Redhook Brewery Essay -- essays research papers

IntroductionThe distribution alliance Redhook formed with Anheuser-Bush in 1994 was to wear for 20 eld, but could be terminated after 10 years under certain conditions. Under the alliance, A.B. invested in Redhook and gained a 25% endorse in the partys equity, and made its nationwide networks of 700 wholesale distributors. Redhook retained full control over production and merchandiseing. Distributors who p stratagemicipated 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 WeaknessesRegarding strengths and weakness, we imbed that one of Redhooks weaknesses was that management wanted to make it too large 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 equip ment. Redhook to a fault has a problem regarding the structure of the industry and the lineament of the familys management team. Another weakness for Redhook was the age group that was buying their craft beer. One of Redhooks strengths was that they had an agreement with one of the biggest beer distributor Anheuser-Busch to make out their product. However, one could probably turn that into a weakness for Redhook as Anheuser-Busch whitethorn not promote Redhooks product as well as their own. The table below shows the strengths and weaknesses of Redhook.StrengthsMajor source of revenue and profit chicanery BeerMarket share of the company4.7%Strong company brandsBlonde ale trade and advertising effectiveYes. Articulate plans in placeMajor focalize of the companyProduction to produce high quality beerSkilled workersTrained, better and preparedStock price track recordVaries. Down instantlyTechnology efficient union has embraced technologyCompany proactive somewhat changeYes. Compa ny proven change can work worldwide tradeCompany goal is to compete in the international marketWeaknessesCompetitiveness ... ...oursCommunity GatheringsMarketing on SitePrice DiscountingCompany owned PubsVisitor ToursHomepage provided classes on brewingOpen office of collegiality and collaborationism part of office cultureHuman ResourcesObjectivesProduction of high quality craft beerControl of production in company owned fearOperation of regional brewing facilitiesProduction economics through technologically advanced equipmentStrategic distribution alliance with Anheuser-BuschPromotion of production within local marketsGoalsContinued market development and penetration in eastwardAddressing short fall of growth in WestGrowth in International MarketConclusionAlthough Anheuser-Busch governs the brewery industry top management also sought to dominate the craft beer market. Their endeavors were rewarded when Red Hook beer sold company stock to Busch. This mutual agreement was be neficial to Red Hook because it offered opportunities for them to behave a larger customer base, increased their distribution suppliers and provided additional brewery locations. Anheuser-Busch attacked the phylogeny of microbreweries with gusto therefore, forever shaping the revolution of craft beer makers.