New Belgium Brewing

1. New Belgium Brewing Developing a Brand Personality

2. Group 3 - Members My - Eli - Ocha - M987Z247 M987Z254 M987Z212 Fernando - Loan – Joice - M987Z257 M987Z234 M987Z224

3. Outline • History • Company’s Values and Beliefs • The Products • Distribution • Employee’s Concern • Social Concern • Environmental Concern: NBB’s Eco Care • Principal Competitors • Promoting Responsible Drinking • Organizational Success

4. History’s Timeline • 1991: Jeff Lebesch founded his small brewery in his house’s basement. He was inspired by his bicycle trip through Belgium from brewery to brewery . Their mission was "to operate a profitable company which is socially, ethically and environmentally responsible, that produces high quality beer true to Belgian brewing styles." • 1992: New Belgium Brewing's operations move to renovated freight warehouse. • 1995: Company moves into a new $5 million brewery. • 1996: A Belgian brew master hired. • 1998: Production tops 100,000 barrels for the first time. • 1999: Firm begins to use wind-generated electricity. • 2001: Expansion of plant to triple capacity begins. • 2004: Distribution is expanded to Southern California; New Belgium beer is now sold in 15 states. • 2006: it produced approximately 436,000 barrels of its various labels. • 2008: Its beers were distributed to 19 different states.

6. Company’s Logo The bicycle is based upon the founders (Jeff Lebesch) epiphanies voyage through Europe by bike, drinking beer along the way.  Shortly after that trip he made an amber ale and named it Fat Tire in honor of his trip. Besides, bikes remind people of how simple and fun it is to be outside, with a smile on your face and a good beer in your hand.  The image of the bicycle really captures New Belgium on a whole, with the whimsical approach to business, the history of the beginnings and the emphasis to environmental care.

7. Company’s Values and Beliefs “To operate a profitable brewery which makes our love and talent manifest” • Remembering that we are incredibly lucky to create something fine that enhances people's lives while surpassing our consumers' expectations. • Producing world-class beers. • Promoting beer culture and the responsible enjoyment of beer. • Kindling social, environmental and cultural change as a business role model. • Environmental stewardship: Honoring nature at every turn of the business. • Cultivating potential through learning, high involvement culture, and the pursuit of opportunities. • Balancing the myriad needs of the company, our coworkers and their families. • Trusting each other and committing to authentic relationships and communications. • Continuous, innovative quality and efficiency improvements. • Having Fun.

8. Company’s Business Philosophies “People, Profit and Planet” • People. New Belgium gives “permission to step outside the box”, the company allowed employees and customers to experiments and to think. In addition, there is “a policy of fiscal transparency” which they practice in order to encourage “a community of trust and mutual responsibility”. • Profit. New Belgium Brewery Company is a place where quality-of-life—both for the environment and for humans—is central to its notion of business success. By embracing new technologies, seeking out alternative forms of energy and reducing its waste stream, New Belgium strives to make smart business decisions and do well by the environment each and every day. • Planet. New Belgium became the first brewer in the United States to get 100 percent of its electricity from wind power. As a leader in sustainable building techniques, New Belgium has been willing to experiment with innovative solutions. http://aiacolorado.org/awards/north-awards/archive.php

9. The Products Our Folly Fat Tire Sunshine Wheat Mothership Wit Blue Paddle 1554 Abbey Trippel

10. Seasonal Mighty Arrow Skinny Dip 2° Below Frambozen Hoptober Collabeeration Trippel IPA The Trip II Trip II

11. Lips of Faith Le Fleur Misseur La Folie Dunkelweiss 30° Dark Kriek Abbey Grand Cru Biere de Mars Dandelion Ale Transatlantique Kriek Fall Wild Ale

12. Distribution • Before 2006 Distributed in 15 states: Washington, Oregon, Idaho, Montana, Nevada, California, Arizona, New Mexico, Wyoming, Nebraska, Kansas, Texas, Arkansas, Missouri, Colorado. • Spring 2006 The brewery began to distribute some of their beers in other markets. Bottles of Fat Tire distributed in Chicago claim "Chicago Inaugural: The 1st Fat Tire Ale served (legally) in the second city." • June 2007 Fat Tire, Skinny Dip, 1554 and Mothership Wit became available in Illinois. • Summer of 2007 New Belgium expanded distribution again to include select areas of the Minneapolis -St. Paul Minnesota metro area and Iowa. • July 2008 Fat Tire, 1554, Mothership Wit, and seasonal brews are also served in Tennessee. • March 2009 Fat Tire, 1554, Mothership Wit, and seasonal brews also available in North Carolina. • April of 2009 Fat Tire became available in Indiana in response to huge demand. • May of 2009 Fat Tire became available in Georgia, South Carolina, South Dakota, and Wisconsin.

