Case 4 Lecture Notes
New Belgium Brewing (A): Gaining Competitive
Advantage Through Socially Responsible Marketing
Case 4 New Belgium Brewing (A): Gaining Competitive Advantage Through
Socially Responsible Marketing*
Synopsis: From its roots in a Fort Collins, Colorado, basement, New Belgium Brewing has
always aimed for business goals loftier than profitability. The company’s
tremendous growth to become the nation’s third-largest craft brewery and ninth-
largest overall has been guided by a steadfast branding strategy based on customer
intimacy, social responsibility, and whimsy. The company’s products, especially
Fat Tire Amber Ale, have always appealed to beer connoisseurs who appreciate
New Belgium’s focus on sustainability as much as the company’s world-class
brews. Despite its growth and success, New Belgium has managed to stay true to
its core values and brand authenticity—the keys to its marketing advantage in the
highly competitive craft brewing industry.
Themes: Customer intimacy, competitive advantage, social responsibility, sustainability,
branding strategy, product strategy, distribution strategy, marketing
implementation, customer relationships
Case Summary
Small companies sometimes make big contributions to surrounding communities and become
leaders as they set social agendas and enact initiatives to address community issues. Such is the
case for the New Belgium Brewing Company (NBB), which has gone to great lengths to
incorporate environmentally sensitive and energy-saving alternatives into its brewery operations.
Beyond its commitment to the environment, New Belgium has become a model for social
responsibility as a result of its philanthropic efforts in many states.
The company focuses on producing world-class craft beers and having fun, but strives to
maintain its reputation of being an environmental steward. NBB competes against domestic and
microbrews in both bars and liquor stores, but feels it has a loyal following due to its personal
relationships with customers. The beer maker’s target market consists of environmentally
considerate, activity-based consumers of all ages and demographic backgrounds. Besides the
popular Fat Tire, NBB also brews a unique collection of standard, seasonal, and one-time
varieties that are distributed to 28 states (plus the District of Columbia) from the Pacific coast,
throughout the Midwest, and most recently into the Southeastern United States. Priced around
$8.00 per six-pack, NBB microbrews are competitive with other microbrews, but convey a
message of superiority over domestic beers.
NBB strongly believes in social responsibility as its main strategic priority (the case summarizes
NBB’s beliefs and its responsibilities to the environment, society, and employees). The
company’s efforts to live up to its own high standards have paid off with numerous awards and a
* Michael D. Hartline, Florida State University, prepared this teaching note for classroom
discussion rather than to illustrate effective or ineffective handling of an administrative situation.
Case 4 Lecture Notes
New Belgium Brewing (A): Gaining Competitive
Advantage Through Socially Responsible Marketing
very loyal following. Despite the accolades, there are still many ways for NBB to improve as a
corporate citizen. For example, the manufacturing process is a fair distance from being zero
waste or emission free. Although all electric power comes from renewable sources, the plant is
still heated in part by using natural gas. Additionally, there will always be a need for more public
dialogue on avoiding alcohol abuse. Practically speaking, the company has a never-ending to-do
list.
NBB executives acknowledge that as its annual sales increase, so do the challenges to remain on
a human scale and to continue to be culturally authentic. How to boldly grow the brand while
maintaining its humble feel has always been a challenge. Additionally, reducing waste to an even
greater extent will take lots of work on behalf of both managers and employees, creating the
need for a collaborative process that will require the dedication of both parties toward
sustainability. As NBB looks ahead, its most important asset is its image—a brand that stands for
quality, responsibility, and concern for society. Defining itself as more than a beer company, the
brewer also sees itself as a caring organization that is concerned for all stakeholders.
Teaching Overview
This case does not present a challenge, but rather focuses on the positive impact that a company
can make on its community. This is important and distinctive within the industry because many
people feel the production and promotion of alcohol is immoral and naturally contradicts the
desirable traits of business and society. Although many students will not have tried these
products, some may be familiar with the brand. New Belgium should stand as an example of how
a business can refute negative prejudices by exemplifying the ways in which a business can be
environmentally and socially responsible.
SWOT Analysis
Internal Strengths
• NBB is active in community affairs where it brews and distributes its beers.
Internal Weaknesses
• New Belgium loses some brand recognition as the name is used interchangeably with Fat
Tire, its signature ale.
Case 4 Lecture Notes
New Belgium Brewing (A): Gaining Competitive
Advantage Through Socially Responsible Marketing
External Opportunities
• Microbrews and craft beers are extremely popular and growing rapidly.
External Threats
• Many other microbreweries exist in Colorado and other Western states. Some of their
Problem/Decision Statement
How should New Belgium respond to competitive threats from other microbreweries and
domestic producers who are slowing enter their market niche? Will NBB be able to increase its
market share while maintaining a high quality product at a relatively high price?
Strategy Alternatives
1. Maintain a penetration strategy—New Belgium can continue to focus on producing high
quality beers for its faithful fans. This is a low risk option that holds potential for very
Strategy Recommendations
Case 4 Lecture Notes
New Belgium Brewing (A): Gaining Competitive
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Implementation Issues
New Belgium’s success depends on its ability to serve the needs of niche markets. The
company’s current size inhibits its ability to compete head on against domestic brews for the
Teaching Questions
1. What environmental issues does the New Belgium Brewing Company work to address?
How has NBB taken a strategic approach to addressing these issues? Why do you think
the company has taken such a strong stance toward sustainability?
Students should be able to provide specifics to support their responses, such as the firm’s
2. Do you agree that New Belgium’s focus on social responsibility provides a key
competitive advantage for the company? Why or why not?
3. What are the challenges associated with combining the need for growth with the need to
maintain customer intimacy and social responsibility? Does New Belgium risk losing
focus on its core beliefs if it grows too quickly? Explain.
Case 4 Lecture Notes
New Belgium Brewing (A): Gaining Competitive
Advantage Through Socially Responsible Marketing
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
challenge for NBB to grow while keeping true to its core beliefs. However, to serve
customers demands for NBB brews, the company must continue expanding. New
Belgium has taken great efforts to ensure that it doesn’t compete against large domestic
brewers. Instead, NBB focuses on its image of producing high quality and handcrafted
brews worthy of a premium price. Further, NBB focuses on meeting the needs of its
customers by building personal relationships. The company’s continued use of local
events and local philanthropy help to support this goal.
4. Some segments of society contend that companies that sell alcoholic beverages and
tobacco products cannot be socially responsible organizations because of the nature of
their primary products. Do you believe that New Belgium’s actions and initiatives are
indicative of a socially responsible corporation? Why or why not?
This question challenges students to consider whether a company can be socially