Which statement is the appropriate one to choose, can you explain based on the theory of strategic management and explain why the remaining options are not the best option to choose.

1. Sobah is successful because its core competencies are relevant to the five competitive forces in the craft beer industry.
2. Sobah is successful because it has chosen to pursue an appropriate business-level strategy for its line of non-alcoholic beers.
3. Sobah is successful because it has chosen to pursue an appropriate strategy for growth at the corporate-level.
4. Sobah is successful because it pays more attention to implementing rather than formulating strategy.

The beginnings of Sobah

Sobah, Australias first non-alcoholic craft beer, is the brainchild of psychologist and Gamilaroi man, Clinton Schultz and his wife Lozen. After giving up drinking, Clinton became frustrated at the lack of non-alcoholic options available on the market.

The only thing Id really get offered was a ginger beer and you can only have a couple before you feel bloated and sugared out. Id get pissed off having to pay five bucks for a soda water with a piece of lime in itⁱ.

Lozen also struggled to find a non-alcoholic craft beer to drink while she was pregnant ⁱⁱ.

At the time, the Schultzs were running a food truck selling native and Aboriginal inspired foods. They experimented with brewing a non-alcoholic beer and began selling it out of a keg on their food truck.

We also wanted something unique to be able to sell from our food truck that nobody else would have. So, having our native-infused, non-alcoholic beers just seemed like a perfect matchⁱⁱⁱ.

Initially, Clinton and Lozen struggled to find a contract brewer who was willing to brew a beer with traditional Aboriginal ingredients and no preservatives. However, Pickled Pig Brewery in Tweed Heads agreed to give it a go^iv.

The non-alcoholic beer proved popular, and the couple decided to launch a crowdfunding campaign to produce a line of Sobah beers that customers could take away.

Breaking into the craft beer market proved to be a challenge, as Clinton describes, "It's not just the individual retailers, there's a real monopoly of the market, and it's damaging, it's damaging for the art of brewing and entrepreneurship because it can quickly discourage people from wanting to take a part of it, knowing that there's just that big brick wall facing you when you've got a product and you're ready to get it out there. It doesn't matter if it's individual bottle shops, through to the chains, through to pubs and clubs and other establishments^v.

Four years later, however, and Sobah is sold in around 200 bottle shops and venues across Australia including through liquor giants, BWS and Dan Murphys ^vi.

Sobahs line of beers

When Clinton and Lozen started brewing in 2017, they were the first to offer a line of craft non-alcoholic beers in Australia.

The non-alcoholic beers that were available here in Australia for a long time havent done us any favours. When something is selling for $7 a six-pack at the supermarket you know its not going to be any good^vii.

To address this challenge Clinton and Lozen experimented with native ingredients, developing a Lemon Aspen Pilsner, a Pepperberry IPA and a Finger Lime Cerveza to create a non-alcoholic option for fans of craft beer.

While using native ingredients was always a priority, Clinton explains that it is not straightforward: Theres a big difference between grabbing a handful of something I need from the bush and finding 100 kilos of it on a regular basis^viii.

Lozen adds: It can be a struggle to find a lot of Australian native stuff in commercial quantities. Not every idea we have we can do. To find someone to go out there and grow for us would take a lifetime.^ix

Another challenge involved efforts to improve the shelf stability of the beer so that it could be sold in cans and more easily distributed interstate and internationally.

Lozen suggests, It was difficult, it has been a rocky journey. Going from having a beer you serve on tap in the keg and putting that in a can or bottle, there are so many new things youve got to look at. We dont use preservatives or chemicals, the beer is vegan-friendly, low intervention and it was also a perishable product that needed to be kept cold ^x.

Cold chain distribution is hard, theres no profit margin and it was already an expensive product to make.^xi

We undertook six months of R&D and needed certain equipment to pasteurise. We wanted to pasteurise in the can because that eliminates any trace of bacteria that contributes to secondary fermentation. Big retailers want to change the way they retail craft beer and are urging craft brewers to pasteurise^xii.

