Redhook Ale Brewery is a company that started in 1981 by Paul Shipman. He is the president, CEO, and Chairman of the Board. His goal was to provide American consumers with a flavorful, quality, European-style beer. The company grew in the mid-1980s and major growth occurred as new production facilities were opened in 1989. Redhook Ale Brewery and Anheuser-Busch started working together in 1994. There were declining profits and sales in 96', 97', and 98'. Their strategy was to provide a high-quality beer through differentiation and with a strategic alliance with Anheuser-Busch. Their objectives were to grow and achieve a high market share in the craft beer market and to maintain the production of this beer in company-owned breweries.
∙Financial strength as Anheuser-Busch made 25% investment after investment
∙Continuously lowered debt to equity ratio
∙Organizational strengths are top managements ability and expertise in the food and beverage industry
∙There is synergy between management and employees
∙The company is community-oriented
∙The emphasis on distribution and product repositioning
∙They have an effective marketing mix
∙Purchase from few suppliers at competitive prices
∙They have a weak stock performance
∙Their target market is very selective
∙No mass media advertising is used
∙An increasing number of craft beer drinkers
∙Trends toward national distribution are being made
∙Growth opportunities in the South
∙National breweries make up 93% of sales in domestic beer
∙Companies with high volume production can obtain cheaper ingredients and are pasteurized.
∙Competition has mass media advertising
∙Competitions organized distribution results in a saturated market
∙Imported beers are more likely to be substituted for craft beers
∙Competitors like Boston Beer and Samuel Adams
...