13. Competitive Status New Belgium is categorized as a “Regional Craft Brewery” as defined by the Brewers’ Association: An independent brewery with an annual beer production of between 15,000 and 2,000,000 barrels who has either an all malt flagship or has at least 50% of its volume in either all malt beers or in beers which use adjuncts to enhance rather than lighten flavor. Less than 25% of the craft brewery is owned or controlled (or equivalent economic interest) by an alcoholic beverage industry member who is not themselves a craft brewer

14. Principal Competitors Sierra Nevada Brewing Co. Breckinridge Brewery Boston Beer Co. Rockies Brewing Co. Odell Brewing Co. Left Hand & Tabernash Brewing Flying Dog Brewery

15. Developing Brand Manifesto • Develop a “Cultural Branding”: a philosophy of branding that tries to speak to tension within society. • In 2003 NBBs Holt was hired as a consultant, he immerse himself in the brewery’s unique culture in order to create a BRAND MANIFESTO

16. Developing Brand Manifesto • The brand Manifesto was a 70 page document that described the brand’s attributes, character, cultural relevancy and potential. • Thanks to this document NBB’s began a relationship with Amalgamated Inc. a young upstart advertising agency in NY. • Together NBB’s creative team collaborated with Amalgamed to develop the brand’s cultural contributions and what should be communicated.

17. Media Tools • Radio shorts • Television: low cost per viewer and wide reach. • Theatrical screenings • Other media: which customers expected to see interwoven with entertainment.

18. Advertising objectives • The advertising should be implementing with moderate budget • The ads film should bring timeless feel, reflect the company’s Manifesto and cultural tension of The mountain local lifestyle, which can be seen as the compromise between live the life one person wants with balancing the economic needs of existing within a technology .

19. Implementing the Advertising • Amalgamated had developed a series of storyboards for the commercials featuring the “Tinkerer”. • The campaign tagline: “Follow the folly…ours is beer “ and the spots on grittier 16-millimeter film was offered.

20. Target Audience • Target audience would be the professional who follows the traditional route of existing within a capitalist economy but still has artistic learning and desire, such as: lawyers, accountants,…. • High-end beer drinkers, youthful demographic, men ages 25 to 44 years old.

21. Message Development • NBB understood at the inception that the power of television could work to bolster or undermine the brand with equal efficacy • Holt unearthed a mind-set where a highly creative activity of avocation is pursued for the intrinsic value of doing it, as well as performed in a balanced manner with nature: the cultural counterpoint to the Urban Professional • The audience for NBB’s commercials would likely be the professional who follows the traditional route of existing within a capitalist economy but still has artistic leanings and desires

22. Message Development • Amalgamated’s creative director, Jason Gaboriau, developed a series of stories of storyaboards for the commercials featuring the “Tinkerer”, a character who discovers an old cruiser bike that has been customized, modernized, and ultimately left for scrap • The NBB team reacted positively to the presentation with the exception of Amalgamated’s suggested tag line: “Follow Your Folly…Ours Is Beer”. After a healthy volley of e-mail from nearly every NBB department, the creative team won out and “Follow Your Folly” became the campaign’s tagline

23. Message Development • At this stage in the process, a search for the right director for the commercials ensued: reviewing dozens of highlight reels and passing the most likely fits along to NBB. • In September 2004, members of NBB, Amalgamted, and the production company RSA out of Los Angeles met in Hotchkiss and commenced shooting over a three-day period. This led to no fewer than nine potential spots coming out of the three-day shoot • Amalgamated returned to New York to begin postproduction of the spots with NBB’s input by choosing a musical bed quickly developed into the next creative challenge.

24. Message Development • Quick to embrace the latent talents of their own crew, NBB allowed brewery employees to compose a reggaelike score for one of the 15-second spots-playful little film called “Joust” • Even as NBB decided to speak to a wider audience through a new medium, the roots-style marketing that launched the company could not be abandoned • In the end, NBB’s first television-based advertising campaign-approached with a great deal of inner reflection-mirrored well the craft brewer’s personality.

25. Promoting Responsible Drinking • Promoting beer as a pairing with food and sponsor beer dinners to educate palates and create that level of appreciation.  • At all of the events, anyone pouring beer must be TIPS (Training for Intervention ProcedureS) trained which is a nationally accredited alcohol awareness program that helps servers identify and prevent someone from being over served. They canceled events that they deemed to be too focused on drinking. • The tasting room limits tasters to four short pours and focuses on education over mass consumption. • The price point precludes the kind of binge drinking associated with suitcases of beer and handle bottles.

