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B BP.pdf Synopsis: Themes: New Belgium Brewing (A): Gaining Competitive Advantage Through Socially Responsible Marketing* From its roots in a Fort Collins, Colorado, basement, New Belgium Brewing has always aimed for business goals loftier than profitability. The company's tremendous growth to become the nation's third-largest craft brewery and ninth-largest overall has been guided by a steadfast branding strategy based on customer intimacy, social responsibility, and whimsy. The company's products, especially Fat Tire Amber Ale, have always appealed to beer connoisseurs who appreciate New Belgium's focus on sustainability as much as the company's world-class brews. Despite its growth and success, New Belgium has managed to stay true to its core values and brand authenticity-the keys to its marketing advantage in the highly competitive craft brewing industry. Customer intimacy, competitive advantage, social responsibility, sustainability, branding strategy, product strategy, distribution strategy, marketing implementation, customer relationships L arge corporations and well-known brand names come to mind when most of us think about successful businesses. However, the success of small and medium- sized businesses can be just as noteworthy, while often having a greater impact on local communities and neighborhoods. One such business is the New Belgium Brewing Company, Inc., based in Fort Collins, Colorado. The New Belgium brand has become known for two things: its high-quality, Belgian-style beers and its commitment toward sustainability. Its socially responsible initiatives have contributed greatly to New Belgium's success. In fact, New Belgium's business model has been so successful that it is increasingly easy to find its beers around the country as more consumers embrace what the company stands for. Studies have shown that the stock prices of ethically and socially responsible companies as a whole outperform those on the S&P 500 index. Although Course 5 Marketing Case 6 Mattel.pdf Case 4.pdf - Google C.... 9 Case 4 New Belgiu....pdf Provide A Discussion... F4 F5 P 1/10 W ^ 110 F6 03 Case 3 Monsanto.pd PrtScn Students X Th Assignment 25: Cases moodle.snu.edu/pluginfile.php/1003034/mod_assign/intro/Case%204.pdf ms of project organ C The Advantages of Fr bPros and Cons of 3 P E Choose Databases: El Belgium's success. In fact, New Belgium's business model has been so successful that it is increasingly easy to find its beers around the country as more consumers embrace what the company stands for. Studies have shown that the stock prices of ethically and socially responsible companies as a whole outperform those on the S&P 500 index. Although New Belgium is not a public company and thus does not offer publically owned stock, it seems to follow this trend of success. The company has become the seventh-largest brewery in the nation and the third-largest brewery in the "craft beer" segment. odf X Case 4.pdf "O.C. Ferrell, University of New Mexico, prepared this case for classroom discussion rather than to illustrate effective of ineffective handling of an administrative situation. Jennifer Sawayda, University of New Mexico, provided editorial assistance. History of the New Belgium Brewing Company The idea for the New Belgium Brewing Company (NBB) began with a bicycling trip through Belgium-home to some of the world's finest ales, many of which have been brewed for centuries in that country's monasteries. As Jeff Lebesch, an American electri- cal engineer, cruised around that country on his fat-tired mountain bike, he wondered whether he could produce such high quality beers back home in Colorado. After acquir- ing the special strain of yeast used to brew Belgian-style ales, Lebesch returned home and began to experiment in his Colorado basement. When his beers earned thumbs up from friends, Lebesch decided to market them. New Belgium Brewing (NBB) opened for business in 1991 as a tiny basement opera- tion in Lebesch's home in Fort Collins. Lebesch's wife at the time, Kim Jordan, became the firm's marketing director. They named their first brew Fat Tire Amber Ale in honor of Lebesch's bike ride through Belgium. Initially, getting New Belgium beer onto store shelves was not easy. Jordan often delivered the beer to stores in the back of her Toyota station wagon. However, New Belgium beers quickly developed a small but devoted cus- tomer base, first in Fort Collins and then throughout Colorado. The brewery soon out- grew the couple's basement and moved into an old railroad depot before settling into its present custom-built facility in 1995. The brewery includes two brew houses, four quality assurance labs, a wastewater treatment facility, a canning and bottling line, and numer- ous technological innovations for which New Belgium has become nationally recognized as a "paradigm of environmental efficiencies." Case 6 Mattel.pdf Under the leadership of Kim Jordan, who has since become CEO, New Belgium Brewing Company currently offers a variety of permanent and seasonal ales and pilsners. 351 9 Case 4 New Belgiu....pdf Login MyMar C Case 3 Monsant odle.snu.edu/pluginfile.php/1003034/mod_assign/intro/Case%204.pdf The Advantages of F Pros and Cons of 3 P E Choose Databases: E Under the leadership of Kim Jordan, who has since become CEO, New Belgium Brewing Company currently offers a variety of permanent and seasonal ales and pilsners. The company's standard line includes Sunshine Wheat, Blue Paddle, 1554 (a black ale), and the original Fat Tire Amber Ale, still the firm's bestseller. Some customers even refer to the company as the Fat Tire Brewery. The brewery also has its Explore Series, consist- ing of Shift, Ranger IPA, Belgo IPA, Abby, and Trippel, as well as seasonal ales Dig and Snow Day. The firm also started a Lips of Faith program, where small batch brews like La Folie, Biere de Mars, and Abbey Grand Cru are created for internal celebrations or landmark events. Additionally, New Belgium is working in "collabeeration" with Elysian Brewing Company, in which each company will be able to use the other's brew houses, though they remain independent businesses. Through this partnership, they hope to cre- ate better efficiency and experimentation along with taking collaborative strides toward the future of American craft beer making. One collabeeration resulting from this part- nership is Ranger IPA and Kick from NBB's Explore and Lips of Faith programs. Although still a small brewery when compared to many beer companies, like fellow Coloradan Coors, NBB has consistently experienced strong growth with estimated sales of more than $100 million. (Since New Belgium is a private firm, detailed sales and rev- enue numbers are not available.) The company sells more than 700,000 barrels of beer per year and has many opportunities for continued growth. For instance, while total beer consumption has decreased 2 percent by volume, the craft brewing industry has grown by 16.4 percent. project organ NBB's most effective form of advertising has always been customers' word of mouth, especially in the early days. Indeed, before New Belgium beers were widely dis- tributed throughout Colorado, one liquor-store owner in Telluride is purported to have offered people gas money if they would stop by and pick up New Belgium beer on their way through Fort Collins. Although New Belgium has expanded distribution to a good portion of the U.S. market, the brewery receives numerous e-mails and phone calls every day inquiring when its beers will be available in other parts of the country. Case 4: New Belgium Brewing (A): Gaining Competitive Advantage Through Socially Responsible Marketing 353 NBB joined Facebook in November 2007 and started activity marketing through. social media in 2009. NBB actively coordinates its marketing campaigns through both Facebook (with over 300,000 fans) and Twitter (with over 100,000 followers), as well as a NBB Pandora radio station, a NBB