The Belgian Brewery Industry in a Global Context: Business, Economics, Innovation and Culture

Course Syllabus BUS 102

NUMBER OF ECTS CREDITS: 6ECTS

CONTACT DETAILS FOR PROFESSOR

Instructor: Prof. Dr. Sven Van Kerckhoven

Email: [email protected]

Office hours: Monday 13.30-15.00

Course Hours: Tuesday and Thursday 14.00-18.00

COURSE DESCRIPTION

Belgium is not only home to the world’s biggest brewers, but has in recent years also seen a rise of innovative micro-breweries and diversification of the beer market with potentially far-reaching implications for the business and economics of the brewery industry inside and outside the country. In November 2016, UNESCO even added ‘Belgian Beer Culture’ to the World Heritage List, highlighting the cultural importance and impact of the Belgian beer industry beyond pure business and economics. This course focuses on key principles and changes in the economics, marketing, production and innovation of the Belgian Brewery Industry in a Global Context. Taking the Belgian beer industry as a multi-faceted case study for studying core Business processes and developments in the field of the national and international beer market (including production, strategy, marketing and product innovation), this course also explores the impact of geography, culture and globalization on Belgian beer businesses and their business strategies. The course includes company visits, guest lecture series and experiential learning and provides unique insights into the major shifts and changes of major the economics and business processes related to the brewery industry. In cooperation with key experts, this summer course will also include the possibility of learning the nuts and bolts of the beer brewing process itself.

LEARNING OBJECTIVES

See below

COURSE MATERIALS

Swinnen, J.M. (2011). The Economics of Beer. Oxford University Press

Readings as in the course schedule (see later).

ACTIVE LEARNING

Learning should be an active experience. Students who passively listen to lectures, copy someone else’s notes, and limit their readings to the bare minimum are unlikely to develop their critical thinking potential and expand their personal knowledge system. This might not only pose problems during the course and the exams, but also during your later career.

Students are strongly recommended to have an updated understanding of current events. Active learning will turn out to be enriching to the overall course and class discussions.

ADDITIONAL COURSE POLICIES

Use of Electronics:

Computers are permitted to take notes. However, if you use your laptop for something unrelated to the course, you will not be allowed to bring it to any of the future classes.

Mobile phones are to be turned off! If your mobile phone rings in class, please turn it off immediately. If you are caught talking on your mobile or texting during class you will be asked to leave the class immediately and lose all points for the day (including participation and assignments).

Students are requested to read the chapters in advance, as well as prepare the additional texts/ business cases. This will give the students a clear idea about the concepts exposed during class and makes them benefit from the course to the maximum degree.

Late assignments

The assignments are due by the deadline specified by the instructor. Late submissions are subject to the explicit approval by the instructor. If not handed in on time, the student will face a 20% grade reduction per day late.

Students should refer from behaving in ways inconsistent with academic honesty. Cheating and plagiarism are serious breaches of academic integrity and will be judged as such. Following the College policy, cheating and plagiarism cases will be communicated in writing to the Associate Dean for Students and submitted to the Student conduct Committee for disciplinary action. If you refer to someone’s work, appropriate references and citations must be provided.

Grammar, spelling, lay-out and punctuation are important during your career. Please do use the appropriate tools before submitting any assignment.

Attendance

Since this course builds heavily on the active participation by students, and since practical experiences will be shared during class hours, students are required to attend all sessions.

Moreover, due to the applied nature of the course, some sessions might not be taken place at our premises. Complimentary, some courses might take place on different hours than the general class hours. These will be reduced to the bare minimum, but students should stand ready to make the necessary arrangements to attend these sessions. Attendance to these sessions is required.

Writing Style

APA formatting is required on all work.

Academic Honesty Statement

Academic dishonesty is NOT tolerated in this course.

Academic honesty is not only an ethical issue but also the foundation of scholarship. Cheating and plagiarism are therefore serious breaches of academic integrity.

