Robert Smith

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


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