HISTORY OF NEW BELGIUM BREWING COMPANY The idea for the New Belgium Brewing Company (NBB) began with a bicycle trip through Belgium. This nation is home to several of the world's finest beers, some of which have been brewed for centuries in the country's monasteries. Jeff Lebesch, an American electrical engineer, rode his mountain bike across the country and wondered if he could produce such high-quality beers back home in Colorado. After acquiring the special strain of yeast used to brew Belgian-style beer, Lebesch returned to his home and began experimenting in his basement. When his friends liked his beers, Lebesch decided to market them. NBB opened its doors in 1991 in a tiny basement at Lebesch's home in Fort Collins. At that time, his wife, Kim Jordan, became the company's director of marketing. The first blend of hers was called Flat Tire Amber Ale in honor of the bicycle that Lebesch rode around Belgium. At first it wasn't easy getting New Belgium beers on store shelves. Jordan often delivered orders to stores in her Toyota pickup. However, New Belgium beers quickly developed a small but devoted clientele, first in Fort Collins and then throughout Colorado. The brewery soon outgrew the couple's basement and moved into an old railroad yard before relocating to its current custom-built facility in 1995. The brewery includes two fermenters, four quality control labs, a wastewater treatment, a canning and bottling line, and numerous technological innovations for which New Belgium is nationally recognized as a "paradigm of environmental efficiency." Under the leadership of Kim Jordan, who has since become CEO, NBB currently offers a variety of permanent and seasonal ales and pilsners. The company's standard lineup includes Sunshine Wheat, Blue Paddle, 1554, Ranger IPA, Abby, Shift, Trippel, Rampant, Slow Ride IPA, Snapshoty, and the firm's best-selling original Fat Tire Amber Ale. Some customers even refer to the company as the Fat Tire Brewery. Seasonal beers are Skinny Dip, Portage Porter, and Accumulation. The firm also started the "Lips of Faith" program, where small batches of beers such as La Folie, Gruit and Salted Belgian Chocolate Stout are created for internal celebrations or events. In addition, New Belgium works collaboratively with other craft brewers to devise new products and achieve greater efficiency and experimentation for future American craft brewing cooperation. One of the products resulting from these collaborations is a beer made with Anaheim and Marash peppers, created in conjunction with the Cigar City brewery. The most effective form of advertising for NBB has always been "word of mouth" from its customers, especially early on. In fact, before New Belgium beers were widely distributed throughout Colorado, a Telluride liquor store owner allegedly offered gas money to people who passed by and picked up New Belgium beer on their way through Fort Collins. Although New Belgium has expanded its distribution to much of the US market, the brewery receives numerous emails and phone calls every day asking when its beers will be available in other parts of the country. Although still a small brewery compared to many beer companies, like its peer, Coloradan Coors, NBB has consistently experienced strong growth with estimated sales of more than $180 million (NBB being a private company, the details of their income and sales are not available). Now he has his own blog, Twitter account and Facebook page. The organization sells more than 800,000 barrels of beer a year and has many opportunities for continued growth. For example, while overall beer consumption has remained flat, craft beer's market share of the industry is now at 11%. The growth in craft beer sales is likely to continue as new generations of beer drinkers favor locally produced beer. Today, New Belgium products are distributed in 38 states and the District of Columbia, British Columbia and Alberta. The company plans to begin distribution in Hawaii in 2016.

