New Belgium Brewing (PowerPoint)

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					New Belgium
 Developing a Brand
           Group 3 - Members

  My -            Eli -         Ocha -
M987Z247        M987Z254       M987Z212

Fernando -       Loan –         Joice -
M987Z257        M987Z234       M987Z224
•   History
•   Company’s Values and Beliefs
•   The Products
•   Distribution
•   Employee’s Concern
•   Social Concern
•   Environmental Concern: NBB’s Eco Care
•   Principal Competitors
•   Promoting Responsible Drinking
•   Organizational Success
                   History’s Timeline
•   1991: Jeff Lebesch founded his small brewery in his house’s basement. He was
    inspired by his bicycle trip through Belgium from brewery to brewery . Their
    mission was "to operate a profitable company which is socially, ethically and
    environmentally responsible, that produces high quality beer true to Belgian brewing

•   1992: New Belgium Brewing's operations move to renovated freight warehouse.

•   1995: Company moves into a new $5 million brewery.

•   1996: A Belgian brew master hired.

•   1998: Production tops 100,000 barrels for the first time.

•   1999: Firm begins to use wind-generated electricity.
    2001: Expansion of plant to triple capacity begins.

•   2004: Distribution is expanded to Southern California; New Belgium beer is
    now sold in 15 states.

•   2006: it produced approximately 436,000 barrels of its various labels.

•   2008: Its beers were distributed to 19 different states.
              Company’s Logo

The bicycle is based upon the founders (Jeff Lebesch) epiphanies voyage
through Europe by bike, drinking beer along the way. Shortly after that
trip he made an amber ale and named it Fat Tire in honor of his
trip. Besides, bikes remind people of how simple and fun it is to be
outside, with a smile on your face and a good beer in your hand. The
image of the bicycle really captures New Belgium on a whole, with the
whimsical approach to business, the history of the beginnings and the
emphasis to environmental care.
       Company’s Values and Beliefs
“To operate a profitable brewery which makes our love and talent manifest”
       Remembering that we are incredibly lucky to create something fine
         that enhances people's lives while surpassing our consumers'
       Producing world-class beers.
       Promoting beer culture and the responsible enjoyment of beer.
       Kindling social, environmental and cultural change as a business
         role model.
       Environmental stewardship: Honoring nature at every turn of the
       Cultivating potential through learning, high involvement culture,
         and the pursuit of opportunities.
       Balancing the myriad needs of the company, our coworkers and
         their families.
       Trusting each other and committing to authentic relationships and
       Continuous, innovative quality and efficiency improvements.
       Having Fun.
     Company’s Business Philosophies
“People, Profit and Planet”
•   People.
    New Belgium gives “permission to step outside the box”, the
    company allowed employees and customers to experiments and
    to think. In addition, there is “a policy of fiscal transparency”
    which they practice in order to encourage “a community of trust
    and mutual responsibility”.
•   Profit.
    New Belgium Brewery Company is a place where quality-of-life—
    both for the environment and for humans—is central to its
    notion of business success. By embracing new technologies,
    seeking out alternative forms of energy and reducing its waste
    stream, New Belgium strives to make smart business decisions
    and do well by the environment each and every day.
•   Planet.
    New Belgium became the first brewer in the United States to get
    100 percent of its electricity from wind power. As a leader in
    sustainable building techniques, New Belgium has been willing to
    experiment with innovative solutions.                               awards/archive.php
                    The Products
Our Folly

   Fat Tire Sunshine Wheat    Mothership Wit   Blue Paddle

   1554     Abbey   Trippel

Mighty Arrow   Skinny Dip    2° Below    Frambozen   Hoptober


 Trippel IPA   The Trip II     Trip II
 Lips of Faith

Le Fleur Misseur     La Folie     Dunkelweiss 30°        Dark Kriek    Abbey Grand Cru

