What is the SWOT analysis in the follow case study?

Microbrewery in Cyprus: Hula Hops Brewing

S- STRENGTHS OF THE COMPANY

W- WEAKNESSES OF THE COMPANY

O- OPPORTUNITIES OF THE COMPANY

T- THREATS OF THE COMPANY

CASE STUDY

A craft brewery or microbrewery is a brewery that produces small amounts of beer, typically less than large breweries, and is often independently owned. Such breweries are generally perceived and marketed as having an emphasis on enthusiasm, new flavours, and varied brewing techniques.

The microbrewing movement began in both the United States and United Kingdom in the 1970s although traditional artisanal brewing existed in Europe for centuries and subsequently spread to other countries. As the movement grew, and some breweries expanded their production and distribution, the more encompassing concept of craft brewing emerged.

Although the term "microbrewery" was originally used in relation to the size of breweries, it gradually came to reflect an alternative attitude and approach to brewing flexibility, adaptability, experimentation and customer service. The term and trend spread to the US in the 1980s and was eventually used as a designation of breweries that produce fewer than 1,800,000 liters annually.

Microbreweries have adopted a marketing strategy that differs from those of the large, mass-market breweries, offering products that compete on the basis of quality and diversity instead of low price and advertising. Their influence has been much greater than their market share, which amounts to only 2% in the UK, indicated by the introduction by large commercial breweries of new brands for the craft beer market.

Beer consumption in Cyprus

Keo is the national drink of Cyprus, but Carlsburg is the most popular with a 50% market share. Leon beer is increasing in popularity, and there is a thriving craft beer scene.

Beer Festivals in Cyprus

There are actually quite a few beer festivals in Cyprus, though some of these are very small in scale (not that this is a bad thing). Hopefully, the future will see more beer festivals.

Paphos Beer Festival (July)

Held in the courtyard of Paphos castle, this is one of the biggest beer festival on the island. Lasting only two days, it has a massive range of beers from all over the world. There doesn't appear to be much representation from Cypriot craft breweries though. If this is the case, then it is a real missed opportunity.

Nicosia Beer Fest (September)

It appears to have a huge range of international beers, and the Facebook page has a lot of photos of Cypriot craft beers. Hopefully, there is a good mix of the two.

Limassol Beer Festival (June)

This looks similar to the Paphos beer festival, with many of the same international beers. But again, a lack of Cypriot craft beer on the list. Even so, this looks like a great beer festival.

Craft Beer consumption in Cyprus

According to the statistical information, Cypriots do not consume craft beer like most European Union countries, they are at the bottom on the scale of annual consumption, as light consumers. However, there has also been a dramatic increase in the consumption of this type of product on an annual basis. Source: https://sofiaglobe.com/2019/12/17/bulgaria-has-10th-highest-beer-consumption-per-capita-in-eu-brewers-of-europe/beer-consumption-2018/

Craft Beer Distribution Channels

There are numerous ways into the craft beer market and you need to be aware of the requirements for each. Below are the 3 most common beer distribution channels.

1. Retail

80% of all crafted beer is purchased at the retail level. However, going the retail route requires a lot of initial effort. In many cases, you have to apply for a listing with the retailer. This could be time-consuming and may take as long as nine months to get approval. Once you have approval, now the hard work really begins. You should design your sales strategy to focus on the locations that are geographically important to your microbrewery. You need to ensure good placement in each store. Sales calls need to be made and a regular schedule should be kept to create the and nuture relationships with retailers.

2. On-Premise

Selling to bars and restaurants seems like the easiest access to the consumer, but again, be prepared to face many hurdles. As with retail, a dedicated sales team is vital. It's crucial to equip your team with the knowledge necessary to earn the respect of both customer and consumer. This channel can be the most competitive, with many small brewers all vying for the same space in 'craft'-centric bars and restaurants.

3. On-Site

Selling beer to consumers from your microbrewery may be the most profitable, but bear in mind what kind of environment you will need to create. Do you have a storefront? Is a tasting bar part of your experience?

Nielsen Shares 2019 Craft Beer Consumer Insights

According to market research firm Nielsen, which presented findings from its newest "Craft Beer Insights Poll" (CIP) during a Brewers Association-sponsored webinar last week, the average weekly craft beer drinker is primarily male, between the ages of 21 and 44, and makes between $75,000 and $99,000 annually.

However, those demographics are beginning to shift among less frequent consumers of craft, with 79 percent of women considering themselves monthly drinkers.

More adults are drinking craft beer. Overall, 43 percent of legal-drinking-age consumers quaff craft beer up from 35 percent in 2015. Fifty-six percent of men and 31 percent of women surveyed said they drink craft, while more than half of 21- to 44-year-olds said they drink craft beer.

