Megan Schmitt
ShiannMiller
KarleighShannon
Jacque Stuckens
MeredithCarlsen
Mac and Jacks Brewery
External Environment
Our state’schangingeconomic,political andsocial environments,bringupnew challengesand
opportunitiesforMac and Jacks inthe microbreweryindustry
Economic:
• Craft beersaleshave shotup15% inthe past year.
• Washingtonisthe numbertwointermsof numberof microbreweriesperstate.
• Financially,retailersoftenrefrainfromsellingcraftbeerbecause theycanmake muchmore
profitoff of the corporate swell of name brandbeers.
Political:
• Currentstate lawsfavormulti-nationalbrewingcorporationsoversmall-time local breweries.
• Threat of continuallyraisingstate tax rateson microbreweries.
• Continuallyraisingstate productioncapsformicrobreweriesasdemandforcraft beergrows;
but withthatcomeshighertaxation.
Social:
Drinkingage of 21 narrows potential audience.
• Risingsocial trendof ‘supportinglocal’.
• Mac and Jacks attracts hipster,outdoorsy,trendy,PNWcrowd.
• Drinkersare attracted to the strongertaste of craft beer,higheralcohol percentage andthe use
of blendinguniqueflavorslike coffee orchocolate intocraftbeer.
Client and Industry
People wantqualityoverquantity.That’swhymicrobreweriesare successful.Retail dollarvalue
fromcraft brewersin2013 was roughly$14.3 billion,upfrom$11.9 billionin2012. There are currently
264 microbreweriesinthe state of Washingtonandcraft breweriesprovide about360,000 jobsinthe
US. Growth of the craft breweryindustryin2014 was 18% by volume and22% by dollarshares. The
retail dollarvalue fromcraftbrewersin2014 was about$19.6 billion,whichwasupfrom$14.3 billionin
2013 (craftbeer.com).
Mac & Jacks isonlysoldin Washington,Oregon&Idaho.Redmondisthe onlybrewerylocation
and all otherlocationssell Mac& Jack’son tap. Theydo notbottle Mac & Jacks anddo not planto
anytime inthe currentfuture.Many people dohoweverrequestMac & Jacks togrow outside the PNW.
Mac Rankinand Jack SchroppfoundedMac & Jack’sin 1993 andare still active inthe day-to-day
operations.Mac& Jack’shas onlytwentyemployeesandthe firstkegwassoldinApril of 1994 in
Redmond,WA.
AfricanAmberstartedas a house beerforthe Park Pub,whichislocatednexttothe Woodland
Park Zoo.The beerwasnamedoff the Zoo theme tocreate the name.The nexthouse beerMaccreated
for the Park PubwasSerengeti Wheat,itwasnamedinthe same fashion.
Product, service or issue
They currently serve alesandare expandingto scotchand whiskey. Mostof the ingredientsfoundin
theirbreware from the Northwestwhilethe maltedbarleyandhopsare grownin Yakima,Wash. Mac
and Jacks’retail store offers:kegs,growlers,glasspitcher,pintglass,banners,coasters,taphandles,
growlercovers,t-shirts,hoodies,hats, vests.A currentissue isthatMac and Jacksdoesnot bottle their
beerswhichhasbeenanissue forsome customers.Theydonot planon bottlingbuttheyare quotedon
the website saying,“neversaynever”regardingpossiblybottlingbeer.
Promotions
Mac and Jack’sbreweryoffersfree toursof the breweryeverySaturdayandSunday from1 p.m.
to 3 p.m. They alsohost andtake part inmany additional eventsinthe Northwest.
Market Share
SalesHistory:
Past
• Founded1993 inRedmond,Wash.
• Beganin a garage at twokegsper day
• Currently6,000 kegspermonth
• Comparedto The Pike BrewingCompanyin2005 reaching7,500 barrelstotal
Present/Future
• SoldinWash.,Oregon& Idaho
• No bottlesorintentiontointhe future,Draftbrew & kegsonly.
• 95% of productionisAfricanAmber
• 24 hour,7 days a weekproduction
Firstkegwas soldinApril of 1994 but the brewerywasfoundedin1993. Onlysoldin
Wash.,Oregonand Idaho. There are nobottlesor planstobottle,it’sonlyadraft brew unlessin
the Redmond,Wash.store.T shirts,hatsand othermemorabiliahave recentlybeenadded.
