New_Belgium_Case-1 - New Belgium Brewing Company: Brewing...

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New Belgium Brewing Company: Brewing With a Conscience Christopher Asher Elina Bidner Christopher Greene Faculty Advisor: Thomas J. Dean Leeds School of Business University of Colorado at Boulder
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1 Introduction Jeff Lebesch and Kim Jordan founded the New Belgium Brewing Company in 1991 (“NBB”), with a mission “to operate a profitable company which is socially, ethically, and environmentally responsible, and that produces high quality beer true to Belgian styles.” From this initial vision, they developed a set of “core values and beliefs” that guided the company through its early, fast paced growth. Fueled by the success of their flagship beer, Fat Tire , New Belgium Brewing Company’s growth greatly outpaced that of regional competition in a highly competitive industry that exploded on the Colorado scene in the early 1990s. NBB was able to withstand intense pricing pressures and maintain continuous growth, becoming the 6 th largest specialty brewer in the United States by 2002, and winning numerous awards along the way at the industry’s most prestigious events. The company’s focus on energy efficient brewing processes and environmentally friendly technologies and practices were reflected in their mission statement and core values. By holding true to these beliefs, NBB has set new standards for efficient brewing operations, environmental stewardship, and employee happiness for the industry. The 1995 design of a new brewery and operations facility, which became the industry paradigm for energy efficiency, indicated the company’s level of commitment to minimizing environmental impact. In 1999, NBB became the first brewery to purchase 100% of their electricity from wind-generated power. The latest expansion, which was completed in 2002, displayed the intent of NBB to continue growing in a way that is environmentally sustainable and their commitment to maintain the quality of their products as batch sizes increased to help supply a wider range of distribution and greater overall demand. The Brewing Industry The brewing industry in the United States had evolved from an industry dominated by numerous small local breweries (pre-Prohibition), into one dominated by few very large companies that had survived Prohibition. From the 1930s, until the late 1980s, large domestic brewers dominated the market, and beer drinkers did not have many options on the shelf. Then the introduction of Sam Adams , by the Boston Beer Company, in the early 1990s helped spur a microbrew craze that spawned over a thousand breweries in the United States in the next decade. The Boston Beer Company used clever radio advertisements featuring the company’s founder, James Koch, to help educate beer drinkers about the difference between all-malt craft brews and the mass-produced domestic beers made with only about 60% barley malt and 40% rice, or corn (as a cheap substitute). In the following 20 years the craft brew market matured, with many breweries going out of business, and others consolidating operations or merging with other small
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This note was uploaded on 09/29/2011 for the course BUS 682 taught by Professor Staff during the Spring '11 term at S.F. State.

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New_Belgium_Case-1 - New Belgium Brewing Company: Brewing...

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