However, for those survey respondents who said they're drinking less craft beer, the top reason for cutting back was that other alcoholic beverages were being consumed instead, followed by efforts to live a healthier lifestyle and reduce caloric intake.

Local is important to craft drinkers.

Nielsen found that 66 percent of craft drinkers said they only buy beer sold in their region, while 57 percent said they only buy beer sold in their town or city. The numbers were higher for weekly craft drinkers, with 71 percent saying they only buy regional and 62 percent saying they buy local. Local craft accounts for 10.3 percent of craft dollar sales, up about 1 percent from 2018. Local craft 6-packs also command a higher average off-premise price at $14.34, compared to $9.26 for the average craft 6-pack. This shows that consumers are willing to pay a premium for local beer.

The time is now for craft beer to advertise.

The percentage of craft beer drinkers who say they "always/often" buy a craft beer that they haven't heard of is on the decline, Kosmal pointed out. In fact, just 21 percent of the respondents said they "always/often" buy craft beer they've never heard of down from 37 percent in 2015. Those purchasing decisions were divided along gender lines. Seventy-one percent of male craft beer drinkers said they are more likely to at least buy something they've never heard of, while 63 percent of women surveyed said they were less likely to buy a beer they didn't know about.

Brewery visits help drive future retail sales.

More than half of craft drinkers said they bought beer after a brewery visit. The top three places to buy beer after a visit? At the brewery (66 percent of craft drinkers), retail store (60 percent), or a bar or restaurant (54 percent). Meanwhile, the top three occasions for consuming craft beer are drinking at home with friends and family (63 percent), eating at a restaurant (56 percent) and visiting at a friend's home (50 percent). Source:

https://www.brewbound.com/news/power-hour-nielsen-shares-2019-craft-beer-consumer-insights/

Microbreweries in Cyprus

The number of microbreweries in Cyprus has expanded rapidly and sharply in the recent years. Interest and expertise among the Cypriots about craft brewed beer has risen sharply in a short time. Local microbreweries are scattered across Cyprus (Nicosia, Sotira, Paphos). Cyprus is a small island where hops don't grow very well and malting isn't usually done locally. However, Cyprus is certainly accumulating satisfactory number of microbreweries, all of whom produce high-quality hand-crafted beers.

In Cyprus there are four microbreweries:

Prime Microbrewery

Relying more on the commercial side of microcutting, Prime Microbrewery has one goal: to brew the best beer possible, using only natural ingredients and respecting the traditional art of brewing. Established few years ago, Prime Microbrewery today is producing a selection of pale ales, American amber ales, Belgian wits, golden ales, and dark oatmeal stouts. All their products are made with fresh, unfiltered and unpasteurized ingredients. In fact, they claim that their beers are actually good for you - when consumed responsibly of course. They are located in Industrial Area, Sotira, Famagusta.

Aphrodite's Rock

Aphrodite's Rock is owned by one English family who moved to Cyprus, this microbrewery started out with a small selection of very British ales such as English-style London Porter and the bitter Yorkshire Rose. They said (self-acclaimed) that Aphrodite's Rock is first craft microbrewery in Cyprus, brews a comprehensive selection of core beers and seasonal specialties covering the ESB, IPA, bitter, larger, ale and porter spectrums. Although the tour of the brewery itself has become one of the best activities on Paphos, one can also enjoy tasting their products in the charming pub and restaurant located in the brewery. They are located in Polis Road, Paphos.

Pivo Microbrewery

This Microbrewery is run by a family. After studying the art of brewing beer in Prague, four relatives decided to use name "Pivo" (Serbian word for beer) for their Microbrewery. Now, realising their dreams, this team of four have opened their own space in Nicosia's old town. The microbrewery is also a little brew-pub with a beer garden serving the four beers currently being made at Pivo - an American IPA aptly

named Hoppy; Noir, a Czech dark lager; a bohemian Czech-inspired Pilsner named Blondie; and Sitarenia, a refreshing Bavarian Weissbier. They are located in Nicosia.

The fourth brewery in Cyprus is the one that interests us the most is:

Hula Hops Brewing

Hula Hops Brewing was founded a few years ago (2015) and already being described as the best beer in Cyprus. Of course, that status was given to the easy drinking and aromatic Cyprus Citrus IPA by its three founders (Dimitris, Yiannis, and Costa). This hand-crafted beer is garnering a sparkling reputation on notable beer rating sites such as Untappd and RateBeer. These three beer enthusiasts who started up the gypsy microbrewery, as they claim, began brewing to encourage people in the Cyprus to drink and appreciate beer differently. This trio are already dreaming big, with plans to develop their business in the future. Their products, for now, are available at bars around the island including Brewfellas in Nicosia, Barrel House in Larnaca and Satalite in Limassol.