Connoisseurs who appreciate the high quality of NBB's products, as well as its environmentally conscious and ethical business practices, have fueled this growth. For example, when the company began distribution in Minnesota, the beers were so popular that a liquor store had to open early and adapt spaces to accommodate the large number of customers. The store sold 400 cases of Flat Tire within an hour of opening. With the expansion of its distribution, however, the brewery recognized the need to increase its opportunities to reach its distant customers. So he consulted Dr. Douglas Holt, an Oxford professor and expert in cultural branding. After studying the company, Holt, along with former CMO Greg Owsley, crafted a seventy page "manifesto" outlining the brand's attributes, character, cultural relevance and promise. In particular, Holt identified in New Belgium a spirit of carrying out creative activities just for the pleasure of doing them well and in harmony with the environment. Once the brand was defined, NBB worked with New York ad agency Amalgamated to create a $10 million advertising campaign that would target high-end beer drinkers, men ages 25-44. age, and would highlight the realistic image of the brewery. The grainy-looking ads focused on one man, Charles the Tinkerer, rebuilding a cruiser bike from used parts and then riding it along pastoral lanes. The product appeared for only five seconds in each ad, between the slogan: "Follow your madness... Beer is ours". Set to nostalgic music in the background, the ads helped position the growing brand as whimsical, thoughtful and reflective. NBB then relaunched its Tinkerer commercial during the US Pro Challenge. The relaunched commercial had an additional scene with the Tinkerer riding the bike alongside a professional cycling contestant, set to music by composer and enthusiastic Tour de Fat follower Sean Hayes. The ad appeared on NBC. It would be another eight years before NBB would develop its next television ad campaign. In 2013 NBB produced a campaign called "Pairs Well with People" that included a second 30-second television spot, which described NBB's unique qualities as an organization, its awareness of environment and 100% ownership by its employees. The ad ran on all four major television networks in major US cities. Because the primary purpose of the campaign was to raise awareness in areas unfamiliar with the brand (such as Raleigh-Durham and Minneapolis), NBB did not air the commercial in Colorado or in states where the brand is known. The campaign also highlighted four 15-second online videos of how their beer "goes well with people." The bar patrons featured in the 15-second digital ads were NBB employees. In addition to advertising campaigns, the company maintains its promotion strategy through event sponsorships and digital media. For the launch of its Ranger IPA beer, New Belgium created a microsite and online video of its sales force dressed as rangers and performing a hip-hop number to promote the beer. The only difference was that instead of horses, the NBB rangers rode bicycles. The objective of the video was to create a modern and fun brand image for its new beer, with the campaign slogan: "To protect. to spill To participate". The company's mobile application "Beer Mode" ("Modo Cerveza") offers users who download access to exclusive content, pre-selected messages for them to post on social networks the moments they spend enjoying their beers and provides users with the location of stores that sell NBB products. On the other hand, the company offers rewards to users who download the "Beer Mode" app, visit the NBB website, share the website on social media, and attend NBB events.

NEW BELGIUM ETHICAL CULTURE According to New Belgium, the company attaches great importance to the ethical culture of the brand; It is aware that, if it adapts to the daily life of the communities it serves, it can forge lasting bonds with clients. Now more than ever, what a brand says and what a company does must be in sync.

NBB believes that as the corporate social responsibility mandate gains momentum, company directors must realize that business ethics is not so much about the willingness to comply with codes and standards, but about the spirit in which they are embedded. these codes and standards. Today the brand manager, who is often the most externally focused of the business management team, must prepare to be the internal advocate for the need to achieve the bottom line in terms of ethical values, for the behavior of the company. At New Belgium, the synergy between brand and values occurred naturally because the company's ethical culture (in the form of values and beliefs) was in place long before NBB had a marketing department. Back in early 1991, when New Belgium was just a fledgling home business, Jeff Lebesch and Jordan Kim hiked through Rocky Mountain National Park with a pencil and notebook. There they found their first approach to what would be the fundamental objective of the company. If they went ahead, what were their aspirations beyond profitability? What was at the heart of his dream? What they wrote that spring day, with a little editing, are the values and beliefs that can be read today on the NBB website. From its inception, NBB adopted a business approach known as Triple Bottom-Line (TLB). While the traditional bottom-line approach to measuring business success is economic, the TBL incorporates economic, social, and environmental factors. In other words, instead of just looking at financial data to assess the company's success, NBB looks at its impact on profits, people and the planet. One way in which the TBL approach is advanced is by creating a high-involvement corporate culture. All NBB employees are expected to contribute to the vision of the company and accountability extends throughout the organization. Any New Belgium employee can list many, if not all, of these shared values. For NBB, brand strategies are rooted in its values as a company. New Belgium Core Beliefs and Purpose New Belgium's dedication to quality, the environment, its employees and its customers is expressed in its mission statement: "To operate a profitable brewery that makes our love and talents manifest." The core values and beliefs established by the company regarding its role as an environmentally concerned and socially responsible brewery are as follows: 1. Remember that we are incredibly lucky to create something fine that improves people's lives, while exceeding the expectations of our consumers. 2. Produce world-class beers. 3. Promote the culture of beer and its responsible enjoyment. 4. Ignite social, environmental and cultural change as a business model. 5. Environmental management: minimize the consumption of resources and promote energy efficiency and recycling. 6. Cultivate potential through learning, participatory management and the search for opportunities. 7. Balance the multiple needs of the company, staff and their families. 8. Trust each other and commit to authentic relationships, dialogues and promises. 9. Continuity, innovative quality and efficiency improvements. 10. Have fun. Employees believe that these statements help communicate to customers and other stakeholders (internal and external) what New Belgium is as a company. These simple values, developed approximately 25 years ago, remain significant both to the company and to its current customers, despite tremendous growth. Employee Concerns In recognition of their role as partners in the company's success, New Belgium provides many generous benefits for its employees. In addition to the usual health, dental, and retirement plans, they get a lunch each month to celebrate their birthdays, as well as a free massage once a year, and they can take their children and dogs to work. Employees who stay with the company for five years win an all-expenses-paid trip to Belgium to "study beer culture." On the other hand, for every two hours of volunteer work they do, they are reimbursed for one hour of paid time off. Perhaps most importantly, they can also get shares of private corporate ownership that gives them the right to vote on company decisions. Currently, employees own 100% of the company's shares.

