An Analysis of New Belgium Brewing's Enterprise Science Report

This report provides an analysis of New Belgium Brewing's (NBB) Enterprise Science, examining the company's business framework and its impact on profitability. It highlights NBB's strong financial performance, driven by its social and environmental considerations, as evidenced by its increasing beer production and market ranking. The report delves into NBB's environmental performance, focusing on energy conservation, water usage minimization, waste reduction, and greenhouse gas (GHG) emission reduction strategies. It also explores NBB's social performance, including philanthropic activities, community involvement, and industry collaborations to promote sustainable practices. The report discusses the pros and cons of NBB's sustainable development efforts, acknowledging potential impacts on short-term profitability and local customs. Overall, the analysis showcases NBB's commitment to responsible business practices and its efforts to balance economic, environmental, and social well-being.

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Running head: ENTERPRISE SCIENCE

ENTERPRISE SCIENCE
5. New Belgium’s Brewery maintains a strong business framework that drives resources of
nature and efforts of co-workers to create a successful and strong financial capacity that
reflects their corporate performance through healthy profitability driven due to their social
and environmental considerations.
Fig: NBB Annual Beer Production
Source: Case study
The New Belgium Brewing (NBB) barrels of beer manufactured each year reflects a
considerable growth in production where in 2006 they manufactured around 437,000 beer
barrels which increased to reach 713,000 beer barrels in 2011 and further rose to 764,424
beer barrels in 2012. The strong growth in production represents NBB’s profitability and
performance. Also NBB is 3rd biggest regional craft brewery since 2006 according to Brewers
Association in US as represented below and holds 8th rank in 2011 in overall US beer
industry.
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ENTERPRISE SCIENCE
Fig: NBB Ranking
Source: Case study
At present NBB sells across 28 states and in Columbia and since 2011 they transported beer
products to Michigan, Virginia, Maryland which made them have significant hold in Mid
Atlantic region of US. Moreover they have two brewery units i.e. Fort Collins (Colorado) and
recent one in Asheville, North Carolina.
Fig: NBB CAGR
Source: Case study
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ENTERPRISE SCIENCE
Also the figure above depicts that NBB Company’s CAGR for barrel sold for 3 years was
13.1% as compared to craft brewing industry and their 5 years CAGR is 10.3% which shows
a consistent business performance and growth.
6. The NBB’s environmental performance in four major areas of activity are:
Energy: the total energy was reduced by 7% from 2011 to 2018 where their philosophy has
been energy consumption that is attained through energy capture and minimization of use.
Other performance includes on site power generation and demand management technique
with smart grid to save energy. Also NB use voluntary internal energy tax to fund energy
projects and buy green wind power.
Fig: Energy intensity
Source: Case study
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Water: NBB has attained water usage minimization per barrel to 3:5:1 by 2015 as part of their
goal for saving on water consumption
Fig: Water consumption rate
Source: Case study
Waste reduction: NBB work deliberately to reuse, discard waste generation and divert waste
to recycling as much as possible and in 2011 they diverted around 94.38%waste from
landfills and are seeking for more methods to reduce waste.
Fig: waste diversion
Source: Case study
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GHG: NBB has been working to reduce their emission from brewery by practicing
universally accepted regulation (WRI’s GHG Protocol and BIER’s Beverage Sector
Guidance to reduce impact on environment and carbon footprint. As of 2015 NBB had
reduced carbon per hectoliter of beer sold by around 25% which was around 7.6 Co2 e per
hectoliter low than 2006.
According to NewBelgium (2018) in future NBB has plans to attain 16kg C02e/HL through
controlling their indirect emission generated from energy usage to 7.5% and controlling other
indirect emission to 85.9% as well as attain direct emission to 6.6%. NBB’s ultimate future
goal is to lower their absolute emission by 50% from 2014 to 2050.
Fig: Green House Emission
Source: newbelgium.com (2018)
7. NBB’s social performance parameter is to become responsible to people, planet and profit.
NBB made donations of more than 5 million USD to NGO’s and supported bike related non
profit to fundraise around 2 million USD by selling Tour de Fat to support programs of
climate and energy.
Philanthropy: NBB has made donations worth 5 million USD to grant programs and in 2012
co-workers made donation worth more than 3000 hours of voluntary service to community.
The actions of Philanthropyinclude donation to eco cycle, city slicker farms and grants for
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ENTERPRISE SCIENCE
environmental stewardship and Liquid center program. Also NBB supports volunteer events
like Beer Scouts with engagement of employees who support community service with efforts
and time as well as money. Employees are offered 1 hour of PTO for each 2 hours of
voluntary time and up to 500 USD to participate in volunteer leaves.
Eventing: NBB organizes contest, events to fundraise for local NGO’s and advocacy
programs and will be exceeding 2million USD mark soon for total funds raised. Also NBB
facilitate beer culture and responsible drinking
Policy: NBB supports Conservation Colorado to safeguard environment of Colorado and
support conservation policies along with advocating Business for Innovative Climate and
Energy Policy (BICEP) to support business commitment to work with policy developers and
co-create energy and climate laws and principles. NBB also works actively with American
Sustainable Business Council (ASBC) to support public policies that promote sustainable
economy and prosperity. Also NBB has been working closely for responsible packaging of
consumer goods under Extended Producer Responsibility (EPR).
Industry: NBB works with Beverage Industry Environmental Roundtable (BIER) to unite
leading beverage firms worldwide to support common purpose for stewardship and drive for
sustained development of industry practices and policies specifically for water conservation,
resource protection, energy efficiency and climate change mitigation policies. NBB has also
partnered with Brewers Association Technical Committee to build improved technical safety
and address sustainability concerns in industry. Moreover Hop Quality Group is NGO with
which NB has partnered to support preservation of hop quality.
8. NBB is a company that advocates sustainable development with their driven efforts for
environment and community under their sustainable policies that offers flexible approaches
to improve economic, environment and community wellbeing. These practices help NBB
control environmental damage in terms of energy conservation, lowering of water usage and
controlling emission to lower carbon footprint so as to save habitat and improve life of
community and health of people, flora and fauna (Painter, Hibbert& Cooper2018). The main
cons of their sustainable development is that these at times overlook local customs, traditions
as well as lowers direct shareholders short term benefits due to overlooking efforts made
towards society, as such sustainable development is sometimes seen as negatively affecting
profitability of NBB in short run.
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Reference
NewBelgium (2018). Carbon Emissions. [Online] Retrieved from:
https://www.newbelgium.com/sustainability/environmental-metrics/ghg/
Painter, M., Hibbert, S., & Cooper, T. (2018). The development of responsible and
sustainable business practice: Value, mind-sets, business-models. Journal of Business
Ethics, , 1-7. DOI:http://dx.doi.org/10.1007/s10551-018-3958-3
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