Following the College policy, cheating and plagiarism cases will be communicated in writing to the Associate Dean for Students and submitted to the Student Conduct Committee for disciplinary action.

If you refer to someone else’s work, appropriate references and citations must be provided. Grammar, spelling and punctuation count, so use the tools necessary to correct before handing in assignments.

The main issue is that material other than your own, or extensively based upon the research of others, must be clearly distinguishable from your own writing. A number of different cases must be considered, if you wish to avoid committing plagiarism. These are discussed below.

Plagiarism

1. Blatant plagiarism is the word-for-word quotation of another person’s work without using either quotation marks or making an attribution (footnote).

2. A word-for-word quotation with an attribution but without quotation marks is also blatant plagiarism, because the reader is led to assume that the actual phrasing used is that of the paper’s author.

3. A word-for-word quotation with quotation marks but without an attribution are considered plagiarism, as the quotation marks indicate that these are not the author’s own words.

4. Paraphrased material must also be properly attributed.

5. Common knowledge or simple facts that can be looked up and still need to have a citation.

6. General rule is that all numbers such as, value, dates, and percentages must be cited. It can be assumed that these numbers are acquired somewhere, therefore sources should be cited.

COURSE ASSESMENT

Final Examination 50%

Written Assignment 50%

GRADING SCALE OF VESALIUS COLLEGE

Vesalius College grading policy, in line with the Flemish Educational norms, is as follows:

Grade Scale of 20 Scale of 100

A 17.0-20.0 85-100

A- 16.1-16.9 81-84

B+ 15.3-16.0 77-80

B 14.5-15.2 73-76

B- 13.7-14.4 69-72

C+ 13.1-13.6 66-68

C 12.3-13.0 62-65

C- 11.5-12.2 58-61

D+ 10.7-11.4 54-57

D 10.0-10.6 50-53

F Below 50 0-49

Letter Scale of 20 Scale of Rationale of grading grade 100

A 17.0-20.0 85-100 An excellent work, which demonstrates advanced knowledge of empirical background and theoretical/conceptual frameworks. The work is underpinned by an outstanding capacity for learning, mastering of relevant literature and ability to gather and independently assess relevant sources beyond required levels of reading. The proposed analysis draws on solid, critical and original analytical skills and ability to relate theoretical knowledge to empirical cases. The work is well communicated and demonstrates a pertinent and original ability to communicate complex dynamics. The bibliographic and referencing systems are correct.

A- 16.1-16.9 81-84 A refined piece of work, which demonstrates advanced knowledge of both empirical background and theoretical and conceptual frameworks. The work is underpinned by a good learning attitude; ability to master relevant theoretical literature and coherent attempt to apply this literature to empirical phenomena. Strong critical ability and successful attempt to pursue an original analysis. Adequate reading levels and ability to communicate key findings in an effective way. However, weaknesses can be identified in terms of language, referencing, depth of sources, profundity of analysis and/or organisational structure. B+ 15.3-16.0 77-80 A good piece of work, sustained by adequate analytical skills. It demonstrates good level of understanding of the relevant theoretical literature and critical ability to apply these frameworks to the topic at hand. Written and oral expression is overall correct, the referencing and bibliographic systems are overall correct. The work could be further improved (minor flaws in the structure of the argument; minor theoretical lacuna), but it remains nonetheless a good piece of work.

B 14.5-15.2 73-76 An adequate work, which overall meets the requirement of the assignment. It demonstrates a fairly good level of knowledge of both empirical background information and provides some analytical framework. The work meets the requirements of the assignment in terms of mastery of the literature and learning outcomes. Language, reference and bibliographic systems are generally correct although perhaps with some weaknesses. The work could be significantly improved (e.g. flaws in the organisational structure; limited number of sources; clarity and accuracy of language; theoretical/conceptual lacuna; sub-optimal focus/coherence of argument). B- 13.7-14.4 69-72 The work meets the basic requirements specifically demanded for the assignment. It shows the attempt to relate with relevant theoretical literature and to apply theoretical frameworks to the analysis of real- life cases. The work, however, does not adequately engage with the critical assessment of either relevant theoretical frameworks or the topic at hand. The work is marked by some combination of flaws in the organisational structure of the paper; theoretical/conceptual lacuna; sub-optimal focus or coherence of the argument; clarity and accuracy of language and/or inappropriate selection of sources. C+ 13.1-13.6 66-68 The work meets the requirements of the assignment in a sufficient way, but does so in an imprecise and incomplete manner. It shows basic knowledge of both theoretical frameworks and the topic at hand. The proposed analysis is marked by some flaws (e.g. poor structure, theoretical or conceptual coherence; limited analysis; basic engagement with the literature).