An open book management also allows them to see the financial costs and performance of the company. Employees have financial training so they can understand the books and ask questions about the numbers. New Belgium also wants its employees to be involved, not only with the company, but also in its sustainability efforts. To contribute, employees are given a fat-tire cruiser bike after the first year of employment to ride instead of drive. Likewise, they are provided with a recycling center at the work site. Additionally, each summer New Belgium hosts the Tour de Fat, where employees can wear costumes and lead locals on a bike ride. Other advantages of the company is that it offers cheap yoga classes, free beer at the end of the working day and a climbing wall. To ensure their voices are heard, NBB has a democratically elected co-worker group called POSSE, which acts as a liaison between the board of directors, managers and employees. ng de New Belgium consists of linking the quality of its products, as well as its brand, with the company's philosophy of respect for the environment. As chair of the sustainability subcommittee for its trade group (the Brewers Association) NBB is at the forefront of advancing environmentally friendly business processes among companies in the industry. Coworkers and managers from all areas of the organization meet each month to discuss sustainability ideas as part of NBB's natural resource management team. From cutting-edge environmental devices and high-tech advancements in the industry, to employee ownership programs and a strong belief in giving back to the community, New Belgium demonstrates its desire to create a community that is alive and ready to learn. NBB seeks cost-effective alternatives to save energy to manage its businesses and reduce its impact on the environment. Staying true to its core values and beliefs, the employees (and at the same time, owners) of the brewery unanimously decided to invest in a wind turbine to make New Belgium the first brewery to run entirely on energy. wind power in the United States. NBB has also invested in the following energy saving technologies: A smart grid facility that allows you to communicate with your electricity provider to conserve energy. For example, the smart grid alerts NBB to non-essential operating functions, allowing it to turn them off and save energy. The installation of a 20 kW photovoltaic generator on the packaging chamber, which produces 3% of the company's electricity. A distillation boiler, the second of its kind installed in the United States, which heats wort leaves instead of the entire boiler at once. This heating method conserves more energy than standard boilers. Solar tubes that provide natural daylight for the entire brewery throughout the year. A system that captures your wastewater and extracts the methane. This can contribute up to 15% of the brewery's energy needs and reduces stress on the municipal water treatment plant. A steam condenser that captures and reuses the hot water that boils the barley and hops in the production process to start the next fermentation. Steam is redirected to heat floor tiles and defrost loading docks in cold weather. NBB also sponsors a number of events, particularly those involving "human-powered" sports that cause minimal damage to the natural environment. Through these sponsorships, such as the Tour de Fat, NBB supports various non-profit cycling, environmental and social organizations. In the Tour de Fat, a participant trades in their car keys or car bill in exchange for a commuter bike and trailer. The contestant is then filmed for the world to see promoting sustainable transportation instead of driving. In the course of a year, New Belgium has been able to find itself at 150 to 200 festivals and events across the country. organizational success New Belgium Brewing Company's efforts to embody a sustainability-oriented business have been rewarded with a loyal following; in fact, due to the high demand, the company expanded the number of visits it offers to its facilities. It has also received numerous awards, such as Business Ethics Magazine's Business Ethics Award for its "dedication to environmental excellence in every part of its innovative brewing process," , its inclusion in the top 15 small places.