Instagram channel, live streaming video of special events called the Beer Stream, and NBB's YouTube channel. Currently, New Belgium's pro- ducts are distributed in 28 states plus the District of Columbia (see Case Exhibit 4.1). Beer 91 Case 6 Mattel.pdf Course 5 Marketing. Case 4.pdf - Google C... A Case 4 New Belgiu....pdf Provide A Discussion... P3 W Login My X e 05 Case 3 Mor moodle.snu.edu/pluginfile.php/1003034/mod_assign/intro/Case%204.pdf of project organ C The Advantages of Fu EXHIBIT 4.1 New Belgium's Distribution Territories WASHINGTON OREGON CALIFORNIA Pros and Cons of 3 PE Choose Databases: El Log ducts are distributed in 28 states plus the District of Columbia (see Case Exhibit 4.1). Beer connoisseurs that appreciate the high quality of NBB's products, as well as the company's environmental and ethical business practices, have driven this growth. For example, when the company began distribution in Minnesota, the beers were so popular that a liquor store had to open early and make other accommodations for the large amount of customers. The store sold 400 cases of Fat Tire in the first hour it was open. With expanding distribution, NBB recognized a need to increase its opportunities for reaching its far-flung customers. It consulted with Dr. Douglas Holt, an Oxford professor and cultural branding expert. After studying the company, Holt, together with former Marketing Director Greg Owsley, drafted a 70-page "manifesto" describing the brand's attributes, character, cultural relevancy, and promise. In particular, Holt identified in New Belgium an ethos of pursuing creative activities simply for the joy of doing them well and in harmony with the natural environment. With the brand defined, New Bel- gium worked with New York advertising agency Amalgamated to create a $10 million advertising campaign for New Belgium. The campaign would target high-end beer drin- kers, men ages 25 to 44, and highlight the brewery's down-to-earth image. (This process is discussed in the New Belgium Brewing (B) case). NEVADA IDAHO MONTANA WYOMING COLORADO ARIZONA NEW MEXICO NORTH DAKOTA SOUTH DAKOTA NEBRASKA KANSAS TEXAS WISCONSIN IOWA ILLINOIS MISSOURI ARKANSAS INDIANA TENNESSEE VIRGINIA NORTH CAROLINAS CAROL GEORGIA MARYLAND DISTRICT OF COLOMBIA ct organ C The Advantages of Fu Pros and Cons of 3 P E Choose Databases: El New Belgium Embraces Social Responsibility According to New Belgium, the company maintains a fundamental focus on the ethical culture of the brand. Although consumer suspicion of business is at an all-time high, those in good standing-as opposed to those trading on hype-are eyed with icon-like adoration. Today, businesses that fully embrace citizenship in the communities they serve can forge enduring bonds with customers. At New Belgium, the synergy between branding and corporate citizenship occurred naturally as the firm's ethical culture (in the form of core values and beliefs) and was in place long before NBB had a marketing department. Back in early 1991, when New Belgium was just a fledgling home-brewed busi- ness, Jeff and Kim took a hike into Rocky Mountain National Park. Armed with a pen and a notebook, they took their first stab at what the company's core purpose would be. If they were going forward with this venture, what were their aspirations beyond profitability? What was at the heart of their dream? What they wrote down that spring day, give or take a little editing, was the core values and beliefs you can read on the NBB website today. More importantly, ask just about any New Belgium employee and he or she can list for you many, if not all, of these shared values and can inform you which are the most personally poignant. For NBB, branding strate- gies are as rooted in its company values as in its other business practices. For instance, as a way to live out its values, the company adopted a triple bottom line (TBL) approach to business. TBL incorporates economic, social, and environmental factors into its business strategies. In other words, the company looks at its impact upon profits, people, and the planet rather than simply on the bottom line. New Bel- gium's dedication to quality, the environment, and its employees and customers is expressed in its mission statement and core values: Mission Statement: To operate a profitable brewery which makes our love and talent manifest. Company Core Values and Beliefs: 1. Remembering that we are incredibly lucky to create something fine that enhances people's lives while surpassing our consumers' expectations. 2. Producing world-class beers 3. Promoting beer culture and the responsible enjoyment of beer 4. Kindling social, environmental, and cultural change as a business role model 5. Environmental stewardship: minimizing resource consumption, maximizing energy efficiency, and recycling 6. Cultivating potential through learning, participative management, and the pur- suit of opportunities 7. Balancing the myriad needs of the company, staff, and their families 8. Trusting each other and committing ourselves to authentic relationships, com- munications, and promises 9. Continuous, innovative quality and efficiency improvements 10. Having Fun Login F ect organ The Advantages of Fu 10. Having Fun Pros and Cons of 3 Pr Employees believe that these statements help communicate to customers and other stakeholders what New Belgium, as a company, is about. These simple values developed roughly 20 years ago are just as meaningful to the company and its customers today, even though there has been much growth. E Choose Databases: El Case 4: New Belgium Brewing (A): Gaining Competitive Advantage Through Socially Responsible Marketing 355 Responsibilities to the Environment New Belgium's marketing strategy involves linking the quality of its products, as well as its brand, with the company's philosophy of environmental friendliness. From leading- edge environmental gadgets and high-tech industry advancements to employee- ownership programs and a strong belief in giving back to the community, New Belgium demonstrates its desire to create a living, learning community. . NBB strives for cost-efficient energy-saving alternatives for conducting its business and reducing its impact on the environment. In staying true to the company's core values and beliefs, the brewery's employee-owners unanimously agreed to invest in a wind turbine, making New Belgium the first fully wind-powered brewery in the United States. NBB has also invested in the following energy-saving technologies: Login A smart grid installation that allows NBB to communicate with its electricity provider to conserve energy. For example, the smart grid will alert NBB to non-essential operational functions, allowing the company to turn them off and save power. . The installation of a 20 kW photovoltaic array on top of the packaging hall. The array produces 3 percent of the company's electricity. A brew kettle, the second of its kind installed in the nation, which heats wort sheets instead of the whole kettle at once. This kettle heating method conserves energy more than standard kettles do. Sun tubes, which provide natural daytime lighting throughout the brew house all year long. A system to capture its wastewater and extract methane from it. This can contribute up to 15 percent of the brewery's power needs while reducing the strain on the local municipal water treatment facility. A steam condenser that captures and reuses the hot water that boils the barley and hops the production process to start the next brew. The steam is redirected to heat the floor tiles and de-ice the loading docks in cold weather. e New Belgium also takes pride in reducing waste through recycling and creative reuse strategies. The company strives to recycle as many supplies as possible, including card- Case 4 New Belgiu....pdf ^ Case ect organ The Advantages of Fu 10. Having Fun Pros and Cons of 3 Pr Employees believe that these statements help communicate to customers and other stakeholders what New Belgium, as