26. Organizational Success • One of three winners of Business Ethics magazine’s Business Ethics Awards for its “dedication to environmental excellence in every part of its innovative brewing process.” • an honorable mention in the Better Business Bureau’s 2002 Torch Award for Outstanding Marketplace Ethics competition. • Best mid-sized brewing company of the year and best mid-sized brewmaster at the Great American Beer Festival. • In 2004, New Belgium received the Environmental Protection Agency's regional Environmental Achievement Award.

27. Employee Concerns • Health and dental insurance and retirement plans. • Free lunch every other week as well as a free massage once a year. • Employees can bring their children and dogs to work. • Employees who stay with the company for five years earn an all-expenses paid trip to Belgium to “study beer culture.” • Employees can also earn stock in the privately held corporation, which grants them a vote in company decisions. • New Belgium’s employees now own one-third of the growing brewery.

28. Social Concerns • For every barrel of beer sold the prior year, NB donates $1 to philanthropic causes within their distribution territory. The donations are divided between states in proportion to their percentage of overall sales. This is their way of staying local and giving back to the communities who support and purchase NB products. • NBB also sponsors a number of events, with a special focus on those that involve “human-powered” sports that cause minimal damage to the natural environment. Through event sponsorships, NBB supports various environmental, social, and cycling nonprofit organizations. • In the course of one year, New Belgium can be found at anywhere from 150 to 200 festivals and events, across all fifteen western states, such as the Tour de Fat promotes the bicycle as a sustainable form of transportation with beer as part of the medium and not the message; the MS 150 “Best Damn Bike Tour,” a two-day, fully catered bike tour from which all proceeds went to benefit more than five thousand local people with multiple sclerosis; and the Ride the Rockies bike tour, which donated the proceeds from beer sales to local nonprofit groups. http://www.e-businessethics.com/NewBelgiumCases/NewBelgiumBrewingCase.pdf

29. Environmental Concerns • New Belgium Brewing strives for cost-efficient energy-saving alternatives to conducting its business and reducing its impact on the environment. • Investing in a wind turbine, making New Belgium the first fully wind-powered brewery in the United States. • Using the solar electricity system (mixture wind and coal power) and reduce its CO2 emissions by 1,800 metric tons per year. • Using “sun tubes,” which provide natural daytime lighting throughout the brew house all year long. • Reducing waste through recycling and creative reuse strategies, including cardboard boxes, keg caps, office materials, and the amber glass used in bottling. • Encourages the employees to reduce air pollution by using alternative transportation. As an incentive, NBB gives its employees “cruiser bikes”— like the one pictured on its Fat Tire Amber Ale label—after one year of employment and encourages them to ride to work. • Participate in the United States Green Building Council's Leadership in Energy and Environment Design for Existing Buildings (LEED-EB) pilot program (2002). From sun tubes and day lighting throughout the facility to reusing heat in the brew house, they continue to search for new ways to close loops and conserve resources.

30. NBB’s Eco Care Principles “To be environmental stewards” • Lovingly care for the planet that sustains us. • Honor natural resources by closing the loops between waste and input. • Minimize the environmental impact of shipping our beer. • Reduce our dependence on coal-fired electricity. • Protect our precious Rocky Mountain water resources. • Focus our efforts on conservation and efficiency. • Support innovative technology. • Model joyful environmentalism through our commitment to relationships, continuous improvement, and the camaraderie and cheer of beer

31. NBB’s Eco Care Efforts 1. Increased efficiencies in the brewing process Using Steinecker's Merlin brew kettle, which can store heat and boil very quickly, allowing NBB to use very little primary energy. 2. Utilized green design throughout our building Lighting (Using UV blocking windows, sun-tubes, and light shelves.), HVAC (Using evaporative coolers, allowing condition its 55,000 square foot packaging hall with no compressors, using much less energy), Materials (Using beetle kill pine wood for interior which giving value added to those fallen trees) 3. Implemented a process for treating our wastewaterReducing the load on its municipal plant. 4. On-site energy productionThe methane produced by process water treatment is used to fuel a combined heat and power engine—or co-gen—which creates electricity and heat for the brewery. When the co-gen is running full-time, it can supply 15% of our electrical needs. 5. Wind-powered electricity since 1999In 1999, NBB became the largest private consumer of wind-power electricity at that time and the first wind-powered brewery

32. NBB’s Eco Care Efforts 6. Employ a High Involvement CultureAn environment in which the full power of everyone’s hearts and minds are brought to bear on creating positive change. HIC is a 3-legged stool which stands on opening the books, employee ownership, and participative decision-making. 7. Sustainable Eventing Such as: By philanthropic bike festival, Tour de Fat, celebrates bicycling as a viable form of alternative transport; by a solar-powered stage that provides sound for the day; beer is served in compostable cups; and its overall waste stream diversion rate is better than 85%. 8. Actionable Advocacy Through donations and fund-raisers, 1% of NBB’s revenue goes to environmental non-profits, through Team Wonder bike (bicycle commuter advocacy program) which have pledged to offset more than eight million car miles by riding their bikes more over the next twelve months; public speaking; and giving every employee a custom cruiser bike after one-year of employment . 9. Constant benchmarkingTo figure out how to track non-financial results, especially environmental goals. 10. Partnering to support innovative technology The company Oberon has installed a small treatment plant next to NBB’s own that will use our process wastewater to harvest sludge to create a high protein fish food for aqua-farms.

