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Redhook Brewery. ... For instance, once Redhook started making a profit they replaced
the first brewery with a larger capacity with state of the art equipment. ...
... face. In the mid 90's Anheuser-Busch acquired 30% of Redhook Brewery and
the exclusive rights to distribute their beer. While this ...
... Others include Redhook, Pyramid, and Full Sail. New Belgium is the largest of the
seven competitors. BSBC was the only brewery among its competitors that did ...
... In 1995, Starbucks worked with Seattle's Redhook Ale Brewery to create Double Black
Stout, a stout beer with a shot of Starbucks coffee extract in it. ...
... Also in 1995, Starbucks worked with Seattle's Redhook Ale Brewery to create Double
Black Stout, a stout beer with a shot of Starbucks coffee extract in it. ...
Submitted by millera55 on March 20, 2005
Category: Business
Words: 968 | Pages: 4
Views: 392
Popularity Rank: 24,847
Average Member Grade: N/A (Add a Comment / Grade this Paper)
Introduction
The distribution alliance Redhook formed with Anheuser-Bush in 1994 was to run for 20 years, but could be terminated after 10 years under certain conditions. Under the alliance, A.B. invested in Redhook and gained a 25% stake in the company's equity, and made its nationwide networks of 700 wholesale distributors. Redhook retained full control over production and marketing. Distributors who participated in the alliance were to be given exclusive distributing rights in their territories. Redhook believed they could gain acceptance and much greater exposure with this alliance with Anheuser-Bush, but the alliance was viewed controversial be many.
Strengths and Weaknesses
Regarding strengths and weakness, we found that one of Redhook's weaknesses was that management wanted to make it too big in the craft beer industry too fast. For instance, once Redhook started making a profit they replaced the first brewery with a larger capacity 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 for Redhook was the age group that was buying their craft beer. One of Redhook's strengths was that they had an agreement with one of the biggest beer distributor Anheuser-Busch to distribute their product. However, one could probably turn that into a weakness for Redhook as Anheuser-Busch may not promote Redhook's product as well as their own. The table below shows the strengths and weaknesses of Redhook.
Strengths
Major source of revenue and profit Craft Beer
Market share of the company 4.7%
Strong company brands Blonde ale
Marketing and advertising effective Yes. Articulate plans in place
Major focus of the company Production to produce high quality beer
Skilled workers Trained, educated and prepared
Stock price track record Varies. Down now
...
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