a company, is about. These simple values developed roughly 20 years ago are just as meaningful to the company and its customers today, even though there has been much growth. E Choose Databases: El Case 4: New Belgium Brewing (A): Gaining Competitive Advantage Through Socially Responsible Marketing 355 Responsibilities to the Environment New Belgium's marketing strategy involves linking the quality of its products, as well as its brand, with the company's philosophy of environmental friendliness. From leading- edge environmental gadgets and high-tech industry advancements to employee- ownership programs and a strong belief in giving back to the community, New Belgium demonstrates its desire to create a living, learning community. . NBB strives for cost-efficient energy-saving alternatives for conducting its business and reducing its impact on the environment. In staying true to the company's core values and beliefs, the brewery's employee-owners unanimously agreed to invest in a wind turbine, making New Belgium the first fully wind-powered brewery in the United States. NBB has also invested in the following energy-saving technologies: Login A smart grid installation that allows NBB to communicate with its electricity provider to conserve energy. For example, the smart grid will alert NBB to non-essential operational functions, allowing the company to turn them off and save power. . The installation of a 20 kW photovoltaic array on top of the packaging hall. The array produces 3 percent of the company's electricity. A brew kettle, the second of its kind installed in the nation, which heats wort sheets instead of the whole kettle at once. This kettle heating method conserves energy more than standard kettles do. Sun tubes, which provide natural daytime lighting throughout the brew house all year long. A system to capture its wastewater and extract methane from it. This can contribute up to 15 percent of the brewery's power needs while reducing the strain on the local municipal water treatment facility. A steam condenser that captures and reuses the hot water that boils the barley and hops the production process to start the next brew. The steam is redirected to heat the floor tiles and de-ice the loading docks in cold weather. e New Belgium also takes pride in reducing waste through recycling and creative reuse strategies. The company strives to recycle as many supplies as possible, including card- Case 4 New Belgiu....pdf ^ Case organ The Advantages of F Pros and Cons of 3 P E Choose Databases: El Login P New Belgium also takes pride in reducing waste through recycling and creative reuse strategies. The company strives to recycle as many supplies as possible, including card- board boxes, keg caps, office materials, and the amber glass used in bottling. The brewery also stores spent barley and hop grains in an on-premise silo and invites local farmers to pick up the grains, free of charge, to feed their pigs. Going further down the road to producing products for the food chain, NBB is working with partners to take the same bacteria that create methane from NBB wastewater and convert them into a harvestable, high-protein fish food. NBB also buys recycled products when it can, and even encourages its employees to reduce air pollution by using alternative transportation. Reduce, Reuse, Recycle-the three R's of environmental stewardship are taken seriously at NBB. Case Exhibit 4.2 depicts New Belgium's recycling efforts. Additionally, New Belgium has been a long-time participant in green building techniques. With each expansion of the facility, it has incorporated new technologies and learned a few lessons along the way. In 2002, NBB agreed to participate in the United States Green Building Council's Leadership in Energy and Environment Design for Existing Buildings (LEED-EB) pilot program. From sun tubes and day lighting throughout the facility to reusing heat in the brew house, NBB continues to search for new ways to close loops and conserve resources. New Belgium has made significant achievements in sustainability, particularly com- pared to other companies in the industry. For one, New Belgium uses only 3.9 gallons of water to make 1 gallon of beer, which is 20 percent less than most companies. The company is attempting to create a closed-loop system for their wastewater with its own Process Water Treatment Plant, in which microbes are used to clean the wastewater. New Belgium recycles over 95 percent of its waste, and today 100 percent of its 4.2 New Belgium's Recycling Efforts 100.00% 2011 Waste Diversion Rate = 94.38% (without spent grain, yeast, sludge, and DE) 90.13% Series1 Th Assignment e PGS Students X C moodle.snu.edu/pluginfile.php/1003034/mod_assign/intro/Case%204.pdf G pros of project organ 100.00% 80.00% 60.00% 40.00%- 20.00% 0.00% 90.13% X The Advantages of Fi bPros and Cons of 3 P E Choose Databases: El P Loc wroorspem gram, yomor anger an Recycled Case 4.pdf 5.62% Landfilled Series1 4.25% Composted Hource Based on New Belgium Brewing Company, 2011 Waste Diversion Report (http://www.newbelgium.com/files/sustainability/2011%20NBB%20Waste Diverion%20Report.pdf), accessed July 16, 2012. electricity comes from renewables. Despite these achievements, New Belgium has no intention of halting its sustainability efforts. The company recently expanded its canning capacity by six times with a new canning line that injects less carbon dioxide into each can. In addition to reducing carbon dioxide emissions into the atmosphere, the cans are also more sustainable than glass bottles. By 2015, the company hopes to reduce the amount of water used to make beer by 10 percent through better production processes and decrease its carbon footprint by 25 percent per barrel. To encourage sustainability throughout the supply chain, NBB adopted Sustainable Purchasing Guidelines. The Guidelines allow them to pinpoint eco-friendly suppliers and work with them closely to create sustainability throughout the entire value chain. Responsibilities to Society Beyond its use of environmentally friendly technologies and innovations, New Belgium also strives to improve communities and enhance people's lives through corporate giving, event sponsorship, and philanthropic involvement. Since its inception, NBB has donated more than $2.5 million to philanthropic causes through its Stewardship Grants program. For every barrel of beer sold the prior year, NBB donates $1 to philanthropic causes within their distribution territories. The donations are divided between states in proportion to their percentage of overall sales. This is the company's way of staying local and giving back to the communities that support and purchase NBB products. NBB also participates in "1% For the Planet," a philanthropic network to which the company donates 1 percent of its profits. moodle.snu.edu/pluginfile.php/1003034/mod_assign/intro/Case%204.pdf s of project organ Login C The Advantages of Fu bPros and Cons of 3 P E Choose Databases: E Funding decisions are made by New Belgium's Philanthropy Committee, which is comprised of employees throughout the brewery, including owners, employee owners, area leaders, and production workers. New Belgium looks for nonprofit organizations that demonstrate creativity, diversity, and an innovative approach to their mission and objectives. The Philanthropy Committee also looks for groups that involve the commu- nity to reach their goals. The breakdown of NBB's Stewardship Grant awards is shown in Case Exhibit 4.3. Additionally, NBB maintains a community bulletin board in its facility, where it posts an array of community involvement activities and proposals. This community board allows tourists and employees to see the different ways they can help out the community. and it gives nonprofit organizations a chance to make their needs known. Organizations can even apply for grants through the NBB website, which has a link designated for this purpose. The company donates to causes with a particular emphasis