Hammerlick Brewing Case Study
Hemrlick Brewing
Running Head: HEMRLICK BREWING CASE STUDY
Hemrlick Brewing Case Study: Choice of Distributor
1
Hemrlick Brewing
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Hamrlick Brewing had been operating at a loss since the introduction of its critically acclaimed Saxonbrau beer two years ago. The company faced an urgency to increase revenue from sales and break even. It considered selling the Saxonbrau beer through distributors, as a marketing strategy to bring about profitability and increase
Saxonbrau’s branding as a super premium beer. To do so, Hamrlick Brewing had to first determine if there was a distribution agreement that would meet its needs, otherwise it could continue distributing its products by itself.
Hamrlick Brewing considered different distribution agreements from distributors Kalagwine Corp, Bistwells and Hansrife Beverages, and included the option of continuing direct distribution of its products. Each of these options had different strengths and weaknesses in their abilities to improve the revenue of
Saxonbrau beer.
After analysing the strengths and weaknesses of the four options, Bistwell provided the best fit in meeting Hamrlick Brewing’s needs to promote the Saxonbrau brand, maximise the value of Saxonbrau beer, and optimise the company’s retail structure. Branding
By branding Saxonbrau as a “super premium” or an “import and specialty” beer were, Hamrlick Brewing could be certain that the demand for its beer would increase. Sales of the “super premium” and the “import and specialty” beer segments had been projected to grow by 15% in 2011. Also, the market size of this segment was worth $7.6 billion in 2010, with no single brewery dominating the market space.
Also, since Hamrlick Brewing aimed to increase Saxonbrau beer’s sales and revenue, and given the limited production capacity, Hamrlick Brewing could aim to sell Saxonbrau at the highest possible price possible. As a result, Hamrlick Brewing
Hemrlick Brewing
3
may not want offer attractive price competitiveness,
Running Head: HEMRLICK BREWING CASE STUDY
Hemrlick Brewing Case Study: Choice of Distributor
1
Hemrlick Brewing
2
Hamrlick Brewing had been operating at a loss since the introduction of its critically acclaimed Saxonbrau beer two years ago. The company faced an urgency to increase revenue from sales and break even. It considered selling the Saxonbrau beer through distributors, as a marketing strategy to bring about profitability and increase
Saxonbrau’s branding as a super premium beer. To do so, Hamrlick Brewing had to first determine if there was a distribution agreement that would meet its needs, otherwise it could continue distributing its products by itself.
Hamrlick Brewing considered different distribution agreements from distributors Kalagwine Corp, Bistwells and Hansrife Beverages, and included the option of continuing direct distribution of its products. Each of these options had different strengths and weaknesses in their abilities to improve the revenue of
Saxonbrau beer.
After analysing the strengths and weaknesses of the four options, Bistwell provided the best fit in meeting Hamrlick Brewing’s needs to promote the Saxonbrau brand, maximise the value of Saxonbrau beer, and optimise the company’s retail structure. Branding
By branding Saxonbrau as a “super premium” or an “import and specialty” beer were, Hamrlick Brewing could be certain that the demand for its beer would increase. Sales of the “super premium” and the “import and specialty” beer segments had been projected to grow by 15% in 2011. Also, the market size of this segment was worth $7.6 billion in 2010, with no single brewery dominating the market space.
Also, since Hamrlick Brewing aimed to increase Saxonbrau beer’s sales and revenue, and given the limited production capacity, Hamrlick Brewing could aim to sell Saxonbrau at the highest possible price possible. As a result, Hamrlick Brewing
Hemrlick Brewing
3
may not want offer attractive price competitiveness,