Case Study Analysis on
Deutsche Brauerei
Kiran Shah
7/25/16
Corporate Financial Management
Deutsche Brauerei
Introduction:
Deutsche Brauerei, a family owned and operated business for 12 generations was founded
in 1737 by Gustav Schweitzer. The company is based in a village just outside Munich, Germany
and has a capacity to produce 1.2 million hectoliters of beer a year. Since the brewery was
originally family owned and operated, the equity is privately held and distributed among the 16
members of Schweitzer family. Brewery produces two types of beer, dark and light and has created
a high level of standards and control in their business. Their business model was fairly simple and
their only focus was to make good quality beers, for which they had won quality awards
consistently over the years. Until the year 1997, Deutsche Brauerei was only selling their beers in
Germany. But, due to emerging opportunities in Eastern Europe, company planned to expand their
operations into Ukraine. Ukraine was attractive as a second location for the company due to its
larger population of 52 million and its strategic location within central and Eastern Europe. This
expansion is one of the main factor of growth for Deutsche Brauerei in recent times. The company
also purchased a new equipment in 1994 as a result of fire that destroyed the old equipment, this
new asset increased the brewing potential output of Deutsche Brauerei. However, the additional
capacity remained unutilized, until 1998.
Lukas Schweitzer the current Managing Director of the company who has worked at this
brewery his entire life invited, Greta Schweitzer to participate in her first board meeting. Greta had
recently joined the board on the behest of his uncle Lukas. She had received an MBA degree from
