson and Darren Brown, Officer Paul Southard believed that “Mookie” was Brown (Baltimore Brew, 2013). A probable-cause statement was drafted that identified Brown as the second suspect. Brown was arrested on August 7 and was charged with attempted murder, assault, and armed robbery. The lawsuit alleges that these charges were “brought without review by or approval of a prosecutor…[and that] Defendants Bailey, Southard, Min and [Officer Felipe] Carrasquillo made no further attempts” to confirm whether Brown was, in fact, “Mookie” (Baltimore Brew, 2013). The surveillance tape was watched by David Jefferson’s mother who identified the second suspect “Mookie” as being her son’s cousin, Kevin Johnson Jr. Darren Brown was imprisoned for seven months by the Baltimore police on the basis of his reputed nickname. Brown charged four police officers with acting “with deliberate and/or reckless disregard for the truth” while conducting an investigation. The case was settled after U.S. District Court Judge Richard D. Bennett denied a motion by the four defendants to dismiss the suit (Baltimore Brew, 2013). The case settlement of $150,000 will terminate the case, with the proviso that the plaintiff and his lawyers not publicly discuss the lawsuit (Baltimore Brew, 2013). Brown’s lawyer had brought it to the attention of the State’s Attorney’s......

Words: 680 - Pages: 3

Free Essay

Brew and Bakery

...hiring quality management at each location and utilizing automated computer control. Keep food cost under 32% of revenue. Keep beverage cost under 21 % of revenue. Select only locations that meet all the parameters of success. Grow each location to the $3 to $5 million annual sales level. Quality food--Each Brew'n Bake store will serve freshly prepared, high quality, Baked goods that is targeted to appeal to a variety of tastes and while still focusing on the college student budgets with an emphasis on reasonably and moderately priced signature items of particular appeal to a local market Quality Brewed Items-- Each store will provide a wide variety of freshly brewed coffee as well as a large selection onsite hand crafted micro brews. Quality service--ln order to maintain its unique image the Company provides attentive and friendly service with a high ratio of service personnel to customers and also invests in the training and supervision of its employees. All lower level employees will be registered students of targeted schools. Large Incentive Programs-- based upon local needs all lower level employees will enjoy a comprehensive incentive program designed to assist them in the funding of their education. 2.1 Company Ownership The Brew'n Bake Brewery and Bakery is a privately held company. Robert Maclin, Darlene ######, Mike ######, and Linda #######, are the principal owners. It is their intention to offer limited outside silent ownership in Brew'n Bake on......

Words: 2104 - Pages: 9

Free Essay

Mountain Brew Company

...GUIA PARA EL CASO “El lanzamiento de la marca Light” PROBLEMAS CENTRALES A DISCUTIR Analizar los dilemas con que se enfrenta Chis Prangel, acerca de lanzar o no la cerveza Mountain Man Light y el impacto que pudiera tener sobre la canibalización de ventas de Mountain Man Lager, la confusión que podría generar a los clientes leales de Mountain Man y alternativamente pensar si el lanzamiento de Mountain Man Light pudiera llegar a ser clave para una estrategia de crecimiento de la empresa y una fuente significativa de mayores ingresos en momentos en que por primera vez la empresa enfrentaba caídas en las ventas. En cinco años Chris heredará el mando de la empresa cuando su padre, Oscar Prangel, se jubile. Para 2005, esta empresa originaria de West Virginia donde lideraba desde hace más de 50 años, generaba ingresos por $500.000 millones vendiendo más de 520,000 barriles al año. 1. ¿Qué problemas está enfrentando Chris Prangel y qué alternativas está considerando para resolver dichos problemas? Disminución en las ventas en un 2% por año por primera vez en la historia. Además, el mercado tradicional de cerveza bajó un 4% y aumentó un 4% la categoría de cerveza light. MMBC está presente en un mercado muy específico, compitiendo con las categorías de bebidas espirituosas y vinos. Por otro lado, su público objetivo está envejeciendo. Las alternativas que Chris Prangel está considerando son reposicionar la marca para impulsar ventas entre la......

Words: 4012 - Pages: 17

Premium Essay

Mr Coffee Marketing Strategy

...Marketing Final Project Team 1 Ryan Marshall, Manuela Antonova, and Joshua Booth Mr. Coffee Smart Optimal Brew WeMo Enabled Marketing Plan Executive Summary A recent primary research survey has found that 70% of occasional coffee drinkers view the Mr. Coffee brand as an inferior or budget coffee brewing device that does not make a superior cup of coffee (Appendix, Opinion survey). Brands such as Keurig, Cuisinart, and DeLonghi inspire more thoughts of quality coffee than Mr. Coffee. Other consumers are opting to spend several dollars per cup of coffee at coffee houses such as Starbucks, Caribou Coffee, Dunkin Donuts, and even McDonalds (Appendix, Opinion survey). Mr. Coffee is a part of American iconography appearing in movies, books, and other arenas of pop culture. It appeared in loosely translated interpretations in the Back to the Future movie trilogy of the as 1980’s as “Mr. Fusion”, it was referenced in the TV show Seinfield, and in the title of the short story by Raymond Carver, “Mr. Coffee and Mr. Fixit.” According to a recently conducted survey Mr. Coffee was the most identifiable home coffee brewer. Brand recognition is not a problem in the current marketing environment. Mr. Coffee has many entries into the home coffee making market. Most of the devices are on the lower end of the price scale and easily obtained at every local big box store. These devices are sold alongside similar devices presented by direct competitors with very little differentiation.......

