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Big Rock Brewery<br />Big Rock Brewery, located in Calgary, Alberta, is the Province’s premier producer, marketer and distributer of handcrafted beers. <br />Title: Big Rock “Erratic”<br />Source: http://www.bigrockbeer.com/about-big-rock/history-big-rock<br />
Beginnings<br />CEO and founder Ed McNally started the brewery in 1984.<br />Original 3 beers styles were of Ed’s own preference.<br />Bitter<br />Porter<br />Traditional<br />Traditional was an instant hit!<br />Title: Original building, Ed and Brewmaster<br />Source:http://www.bigrockbeer.com/about-big-rock/history-big-rock<br />
Growth<br />Brewery moved from 1800 square feet facility to a 14 acre site in 4 years<br />Grown to be nation’s leading craft beer maker and second largest Canadian owned brewery.<br />Title: Brewery <br />Source: http://www.bigrockbeer.com/craft/craft-beer-alberta<br />
Leaders<br />Business is run by:<br />CEO, Ed McNally<br />President, Bill McKenzie<br />CFO, currently recruiting!<br />Title: Ed Mcnally, Big Rock founder<br />Source:http://www.bigrockbeer.com/about-big-rock/about-ed-mcnally<br />
Production<br />Big Rock brews 11 craft beers and Rock Creek Apple Ciders as well as a rotating Brew Masters special.<br />They market and distribute their product to all provinces and territories in Canada.<br />They export their product to:<br />South Korea<br />Embassies around the world<br />Source:http://www.bigrockbeer.com/craft/big-rock-brewery<br />
Alberta Beer Per Capita Consumption in LitresCompound Growth Rates <br />http://www.brewstats.ca/annual/growth/2009/9<br />
The Stages of Beer Production<br />Wheat, Barley and Rye arrive by truck<br />Mostly local materials are used<br />Hops, a brewing ingredient, is imported<br />Beer-making process is carefully monitored<br />Finished beer is piped next door to packaging facility<br />Title: Hops<br />Source:http://www.bigrockbeer.com/craft/ingredients<br />
Overview of Productivity<br />Beer is processed according to market demand<br />Central processing facility is the hub of operation located adjacent to processing facility<br />http://www.bing.com/images/search?q=Rock+Brewery&view=detail&id=300C081C7FBB1C0599D9BA168CC88D0EF2185DDC&first=0&FORM=IDFRIR<br />
Pricing<br />Alberta has the highest provincial taxes on beer <br />Big Rock Traditional Ale 6 Pack Cans Retail for $13.99<br />
Significant Fixed and Variable Costs<br />Fixed:<br />Labour costs reduced by $240,000 over 6 month period compared to last year.<br />Overhead has remained the same over last year.<br />Variable:<br />Ingredients costs have increased over last year by $191,000<br />Barley(major ingredient)and aluminium(canning) costs have risen substantially in 2011<br />Firms profits are subject to commodities market in determining costs and profits<br />Inventory movement charges increased by $250,000.<br />Depreciation is set at $215,000 for the first two quarters.<br />
Company Profits and Profit Margins<br />http://www.bigrockbeer.com/sites/default/files/reports/2011Q2.pdf<br />
Competition<br />The multitude of Micro and National Breweries are a example of Monopolistic Competition<br />Major Competitors include Sleeman Brewery, Molson, Wild Rose Brewery<br />
Advantages<br />Big Rock’s Competitive Advantage is their community involvement<br />Annual Eddies Advertising Awards<br />Heritage Park Beer Making Seminars<br />Big Beer Can Marketing in Farmers Fields<br />http://www.heritagepark.ca/educationAdult.htm<br />
Summary<br />Big Rock has continuing success in Alberta, and is a model for efficiency <br />High taxes, aggressive competition and commodity volatility are future challenges<br />Innovation, local ingredients and traditional methods are keystones which have propelled Big Rock into a premier brewery<br />