on water conserva- tion, sensible transportation and bike advocacy, sustainable agriculture, and youth envi- ronmental education, among other areas. NBB also sponsors a number of events, with a special focus on those that involve "human-powered" sports that cause minimal damage to the natural environment. Through event sponsorships, such as the Tour de Fat, NBB supports various environ- mental, social, and cycling nonprofit organizations. In the Tour de Fat, one participant hands over his or her car keys and vehicle title in exchange for an NBB commuter bike and trailer. The participant is then filmed for the world to see as he or she promotes sustainable transportation over driving. In 2011, Tour de Fat traveled to 13 cities, with more than 69,000 attendees and 41,000 cyclists in the parades. New Belgium also part- ners with nonprofit organizations to support Skinny Dip for a Cause, a campaign where E EXHIBIT 4.3 New Belgium's 2011 Stewardship Grants Summary Innovative projects outside of funding categories 4% Water Stewardship 40% Youth Environmental Education 14% Sustainable Agriculture Sensible Transportation & Bike Advocacy 19% Ouse Databases: El skinny-dipping is used to raise awareness of water issues and conservation. In the course of one year, New Belgium can be found at anywhere from 150 to 200 festivals and events across the nation. Responsibilities to Employees Recognizing employees' role in the company's success, New Belgium provides many gen- erous benefits for its over 400 employees. In addition to the usual paid health and dental insurance and retirement plans, employees get a catered lunch every month to celebrate employees' birthdays as well as a free massage once a year, and they can bring their chil- dren and dogs to work. Employees who stay with the company for five years earn an all- expenses paid trip to Belgium to "study beer culture." Employees are also reimbursed for one hour of paid time off for every two hours of volunteer work that they perform. Per- haps most importantly, employees can also earn stock in the privately held corporation, which grants them a vote in company decisions. Employees currently own about 43 per- cent of company stock. Open book management also allows employees to see the finan- cial costs and performance of the company. Employees are provided with financial training so they can understand the books and ask questions about the numbers. New Belgium also wishes to get its employees involved not only in the company but in its sustainability efforts as well. To help their own sustainability efforts, employees are given a fat-tired cruiser bike after one year's employment so they can ride to work instead of drive. An onsite recycling center is also provided for employees. Other company perks include inexpensive yoga classes, free beer at quitting time, and a climbing wall. To ensure that workers' voices are heard, NBB has a democratically elected group of co-workers called POSSE. POSSE acts as a liaison between the board, managers, and employees. Responsibility Breeds Success New Belgium Brewing's efforts to live up to its own high standards have paid off with a very loyal following-in fact, the company recently expanded the number of tours it offers of its facilities due to such high demand. The company has also been the recipient of numerous awards. Past awards for NBB include the Business Ethics Magazine's Business Ethics Award for its "dedication to environmental excellence in every part of its innovative brewing pro- cess," its inclusion in the Wall Street Journal's 15 best small workplaces, and the awards for best mid-sized brewing company of the year and best mid-sized brewmaster at the Great American Beer Festival. New Belgium has taken home medals for three different brews: Abbey Belgian Style Ale, Blue Paddle Pilsner, and La Folie specialty ale. e Case 6 Mattel.pdf According to David Edgar, director of the Institute for Brewing Studies, "They've cre- ated a very positive image for their company in the beer-consuming public with smart decision-making." Although some members of society do not believe that a company whose major product is alcohol can be socially responsible, New Belgium has set out to prove that for those who make a choice to drink responsibly, the company can do every- 4 9 8/10 Case 4 New Belgiu....pdf ten PLogin P P² W xil 9 05 Case 3 Mc E Choose Databases: El 9/10 prove that for those who make a choice to drink responsibly, the company can do every- thing possible to contribute to society. New Belgium also promotes the responsible appreciation of beer through its participation in and support of the culinary arts. For instance, it frequently hosts New Belgium Beer Dinners, in which every course of the meal is served with a complementary culinary treat. Although New Belgium has made great strides in creating a socially responsible brand image, its work is not done. New Belgium must continually reexamine its ethical, social, and environmental responsibilities. In 2004, New Belgium received the Environmental Protection Agency's regional Environmental Achievement Award. It was both an honor and a motivator for the company to continue its socially responsible goals. After all, Case 4: New Belgium Brewing (A): Gaining Competitive Advantage Through Socially Responsible Marketing 359 there are still many ways for NBB to improve as a corporate citizen. For example, although all electric power comes from renewable sources, the plant is still heated in part by using natural gas. There will always be a need for more public dialogue on avoid- ing alcohol abuse. Additionally, continued expansion requires longer distances to travel for distributing the product, which increases the use of fossil fuels. As a way to deal with these longer distances, New Belgium announced it would open a second brewery in Asheville, North Carolina to expand NBB's capacity and place the product closer to markets in the eastern United States. The new $175 million facility, which will create 154 jobs and expand the company's capacity by 400,000 barrels per year, will be supported by a $1 million grant from the One North Carolina fund. NBB executives acknowledge that as its annual sales increase, so do the challenges to remain on a human scale and to continue to be culturally authentic. How to boldly grow the brand while maintaining its humble feel has always been a challenge. Additionally, reducing waste to an even greater extent will take lots of work on behalf of both man- agers and employees, creating the need for a collaborative process that will require the dedication of both parties toward sustainability. 9 Login P New Belgium also faces increased competition from other craft breweries. It still remains behind Boston Beer Co. (maker of Sam Adams beer) and Sierra Nevada in mar- ket share. Like New Belgium, Boston Beer Co. and Sierra Nevada have plans to expand, with Boston Beer allocating $35 million for capital investment projects at breweries in Massachusetts, Pennsylvania, and Ohio in 2012. New Belgium must also compete against Case 6 Mattel.pdf Case 4 New Belgiu....pdf da Discussion. Pa W Case 7 Layout References Case 4 New Belgium Brewing Mailings Review ignment - Google... View Q2. Do you agree that New Belgium's focus on social responsibility provides a key competitive advantage for the company? Why or why not? Pay Tell me what you want to do Q3. What are the challenges associated with combining the need for growth with the need to maintain customer intimacy in social responsibility? Does NBB risk losing focus on its core beliefs if it grows too quickly? Explain. Q4. Some segments of ciety contend that compani that sell alcoholic beverages and tobacco products cannot be socially responsible organizations because of the nature of their primary products. Do you believe that New Belgium's actions and initiatives are indicative of a socially responsible corporation? Why or why not? I Case 4 New Belgium.. w Case analysis Belgium....! X 05 # B