Biere de Mars      Dandelion Ale Transatlantique Kriek      Fall Wild Ale
• Before 2006
  Distributed in 15 states: Washington, Oregon, Idaho, Montana, Nevada, California, Arizona,
  New Mexico, Wyoming, Nebraska, Kansas, Texas, Arkansas, Missouri, Colorado.
• Spring 2006
  The brewery began to distribute some of their beers in other markets. Bottles of Fat Tire
  distributed in Chicago claim "Chicago Inaugural: The 1st Fat Tire Ale served (legally) in the
  second city."
• June 2007
  Fat Tire, Skinny Dip, 1554 and Mothership Wit became available in Illinois.
• Summer of 2007
  New Belgium expanded distribution again to include select areas of the Minneapolis
  -St. Paul Minnesota metro area and Iowa.
• July 2008
  Fat Tire, 1554, Mothership Wit, and seasonal brews are also served in Tennessee.
• March 2009
   Fat Tire, 1554, Mothership Wit, and seasonal brews also available in North Carolina.
• April of 2009
  Fat Tire became available in Indiana in response to huge demand.
• May of 2009
  Fat Tire became available in Georgia, South Carolina, South Dakota, and Wisconsin.
                         Competitive Status
        Craft Industry   Total US Beer
            Rank         Industry Rank

2007          3                8
2006          3                9
2005          3               12
2004          3               12
2003          4               13

New Belgium is categorized as a “Regional Craft Brewery” as defined by the Brewers’
Association: An independent brewery with an annual beer production of between 15,000
and 2,000,000 barrels who has either an all malt flagship 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. Less than 25% of the craft brewery is owned or controlled (or equivalent
economic interest) by an alcoholic beverage industry member who is not themselves a
craft brewer
                                          Sierra Nevada Brewing Co.

    Breckinridge Brewery

                                          Principal                             Boston Beer Co.


Rockies Brewing Co.
                                                                                Odell Brewing Co.

                      Left Hand & Tabernash Brewing        Flying Dog Brewery
   Developing Brand Manifesto
• Develop a “Cultural Branding”: a
  philosophy of branding that tries to
  speak to tension within society.
• In 2003 NBBs Holt was hired as a
  consultant, he immerse himself in the
  brewery’s unique culture in order to
Developing Brand Manifesto
  • The brand Manifesto was a 70 page
    document that described the brand’s
    attributes, character, cultural relevancy
    and potential.
  • Thanks to this document NBB’s began a
    relationship with Amalgamated Inc. a
    young upstart advertising agency in NY.
  • Together NBB’s creative team
    collaborated with Amalgamed to develop
    the brand’s cultural contributions and
    what should be communicated.
            Media Tools
• Radio shorts

• Television: low cost per viewer and
  wide reach.

• Theatrical screenings

• Other media: which customers
  expected to see interwoven with
   Advertising objectives
• The advertising should be implementing
  with moderate budget

• The ads film should bring timeless feel,
  reflect the company’s Manifesto and
  cultural tension of The mountain local
  lifestyle, which can be seen as the
  compromise between live the life one
  person wants with balancing the
  economic needs of existing within a
  technology .
     Implementing the Advertising
• Amalgamated had developed a
  series of storyboards for the
  commercials featuring the

• The campaign tagline: “Follow
  the folly…ours is beer “ and
  the spots on grittier 16-
  millimeter film was offered.
      Target Audience
• Target audience would be the
  professional who follows the
  traditional route of existing within a
  capitalist economy but still has
  artistic learning and desire, such as:
  lawyers, accountants,….