C 12.3-13.0 62-65 The work engages with the assignment and meets the requirements in a somehow satisfactory, but it is marked by several pitfalls. The work lacks focus, it is poorly structured; it is not sufficiently embedded in the literature; it uncritically tackles the topic at hand. The argument is hard to follow and the referencing and bibliographic systems are overall incorrect.

C- 11.5-12.2 58-61 The work does not meet the requirements of the assignment. It engages with the question, but does so in a basic and inadequate way. The work is undermined by several pitfalls. It shows a basic understanding of the module requirements and is jeopardised by major flaws including (but not confined to) a lack of coherence, loose expression, poor coverage of the literature; poor referencing; scant ability to critically assess the topic at hand. D+ 10.7-11.4 54-57 The work does not meet the requirements of the assignment. It attempts to address the question, but it remains unfocused and loosely structured. There is an evident lack of reading and scant ability to relate to relevant literature and to engage critically with the topic at hand. Language is poor; the referencing and bibliographic system is incorrect or incomplete.

D 10.0-10.6 50-53 The work is marked by serious flaws and below an acceptable level. The rationale of the assignment is not understood nor addressed. The work demonstrates insufficient understanding of the topic at hand and learning outcomes below the required level. The answer is unfocused; expression is unclear; there are severe flaws in the coherence of the argument; engagement with the literature is minimal, referencing is often poor.

F 0-9.9 0-49 The work does not meet any of the requirements and learning objectives of the course and the Major. The argument is loose, language is poor, no knowledge of relevant theoretical and empirical dynamics. Incorrect or incomplete reference systems and/or likely instances of plagiarism.

FURTHER DESCRIPTION OF ASSIGNMENTS

Final Examination

The final examination covers the whole cursus, and consists of open questions (both longer and shorter) with regards to the content of the classes. Guest lectures and other activities taking place as part of the course can be covered during the examination as well.

Written Assignment

Divided in groups (depending on class size), students investigate a Belgian brewery in more detail. They need to pay attention to the different things discussed in class: history, the production/brewing process, the business and innovation and marketing.

The final written assignment should count up to 2500 words, and should be submitted via Turnitin. It should be formatted using APA standard. Font should be times new roman, 12, 1.25 spacing.

All information used to drafting the document should be cited!

THE PAPER IS DUE 29 JUNE DURING THE CLASS.

The paper should be handed in in hard copy during the class, and upload on turnitin.com.

The written assignment should use the following structure:

1. Introduction (300 words) 2. History of the Brewery (500 words) 3. The products/ Brewing process (400 words) 4. The business model/ Company side (600 words) 5. Innovation and marketing of the brewery (500 words) 6. Conclusion (200 words)

See rubric at the end of the syllabus

Since, every member of the group bears the responsibility to continue working on the different work packages, both a group and an individual grade will be given. The group grade reflects the overall quality of the business plan. The individual grade reflects both the 360° degree evaluation by the student and its peers, and the progress made on the work package for inclusion that is the student’s responsibility. More specific, depending on the peer evaluation, students can score a higher or lower grade. The average student will get the overall score of the work done on the business plan. Students who score better than the mean score on the peer review, will see their grades increased reflecting their outstanding contributions to the overall work. For each peer review, a total score will be computed. The total score on all the peer evaluations will be used to determine a student’s grade. For every 0.1 points scored higher than the overall average, the student will receive a 1% increase on its grade. The peer reviews will be conducted anonymously and students can by doing so offer suggestions for improvement to each other. This information will be handed to the students by the instructor.