BP.pdf Synopsis: Themes: New Belgium Brewing (A): Gaining Competitive Advantage Through Socially Responsible Marketing* From its roots in a Fort Collins, Colorado, basement, New Belgium Brewing has always aimed for business goals loftier than profitability. The company's tremendous growth to become the nation's third-largest craft brewery and ninth-largest overall has been guided by a steadfast branding strategy based on customer intimacy, social responsibility, and whimsy. The company's products, especially Fat Tire Amber Ale, have always appealed to beer connoisseurs who appreciate New Belgium's focus on sustainability as much as the company's world-class brews. Despite its growth and success, New Belgium has managed to stay true to its core values and brand authenticity-the keys to its marketing advantage in the highly competitive craft brewing industry. Customer intimacy, competitive advantage, social responsibility, sustainability, branding strategy, product strategy, distribution strategy, marketing implementation, customer relationships L arge corporations and well-known brand names come to mind when most of us think about successful businesses. However, the success of small and medium- sized businesses can be just as noteworthy, while often having a greater impact on local communities and neighborhoods. One such business is the New Belgium Brewing Company, Inc., based in Fort Collins, Colorado. The New Belgium brand has become known for two things: its high-quality, Belgian-style beers and its commitment toward sustainability. Its socially responsible initiatives have contributed greatly to New Belgium's success. In fact, New Belgium's business model has been so successful that it is increasingly easy to find its beers around the country as more consumers embrace what the company stands for. Studies have shown that the stock prices of ethically and socially responsible companies as a whole outperform those on the S&P 500 index. Although Course 5 Marketing Case 6 Mattel.pdf Case 4.pdf - Google C.... 9 Case 4 New Belgiu....pdf Provide A Discussion... F4 F5 P 1/10 W ^ 110 F6 03 Case 3 Monsanto.pd PrtScn Students X Th Assignment 25: Cases moodle.snu.edu/pluginfile.php/1003034/mod_assign/intro/Case%204.pdf ms of project organ C The Advantages of Fr bPros and Cons of 3 P E Choose Databases: El Belgium's success. In fact, New Belgium's business model has been so successful that it is increasingly easy to find its beers around the country as more consumers embrace what the company stands for. Studies have shown that the stock prices of ethically and socially responsible companies as a whole outperform those on the S&P 500 index. Although New Belgium is not a public company and thus does not offer publically owned stock, it seems to follow this trend of success. The company has become the seventh-largest brewery in the nation and the third-largest brewery in the "craft beer" segment. odf X Case 4.pdf "O.C. Ferrell, University of New Mexico, prepared this case for classroom discussion rather than to illustrate effective of ineffective handling of an administrative situation. Jennifer Sawayda, University of New Mexico, provided editorial assistance. History of the New Belgium Brewing Company The idea for the New Belgium Brewing Company (NBB) began with a bicycling trip through Belgium-home to some of the world's finest ales, many of which have been brewed for centuries in that country's monasteries. As Jeff Lebesch, an American electri- cal engineer, cruised around that country on his fat-tired mountain bike, he wondered whether he could produce such high quality beers back home in Colorado. After acquir- ing the special strain of yeast used to brew Belgian-style ales, Lebesch returned home and began to experiment in his Colorado basement. When his beers earned thumbs up from friends, Lebesch decided to market them. New Belgium Brewing (NBB) opened for business in 1991 as a tiny basement opera- tion in Lebesch's home in Fort Collins. Lebesch's wife at the time, Kim Jordan, became the firm's marketing director. They named their first brew Fat Tire Amber Ale in honor of Lebesch's bike ride through Belgium. Initially, getting New Belgium beer onto store shelves was not easy. Jordan often delivered the beer to stores in the back of her Toyota station wagon. However, New Belgium beers quickly developed a small but devoted cus- tomer base, first in Fort Collins and then throughout Colorado. The brewery soon out- grew the couple's basement and moved into an old railroad depot before settling into its present custom-built facility in 1995. The brewery includes two brew houses, four quality assurance labs, a wastewater treatment facility, a canning and bottling line, and numer- ous technological innovations for which New Belgium has become nationally recognized as a "paradigm of environmental efficiencies." Case 6 Mattel.pdf Under the leadership of Kim Jordan, who has since become CEO, New Belgium Brewing Company currently offers a variety of permanent and seasonal ales and pilsners. 351 9 Case 4 New Belgiu....pdf Login MyMar C Case 3 Monsant odle.snu.edu/pluginfile.php/1003034/mod_assign/intro/Case%204.pdf The Advantages of F Pros and Cons of 3 P E Choose Databases: E Under the leadership of Kim Jordan, who has since become CEO, New Belgium Brewing Company currently offers a variety of permanent and seasonal ales and pilsners. The company's standard line includes Sunshine Wheat, Blue Paddle, 1554 (a black ale), and the original Fat Tire Amber Ale, still the firm's bestseller. Some customers even refer to the company as the Fat Tire Brewery. The brewery also has its Explore Series, consist- ing of Shift, Ranger IPA, Belgo IPA, Abby, and Trippel, as well as seasonal ales Dig and Snow Day. The firm also started a Lips of Faith program, where small batch brews like La Folie, Biere de Mars, and Abbey Grand Cru are created for internal celebrations or landmark events. Additionally, New Belgium is working in "collabeeration" with Elysian Brewing Company, in which each company will be able to use the other's brew houses, though they remain independent businesses. Through this partnership, they hope to cre- ate better efficiency and experimentation along with taking collaborative strides toward the future of American craft beer making. One collabeeration resulting from this part- nership is Ranger IPA and Kick from NBB's Explore and Lips of Faith programs. Although still a small brewery when compared to many beer companies, like fellow Coloradan Coors, NBB has consistently experienced strong growth with estimated sales of more than $100 million. (Since New Belgium is a private firm, detailed sales and rev- enue numbers are not available.) The company sells more than 700,000 barrels of beer per year and has many opportunities for continued growth. For instance, while total beer consumption has decreased 2 percent by volume, the craft brewing industry has grown by 16.4 percent. project organ NBB's most effective form of advertising has always been customers' word of mouth, especially in the early days. Indeed, before New Belgium beers were widely dis- tributed throughout Colorado, one liquor-store owner in Telluride is purported to have offered people gas money if they would stop by and pick up New Belgium beer on their way through Fort Collins. Although New Belgium has expanded distribution to a good portion of the U.S. market, the brewery receives numerous e-mails and phone calls every day inquiring when its beers will be available in other parts of the country. Case 4: New Belgium Brewing (A): Gaining Competitive Advantage Through Socially Responsible Marketing 353 NBB joined Facebook in November 2007 and started activity marketing through. social media in 2009. NBB actively coordinates its marketing campaigns through both Facebook (with over 300,000 fans) and Twitter (with over 100,000 followers), as well as a NBB Pandora radio station, a NBB Instagram channel, live streaming video of special events