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Essay / Redhook Brewery - 940
IntroductionThe distribution alliance that Redhook formed with Anheuser-Bush in 1994 was to last 20 years, but could be terminated after 10 years under certain conditions. As part of the alliance, AB invested in Redhook and acquired a 25% stake in the company's capital, and built its national network of 700 wholesale distributors. Redhook retained full control of production and marketing. Distributors participating in the alliance were to be granted exclusive distribution rights in their territories. Redhook believed they could gain acceptance and visibility through this alliance with Anheuser-Bush, but the alliance was considered controversial by many. Strengths and Weaknesses When it comes to strengths and weaknesses, we found that one of Redhook's weaknesses was that management wanted to make it too big a company. in the craft beer industry. For example, once Redhook started making a profit, they replaced the larger capacity first brewery with state-of-the-art equipment. Redhook also has a problem regarding the structure of the industry and the quality of the company's management team. Another weakness of Redhook was the age group that bought its craft beer. One of Redhook's strong points was that they had a deal with one of the largest beer distributors, Anheuser-Busch, to distribute their product. However, this could likely become a weakness for Redhook, as Anheuser-Busch might not promote Redhook's product as well as its own. The table below shows Redhook's strengths and weaknesses. Strengths Main source of revenue and profit Craft beer Company market share 4.7% Company strong brands Blonde ale Effective marketing and advertising Yes. Articulate plans in place Primary objective of the business Production to produce high quality beer Skilled workers Trained, educated and prepared Stock price history Varies. Down NowEffective Technology Company Has Embraced TechnologyProactive Company About Change Yes. Business-Proven Change Can WorkInternational Business Company's goal is to compete in the international marketWeaknessesCompetitiveness... middle of paper ......oursCommunity gatheringsOn-site marketingPrice reductionsCompany-owned pubsTours of visitorsThe homepage offers courses on brewingOpen office of collegiality and collaboration part of the culture officeHuman resources:GoalsProduction of high-quality craft beerProduction control in the company-owned enterpriseOperation of regional brewing facilitiesEconomy of production through technologically advanced equipmentStrategic distribution alliance with Anheuser-BuschPromotion of production in local marketsObjectivesContinued development and market penetration in the EastResolving the lack of growth in the WestGrowth in the international marketConclusionAlthough Anheuser-Busch , which runs the brewing industry, has also sought to dominate the craft beer market. Their efforts were rewarded when Red Hook beer sold the company's stock to Busch. This mutual agreement was beneficial to Red Hook because it provided them with the opportunity to serve a broader customer base, increase their number of distribution suppliers, and provide additional brewery locations. Anheuser-Busch attacked the microbrewery evolution with “enthusiasm,” forever shaping the craft beer revolution..