Beganproducingtwokegsa day and now averagesover6,000 kegsper month(Rankin&
Schropp).AfricanAmberaccountsfor95% of theirproduction(http://www.redmond-
reporter.com/business/39891748.html#).The future of Mac and Jack’swill continue togrow as
the are “the numberone distributedandnumberone sellingdraftbeerinWashingtonstate.”
Owners,Mac and Jack,will continue topushfor24 hour, 7 days a weekproductionof beerto
please theircustomers(Rankin&Schropp).
Competition
Washington:
 The Pike Brewing Company (http://www.pikebrewing.com/contact.shtml)
 Fremont Brewing (http://www.fremontbrewing.com/brewcrew/)
 Georgetown Brewing Company (http://www.georgetownbeer.com/brewery)
 Elysian Brewery (http://www.elysianbrewing.com/)
Oregon:
 McMenamins High Street Brewery (http://www.mcmenamins.com/264-high-
street-brewery)
 Rogue (www.rogue.com)
 Deschutes Brewery (http://www.deschutesbrewery.com/locations/bend)
Idaho:
 Grand Teton Brewing (http://grandtetonbrewing.com/Distributors.html)
 Laughing Dog Brewing (http://www.laughingdogbrewing.com/distributors/)
Yakima & Ellensburg:
 Bale Breaker Brewing Company (http://www.balebreaker.com/#)
 Iron Horse Brewery (http://www.ironhorsebrewery.com/)
Consumers:
 Those loyal to Budweiser, Coors, etc.
 Microbreweries tend to be more expensive, taking away from customers
trying to stretch a dollar.
 Older generations; harder to target because of young age in microbrewery.
Ideas/Lifestyles:
 Low socio-economic status
 Alcoholism
Consumers
Loyal customersof Budweiser,Coors,Miller
• Cost
• Oldergenerations
• Low socio-economicstatus
• Alcoholics
Resources/Reviews of Mac & Jack
“Our tour guide wassuperinformativeandclearlyenjoyshisjob.Iwassurprisedtolearnhow
small the breweryisconsideringhow muchbeertheysupplytothe Northwest - it'sa prettycool
operationandyouget to learnaboutall the cool methodstheyemploytomake more/better
beer.Ileftthe breweryhavingamuch greaterappreciationforMac & Jack's and I'm more
inclinedtoordertheirbeerbecause of it.Thanksforsupplyingsomanygooddrinksandgood
times,Mac & Jack's!”
http://www.yelp.com/biz/mac-and-jacks-brewery-redmond
• “It's not a bigbreweryor a longtour,but youget free pintglasses,free tastings,anda
reallygoodhistoryof the beer.Additionally,withthe smallergroup,there were alot
more questionsbeing asked.Fromthis,Ilearnedthata lotof theiringredientsare
sourcedlocally!Growlerfillsare SUPERreasonable,theyhave greathours,andthe staff
isreally,reallyfriendly.IsometimeswishIcouldpickupa six pack at the store,but
havingthese guysnearbymakesitworththe tripout for the growlerfill.Also,although
the AfricanAmberisamazing,try all the differenttypesof beertheyhave,you'llfind
they're all JUST as amazingas the AfricanAmber.Lasttime we wenton the tour,there
were some batchesbrewedbyemployees(experimental flavors) andtheywere really
tasty.”
http://www.yelp.com/biz/mac-and-jacks-brewery-redmond
Market Research
The majorityof the reviewsfoundonlocal newsandbeerreview websitesdescribe Mac& Jack’s
as a local company thatcreatesworld-classproducts.
• Mac & Jack's breweryisone of the largestcraftbreweriesinWashingtonState,best
knownfortheirAfricanAmber.
• The communityof Redmondhasa positive perceptionof the breweryandmanyof the
customersare extremelyloyal.Mac& Jack’sBrewingCompanydedicatesitselfto
preservingacleanenvironmentandmaintainaresponsibleresidentstatustothe
Redmondcommunity.
• Most of the ingredientsare fromthe Northwest.The maltedbarleyandhopsare grown
inYakima,Wash.
• Mack & Jack’sre-useswaterandall byproductscreatedduringthe brewingprocessare
recycled.Mac & Jack’s alsoencourageswaste reductionbyofferingadiscountto
customerswhorecycle theirgrowlersandkegs.
Works Cited
Rankin,M., & Schropp,J. RetrievedApril6,2015, from http://www.macandjacks.com/
Craft BrewingStatistics.(n.d.).RetrievedApril 13,2015, from
http://www.craftbeer.com/breweries/support-your-local-brewery/craft-brewing-statistics

Case Description

  • 1.