PROGRAM

Week 1: Introduction

Session 1: Introduction to the course and overview of the course (23 May)

• Relevance of beer in Belgium • The Brewing Industry: Agriculture and Globalization • Breweries and Beer Companies: Business Models/Concepts

Persyn, D., Swinnen, J.M. and Vanormelingen, S. (2011). Belgian Beers: Where History meets globalization, in Swinnen, J.M. (ed). The Economics of Beer. Oxford University Press.

Week 2: History and Practice

Session 1: The Beer brewing process (30 May)

During this session, you will be brewing your own beer under guidance and with explanations of an expert. This session takes place at another location/ time than the regular classes

• Practice session: Brewing beer • Lecture on the different types of beer, the brewing process, and the ingredients • Guest Lecture: Casey Wellman/ Senna Rees (Malt and Mout Home Brewers)

!! This class takes place from 10.30 to 16.30, LOCATION: VGC Elzenhof, Kroonlaan 12, 1050 Elsene!!

Session 2: History of beer (1 June)

• Beer over the centuries • The importance of beer in state building • The history of breweries

Poelsmans ,E. and Swinnen, J.M. (2011). A Brief Economic History of Beer, in Swinnen, J.M. (ed). The Economics of Beer. Oxford University Press.

Week 3: The Economics of Beer

As standard in Economics literature, the price, quality, quantity and differentiation of a product originates from the interaction between demand and supply. During the two session, these are discussed in more detail.

Session 1: Demand and consumption (6 June)

• Why do some nations drink more beer? • When do people drink more beer? • What is happening on the national/ Global scale?

Colen, L. and Swinnen, J.M. (2011). Beer-Drinking Nations: The determinants of Global Beer consumption, in Swinnen, J.M. (ed). The Economics of Beer. Oxford University Press.

Smith, L.A. and Foxcroft, D.R. (2009). The effect of alcohol advertising, marketing and portrayal on drinking behaviour in young people: systematic review of prospective cohort studies, BMC Health, 9:51

Trembay, C.H. and Trembay, V.J. (2011). Recent economic developments in the import and craft segments of the US Brewing industry, in Swinnen, J.M. (ed). The Economics of Beer. Oxford University Press.

Session 2: Supply and Industrial Organization (8 June)

Adams, W.J. (2011). Determinants of concentration in Beer markets in Germany and the United States 1950-2005, in Swinnen, J.M. (ed). The Economics of Beer. Oxford University Press.

Bai, J., Huang, J. Rozelle, S. and Boswell, M. (2011). Beer battles in China: The struggle over the world’s largest beer market, in Swinnen, J.M. (ed). The Economics of Beer. Oxford University Press.

!!Location: Beer Project, Rue Antoine Dansaert 188, 1000 Bruxelles. Lecture on Business Models and innovation (Dimitri Van Roy, Brussels Beer Project)

Week 4: Law and Economics: The Political Economy of Beer

Over the last centuries, beer has often been subject to governmental regulation. Tax revenues on beer and beer ingredients have provided governments with important tax revenue. Moreover, governments have often strongly regulated the industry for reasons related to quality, health and more recently, competition.

Session 1: Taxation (13 June)

Nye, J.V.C (2011). Brewing Nation: War, Taxes, and the Growth of the British Beer Industry in the Eighteenth and Nineteenth Centuries in Swinnen, J.M. (ed). The Economics of Beer. Oxford University Press.

Deconinck, K., Poelmans, E. and Swinnen, J.M. (2016). How beer created Belgium (and the Netherlands): the contribution of beer taxes to war finance during the Dutch Revolt, Business History, 58(5), pp. 694- 724.

Session 2: Competitiveness and trade (15 June)

9 van Tongeren, F. (2011). Standards and international trade integration: A Historical Review of the German Reinheitsgebot, in Swinnen, J.M. (ed). The Economics of Beer. Oxford University Press.

