aul Shipman, Chief Executive Officer of Redhook Ale Brewery, knew that he needed to reevaluate his strategy and its execution. Redhook's rapid growth had ended shortly after it invested in a major increase in production capacity. Operating at about 50% of production capacity, the company suffered a net loss in 1997 that continued into 1998. Redhook brewed only specialty beer, referred to as craft beer. Craft beer is a more flavorful, fuller bodied premium beer. follows traditional old world brewing methods. and uses high-quality materials. The company started as a microbrewery but grew continually and reached national status by the end of 1996. Shipman, one of Redhook's founders, had guided the company from a small Redhook consummated a long-term distribution agreement with Anheuser-Busch, the largest brewery in the United States, late in \994. Opening the way for nationwide sales, the agreement enabled Redhook to market its products via Anheuser-Busch distributors seeking increased volume through a broader product line. As a result, Redhook was selling its beer in 48 states in 1998. Redhook constructed a new brewery near Portsmouth, New Hampshire, to better serve the eastern United States and lower transportation costs. The Portsmouth brewery came on line in late 1996 with an initial capacity of 100,000 barrels per year. To finance its rapid growth, Redhook sold a 25% equity interest to Anheuser- Busch and, in 1995, sold 2, J 93,492 shares of stock in an initial public offering to end the year with 7,683,492 shares outstanding.
I Tile Brewing
Industry The U.S. brewing industry was both highly competitive and highly regulated. Several large and many small brewers competed for the $29 billion wholesale market using brand name, distribution channel, or taste to attract consumers. The market consisted of three distinct imported, and craft beer-each characterized by its own predominant segments-national, marketing strategy. Brewers participating in each of the segments were subject to various government requirements in such areas as taxation; product safety, quality. and disclosure; and environmental protection.
Anheuser-Busch Companies, Inc. Profile 1 Busch Place St. Louis, MO 63118 United States Phone : 314-577-2000 Fax : 314-577-2900 800-342-5283 http://www.anheuser-busch.com WELCOME Hoover's is the business information resource that delivers a unique combination of up-to-date data, broad coverage, and comprehensive information about companies, decision makers, and industries - along with powerful tools to put this information to work for your business. Hoover's offers everything you need…