Redhook Brewery Essay

950 Words 4 Pages

The distribution alliance Redhook formed with Anheuser-Bush in 1994 was to run for 20 years, but could be terminated after 10 years under certain conditions. Under the alliance, A.B. invested in Redhook and gained a 25% stake in the company’s equity, and made its nationwide networks of 700 wholesale distributors. Redhook retained full control over production and marketing. Distributors who participated in the alliance were to be given exclusive distributing rights in their territories. Redhook believed they could gain acceptance and much greater exposure with this alliance with Anheuser-Bush, but the alliance was viewed controversial be many.

Strengths and Weaknesses
Regarding strengths and weakness, we found that one of
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Redhook faced the threat of Anheuser-Busch taken over due to them being such a major distributor. Also, the other Craft beer distributor stayed within their territory, therefore having their community support.


Customer Need     Unfulfilled customer need and awareness
Technology     Arrival of new processing technology
Distribution     Regional national distribution
Profit     Exporting to Foreign nations
Growth     Development of new markets
     Introduction of new products


Changes in external environment     Competition
Increase trade barriers     Sales decline
Shift in customer product use     Shift in customer taste

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