Strategy Craft Brew Alliance (CBA), Inc. was formed in 1981 to brew and sell craft beer. CBA is now an independent, publicly traded craft brewing company that was formed with the merger of leading Pacific Northwest craft brewers – Widmer Brothers Brewing and Redhook Ale Brewery – in 2008. AB is a significant shareholder. A Master Distributor Agreement (the “AB Distributor Agreement”) with AB enabled the company to distribute their products in substantially all markets through AB’s seamless national and international wholesale distributor networks. Their goal is to improve the health of the company by increasing the gross margins and optimizing cost base, making strategic capital investments to improve top line product growth market. Their future goals include driving value from AB partnership, building alliances with new partners, and a focus on improving company culture and talent development. Strengths The company’s products are distributed domestically in all 50 states through wholesalers that are aligned with the Anheuser-Busch, LLC network. A …show more content…
Craft has a significant dollar share by region Weakness Lower operating margins and capacity utilization. Negative cash flow. Resources and Capabilities Assumptions about self The company believes that its partnership with AB has provided it the certainty of the route to market as an allied brand in AB wholesaler system as well as an ability to exploit new supply chain synergies. Assumptions about industry Changing consumer tastes and preferences will provide the geographical opportunity to expand its market internationally and well as improve its home market share in the craft brew industry. Anheuser-Bush Inbev