Big Rock Brewery was founded in 1984 in Calgary, Alberta by CEO Ed McNally. It has since grown to become the largest craft brewery in Canada. Big Rock brews 11 beers and hard ciders and distributes its products nationwide and exports to South Korea and embassies worldwide. It faces challenges from high Alberta beer taxes and competition from other breweries. However, Big Rock has found continued success through its community involvement, use of local ingredients, and traditional brewing methods.

1. Big Rock BreweryBig Rock Brewery, located in Calgary, Alberta, is the Province’s premier producer, marketer and distributer of handcrafted beers. Title: Big Rock “Erratic”Source: http://www.bigrockbeer.com/about-big-rock/history-big-rock

2. BeginningsCEO and founder Ed McNally started the brewery in 1984.Original 3 beers styles were of Ed’s own preference.BitterPorterTraditionalTraditional was an instant hit!Title: Original building, Ed and BrewmasterSource:http://www.bigrockbeer.com/about-big-rock/history-big-rock

3. GrowthBrewery moved from 1800 square feet facility to a 14 acre site in 4 yearsGrown to be nation’s leading craft beer maker and second largest Canadian owned brewery.Title: Brewery Source: http://www.bigrockbeer.com/craft/craft-beer-alberta

4. LeadersBusiness is run by:CEO, Ed McNallyPresident, Bill McKenzieCFO, currently recruiting!Title: Ed Mcnally, Big Rock founderSource:http://www.bigrockbeer.com/about-big-rock/about-ed-mcnally

5. ProductionBig Rock brews 11 craft beers and Rock Creek Apple Ciders as well as a rotating Brew Masters special.They market and distribute their product to all provinces and territories in Canada.They export their product to:South KoreaEmbassies around the worldSource:http://www.bigrockbeer.com/craft/big-rock-brewery

6. Alberta Beer Per Capita Consumption in LitresCompound Growth Rates http://www.brewstats.ca/annual/growth/2009/9

7. The Stages of Beer ProductionWheat, Barley and Rye arrive by truckMostly local materials are usedHops, a brewing ingredient, is importedBeer-making process is carefully monitoredFinished beer is piped next door to packaging facilityTitle: HopsSource:http://www.bigrockbeer.com/craft/ingredients

8. Overview of ProductivityBeer is processed according to market demandCentral processing facility is the hub of operation located adjacent to processing facilityhttp://www.bing.com/images/search?q=Rock+Brewery&view=detail&id=300C081C7FBB1C0599D9BA168CC88D0EF2185DDC&first=0&FORM=IDFRIR

9. PricingAlberta has the highest provincial taxes on beer Big Rock Traditional Ale 6 Pack Cans Retail for $13.99

10. Significant Fixed and Variable CostsFixed:Labour costs reduced by $240,000 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 $191,000Barley(major ingredient)and aluminium(canning) costs have risen substantially in 2011Firms profits are subject to commodities market in determining costs and profitsInventory movement charges increased by $250,000.Depreciation is set at $215,000 for the first two quarters.

11. Company Profits and Profit Marginshttp://www.bigrockbeer.com/sites/default/files/reports/2011Q2.pdf

12. CompetitionThe multitude of Micro and National Breweries are a example of Monopolistic CompetitionMajor Competitors include Sleeman Brewery, Molson, Wild Rose Brewery

13. AdvantagesBig Rock’s Competitive Advantage is their community involvementAnnual Eddies Advertising AwardsHeritage Park Beer Making SeminarsBig Beer Can Marketing in Farmers Fieldshttp://www.heritagepark.ca/educationAdult.htm

14. SummaryBig Rock has continuing success in Alberta, and is a model for efficiency High taxes, aggressive competition and commodity volatility are future challengesInnovation, local ingredients and traditional methods are keystones which have propelled Big Rock into a premier brewery

15. Referenceshttp://www.bigrockbeer.com/corporate/investors/2011-financial-reportshttp://www.fpinfomart.ca/fpsn/snap_display.php?key=fp%7Cfpsn%7C36739http://www.brewers.ca/http://www.bigrockbeer.com/craft/ingredientshttp://www.calgarysun.com/news/alberta/2011/03/07/17527001.html