• High-end beer drinkers, youthful
  demographic, men ages 25 to 44
  years old.
Message Development
• NBB understood at the inception that the power
  of television could work to bolster or undermine
  the brand with equal efficacy
• Holt unearthed a mind-set where a highly creative
  activity of avocation is pursued for the intrinsic
  value of doing it, as well as performed in a
  balanced manner with nature: the cultural
  counterpoint to the Urban Professional
• The audience for NBB’s commercials would likely
  be the professional who follows the traditional
  route of existing within a capitalist economy but
  still has artistic leanings and desires
           Message Development
• Amalgamated’s creative director, Jason Gaboriau,
  developed a series of stories of storyaboards for the
  commercials featuring the “Tinkerer”, a character
  who discovers an old cruiser bike that has been
  customized, modernized, and ultimately left for
• The NBB team reacted positively to the presentation
  with the exception of Amalgamated’s suggested tag
  line: “Follow Your Folly…Ours Is Beer”. After a
  healthy volley of e-mail from nearly every NBB
  department, the creative team won out and “Follow
  Your Folly” became the campaign’s tagline
Message Development
• At this stage in the process, a search for the right
  director for the commercials ensued: reviewing
  dozens of highlight reels and passing the most
  likely fits along to NBB.
• In September 2004, members of NBB,
  Amalgamted, and the production company RSA
  out of Los Angeles met in Hotchkiss and
  commenced shooting over a three-day period.
  This led to no fewer than nine potential spots
  coming out of the three-day shoot
• Amalgamated returned to New York to begin
  postproduction of the spots with NBB’s input by
  choosing a musical bed quickly developed into the
  next creative challenge.
Message Development
• Quick to embrace the latent talents of their own
  crew, NBB allowed brewery employees to
  compose a reggaelike score for one of the 15-
  second spots-playful little film called “Joust”
• Even as NBB decided to speak to a wider audience
  through a new medium, the roots-style marketing
  that launched the company could not be
• In the end, NBB’s first television-based advertising
  campaign-approached with a great deal of inner
  reflection-mirrored well the craft brewer’s
Promoting Responsible Drinking
• Promoting beer as a pairing with food and sponsor beer
  dinners to educate palates and create that level of
• At all of the events, anyone pouring beer must be TIPS
  (Training for Intervention ProcedureS) trained which is
  a nationally accredited alcohol awareness program that
  helps servers identify and prevent someone from being
  over served. They canceled events that they deemed to be
  too focused on drinking.
• The tasting room limits tasters to four short pours and
  focuses on education over mass consumption.
• The price point precludes the kind of binge drinking
  associated with suitcases of beer and handle bottles.
 Organizational Success
• One of three winners of Business Ethics magazine’s
  Business Ethics Awards for its “dedication to
  environmental excellence in every part of its innovative
  brewing process.”
• an honorable mention in the Better Business Bureau’s
  2002 Torch Award for Outstanding Marketplace Ethics
• Best mid-sized brewing company of the year and best
  mid-sized brewmaster at the Great American Beer
• In 2004, New Belgium received the Environmental
  Protection Agency's regional Environmental
  Achievement Award.
          Employee Concerns
• Health and dental insurance and retirement plans.
• Free lunch every other week as well as a free
  massage once a year.
• Employees can bring their children and dogs to
• Employees who stay with the company for five
  years earn an all-expenses paid trip to Belgium to
  “study beer culture.”
• Employees can also earn stock in the privately held
  corporation, which grants them a vote in company
• New Belgium’s employees now own one-third of
  the growing brewery.
                  Social Concerns
•   For every barrel of beer sold the prior year, NB donates $1 to philanthropic
    causes within their distribution territory. The donations are divided between
    states in proportion to their percentage of overall sales. This is their way of
    staying local and giving back to the communities who support and purchase
    NB products.
•   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, NBB supports various
    environmental, social, and cycling nonprofit organizations.
•   In the course of one year, New Belgium can be found at anywhere from 150 to
    200 festivals and events, across all fifteen western states, such as the Tour de
    Fat promotes the bicycle as a sustainable form of transportation with beer as
    part of the medium and not the message; the MS 150 “Best Damn Bike Tour,”
    a two-day, fully catered bike tour from which all proceeds went to benefit
    more than five thousand local people with multiple sclerosis; and the Ride the
    Rockies bike tour, which donated the proceeds from beer sales to local
    nonprofit groups.
             Environmental Concerns
•   New Belgium Brewing strives for cost-efficient energy-saving alternatives to
    conducting its business and reducing its impact on the environment.
•   Investing in a wind turbine, making New Belgium the first fully wind-powered
    brewery in the United States.
•   Using the solar electricity system (mixture wind and coal power) and reduce its
    CO2 emissions by 1,800 metric tons per year.
•   Using “sun tubes,” which provide natural daytime lighting throughout the brew
    house all year long.
•   Reducing waste through recycling and creative reuse strategies, including
    cardboard boxes, keg caps, office materials, and the amber glass used in bottling.
•   Encourages the employees to reduce air pollution by using alternative
    transportation. As an incentive, NBB gives its employees “cruiser bikes”— like the
    one pictured on its Fat Tire Amber Ale label—after one year of employment and
    encourages them to ride to work.
•   Participate in the United States Green Building Council's Leadership in Energy and
    Environment Design for Existing Buildings (LEED-EB) pilot program (2002). From
    sun tubes and day lighting throughout the facility to reusing heat in the brew
    house, they continue to search for new ways to close loops and conserve
               NBB’s Eco Care Principles
                   “To be environmental stewards”