called the Beer Stream, and NBB's YouTube channel. Currently, New Belgium's pro- ducts are distributed in 28 states plus the District of Columbia (see Case Exhibit 4.1). Beer 91 Case 6 Mattel.pdf Course 5 Marketing. Case 4.pdf - Google C... A Case 4 New Belgiu....pdf Provide A Discussion... P3 W Login My X e 05 Case 3 Mor moodle.snu.edu/pluginfile.php/1003034/mod_assign/intro/Case%204.pdf of project organ C The Advantages of Fu EXHIBIT 4.1 New Belgium's Distribution Territories WASHINGTON OREGON CALIFORNIA Pros and Cons of 3 PE Choose Databases: El Log ducts are distributed in 28 states plus the District of Columbia (see Case Exhibit 4.1). Beer connoisseurs that appreciate the high quality of NBB's products, as well as the company's environmental and ethical business practices, have driven this growth. For example, when the company began distribution in Minnesota, the beers were so popular that a liquor store had to open early and make other accommodations for the large amount of customers. The store sold 400 cases of Fat Tire in the first hour it was open. With expanding distribution, NBB recognized a need to increase its opportunities for reaching its far-flung customers. It consulted with Dr. Douglas Holt, an Oxford professor and cultural branding expert. After studying the company, Holt, together with former Marketing Director Greg Owsley, drafted a 70-page "manifesto" describing the brand's attributes, character, cultural relevancy, and promise. In particular, Holt identified in New Belgium an ethos of pursuing creative activities simply for the joy of doing them well and in harmony with the natural environment. With the brand defined, New Bel- gium worked with New York advertising agency Amalgamated to create a $10 million advertising campaign for New Belgium. The campaign would target high-end beer drin- kers, men ages 25 to 44, and highlight the brewery's down-to-earth image. (This process is discussed in the New Belgium Brewing (B) case). NEVADA IDAHO MONTANA WYOMING COLORADO ARIZONA NEW MEXICO NORTH DAKOTA SOUTH DAKOTA NEBRASKA KANSAS TEXAS WISCONSIN IOWA ILLINOIS MISSOURI ARKANSAS INDIANA TENNESSEE VIRGINIA NORTH CAROLINAS CAROL GEORGIA MARYLAND DISTRICT OF COLOMBIA ct organ C The Advantages of Fu Pros and Cons of 3 P E Choose Databases: El New Belgium Embraces Social Responsibility According to New Belgium, the company maintains a fundamental focus on the ethical culture of the brand. Although consumer suspicion of business is at an all-time high, those in good standing-as opposed to those trading on hype-are eyed with icon-like adoration. Today, businesses that fully embrace citizenship in the communities they serve can forge enduring bonds with customers. At New Belgium, the synergy between branding and corporate citizenship occurred naturally as the firm's ethical culture (in the form of core values and beliefs) and was in place long before NBB had a marketing department. Back in early 1991, when New Belgium was just a fledgling home-brewed busi- ness, Jeff and Kim took a hike into Rocky Mountain National Park. Armed with a pen and a notebook, they took their first stab at what the company's core purpose would be. If they were going forward with this venture, what were their aspirations beyond profitability? What was at the heart of their dream? What they wrote down that spring day, give or take a little editing, was the core values and beliefs you can read on the NBB website today. More importantly, ask just about any New Belgium employee and he or she can list for you many, if not all, of these shared values and can inform you which are the most personally poignant. For NBB, branding strate- gies are as rooted in its company values as in its other business practices. For instance, as a way to live out its values, the company adopted a triple bottom line (TBL) approach to business. TBL incorporates economic, social, and environmental factors into its business strategies. In other words, the company looks at its impact upon profits, people, and the planet rather than simply on the bottom line. New Bel- gium's dedication to quality, the environment, and its employees and customers is expressed in its mission statement and core values: Mission Statement: To operate a profitable brewery which makes our love and talent manifest. Company Core Values and Beliefs: 1. Remembering that we are incredibly lucky to create something fine that enhances people's lives while surpassing our consumers' expectations. 2. Producing world-class beers 3. Promoting beer culture and the responsible enjoyment of beer 4. Kindling social, environmental, and cultural change as a business role model 5. Environmental stewardship: minimizing resource consumption, maximizing energy efficiency, and recycling 6. Cultivating potential through learning, participative management, and the pur- suit of opportunities 7. Balancing the myriad needs of the company, staff, and their families 8. Trusting each other and committing ourselves to authentic relationships, com- munications, and promises 9. Continuous, innovative quality and efficiency improvements 10. Having Fun Login F ect organ The Advantages of Fu 10. Having Fun Pros and Cons of 3 Pr Employees believe that these statements help communicate to customers and other stakeholders what New Belgium, as a company, is about. These simple values developed roughly 20 years ago are just as meaningful to the company and its customers today, even though there has been much growth. E Choose Databases: El Case 4: New Belgium Brewing (A): Gaining Competitive Advantage Through Socially Responsible Marketing 355 Responsibilities to the Environment New Belgium's marketing strategy involves linking the quality of its products, as well as its brand, with the company's philosophy of environmental friendliness. From leading- edge environmental gadgets and high-tech industry advancements to employee- ownership programs and a strong belief in giving back to the community, New Belgium demonstrates its desire to create a living, learning community. . NBB strives for cost-efficient energy-saving alternatives for conducting its business and reducing its impact on the environment. In staying true to the company's core values and beliefs, the brewery's employee-owners unanimously agreed to invest in a wind turbine, making New Belgium the first fully wind-powered brewery in the United States. NBB has also invested in the following energy-saving technologies: Login A smart grid installation that allows NBB to communicate with its electricity provider to conserve energy. For example, the smart grid will alert NBB to non-essential operational functions, allowing the company to turn them off and save power. . The installation of a 20 kW photovoltaic array on top of the packaging hall. The array produces 3 percent of the company's electricity. A brew kettle, the second of its kind installed in the nation, which heats wort sheets instead of the whole kettle at once. This kettle heating method conserves energy more than standard kettles do. Sun tubes, which provide natural daytime lighting throughout the brew house all year long. A system to capture its wastewater and extract methane from it. This can contribute up to 15 percent of the brewery's power needs while reducing the strain on the local municipal water treatment facility. A steam condenser that captures and reuses the hot water that boils the barley and hops the production process to start the next brew. The steam is redirected to heat the floor tiles and de-ice the loading docks in cold weather. e New Belgium also takes pride in reducing waste through recycling and creative reuse strategies. The company strives to recycle as many supplies as possible, including card- Case 4 New Belgiu....pdf ^ Case ect organ The Advantages of Fu 10. Having Fun Pros and Cons of 3 Pr Employees believe that these statements help communicate to customers and other stakeholders what New Belgium, as a company, is about. These simple values developed