Marketing: New Belgium Brewing Company

Unit 2: The Marketing Environment - Project

Track 1: Video Case

New Belgium Brewing Company

Jill Stidd

MT 219


New Belgium Brewing Company has focused heavily on the use of environmentally friendly technologies. Their commitment to environmental issues is clearly visible in this list from the company website: “increased efficiencies in the brewing process, utilized green design throughout our building, implemented a process for treating our wastewater, on-site energy production, wind-powered electricity since 1999, employ a High Involvement Culture, sustainable Eventing, Actionable Advocacy, constant benchmarking, and finally, partnering to support innovative technology.” (http://www.newbelgium.com/sustainability2.php) These technologies are costly, however important for the survival of the planet. This expenditure benefit’s the company in many ways. The first point to consider is the progressive attitude of a centralized organization such as this company in their management philosophy. They raise the bar for so many other corporations considering a greener model of corporate management strategies. They empower their employees in a way that supports their mission as a company. Here is a supporting excerpt from their website, “In 1998, a unanimous vote by employee owners switched New Belgium to wind power. The first wind powered brewery in the United States, thank you very much.” (http://www.newbelgium.com/ownership.php) This company has defined their marketing concept and objective in a way that has been translated to their employees (internal customers) in a way that produces the net result of a very successful and “happy” business and bottom dollar…said best on their website in this way, “and, like all responsible business owners, it’s important to know your bottomline, barrels, and books. Meet New Belgium’s practice of open-book management: a policy of fiscal transparency throughout the company that encourages a community of trust and mutual responsibility” (http://www.newbelgium.com/ownership.php).

Their commitment to environmental issues is actually their own personal commitment that has trickled down as a company philosophy and standard. This commitment and passion was simply their sole reason for doing business as CEO Kim Jordan stated in the video clip; if it were simply about making beer, she would have moved on long ago. She looks at this new model of management, business and marketing as a challenge. I feel that this commitment to environmentally friendly technologies has been born out of the company they wanted to create and the employees they waned to attract. Knowing the target market and defining a corporate, business –unit, and marketing strategy created successful beer sales. This company understands its core competencies and translates it very well.
New Belgium can justify donating $1 per barrel of beer sold to environmental and community causes because they understand and are committed deeply to the meaning of “giving back’ to the community that supports their endeavors. Donating is a win /win in terms of tax breaks they receive as well as those that benefit from their donations and the public relations that are established through such an effort. This companies main marketing plan is structured around the “grassroots” or “word of mouth” philosophy so when people speak of the heart of this company they are speaking of acts such as this.

Whether selling beer is socially responsible is a mixed bag for sure; however microbrews are one of the most sought after segments of the alcohol market. The environmental concerns of New Belgium Brewing, both now and into the future illustrates their understanding of environmental trends. This company is on the cutting edge in many arenas for a corporate model and in my opinion, one worthy of imitation. I feel an area that they might want to consider in social responsibility is centered on their bicycle events and providing beer at the event. The DMV does have regulations for riding a bike and drinking which vary from driving a car and drinking in some states as explained in the excerpt written by Dan Tuohy, “In California bicycles are not included within the definition of a motor vehicle therefore license suspensions or violations are not applicable to a bike. But section 21200.5 of the Vehicle Code does make it illegal to operate a bicycle upon a highway a misdemeanor and punishable under such law.” (http://www.dui.com/dui-library/studies/research/bicyclists-dui)

Some states are adapting more relaxed laws in regards to drinking and bicycle riding but some stipualte that they would be treating Drinking/ DUI just like anyone driving a motor vehicle. I think that it would be important for the company to be aware of the state laws where they are holding such an event.

In Looking at the websites of other beer makers there are various environmental trends that breweries focus on. For instance, Eel River brewing company, a certified organic brewer, has its own environmental standards for the growing of hops and other ingredients as well as non-chemical cleaning methods. At Otter Creek Brewing, their website states, “The scene that graces our Wolaver’s label is more than a bucolic vista—it is an embodiment of our philosophy. Our vision only just begins with brewing delicious ale of the finest quality; it also extends to the entire ecological and economic landscape. Every beer we brew is a manifestation of our commitment to the welfare of the environment, the welfare of the farming landscape, and the welfare of the consumer. And as this scene suggests, we believe these three core components should be seen not as distinct pieces, but as one integrated whole, each blending imperceptibly into the next. (http://www.ottercreekbrewing.com/wolavers/philosophy.html)

They suggest from this article that Anheuser-Busch will be looking at Organic brewing. However, in this statement from Anheuser-Busch taken from their website, their commitment is to environmental stewardship. “Today, many companies are “going green.” But at Anheuser-Busch, we’re proud to say our tradition of environmental stewardship dates back to our founder, Adolphus Busch. In the late 1800s, he began recycling leftover grain from the brewing process, using it for cattle feed, a practice that continues today.” (http://www.ourpledge.com/Environment/Environment.html)

Given the wide range of environmental commitments and how much they vary, I would say that many of the breweries look to the pioneers in environmental brewing techniques, such as New Belgium and Eel River (the first organic brewing company in the United States) and their methodology of organic brewing. I feel each company’s level of environmental commitment varies given their area of expertise and their ability to remain profitable to their shareholders, but it is apparent that “going green” is gaining popularity and should be considered in selecting the target market.

References:
http://www.newbelgium.com/sustainability2.php retrieved June 16, 2008
http://www.newbelgium.com/ownership.php 06/14/20008 retrieved June 16, 2008
Tuohy, Dan (2004) Drunken Bicyclists Could Catch Break, retrieved June 16, 2008

from http://www.dui.com/dui-library/studies/research/bicyclists-dui.

http://www.ourpledge.com/Environment/Environment.html retrieved June 16, 2008
http://www.ottercreekbrewing.com/wolavers/philosophy.html retrieved June 16, 2008