Hula Hops Brewing is producing two products:

1. Hula Hops Cyprus Citrus IPA - Aroma is pineapple, mango, bamboo, malt. Taste is medium bitter and fruity. A beautifully crafted India Pale Ale hopped with fresh Cascade, Mosaic, Nugget, Summit and Sorachi Ace to invoke the summer aromas and tastes of Cyprus, fresh and unfiltered. Estimated calories 180 cal per 355ml. This product (330ml) contains 6% alcohol and belongs to the category IPA. The India Pale Ale (IPA) is used to describe a hop-forward, bitter, dryish beer. None of these beers ever historically went to India, and many aren't pale. The standard version generally stands for the American IPA and range between 5.0-7.0 ABV. The American IPA is a decidedly hoppy and bitter, moderately strong American ale, showcasing modern American or New World hop varieties, even more focused in the case of the West Coast IPA. The balance is hop-forward, with a clean fermentation profile, dryish finish, and clean, supporting malt allowing a creative range of hop character to shine through. Stronger and more highly hopped than an American Pale Ale. Compared to an English IPA, has less of the English character from malt, hops, and yeast, less body, and often has a more hoppy balance and is slightly stronger than most examples. Less alcohol than a Double IPA, but with a similar balance. Color ranges from medium gold to light reddish-amber although many substyles exist, each having their own color tone. These other IPA substyles generally are closer-related to their base IPA substyle and should be listed with them, if the substyle is listed.

Hula Hops Cyprus Citrus IPA

2. Hula Hops Cyprus Summer Wit - hazy pale yellow color, aroma of vanila, yeast and some bretty funk and fruit, citrusy, fruity spicy flavor with some funk and leather. A refreshing wheat beer for those scorching Cyprus summer days. Estimated calories 150 cal per 355ml. This product (330ml) contains 5% alcohol and belongs to the category The Witbier, or Belgian White Ale. This is a very pale straw to very light gold in colored, refreshing, elegant, tasty, moderate-strength wheat-based ale. pices of freshly-ground coriander and Curaao or sometimes sweet orange peel complement the sweet aroma and are quite characteristic. Other spices may be used for complexity but are much less prominent. Low bitterness level with a balance similar to a Weissbier, but with spice and citrus character coming from additions rather than the yeast. This style also includes the Double Witbier which features basically the same profile than a witbier with a richer body a more alcohol warmth.

Pricing

For both products (in a glass bottle 330ml) the retail price is 3.5e per bottle, or 15e (6 pack).

Hula Hops Brewing Production capacities:

Production capacities (annual level) is 100.000 l Therefore, on average, they can produce nearly 35.000 bottles of each of their products per year.

Which is a quarter of the total production of this type of product in Cyprus on an annual basis.

Hula Hops Brewing Promotional activities and Distribution channels

The general impression is that as far as promotional activities are concerned, there is still a lot of room for development, especially in terms of their digital promotion strategy.

Their website: http://hulahopsbrewing.com/ , has only one page, and offers the most basic information about their products and contact email addresses.

Facebook: Their Facebook page has barely over 600 followers, and there is much room for improvement. https://www.facebook.com/pg/hulahopsbrewing/posts/

Twitter: Their Twitter account (https://twitter.com/hulahopsbrewing)- There are no posts related to their business and less than 30 followers.

Hula Hops Brewing does not have its pages on other social networking websites.

Untappd and RateBeer: Hula Hops Brewing is present on these websites (beer rating). Both of their products are rated on a scale from 1 to 5 with an average grade of 4.

Hula Hops brewing regularly attend a promotional event at the bar "Brewfellas / Hula Hops BBQ!", for craft beer lovers. Visitors are also offered a barbecue.

Hula Hops Brewing is regularly present at the Cyprus International Food Festival and at the Nicosia Beer Fest (September).

Hula Hops Brewing is regularly present at Colonel International Craft Beer Festival in Lebanon (2 days festival).

They also sell cotton T-shirts (promotional items) with their logo at festivals.

They occasionally organizes free tastings in pubs in Cyprus.

As for the distribution channels:

Their products can be ordered online at Visit Beers and More online Store.

Fans of their craft beer can also order their products directly through their email address, which can be found on their website.

Their products are also available in pubs and bars: "The Gym" cocktail bar in Nicosia; Brewfellas in Nicosia, Barrel House in Larnaca, Satalite in Limassol, The Urban Soul Kitchen -American Restaurant, Malthouse Beer & Food, The Old Fishing Shack Ale & Cider House, Wooden Pub, TobacGo Plus, Bono Bar&Restaurant, Notes And Spirits, Plato's Bar & Restaurant, KAVA 72, Malthouse Beer & Food,

Wine, Beer & Spirits Store "Cava Spiritology" from Larnaka, and Agrovino wine shops in Lofou village and Lefkara offer Hula Hops Brewing products in their stores.