    Megan Schmitt ShiannMiller KarleighShannon Jacque Stuckens MeredithCarlsen Macand Jacks Brewery External Environment Our state’schangingeconomic,political andsocial environments,bringupnew challengesand opportunitiesforMac and Jacks inthe microbreweryindustry Economic: • Craft beersaleshave shotup15% inthe past year. • Washingtonisthe numbertwointermsof numberof microbreweriesperstate. • Financially,retailersoftenrefrainfromsellingcraftbeerbecause theycanmake muchmore profitoff of the corporate swell of name brandbeers. Political: • Currentstate lawsfavormulti-nationalbrewingcorporationsoversmall-time local breweries. • Threat of continuallyraisingstate tax rateson microbreweries. • Continuallyraisingstate productioncapsformicrobreweriesasdemandforcraft beergrows; but withthatcomeshighertaxation. Social: Drinkingage of 21 narrows potential audience. • Risingsocial trendof ‘supportinglocal’. • Mac and Jacks attracts hipster,outdoorsy,trendy,PNWcrowd. • Drinkersare attracted to the strongertaste of craft beer,higheralcohol percentage andthe use of blendinguniqueflavorslike coffee orchocolate intocraftbeer. Client and Industry People wantqualityoverquantity.That’swhymicrobreweriesare successful.Retail dollarvalue fromcraft brewersin2013 was roughly$14.3 billion,upfrom$11.9 billionin2012. There are currently 264 microbreweriesinthe state of Washingtonandcraft breweriesprovide about360,000 jobsinthe US. Growth of the craft breweryindustryin2014 was 18% by volume and22% by dollarshares. The
  • 2.
    retail dollarvalue fromcraftbrewersin2014was about$19.6 billion,whichwasupfrom$14.3 billionin 2013 (craftbeer.com). Mac & Jacks isonlysoldin Washington,Oregon&Idaho.Redmondisthe onlybrewerylocation and all otherlocationssell Mac& Jack’son tap. Theydo notbottle Mac & Jacks anddo not planto anytime inthe currentfuture.Many people dohoweverrequestMac & Jacks togrow outside the PNW. Mac Rankinand Jack SchroppfoundedMac & Jack’sin 1993 andare still active inthe day-to-day operations.Mac& Jack’shas onlytwentyemployeesandthe firstkegwassoldinApril of 1994 in Redmond,WA. AfricanAmberstartedas a house beerforthe Park Pub,whichislocatednexttothe Woodland Park Zoo.The beerwasnamedoff the Zoo theme tocreate the name.The nexthouse beerMaccreated for the Park PubwasSerengeti Wheat,itwasnamedinthe same fashion. Product, service or issue They currently serve alesandare expandingto scotchand whiskey. Mostof the ingredientsfoundin theirbreware from the Northwestwhilethe maltedbarleyandhopsare grownin Yakima,Wash. Mac and Jacks’retail store offers:kegs,growlers,glasspitcher,pintglass,banners,coasters,taphandles, growlercovers,t-shirts,hoodies,hats, vests.A currentissue isthatMac and Jacksdoesnot bottle their beerswhichhasbeenanissue forsome customers.Theydonot planon bottlingbuttheyare quotedon the website saying,“neversaynever”regardingpossiblybottlingbeer. Promotions Mac and Jack’sbreweryoffersfree toursof the breweryeverySaturdayandSunday from1 p.m. to 3 p.m. They alsohost andtake part inmany additional eventsinthe Northwest. Market Share SalesHistory: Past • Founded1993 inRedmond,Wash. • Beganin a garage at twokegsper day • Currently6,000 kegspermonth • Comparedto The Pike BrewingCompanyin2005 reaching7,500 barrelstotal Present/Future • SoldinWash.,Oregon& Idaho • No bottlesorintentiontointhe future,Draftbrew & kegsonly.
  • 3.