roughly 20 years ago are just as meaningful to the company and its customers today, even though there has been much growth. E Choose Databases: El Case 4: New Belgium Brewing (A): Gaining Competitive Advantage Through Socially Responsible Marketing 355 Responsibilities to the Environment New Belgium's marketing strategy involves linking the quality of its products, as well as its brand, with the company's philosophy of environmental friendliness. From leading- edge environmental gadgets and high-tech industry advancements to employee- ownership programs and a strong belief in giving back to the community, New Belgium demonstrates its desire to create a living, learning community. . NBB strives for cost-efficient energy-saving alternatives for conducting its business and reducing its impact on the environment. In staying true to the company's core values and beliefs, the brewery's employee-owners unanimously agreed to invest in a wind turbine, making New Belgium the first fully wind-powered brewery in the United States. NBB has also invested in the following energy-saving technologies: Login A smart grid installation that allows NBB to communicate with its electricity provider to conserve energy. For example, the smart grid will alert NBB to non-essential operational functions, allowing the company to turn them off and save power. . The installation of a 20 kW photovoltaic array on top of the packaging hall. The array produces 3 percent of the company's electricity. A brew kettle, the second of its kind installed in the nation, which heats wort sheets instead of the whole kettle at once. This kettle heating method conserves energy more than standard kettles do. Sun tubes, which provide natural daytime lighting throughout the brew house all year long. A system to capture its wastewater and extract methane from it. This can contribute up to 15 percent of the brewery's power needs while reducing the strain on the local municipal water treatment facility. A steam condenser that captures and reuses the hot water that boils the barley and hops the production process to start the next brew. The steam is redirected to heat the floor tiles and de-ice the loading docks in cold weather. e New Belgium also takes pride in reducing waste through recycling and creative reuse strategies. The company strives to recycle as many supplies as possible, including card- Case 4 New Belgiu....pdf ^ Case organ The Advantages of F Pros and Cons of 3 P E Choose Databases: El Login P New Belgium also takes pride in reducing waste through recycling and creative reuse strategies. The company strives to recycle as many supplies as possible, including card- board boxes, keg caps, office materials, and the amber glass used in bottling. The brewery also stores spent barley and hop grains in an on-premise silo and invites local farmers to pick up the grains, free of charge, to feed their pigs. Going further down the road to producing products for the food chain, NBB is working with partners to take the same bacteria that create methane from NBB wastewater and convert them into a harvestable, high-protein fish food. NBB also buys recycled products when it can, and even encourages its employees to reduce air pollution by using alternative transportation. Reduce, Reuse, Recycle-the three R's of environmental stewardship are taken seriously at NBB. Case Exhibit 4.2 depicts New Belgium's recycling efforts. Additionally, New Belgium has been a long-time participant in green building techniques. With each expansion of the facility, it has incorporated new technologies and learned a few lessons along the way. In 2002, NBB agreed to participate in the United States Green Building Council's Leadership in Energy and Environment Design for Existing Buildings (LEED-EB) pilot program. From sun tubes and day lighting throughout the facility to reusing heat in the brew house, NBB continues to search for new ways to close loops and conserve resources. New Belgium has made significant achievements in sustainability, particularly com- pared to other companies in the industry. For one, New Belgium uses only 3.9 gallons of water to make 1 gallon of beer, which is 20 percent less than most companies. The company is attempting to create a closed-loop system for their wastewater with its own Process Water Treatment Plant, in which microbes are used to clean the wastewater. New Belgium recycles over 95 percent of its waste, and today 100 percent of its 4.2 New Belgium's Recycling Efforts 100.00% 2011 Waste Diversion Rate = 94.38% (without spent grain, yeast, sludge, and DE) 90.13% Series1 Th Assignment e PGS Students X C moodle.snu.edu/pluginfile.php/1003034/mod_assign/intro/Case%204.pdf G pros of project organ 100.00% 80.00% 60.00% 40.00%- 20.00% 0.00% 90.13% X The Advantages of Fi bPros and Cons of 3 P E Choose Databases: El P Loc wroorspem gram, yomor anger an Recycled Case 4.pdf 5.62% Landfilled Series1 4.25% Composted Hource Based on New Belgium Brewing Company, 2011 Waste Diversion Report (http://www.newbelgium.com/files/sustainability/2011%20NBB%20Waste Diverion%20Report.pdf), accessed July 16, 2012. electricity comes from renewables. Despite these achievements, New Belgium has no intention of halting its sustainability efforts. The company recently expanded its canning capacity by six times with a new canning line that injects less carbon dioxide into each can. In addition to reducing carbon dioxide emissions into the atmosphere, the cans are also more sustainable than glass bottles. By 2015, the company hopes to reduce the amount of water used to make beer by 10 percent through better production processes and decrease its carbon footprint by 25 percent per barrel. To encourage sustainability throughout the supply chain, NBB adopted Sustainable Purchasing Guidelines. The Guidelines allow them to pinpoint eco-friendly suppliers and work with them closely to create sustainability throughout the entire value chain. Responsibilities to Society Beyond its use of environmentally friendly technologies and innovations, New Belgium also strives to improve communities and enhance people's lives through corporate giving, event sponsorship, and philanthropic involvement. Since its inception, NBB has donated more than $2.5 million to philanthropic causes through its Stewardship Grants program. For every barrel of beer sold the prior year, NBB donates $1 to philanthropic causes within their distribution territories. The donations are divided between states in proportion to their percentage of overall sales. This is the company's way of staying local and giving back to the communities that support and purchase NBB products. NBB also participates in "1% For the Planet," a philanthropic network to which the company donates 1 percent of its profits. moodle.snu.edu/pluginfile.php/1003034/mod_assign/intro/Case%204.pdf s of project organ Login C The Advantages of Fu bPros and Cons of 3 P E Choose Databases: E Funding decisions are made by New Belgium's Philanthropy Committee, which is comprised of employees throughout the brewery, including owners, employee owners, area leaders, and production workers. New Belgium looks for nonprofit organizations that demonstrate creativity, diversity, and an innovative approach to their mission and objectives. The Philanthropy Committee also looks for groups that involve the commu- nity to reach their goals. The breakdown of NBB's Stewardship Grant awards is shown in Case Exhibit 4.3. Additionally, NBB maintains a community bulletin board in its facility, where it posts an array of community involvement activities and proposals. This community board allows tourists and employees to see the different ways they can help out the community. and it gives nonprofit organizations a chance to make their needs known. Organizations can even apply for grants through the NBB website, which has a link designated for this purpose. The company donates to causes with a particular emphasis on water conserva- tion, sensible transportation and