Competition in the Craft Beer

Industry in 2018

Submitted by:
Gurkaranvir Singh
Gunendra Sharma
Harlieen Bindra
Himani Dangwal
Himanshu Golchha(017/2019)
Himanshu Maan (030/2019)
 RAISING FUNDS DISTRIBUTION QUALITY
INTO BARS AND CONTROL AND
SHOPS CONSISTENCY
Strategic Issues

MARKETING BUILDING A
AND REACH TALENTED
TEAM
 Make sustainability a core Make sure that equipment
value of the company. is updated and as energy
efficient as possible.

Recommendations

Spend time considering

the longevity of policies
and initiatives
 How breweries compete and craft brew alliance

Nanobrewery
• Niche competitive strategy
• Patronize brand on the location & product differentiation
• Free to explore unusual flavours

Price, Perceived Quality & Image

Microbrewery
• Larger, established regional players
• Marketing & Distribution
• Focus heavily on the craft brew experience

Macro brewery
• Economies of scale & established distribution networks
• Lower costs drive volume sales often partnering with restaurant chains, sporting Market Scope
events.
• Mass production by traditional players sold under the perception of craft beer
 • Devils
Backbone
• Bluepoint Brewing
Widmer Brewery • Karbach
Brothers • 10 barrel brewery Brewing

1994 1997 2011 2014 2015 2016 2016

Goose
Redwood
Island SABMiller
Ales
Brewing • Elysian Brewing (108b USD)
Compan • Golden Road Brewing
y • Four Peaks Brewing
• Breckenridge Brewing
 Anheuser-Busch InBev
◦ World’s largest producer by volume.
◦ 500 beers, malt beverages, as well as soft drinks in more than 150 countries.
◦ Acquisitions of brands and breweries since 1990s.
◦ Product Portfolio management:

Global International Local

• Budweiser • Hoegaarden • Goose Island
• Stella • Beck’s • Cass
• Artois • Leffe
• Corona
SWOT Analysis

Strength Weakness Opportunities Threats

Market
popularity across Rise of the dollar
the globe Craft Beer Competition

Focus on
Integration
acquisitions

Managing the Global Exposure Legal Hassles

Top selling brands
volumes
 Porter’s 5 Force Model
Competition in the craft beer
The main suppliers to the industry were

THREAT OF NEW
industry was a lot as the number of
those who supply grain and hops. craft beer producers in the each

ENTRY
Growers might sell direct to breweries state have seen a significant
or distribute through wholesalers. The increase in number of producers
more specialized the grain or hop, the from 2015 to 2017.
more difficult it was to obtain. Those
breweries, then, competing based on
specialized brewing would be required
to identify such suppliers COMPETITI The consumer might seek out
SUPPLIER
POWER
VE BUYER POWER
a specific beer or brewery’s
RIVALRY
name or purchase the lower-priced
globally known brand. For some,
beer drinking might also be

SUBSTITUTION
Substitute products like bottled beer, whiskey, rum etc. are some seasonal, as tastes change with the

THREAT OF
of the substitute products for the craft beer and all these products
pose some kind of threat to the craft beer. seasons. Lighter beers were
consumed in hotter months, while
Substitute products like bottled beer, whiskey, rum etc. are some
of the substitute products for the craft beer and all these products heavier beers were consumed in the
pose some kind of threat to the craft beer. colder months.