Slade, M.E., (2011). Competition Policy towards Brewing: Rational Response to Market Power or unwarranted interference in efficient markets, in Swinnen, J.M. (ed). The Economics of Beer. Oxford University Press.

Session 3: Brewery Visit to Westvleteren (17 June, full day trip, optional, cost= about 50 euros)

Westvleteren is a brewery founded in 1838 at the Trappist Abbey of Saint Sixtus in Vleteren not far from the hop-producing town of Poperinge. The brewery's three beers have acquired an international reputation for taste and quality, Westvleteren 12 being considered to be one of the best beers in the world.

Week 5: Types of beers and Innovation

Session 1: Innovation 20 June

Guest Lecture Casey Wellman

!! Location: Oud Beersel, Laarheidestraat 264, 1650 Beersel

• When was stylistic innovation taking place in brewing history? o style development in monastic styles: Dubbel, Tripel, etc. o sources on the history of lambic and geuze o saison • Technological Innovation

Session 2: Finalizing Bottling: Practice session II

Guest lecturer: Casey Wellman

Location TBC

Week 6: Beer culture

Session 1: Beer culture: 26 June at 9 AM

Guest Lecture by Flemish Minister of Culture, Media, Youth and Brussels, Sven Gatz, who used to be the Director of the Federation of Belgian Brewers (2011-2014).

McCluskey, J.J. and Shreay, S. (2011). Culture and Beer Preference, in Swinnen, J.M. (ed). The Economics of Beer. Oxford University Press.

Session 2: Future challenges and opportunities in the beer market

Guest Lecture: Dirk Lindemans, CEO Lindemans Brewery

Week 7: Final examination

Rubric for the written assignment

Excellent (100- Good (80-60%) Fair (60-40%) Poor (40-0%) 80%) Introduction The introduction The introduction The introduction The introduction (300 words) clearly introduces does a decent job does a decent job fails to do a 10 points the brewery and in introducing the in either decent job in the structure of brewery and the introducing the introducing the the essay structure of the brewery and the brewery and the essay structure of the structure of the essay essay History The history clearly The history The history part The history fails to (500 words) describes the introduces the lacks structure and describe the 10 points history and the history but fails to fails to address the history and the major landmarks address some of history and major major landmarks of the brewery the major landmarks of the brewery landmarks of the brewery Products/ Brewing This part This part This part describes This part fails to process extensively extensively some of the describe the (400 words) describes the describes the different products different products 15 points different products different products and the brewing and the brewing and the brewing and the brewing process and fails process and fails process and uses process but does to use the to use the the appropriate not use the appropriate appropriate terminology appropriate terminology terminology terminology Business model The essay clearly The essay clearly The essay clearly The essay fails to (600 words) describes the describes the describes the develop this part 15 points business model, business model, business model. decently and sets it apart and sets it apart from the from the competitors. It competitors further describes some of the challenges that come with the

business model Innovation/ The essay clearly The essay decently The essay decently The essay fails to Marketing describes the describes the describes the provide an insight (500 words) approach to business model, business model in the innovation 15 points marketing and and sets it apart and marketing of innovation, and from the the brewery sets it apart from competitors. the competitors. Conclusion The conclusions The conclusions The conclusions The conclusions (200 words) are well organized are decently well are fails to cover are just a 10 points and cover the organized and the most summary most important cover the most important findings findings without important findings without being just being just a without being just a summary. summary. a summary. References/ -The paper builds -The paper builds -The paper uses a -The paper does Sources heavily on heavily on few sources not provide 10 points sources, coming sources, coming coming from sources for the from academic from academic academic articles, information in the articles, news articles, news news papers, and paper papers, and the papers, and the the company company itself for company itself for itself. all the important all the information information. (numbers etc.). -the paper includes primary data gathered by the students themselves Structure, -structure is -structure is -structure is -structure is not grammar and followed perfectly followed perfectly followed perfectly followed layout - Paper contains - Paper contains a - Paper contains a - Paper contains 15 points no errors in few errors in significant number several errors in grammar, grammar, of errors in grammar, punctuation or punctuation or grammar, punctuation or spelling. spelling. punctuation or spelling. - Language is clear - Language is clear spelling. - Language is and precise. and precise. - Language is clear unclear. and precise.