To produce pasteurised beer in the quantities needed, Sobah engaged Tribe Brewing partners based in Goulbourn in NSW, who currently produce most of their beer.

In addition to their original three beers, Sobah has developed special releases including a Davidson Plum Gluten-Free Ale, a Boab and Wild Ginger Lager, a Wattleseed Gold and an Aniseed Myrtle Stout ^xiii.

Working at Sobah

Clinton and Lozen and their three staff work out of their headquarters on Yugambeh country at Burleigh Heads on the Gold Coast in Queensland.

Clinton explains that My wifes actually the engine room of the business and I do the development side and the public face side of it as well^xiv.

Sobah is a proudly Aboriginal company. This foundation influences everything from their name, the artwork on their beers, and the broader social purpose of their business.

As well as being a play on words, bah means place in the Yugambeh language, so the company name can also mean place of sobriety ^xv.

The cans also include the Gamilarray words Badha Gali, which means bitter drink as well as artwork by Gamilaroi artist Jason Passfield which depicts a wedgetail eagle and its songlines.

Thats one of the aims of our business, to bring more awareness to Aboriginal and Torres Strait Islander culture but also the diversity within cultures Clinton says. All our cans explain where our native ingredients come from, what language groups theyre tied to, and tries to give people a bit of curiosity to hopefully go out and learn a little bit more^xvi.

I love to smash stereotypes so theres no better way of smashing a whole group of stereotypes than being an Aboriginal man who doesnt drink and produces non-alcoholic beer for majority non-Indigenous people to drink^xvii.

According to the Sobah website, the company was born from a desire for providing a better choice for those who are not drinking for whatever reason at whatever timeSobah functions from the philosophies of Gamilaraay Lore dhiriya Gamil along with other lessons [Gamilaroi man and psychologist, Clinton Schultz] has been fortunate to learn from Elders from around Australia. These include acting from a position of respecting people, place and the environment; understanding and working towards fulfilling responsibilities to that we are connected to; and, engaging in positive reciprocity^xviii.

Lozen suggests that one of the key elements of Sobahs success is their strong brand.

What weve learnt is that youve got to have a brand supported by a bloody good story. Its not going to stand out from the crowd if you just have a good tasting beer, its about building a community and getting people to be a part of that journey^xix.

In 2019 and to further grow Sobah, Clinton and Lozen sold 8% of the business to private investors raising $80 000 and valuing the business at $1 million. In time they hope to sell up to 20% of the business to raise further funds.

Their next plan is to develop a micro-brewery and caf on the Gold Coast in collaboration with other Indigenous businesses^xx.

Sobahs social purpose

For Clinton and Lozen the real purpose of Sobah goes beyond providing a way to drink beer without a hangover. They want to tackle Australias problematic drinking culture head-on and help reduce the stigma around sobriety.

According to their website, Sobah is leading a conversation surrounding Australian societal issues with alcohol consumption and breaking down the stigma of socialising sober. We promote healthy lifestyle choices and wellness, social equity, sustainability, raise positive awareness of Aboriginal and Torres Strait Islander culture, smash stereotypes, unite people and of course, our beers quench thirst^xxi.

Clintons background in psychology is also a core part of the work he does at Sobah. His passion is to support healing initiatives that are grounded in traditional, spiritual and cultural choices rather than those dictated by business or government. Sobah supports a number of initiatives that seek to promote mindful drinking, sobriety and healthy living including, The Preston Campbell Foundation, The Wayne Weaver Foundation, Foundation for Indigenous Sustainable Health (FISH), and 101 Tokens.

Since Clinton and Lozen began Sobah, the market for non-alcoholic beverages in Australia has rapidly grown. BWS and Dan Murphys report that their sales of non-alcoholic drinks doubled from 2019 to 2020 ^xxii.

For Clinton this is a positive sign that Australias heavy drinking culture is changing.

Now theres an overwhelming support for just non-alcoholic beers but non-alcoholic adult beverages in general ^xxiii.