In April 2014, New Belgium was featured in a half-page advertisement supporting the drinking water standard that the EPA introduced on March 26, 2014. Andrew Lemley, director of government relations for the company, was quoted in a press release from the EPA where he advocated his continued support of the Clean Water Act while associating quality water with quality beer. In addition to expressing political support for environmental protection, New Belgium also prides itself on reducing waste through creative reuse and recycling strategies. The company strives to recycle as many supplies as possible, such as cardboard boxes, barrel tops, office supplies, and the amber glass used in bottling. It also stores used barley and hop grain in a silo on its premises and invites local farmers to collect the grain, free of charge, to feed its pigs. Beyond the normal products that are recycled in the food chain, NBB works with partners to take the same methane-generating bacteria from NBB's wastewater and turn it into harvestable high-protein fish feed. NBB also buys recycled products when it can, and even encourages its employees to reduce air pollution by using alternative transportation. Reduce, reuse, recycle, the "three Rs" of environmental stewardship, are taken seriously at NBB. The company has been a proud member of Business for Innovative Climate & Energy Policy (BICEP) and signed the BICEP Climate Declaration in 2013, which calls on American businesses, stakeholders (internal/external) and regulators to deal with climate change. In addition, New Belgium has long been involved in green building techniques. With each expansion of its plant, the company has incorporated new technologies and learned some lessons along the way. In 2002, NBB agreed to participate in the United States Green Building Council's Leadership in Energy and Environment Design for Existing Buildings (LEED-EB) pilot program. Buildings). From solar tubes and natural lighting in your facility to reusing heat in your fermenter, NBB continues to find new ways to close loops and conserve resources. New Belgium has made significant gains in sustainability, especially when compared to other companies in the industry. For example, it claims to use only 3.5 gallons of water to make a gallon of beer, which is more than 20% less than other companies.

