New Belgium Brewing
What follows New Belgium’s Folly?
Emmanuel Danmozie
Lyn Scott
John Towne
Texas Woman’s University
BUS 5133.51
April 23, 2011
Dr. Raman
Executive Summary
New Belgium Brewing’s original marketing strategy focused on relational marketing using a “barstool to barstool” method of marketing and creating “brand stewards” in a grassroots effort to spread the word about New Belgium’s craft beers. As the company’s brand and leadership strategy matured, the marketing became proactive and focused by creating bicycle events, interesting take-away merchandise and a touring taste-testing vehicle. By forming personal relationships with their customer base, NBB organically gained market share. To remain competitive in the craft brew market and maintain its market share, NBB must explore creative and innovative marketing strategies to outperform its rivals.
Background and Case Summary
A bicycle tour in Europe combined with an unquenchable passion for Belgian-style home brewing, lead Jeff Lebesch to found the nation’s third largest craft brewery, New Belgium Brewing (NBB). In 1991, the start-up company began commercial operations in the basement of Jeff and his former wife, Kim Jordan’s Ft. Collins, Colorado home. Within four years, the operation outgrew the tiny basement and moved to its current location at 500 Linden Street in Ft. Collins. In the early years, Jeff served as the original brew master and Kim ably assumed the roles of marketing manager and distribution specialist.
As the seventh largest U.S. brewer and Colorado’s second largest brewery behind behemoth Molson Coors Brewing Company (Largest Breweries and Brewpubs, 2010), the company’s thirty beers are currently available in 26 states.
The recession has negatively impacted the alcoholic beverage market causing the overall beer market’s total dollar sales to decrease by 2.7% during the first half of 2010 (Steverman, 2010). Interestingly, the craft brew market, which makes up 7% of the total
Emmanuel Danmozie
Lyn Scott
John Towne
Texas Woman’s University
BUS 5133.51
April 23, 2011
Dr. Raman
Executive Summary
New Belgium Brewing’s original marketing strategy focused on relational marketing using a “barstool to barstool” method of marketing and creating “brand stewards” in a grassroots effort to spread the word about New Belgium’s craft beers. As the company’s brand and leadership strategy matured, the marketing became proactive and focused by creating bicycle events, interesting take-away merchandise and a touring taste-testing vehicle. By forming personal relationships with their customer base, NBB organically gained market share. To remain competitive in the craft brew market and maintain its market share, NBB must explore creative and innovative marketing strategies to outperform its rivals.
Background and Case Summary
A bicycle tour in Europe combined with an unquenchable passion for Belgian-style home brewing, lead Jeff Lebesch to found the nation’s third largest craft brewery, New Belgium Brewing (NBB). In 1991, the start-up company began commercial operations in the basement of Jeff and his former wife, Kim Jordan’s Ft. Collins, Colorado home. Within four years, the operation outgrew the tiny basement and moved to its current location at 500 Linden Street in Ft. Collins. In the early years, Jeff served as the original brew master and Kim ably assumed the roles of marketing manager and distribution specialist.
As the seventh largest U.S. brewer and Colorado’s second largest brewery behind behemoth Molson Coors Brewing Company (Largest Breweries and Brewpubs, 2010), the company’s thirty beers are currently available in 26 states.
The recession has negatively impacted the alcoholic beverage market causing the overall beer market’s total dollar sales to decrease by 2.7% during the first half of 2010 (Steverman, 2010). Interestingly, the craft brew market, which makes up 7% of the total
References: Beer feels the squeeze. (2010). Beverage World 101(8) , 37-38. Retrieved from http://ezproxy.twu.edu:2052/login.aspx?direct=true&db=bth&AN=53270122&site=bsi-live Cioletti, J Cioletti, J. (2010). Fermentation Fest & Females. Beverage World , 10. Retrieved from http://ezproxy.twu.edu:2052/login.aspx?direct=true&db=bth&AN=54564325&site=bsi-live Craft brewers boast bigger sales Creative partnerships. (2009). Beverage Industry, 100(4), 26-26. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=39878476&site=ehost-live Culverwell, W Higgins, K. T. (2009). The greening of manufacturing. (cover story). Food Engineering, 81(1), 80-90. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=36350853&site=ehost-live Higgins, K Landi, H. (2009). A Decade of Success. Beverage World, 128(11), 70-72. Retrieved from EBSCOhost. http://ezproxy.twu.edu:2052/login.aspx?direct=true&db=bth&AN=45457306&site=bsi-live Landi, H New Belgium - FAQ. (n.d.). Retrieved February 6, 2011, from New Belgium : http://www.newbelgium.com/culture/faq.asp Newport, F Schaefer, K. (2008, May 1). Hard times, but your lips look great. Retrieved February 15, 2011, from The New York Times: http://www.nytimes.com/2008/05/01/fashion/01SKIN.html?_r=2&pagewanted=print Schwartz, M Steverman, B. (2010). Global Beermakers Eye U.S. Craft Brewers ' Growth. BusinessWeek , 2. Retrieved from http://www.businessweek.com/investor/content/aug2010/pi2010084_000425.htm The World Factbook: United States Wang, J. (2009). Brewing big. Entrepreneur, 37(11), 30-36. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=44903313&site=ehost-live