Major Learning Objectives, Teaching Methods, Testing and Feed-back Questionnaire (Business Studies)

Course code and course name: BUS102 The Belgian Brewery Industry in a Global Context: Business, Economics, Innovation and Culture

Instructor: Sven Van Kerckhoven

Summary:

Number of assignments used in this course: 2

Number of Feedback occasions in this course (either written or oral): oral during the classes

Number and Types of Teaching Methods: lecturers, practice sessions, side visits

Does your course require graded student oral presentations?: no

Please fill out the following table per course you teach.

Major Learning Objectives Course Learning objectives Methods used to Teach Course Methods (and numbers/types Type, Timing and addressing the Major Objectives of assignments) used to test Numbers of Feedback Objectives (choose the most these learning objectives given to Student important ones that your course actually addresses) X The course builds strongly 2: exam and written During class, oral The bachelor has a broad knowledge of the different functional fields of on economic theory and assignment business management. He is able to applies this to the beer apply this knowledge in the analysis of industry business-oriented problems and is able to propose solution to specific Lectures, guest lectures, business problems. company visits

X Lectures, guest lectures, 1: exam The bachelor has an understanding of the interrelatedness of the different company visits functional fields of business and understands the impact of this on decision-making. X Company visits 2: exam and written The bachelor has insight into the broad societal context of businesses and is assignment able to take it into account in the analysis of business-oriented problems. X Lectures 1: written assignment The bachelor knows and is able to apply common qualitative and quantitative research methods and is able to apply these in the field of business studies

The bachelor has an open and academic attitude characterized by accuracy, critical reflection and academic curiosity.

Major Learning Objectives Course Learning objectives Methods used to Teach Course Methods (and numbers/types Type, Timing and addressing the Major Objectives of assignments) used to test Numbers of Feedback Objectives (choose the most these learning objectives given to Student important ones that your course actually addresses) X Lectures, guest lectures, 2: exam and written Oral The bachelor is able to identify the international dimension in business- company visits assignment related problems and knows how to handle these problems in an effective way.

The bachelor is able to work in a multi- X Written assignment Written assignment+ peer Oral cultural team. evaluation

The bachelor recognizes the importance of life-long learning. X Written assignment Written assignment The bachelor is able to communicate clearly, fluently and accurately; as well in a written report as in an oral presentation.

The bachelor is able to combine ethical and business-oriented judgments in the analysis of business problems and takes these ethical considerations explicitly into account in the solutions proposed for business problems

Any other Comments related to your course:

BUS 102: Peer Evaluation Form for Group Work

Your name: Name of Evaluated Peer:

Please evaluate your peer using a numerical scale for each criteria. The scale used goes from 1 = poor, to 5 = excellent. (1 = poor; 2 = below average 3 = average 4 = good 5= very good). Please indicate in the comment box your reasoning for awarding the score and any additional information per criteria you would like to share.

Evaluation Criteria Scores Comments / Justification of Score / Suggestions for Improvement

Attendance of group meetings (attends regularly and arrives on time)

Meaningful and productive contributions to group discussions.

Sticking to agreed deadlines in all stages of the work process. (x2)

Preparation of work in a quality manner.

Cooperative and supportive attitude.

Pro-active and constructive leadership

Volunteering for extra tasks and work Contributes significantly to the success of the project (x2)

TOTAL (add scores)

Feedback on team dynamics:

1.How effectively did your group work?

2.Were the behaviours of any of your team members particularly valuable or detrimental to the team? Explain.

3.Any recommendations for improving the working of the group:

4.What did you learn about working in a group from this project that you will carry into your next group experience?

ANY OTHER COMMENTS