    • 95% ofproductionisAfricanAmber • 24 hour,7 days a weekproduction Firstkegwas soldinApril of 1994 but the brewerywasfoundedin1993. Onlysoldin Wash.,Oregonand Idaho. There are nobottlesor planstobottle,it’sonlyadraft brew unlessin the Redmond,Wash.store.T shirts,hatsand othermemorabiliahave recentlybeenadded. Beganproducingtwokegsa day and now averagesover6,000 kegsper month(Rankin& Schropp).AfricanAmberaccountsfor95% of theirproduction(http://www.redmond- reporter.com/business/39891748.html#).The future of Mac and Jack’swill continue togrow as the are “the numberone distributedandnumberone sellingdraftbeerinWashingtonstate.” Owners,Mac and Jack,will continue topushfor24 hour, 7 days a weekproductionof beerto please theircustomers(Rankin&Schropp). Competition Washington:  The Pike Brewing Company (http://www.pikebrewing.com/contact.shtml)  Fremont Brewing (http://www.fremontbrewing.com/brewcrew/)  Georgetown Brewing Company (http://www.georgetownbeer.com/brewery)  Elysian Brewery (http://www.elysianbrewing.com/) Oregon:  McMenamins High Street Brewery (http://www.mcmenamins.com/264-high- street-brewery)  Rogue (www.rogue.com)  Deschutes Brewery (http://www.deschutesbrewery.com/locations/bend) Idaho:  Grand Teton Brewing (http://grandtetonbrewing.com/Distributors.html)  Laughing Dog Brewing (http://www.laughingdogbrewing.com/distributors/) Yakima & Ellensburg:  Bale Breaker Brewing Company (http://www.balebreaker.com/#)  Iron Horse Brewery (http://www.ironhorsebrewery.com/)
  • 4.
    Consumers:  Those loyalto Budweiser, Coors, etc.  Microbreweries tend to be more expensive, taking away from customers trying to stretch a dollar.  Older generations; harder to target because of young age in microbrewery. Ideas/Lifestyles:  Low socio-economic status  Alcoholism Consumers Loyal customersof Budweiser,Coors,Miller • Cost • Oldergenerations • Low socio-economicstatus • Alcoholics Resources/Reviews of Mac & Jack “Our tour guide wassuperinformativeandclearlyenjoyshisjob.Iwassurprisedtolearnhow small the breweryisconsideringhow muchbeertheysupplytothe Northwest - it'sa prettycool operationandyouget to learnaboutall the cool methodstheyemploytomake more/better beer.Ileftthe breweryhavingamuch greaterappreciationforMac & Jack's and I'm more inclinedtoordertheirbeerbecause of it.Thanksforsupplyingsomanygooddrinksandgood times,Mac & Jack's!” http://www.yelp.com/biz/mac-and-jacks-brewery-redmond • “It's not a bigbreweryor a longtour,but youget free pintglasses,free tastings,anda reallygoodhistoryof the beer.Additionally,withthe smallergroup,there were alot more questionsbeing asked.Fromthis,Ilearnedthata lotof theiringredientsare sourcedlocally!Growlerfillsare SUPERreasonable,theyhave greathours,andthe staff isreally,reallyfriendly.IsometimeswishIcouldpickupa six pack at the store,but havingthese guysnearbymakesitworththe tripout for the growlerfill.Also,although the AfricanAmberisamazing,try all the differenttypesof beertheyhave,you'llfind they're all JUST as amazingas the AfricanAmber.Lasttime we wenton the tour,there
  • 5.
    were some batchesbrewedbyemployees(experimentalflavors) andtheywere really tasty.” http://www.yelp.com/biz/mac-and-jacks-brewery-redmond Market Research The majorityof the reviewsfoundonlocal newsandbeerreview websitesdescribe Mac& Jack’s as a local company thatcreatesworld-classproducts. • Mac & Jack's breweryisone of the largestcraftbreweriesinWashingtonState,best knownfortheirAfricanAmber. • The communityof Redmondhasa positive perceptionof the breweryandmanyof the customersare extremelyloyal.Mac& Jack’sBrewingCompanydedicatesitselfto preservingacleanenvironmentandmaintainaresponsibleresidentstatustothe Redmondcommunity. • Most of the ingredientsare fromthe Northwest.The maltedbarleyandhopsare grown inYakima,Wash. • Mack & Jack’sre-useswaterandall byproductscreatedduringthe brewingprocessare recycled.Mac & Jack’s alsoencourageswaste reductionbyofferingadiscountto customerswhorecycle theirgrowlersandkegs. Works Cited Rankin,M., & Schropp,J. RetrievedApril6,2015, from http://www.macandjacks.com/ Craft BrewingStatistics.(n.d.).RetrievedApril 13,2015, from http://www.craftbeer.com/breweries/support-your-local-brewery/craft-brewing-statistics