33. NBB’s Eco Care Goals • Reducing our carbon footprint by 25%* • Reducing our water usage by 10% • Reducing our landfill diversion rate from 89.5% to 95% (note: brewing by-products like spent grain and yeast are NOT included in these figures. If they were included, it would be 99%). *As methods of carbon accounting are currently evolving, it is possible that these goals will be amended in the future

34.  NBB’s Eco Care Facts:1. Reduction in water use ratio during 2008

35. NBB’s Eco Care Facts:2. Waste Management 2008

36. Answering The QuestionsQuestion # 1 Rather Than testing its television spots using focus groups , NBB instead tested these spots using insiders in the bike community and brewery friends who had a personal history and knowledge of the brand. Evaluate NBB’s decision not to use focus group. • Using the bike community and brewery friends who had a personal history and knowledge of the brand can help NBB test whether these spots reflect the brand core values, history and the natural sense about the mountain local lifestyle. • Help to make sure the spots does ring true to the NBB character. • Saving money and time.

37. Answering The Questions Question # 2 • How does the use of 16 mm film and Freak Folk music relate to NBB’s advertising objectives. • The 16-mm camera was used because it gave an effect that reflected the companies message “it is the cultural counterpoint to the Urban Professional” • This 16-mm camera will give us a more natural and classic look than compared to the 70-mm. • And together with the “Freak Folk” song viewers can connect to a more personal level and it brings out a nostalgic atmosphere. • The simple takes of the ad emphasizes the message they would like to portray in a way that would capture the audience.

38. Question 3: what are some of the benefits of NBB’s decision to redouble its roots-based, personal touch marketing effort aimed at its mature markets? The roots-style marketing make a friendly connection to customer It is a wise choice to re-approach the market by insiders who have the closed relation with customers and deep understanding about the NBB’s products. This type of marketing also helps NBB reduce the expenses. NBB build a good image in customers’ mind.

39. Question 4: What roles did the advertising agency, NBB’s leadership, and NBB’s employees play in the development of the advertising campaign? • Advertising agency: spread the brand out and represent NBB’s product before the customers in such a way that a positive images is created in their minds. • NBB leadership: orient the strategy to develop the advertising plan.

40. Question 4: What roles did the advertising agency, NBB’s leadership, and NBB’s employees play in the development of the advertising campaign? NBB’s employees: are the decisive factor in the development of the advertising campaign. They are the ones who have direct connection between NBB and customers; furthermore, they immediately influence on customers’ perception.

41. Answering The Questions #5 • FOLLY(definition courtesy Merriam-Webster’s Dictionary) • Function: noun • Etymology: Middle English folie, from Old French, from fol fool • lack of good sense or normal prudence and foresight • a. criminally or tragically foolish actions or conduct • b. obsolete : evil, wickedness; • c .especially: lewd behavior • a foolish act or idea • an excessively costly or unprofitable undertaking • an often extravagant picturesque building erected to suit a fanciful taste

42. Answering The Questions #5 • Follow Your Folly. But isn't Folly a lack of good sense; a foolish act or idea? Au contraire (instead) we say at New Belgium. Folly is freeing. Folly laughs at the status quo, protests mediocrity, sings in the blind alley and celebrates the wild hare. It's relevant irreverence. It’s living like there is a tomorrow. • Our Folly is Beer. Really good beer. Our folly is also a near-constant tinker ring with the company practices to make them more sustainable. Employee- owned since 1996 and wind powered since 1998- striving to honor nature at every turn of the brewery, tastes great, and less land filling. • As well, a folly takes inspiration, you will meet a few friends who inspire New Belgium. They’re making more from less and living large at the same time. Rebels with a cause. The company think they have a folly worth following.

43. Answering The Questions #5 In our opinion, the company can struggle because they know how to change the common opinion about “folly” into different meaning with unique ways. From “lack of good sense; a foolish act or idea”, become “freeing, It’s living like there is a tomorrow”. Consequently, “folly” becoming a main point and specific characteristic for New Belgium Brewing. So, our group think that is the right decision to use “folly” for their advertising and indirectly increasing brand awareness. “Folly “ becomes one of the greatest unplanned successes for this brewery.