The company intends to create a closed-loop wastewater system with its own water processing and treatment plant, in which microbes are used to clean the wastewater. NBB recycles more than 99.9% of its waste and currently 100% of its electricity comes from renewable energy sources. Despite these achievements, it does not intend to stop its sustainability efforts. In 2015, it expects to reduce its carbon emissions per barrel by 25%. To encourage sustainability throughout the supply chain, NBB has adopted sustainable purchasing guidelines. These guidelines allow you to identify and work closely with environmentally friendly suppliers to create sustainability throughout the value chain. For its part, NBB conducts a life cycle analysis on packaging components, while continually looking for more efficient refrigeration and transportation technology that can be incorporated into its supply chain. social concerns Beyond the use of environmentally friendly technologies and innovations, New Belgium also strives to improve communities and people's lives through corporate donations, event sponsorships and philanthropic involvement. Since its inception, NBB has donated more than $7 million to philanthropic causes. For every barrel of beer sold the previous year, NBB donates one dollar of its distribution territory. Donations are divided among the states in proportion to their percentage of total sales. This is the way to stay local and give back to the communities that support and buy NBB products. The company also participates in "One Percent for the Planet", a philanthropic network to which the company donates 1% of its sales. In addition, NBB employees also partnered with Habitat for Humanity to build a house for a family that had lost their home in a fire. Funding decisions are made by the NBB Philanthropy Committee, which is made up of employees from across the brewery, including owners, owner-employees, zone leaders and production workers. NBB seeks nonprofit organizations that demonstrate creativity, diversity, and an innovative approach to their mission and goals. The Philanthropy Committee also looks for groups that incorporate community involvement into their operations. On the other hand, NBB maintains a bulletin board in its facilities with a wide variety of proposals and participation activities for the community. With this board, both tourists and employees can see the different opportunities they have to help in the community, and it gives non-profit organizations the opportunity to present their needs. The NBB website also has a link where organizations can apply for funding. The company donates to causes with a special emphasis on water conservation, sensible transportation and bicycle support, sustainable agriculture, and environmental education for youth, among other areas. NBB also sponsors a number of events, particularly those involving "human-powered" sports that cause minimal damage to the natural environment. Through these sponsorships, such as the Tour de Fat, NBB supports various non-profit cycling, environmental and social organizations. In the Tour de Fat, a participant trades in their car keys or bill in exchange for a commuter bike and trailer. The contestant is then filmed for the world to see promoting sustainable transportation instead of driving. In the course of a year, New Belgium has been able to find itself at 150 to 200 festivals and events across the country. organizational success New Belgium Brewing Company's efforts to embody a sustainability-oriented business have been rewarded with a loyal following; in fact, due to the high demand, the company expanded the number of visits it offers to its facilities. It has also received numerous awards, such as Business Ethics Magazine's Business Ethics Award for its "dedication to environmental excellence in every part of its innovative brewing process," its inclusion in the top 15 small Places to Work from The Wall Street Journal, "Best Midsize Brewer of the Year" award, and Best Midsize Brewery at the Great American Beer Festival. New Belgium has been awarded medals for three different beers: the Belgian-style Abbey Ale, the Blue Paddle Pilsner, and the specialty La Folie ale. Many applaud the sustainability and philanthropic initiatives of New Belgium Brewing Company. According to David Edgar, former director of the Institute for Brewing Studies at the Brewers Association in Boulder, Colorado, NBB "has created a very positive image for its company with the beer-drinking public. based on intelligent decision making. Although some members of society do not believe that a company whose main product is alcohol can be socially responsible, NBB has set out to show that for those who choose to drink responsibly, the company can do everything possible to contribute to society. NBB also promotes the responsible appreciation of beer through its support and involvement in the culinary arts. For example, New Belgium Beer dinners are frequently held where a complementary culinary delight is served with each meal. Although NBB has made great strides in creating a socially responsible brand image, its work is not done. It must continually re-examine its ethical, social and environmental responsibilities. In 2004 it received the Regional Environmental Achievement Award from the Environmental Protection Agency (EPA), which was an honor and motivation for the company to continue with its socially responsible goals. After all, there are still plenty of ways NBB can improve as a corporate citizen. For example, although all electrical power comes from renewable sources, the NBB plant is still heated, in part, by using natural gas. In addition, the continued expansion requires long journeys to distribute its products, which increases the use of fossil fuels. Perhaps as a way to deal with these long distances and expand its production capacity, NBB opened a second brewery in Asheville, North Carolina, in 2015. In addition to addressing logistical challenges, NBB is part of an industry where there is always a need for more public dialogue on how to prevent alcohol abuse. From a practical point of view, the company has an endless list of things to do. NBB executives recognize that as annual sales increase, the company will face increasing challenges in remaining engaged on a human level, while also being culturally authentic. Indeed, it has always been a challenge to boldly grow the brand while keeping its perceptions humble. Furthermore, reducing waste to a greater degree will require a great deal of effort on the part of managers and employees, creating the need for a collaborative process that will require a dedication to sustainability from both parties. NBB also faces growing competition from other craft breweries. He stays behind D.G. Yuengling and Son, Boston Beer Co. (Samuel Adams brewer) and Sierra Nevada in market share. Both NBB and Boston Beer Co. and Sierra Nevada have expansion plans. In 2012, Boston Beer allocated $35 million for capital investment projects at breweries in Massachusetts, Pennsylvania and Ohio. NBB must also compete with craft beer alternatives launched by traditional breweries, such as MillerCoor's New Moon Belgian White. You must constantly engage in environmental scanning and competitive analysis to combat in this increasingly challenging environment. Each pack of six New Belgium beers features the phrase "in this box is our labor of love. We feel incredibly lucky to create something fine that improves people's lives." Although Jeff Lebesch and Kim Jordan are divorced, and Lebesch has left them to pursue other interests, New Belgium's founders hope this statement reflects the spirit of the company.

NBB's most important asset is its image, a corporate brand that represents quality, responsibility and concern for society. It defines itself as more than just a brewing company as it also sees itself as a caring organization

concerned with all stakeholders (internal and external).

QUESTIONS 1. What environmental issues should New Belgium Brewing Company work on? What strategic approach has NBB taken to address these issues? Why do you think the company has taken such a focused stance towards sustainability? 2. Do you agree that New Belgium's approach to social responsibility provides a key competitive advantage for the company? Why or why not? 3. Some sectors of society maintain that companies that sell alcoholic beverages and tobacco cannot be socially responsible organizations due to the nature of their primary products. Do you consider New Belgium's actions and initiatives to be indicative of a socially responsible company? why or why not