Redhook Ale Brewery is a company that started in 1981 by Paul Shipman.He is the president, CEO, and Chairman of the Board.His goal was to provide American Consumers with a flavorful, quality, European style beer.The company grew in the mid 1980's and major growth occurred as new production facilities were opened in 1989.
Redhook Ale Brewery and Anheuser-Busch started working together in 1994.There were declining profits and sales in 96', 97', and 98'. Their strategy was to provide a high quality beer through differentiation and with a strategic alliance with Anheuser-Busch.Their objectives were to grow and achieve a high market share in the craft beer market and to maintain the production of this beer in company owned breweries. ∙Financial strength as Anheuser-Busch made 25% investment after investment ∙Continuously lowered debt to equity ratio ∙Organizational strengths are top managements ability and expertise in the food and beverage industry ∙There is synergy between management and employees ∙The company is community oriented ∙The emphasis in distribution and product repositioning ∙They have an effective marketing mix ∙Purchase from few suppliers at competitive prices ∙They have a weak stock performance ∙There target market is very selective ∙No mass media advertising is used ∙Increasing number of craft beer drinkers ∙Trends toward national distribution are being made ∙Growth opportunities in the South ∙National breweries make up 93% of sales in domestic beer ∙Companies with high volume production can obtain cheaper ingredients and are pasteurized. ∙Competition has mass media advertising.