Words: 5441 - Pages: 22

Premium Essay

Starbuck’s Hr Practices Ensure Its Brew Is a Winner

...Case1 Starbuck’s HR Practices Ensure Its Brew Is a Winner Question 1 What HR practices do you believe are most critical for starbucks to maintain the coffee experience and customer service it's known for as the company expands in the United States and abroad? Solution 1.Starbucks believes that the key to company success is its employees, called partners. 2. At starbucks the value-and-treat-employees-right approach is part of the company culture. 3. One of the company’s six guiding principles is “to provide a great work environment and treat each other with respect and dignity.” 4.As a result of the important role of starbucks’ paartners, the company emphasizes selecting the right new employees, training them ,and rewarding and retaining employees with above-minimum salaries. 5.Job fairs,in-store advertisements,a cpmpany Web site,and employee referrals are used to recruit new employees. 6.Managers are provided with interview guidelines that are used to question job candidates to determine whether they have the skills and behaviors necessary for the position. 7.Although 85 percent of its employees are part-time, they are still eligible for full-time benefits if they work 240 hours a quarter. 8.Less than 30 percent of part-time workers in the United States receive health care, paid sick leave, or eligibility for bonuses or stock options. 9. Starbucks provides all employees and their same-sex or opposite-sex partners comprehensive health......

Words: 2324 - Pages: 10

Premium Essay

Smooth Brew

...Date: June 7, 2016 To: Claire Sanders From: Chace Sauls Subject: Smooth Brew Body: Background: Mrs. Sanders, Smooth Brew Company has recently acquired a brewery located in Georgia. The brewery is unique in that a sparkling stream runs through the plants facility giving the beer a unique flavor. The company’s president informed me that an excessive price was paid for the plant due to the flavor enhancing stream. Problem: Our client stated that $1 million was paid in excess of fair value to acquire the plant. The president has requested that the $1 million be set up on the balance sheet in an account entitled water. Relevant Guidance: FASB ASC paragraph 350-20-35-39 through 44. FASB ASC paragraph 350-20-35-1. FASB ASC paragraph 350-20-35-16. FASB ASC paragraph 350-20-45-1. Application: Goodwill is considered an asset representing future economic profit stemming from the acquisition of other assets in a business combination. The amount of money given for acquiring a business over the fair value of the assigned assets and liabilities of a reporting unit is considered goodwill. Goodwill is not to be amortized but rather tested for impairment. To be able to test for impairment, the amount of goodwill should be assigned to a reporting unit. The amount assigned to the reporting units should depend on the degree to which it will benefit from the business combination. The number of reporting units used can vary depending on the method used. The method for......

Words: 915 - Pages: 4

Premium Essay

Strategic Plan Part I

...world a lot of things are a necessity, there is no question that coffee shops are very popular. Most people enjoy a fresh brew of coffee in the morning, whereas, others like to have during lunch or dinner. Either way people are fond of coffee shops. People like to sip on coffee or tea while enduring a sociable conversation with family and friends. Also most students meet with their classmates at coffee shops to brainstorm to solve homework problems and to bring new ideas to the table. For many, coffee shops are a place to relax, letting go of the stress endured during work hours. In this paper an analysis of Brew House’s strategic plan will be explained. A description of Brew House’s mission, values, and vision will be determined. The products or services, and customers will also be defined. Brew House Brew House is a coffee shop opening in downtown Houston, on Main Street. The coffee shop is on a well-known trafficked street. Brew House is surrounded by upscale housing lofts, office businesses, hotels, bars, and metro rail to capture the attention of constructor workers, businessmen, bus riders, and students of University of Houston. Mission Brew House’s mission is to provide its targeted consumers with a fresh hot cup of gourmet coffee before, during, or after work to ease their minds while on the go. Brew House is different from other coffee shops; its employees consist of cashiers, coffee specialists, and hoppers. Bew House......

Words: 1135 - Pages: 5

Premium Essay

Final Bentley Fresh Brew Tea

... Outline  Introduction  Marketing & Promotional Mix  Promotion Budget Allocation  Advertising  Sales Promotion  Personal Selling  Decision Summary Introduction – (Main Char) • Demographic Characteristics: – – – – Gender: Female Age: 25 & above Household size: 3 or more persons Occupation: Skilled and Unskilled labor (Blue Collar) • Geographic Char: – St. John’s metropolitan area • Benefits Sought: – Strong high quality – Bagged tea in “Boxed tea” Introduction - (Previous Decisions) • Team 1, Planning: – Entering the market with a new brand named “Bentley Fresh Brew Tea” • Team 2, Product Strategy: – Blend: lower than the market brands – Amount of tea: 1 Cup Bag – Package size: Medium 60-72 bags • Team 3, Pricing Strategy: – Price: 2.49 Marketing Mix Variables that marketing managers can control in order to best satisfy customers in the target market 1. Product 3. Promotion 2. Price 4. Place Marketing Mix Promotional Mix “Promotion is all about companies communicating with customers” “It is no longer enough for a business to have great products” 1. 2. 3. Advertising * Personal Selling * Sales Promotion * 4. 5. 6. Public Relation Direct Marketing Publicity The Objectives • Firm Objective: – Increase Market share By 5% within two years • Advertising Objective: – Establish a 70% product awareness among Blue Collar Females by end of the first year Budget Allocation Methods 1.......

Words: 1305 - Pages: 6