Big Rock Brewery

• Big Rock Brewery, located in Calgary, Alberta, is the provinces premier producer, marketer and distributer of handcrafted beers.

Title: Big Rock “Erratic”Source: http://www.bigrockbeer.com/about-big-rock/history-big-rock

Beginnings

• CEO and founder Ed Mcnally started the brewery in 1984.

• Original 3 beers styles were of Ed’s own preference.– Bitter– Porter– Traditional

• Traditional was an instant hit!

Title: Original building, Ed and BrewmasterSource:http://www.bigrockbeer.com/about-big-rock/history-big-rock

Growth

• Brewery moved from 1800 square feet facility to a 14 acre site in 4 years.

• Has grown to be nations leading craft beer maker and second largest Canadian owned Brewery.

Title: Brewery Source: http://www.bigrockbeer.com/craft/craft-beer-alberta

Leaders

• Business is run by:– CEO, Ed Mcnally– President, Bill Mckenzie– CFO, currently recruiting!

Title: Ed Mcnally, Big Rock founderSource:http://www.bigrockbeer.com/about-big-rock/about-ed-mcnally

Production

• Big Rock brews 11 craft beers and Rock Creek Apple Ciders as well as a rotating Brew Masters special.

• They market and distribute there product to all provinces and territories in Canada.

• Export their product to:– South Korea– Embassies around the world

Source:http://www.bigrockbeer.com/craft/big-rock-brewery

Supply and Demand of Beer

The Stages of Beer Production

• Wheat, Barley and Rye arrive by truck.• Mostly local materials are used.• Hops, a brewing ingredient are imported• Beer making process is carefully monitored• Finished beer is piped next door to packaging

facility

Title: HopsSource:http://www.bigrockbeer.com/craft/ingredients

Overview of Productivity

• Beer is processed according to market demand• Central processing facility is the hub of operation

located adjacent to processing facility

http://www.bing.com/images/search?q=Rock+Brewery&view=detail&id=300C081C7FBB1C0599D9BA168CC88D0EF2185DDC&first=0&FORM=IDFRIR

Pricing

• The pricing for main products and services

Significant Fixed and Variable Costs

• Fixed:– Labour has reduced by $240,00 over 6 month period

compared to last year.– Overhead has remained the same over last year.

• Variable:– Ingredients costs have increased over last year by $191,000.

• Firms profits are subject to commodities market in determining costs and profits

– Inventory movement charges increased by $250,00.– Depreciation is set at $215,000 for the first two quarters.

http://www.bing.com/images/search?q=Rock+Brewery&view=detail&id=CE4F4F3612BCBC861FB30FC2762B9AEAFD46AE25&first=0&FORM=IDFRIR

Company Profits and Profit Margins

Three months ended June 30 Six months ended June 30

$ thousands 2011 2010 2011 2010

Sales volumes(hl)

60,479 57,832 102,472 107,006

Net Revenue 12,339 12,471 21,141 23,016

Operating Profit

776 1,405 769 2,649

Net Income (loss)

619 2,670 593 (10,320)

Earnings (loss) per share (basic and diluted)

$ 0.10 $ 0.45 $0.10 $(1.71)

http://www.bigrockbeer.com/sites/default/files/reports/2011Q2.pdf

Competition

• Major Competitors include Sleeman Breweries as well as large amount of similar competitors.• The multitude of Micro and

National Breweries are a example of monopolistic competition

Their competitive advantage

Summary

• Comment on reasons the companies have succeeded• Comment on possible

weaknesses• Provide an overall summary of

the business