bike advocacy, sustainable agriculture, and youth envi- ronmental education, among other areas. NBB also sponsors a number of events, with a special focus on those that involve "human-powered" sports that cause minimal damage to the natural environment. Through event sponsorships, such as the Tour de Fat, NBB supports various environ- mental, social, and cycling nonprofit organizations. In the Tour de Fat, one participant hands over his or her car keys and vehicle title in exchange for an NBB commuter bike and trailer. The participant is then filmed for the world to see as he or she promotes sustainable transportation over driving. In 2011, Tour de Fat traveled to 13 cities, with more than 69,000 attendees and 41,000 cyclists in the parades. New Belgium also part- ners with nonprofit organizations to support Skinny Dip for a Cause, a campaign where E EXHIBIT 4.3 New Belgium's 2011 Stewardship Grants Summary Innovative projects outside of funding categories 4% Water Stewardship 40% Youth Environmental Education 14% Sustainable Agriculture Sensible Transportation & Bike Advocacy 19% Ouse Databases: El skinny-dipping is used to raise awareness of water issues and conservation. In the course of one year, New Belgium can be found at anywhere from 150 to 200 festivals and events across the nation. Responsibilities to Employees Recognizing employees' role in the company's success, New Belgium provides many gen- erous benefits for its over 400 employees. In addition to the usual paid health and dental insurance and retirement plans, employees get a catered lunch every month to celebrate employees' birthdays as well as a free massage once a year, and they can bring their chil- dren and dogs to work. Employees who stay with the company for five years earn an all- expenses paid trip to Belgium to "study beer culture." Employees are also reimbursed for one hour of paid time off for every two hours of volunteer work that they perform. Per- haps most importantly, employees can also earn stock in the privately held corporation, which grants them a vote in company decisions. Employees currently own about 43 per- cent of company stock. Open book management also allows employees to see the finan- cial costs and performance of the company. Employees are provided with financial training so they can understand the books and ask questions about the numbers. New Belgium also wishes to get its employees involved not only in the company but in its sustainability efforts as well. To help their own sustainability efforts, employees are given a fat-tired cruiser bike after one year's employment so they can ride to work instead of drive. An onsite recycling center is also provided for employees. Other company perks include inexpensive yoga classes, free beer at quitting time, and a climbing wall. To ensure that workers' voices are heard, NBB has a democratically elected group of co-workers called POSSE. POSSE acts as a liaison between the board, managers, and employees. Responsibility Breeds Success New Belgium Brewing's efforts to live up to its own high standards have paid off with a very loyal following-in fact, the company recently expanded the number of tours it offers of its facilities due to such high demand. The company has also been the recipient of numerous awards. Past awards for NBB include the Business Ethics Magazine's Business Ethics Award for its "dedication to environmental excellence in every part of its innovative brewing pro- cess," its inclusion in the Wall Street Journal's 15 best small workplaces, and the awards for best mid-sized brewing company of the year and best mid-sized brewmaster at the Great American Beer Festival. New Belgium has taken home medals for three different brews: Abbey Belgian Style Ale, Blue Paddle Pilsner, and La Folie specialty ale. e Case 6 Mattel.pdf According to David Edgar, director of the Institute for Brewing Studies, "They've cre- ated a very positive image for their company in the beer-consuming public with smart decision-making." Although some members of society do not believe that a company whose major product is alcohol can be socially responsible, New Belgium has set out to prove that for those who make a choice to drink responsibly, the company can do every- 4 9 8/10 Case 4 New Belgiu....pdf ten PLogin P P² W xil 9 05 Case 3 Mc E Choose Databases: El 9/10 prove that for those who make a choice to drink responsibly, the company can do every- thing possible to contribute to society. New Belgium also promotes the responsible appreciation of beer through its participation in and support of the culinary arts. For instance, it frequently hosts New Belgium Beer Dinners, in which every course of the meal is served with a complementary culinary treat. Although New Belgium has made great strides in creating a socially responsible brand image, its work is not done. New Belgium must continually reexamine its ethical, social, and environmental responsibilities. In 2004, New Belgium received the Environmental Protection Agency's regional Environmental Achievement Award. It was both an honor and a motivator for the company to continue its socially responsible goals. After all, Case 4: New Belgium Brewing (A): Gaining Competitive Advantage Through Socially Responsible Marketing 359 there are still many ways for NBB to improve as a corporate citizen. For example, although all electric power comes from renewable sources, the plant is still heated in part by using natural gas. There will always be a need for more public dialogue on avoid- ing alcohol abuse. Additionally, continued expansion requires longer distances to travel for distributing the product, which increases the use of fossil fuels. As a way to deal with these longer distances, New Belgium announced it would open a second brewery in Asheville, North Carolina to expand NBB's capacity and place the product closer to markets in the eastern United States. The new $175 million facility, which will create 154 jobs and expand the company's capacity by 400,000 barrels per year, will be supported by a $1 million grant from the One North Carolina fund. NBB executives acknowledge that as its annual sales increase, so do the challenges to remain on a human scale and to continue to be culturally authentic. How to boldly grow the brand while maintaining its humble feel has always been a challenge. Additionally, reducing waste to an even greater extent will take lots of work on behalf of both man- agers and employees, creating the need for a collaborative process that will require the dedication of both parties toward sustainability. 9 Login P New Belgium also faces increased competition from other craft breweries. It still remains behind Boston Beer Co. (maker of Sam Adams beer) and Sierra Nevada in mar- ket share. Like New Belgium, Boston Beer Co. and Sierra Nevada have plans to expand, with Boston Beer allocating $35 million for capital investment projects at breweries in Massachusetts, Pennsylvania, and Ohio in 2012. New Belgium must also compete against Case 6 Mattel.pdf Case 4 New Belgiu....pdf da Discussion. Pa W Case 7 Layout References Case 4 New Belgium Brewing Mailings Review ignment - Google... View Q2. Do you agree that New Belgium's focus on social responsibility provides a key competitive advantage for the company? Why or why not? Pay Tell me what you want to do Q3. What are the challenges associated with combining the need for growth with the need to maintain customer intimacy in social responsibility? Does NBB risk losing focus on its core beliefs if it grows too quickly? Explain. Q4. Some segments of ciety contend that compani that sell alcoholic beverages and tobacco products cannot be socially responsible organizations because of the nature of their primary products. Do you believe that New Belgium's actions and initiatives are indicative of a socially responsible corporation? Why or why not? I Case 4 New Belgium.. w Case analysis Belgium....! X 05 #

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