• Lovingly care for the planet that sustains us.

• Honor natural resources by closing the loops between waste and input.

• Minimize the environmental impact of shipping our beer.
• Reduce our dependence on coal-fired electricity.

• Protect our precious Rocky Mountain water resources.

• Focus our efforts on conservation and efficiency.

• Support innovative technology.

• Model joyful environmentalism through our commitment to
  relationships, continuous improvement, and the camaraderie and
  cheer of beer
                  NBB’s Eco Care Efforts
1. Increased efficiencies in the brewing process
Using Steinecker's Merlin brew kettle, which can store heat and boil very quickly,
allowing NBB to use very little primary energy.

2. Utilized green design throughout our building
Lighting (Using UV blocking windows, sun-tubes, and light shelves.),
HVAC (Using evaporative coolers, allowing condition its 55,000 square foot packaging
hall with no compressors, using much less energy),
Materials (Using beetle kill pine wood for interior which giving value added to those
fallen trees)

3. Implemented a process for treating our wastewater
Reducing the load on its municipal plant.

4. On-site energy production
The methane produced by process water treatment is used to fuel a combined heat
and power engine—or co-gen—which creates electricity and heat for the brewery.
When the co-gen is running full-time, it can supply 15% of our electrical needs.

5. Wind-powered electricity since 1999
In 1999, NBB became the largest private consumer of wind-power electricity at that
time and the first wind-powered brewery
                         NBB’s Eco Care Efforts
6. Employ a High Involvement Culture
An environment in which the full power of everyone’s hearts and minds are brought to bear on
creating positive change. HIC is a 3-legged stool which stands on opening the books, employee
ownership, and participative decision-making.

7. Sustainable Eventing
Such as: By philanthropic bike festival, Tour de Fat, celebrates bicycling as a viable form of
alternative transport; by a solar-powered stage that provides sound for the day; beer is served in
compostable cups; and its overall waste stream diversion rate is better than 85%.

8. Actionable Advocacy
Through donations and fund-raisers, 1% of NBB’s revenue goes to environmental non-profits,
through Team Wonder bike (bicycle commuter advocacy program) which have pledged to offset
more than eight million car miles by riding their bikes more over the next twelve months; public
speaking; and giving every employee a custom cruiser bike after one-year of employment .

9. Constant benchmarking
To figure out how to track non-financial results, especially environmental goals.

10. Partnering to support innovative technology
The company Oberon has installed a small treatment plant next to NBB’s own that will use our
process wastewater to harvest sludge to create a high protein fish food for aqua-farms.
                  NBB’s Eco Care Goals
• Reducing our carbon footprint by 25%*
• Reducing our water usage by 10%
• Reducing our landfill diversion rate from
  89.5% to 95% (note: brewing by-products like
  spent grain and yeast are NOT included in
  these figures. If they were included, it would
  be 99%).

*As methods of carbon accounting are currently evolving, it is possible that these goals will
    be amended in the future
        NBB’s Eco Care Facts:
1. Reduction in water use ratio during 2008
NBB’s Eco Care Facts:
2. Waste Management 2008
              Answering The Questions
                   Question # 1
Rather Than testing its television spots using
focus groups , NBB instead tested these spots
using insiders in the bike community and
brewery friends who had a personal history and
knowledge of the brand. Evaluate NBB’s decision
not to use focus group.

•Using the bike community and brewery
friends who had a personal history and
knowledge of the brand can help NBB test
whether these spots reflect the brand core
values, history and the natural sense about
the mountain local lifestyle.
•Help to make sure the spots does ring true
to the NBB character.
•Saving money and time.
Answering The Questions
     Question # 2
         How does the use of 16 mm film and Freak
         Folk music relate to NBB’s advertising

         The 16-mm camera was used because it gave
         an effect that reflected the companies
         message “it is the cultural counterpoint to the
         Urban Professional”
         This 16-mm camera will give us a more
         natural and classic look than compared to the
         And together with the “Freak Folk” song
         viewers can connect to a more personal level
         and it brings out a nostalgic atmosphere.
         The simple takes of the ad emphasizes the
         message they would like to portray in a way
         that would capture the audience.
Question 3: what are some of the benefits of NBB’s
decision to redouble its roots-based, personal touch
marketing effort aimed at its mature markets?
• The roots-style marketing make a friendly
  connection to customer
• It is a wise choice to re-approach the market by
  insiders who have the closed relation with
  customers and deep understanding about the
  NBB’s products.

• This type of marketing also helps NBB reduce the
• NBB build a good image in customers’ mind.
Question 4: What roles did the advertising agency,
NBB’s leadership, and NBB’s employees play in the
development of the advertising campaign?

 • Advertising agency: spread the brand out and
   represent NBB’s product before the customers
   in such a way that a positive images is created
   in their minds.
 • NBB leadership: orient the strategy to develop
   the advertising plan.
Question 4: What roles did the advertising agency,
NBB’s leadership, and NBB’s employees play in the
   development of the advertising campaign?
• NBB’s employees: are the decisive factor in
  the development of the advertising
  campaign. They are the ones who have direct
  connection between NBB and customers;
  furthermore, they immediately influence on
  customers’ perception.
        Answering The Questions #5
FOLLY    (definition courtesy Merriam-Webster’s Dictionary)

Function: noun
Etymology: Middle English folie, from Old
French, from fol fool

1.lack of good sense or normal prudence and
2.a. criminally or tragically foolish actions or
          b. obsolete : evil, wickedness;
          c .especially: lewd behavior
3.a foolish act or idea excessively costly or unprofitable
undertaking often extravagant picturesque building
erected to suit a fanciful taste
         Answering The Questions #5
 • Follow Your Folly. But isn't Folly a
   lack of good sense; a foolish act or
   idea? Au contraire (instead) we say at
   New Belgium. Folly is freeing. Folly
   laughs at the status quo, protests
   mediocrity, sings in the blind alley
   and celebrates the wild hare. It's
   relevant irreverence. It’s living like
   there is a tomorrow.

• Our Folly is Beer. Really good beer. Our folly is also a near-constant tinker ring with
  the company practices to make them more sustainable. Employee- owned since
  1996 and wind powered since 1998- striving to honor nature at every turn of the
  brewery, tastes great, and less land filling.

• As well, a folly takes inspiration, you will meet a few friends who inspire New
  Belgium. They’re making more from less and living large at the same time. Rebels
  with a cause. The company think they have a folly worth following.
Answering The Questions #5
         In our opinion, the company can struggle
         because they know how to change the
         common opinion about “folly” into different
         meaning with unique ways. From “lack of good
         sense; a foolish act or idea”, become “freeing,
         It’s living like there is a tomorrow”.

         Consequently, “folly” becoming a main point
         and specific characteristic for New Belgium
         Brewing. So, our group think that is the right
         decision to use “folly” for their advertising and
         indirectly increasing brand awareness. “Folly “
         becomes one of the greatest unplanned
         successes for this brewery.

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