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Marketing Intelligence & Planning Marketing Intelligence & Planning Emerald Article: Coopers Brewery: heritage and innovation within a family firm John Byrom, Kim Lehman Article information: To cite this document: John Byrom, Kim Lehman, (2009),"Coopers Brewery: heritage and innovation within a family firm", Marketing Intelligence & Planning, Vol. 27 Iss: 4 pp. 516 - 523 Permanent link to this document: http://dx.doi.org/10.1108/02634500910964074 Downloaded on: 16-11-2012 References: This document contains references to 9 other documents Citations: This document has been cited by 1 other documents To copy this document: [email protected] This document has been downloaded 1038 times since 2009. * Users who downloaded this Article also downloaded: * Hui Chen, Miguel Baptista Nunes, Lihong Zhou, Guo Chao Peng, (2011),"Expanding the concept of requirements traceability: The role of electronic records management in gathering evidence of crucial communications and negotiations", Aslib Proceedings, Vol. 63 Iss: 2 pp. 168 - 187 http://dx.doi.org/10.1108/00012531111135646 Charles Inskip, Andy MacFarlane, Pauline Rafferty, (2010),"Organising music for movies", Aslib Proceedings, Vol. 62 Iss: 4 pp. 489 - 501 http://dx.doi.org/10.1108/00012531011074726 Sandy Bond, (2011),"Barriers and drivers to green buildings in Australia and New Zealand", Journal of Property Investment & Finance, Vol. 29 Iss: 4 pp. 494 - 509 http://dx.doi.org/10.1108/14635781111150367 Access to this document was granted through an Emerald subscription provided by UNIVERSITY OF MANCHESTER For Authors: If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service. 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The current issue and full text archive of this journal is available at www.emeraldinsight.com/0263-4503.htm MIP 27,4 Coopers Brewery: heritage and innovation within a family firm John Byrom and Kim Lehman 516 University of Tasmania, Launceston, Australia Received November 2008 Revised January 2009 Abstract Accepted February 2009 Purpose – The Australian brewing sector has been subject to ever-increasing concentration over recent years. Yet one firm, Coopers Brewery of South Australia, has managed to expand its market share in a highly competitive trading environment. This paper aims to consider how Coopers, one of the few family firms “of stature” in that sector, has succeeded. Design/methodology/approach – The paper adopts a case-study approach to illustrate the various factors which have contributed to the firm’s success. Fieldwork took place at Coopers’ headquarters in Adelaide and secondary data sources are also drawn upon. Findings – With fifth-generation family members in charge at the company, Coopers has been able to distinguish itself from its main competitors in the sector, two multinational conglomerates with a combined market share of around 90 per cent. Coupled with investment in production facilities, the case-study firm’s expansion into new domestic and international markets has proved to be profitable. Part of Coopers’ success lies in the niche marketing strategies it has employed – strategies which emphasise the company’s unique products and stress their history and traditions. The concept of the extended family is highlighted through the company’s approach to its consumers and staff members. Philanthropic activities also enhance the company’s reputation in the community at large. Practical implications – For managers, the case provides clear indications of the various successful niche marketing strategies which a family business in the brewing sector has adopted. Originality/value – The case provides evidence of how one company has been able to draw on its traditions whilst at the same time maintaining its relevance to the market. Keywords Brewing, Heritage, Innovation, Family firms, Australia Paper type Case study Introduction From its base in Adelaide, South Australia, Coopers Brewery can lay claim to being one of the few significant players in the brewing industry which is still in family hands. Concentration has been the trend across the Australian brewing industry, yet somehow, Coopers has managed to resist these developments and increase its, albeit small, share of the Australian beer market, whilst at the same time growing its exports. How has it managed to do this? What have been the strategies and tactics employed to achieve this? As this case reveals, much of the credit lies with the marketing techniques that have been employed by the firm. Niche marketing strategies have been implemented, which capitalise on the familial nature of the firm and emphasise the Marketing Intelligence & Planning premium nature of its products. Drawing on fieldwork at the company’s headquarters Vol. 27 No. 4, 2009 pp. 516-523 and in-depth analysis of secondary data, we show how a fifth-generation family firm q Emerald Group Publishing Limited has maintained its viability despite the intense competition emanating from its 0263-4503 DOI 10.1108/02634500910964074 multinational counterparts. Context Heritage and Beer occupies an important role in Australian life, constituting the main product innovation category across most of the country’s thousands of pubs and bars. Off-sales are also significant, with “tinnies” (cans) and “stubbies” (short glass bottles) being consumed at events and in the home. Total annual revenues in 2008 were US$10.4 billion, with annual beer consumption standing at around 1.7 billion litres (Datamonitor, 2008). In addition, the industry is forecast to grow by 7.7 per cent between 2008 and 2013 (Datamonitor, 517 2008). As an industry, brewing has been subject to extreme levels of concentration over recent years. Various smaller players have gradually been subsumed into larger entities, such that, at this point in time, two major players exist in the market: the Foster’s Group and Lion Nathan. Together, these two firms have a combined beer market share of around 90 per cent with significant holdings in the soft drink market and other alcoholic beverage industries as well. Smaller players, including Coopers, make up the remaining 10 per cent of the Australian beer market. The Foster’s Group has a market share of around 50 per cent, with its brands including arguably the most well-known of Australian beer brands, Foster’s Lager. Whilst this product is heralded as the firm’s flagship brand, and for many non-Australians will be top-of-mind when contemplating the archetypal Australian brew, the accolade of being the most widely drunk beer in Australia in fact goes to another Foster’s Group product, Victoria Bitter. Lion Nathan, with its roots in New Zealand, now has 40 per cent of the Australian beer market, following its recent acquisition of the Tasmanian-based J Boag & Son, which it took over from San Miguel, another international brewing conglomerate. Its so-called “power brands” include Toohey’s New, XXX Gold and Hahn Premium. Table I illustrates how the industry in Australia is segmented by product type, with sales of lagers clearly dominating. Both the Foster’s Group and Lion Nathan emphasise their nineteenth century beginnings, seeking perhaps to provide consumers with assurances as to their provenance; which is arguably of great importance in food and beverage industries. Yet the fact remains that, in terms of organisational structures, the nature of the products and the technology employed, twenty-first century brewing bears little resemblance to that of yesteryear. A brief history of Coopers When Thomas Cooper arrived in the then-colony of South Australia in 1862, White settlement had occurred only 26 years prior. Despite having trained as a stonemason in his native Yorkshire, Thomas Cooper quickly established himself as a successful brewer, devising Coopers Sparkling Ale and Extra Stout; products which are still made today. Upon his death in 1897, control of the firm passed to four of his sons. Category Percentage of share Standard lager 57.2 Low/no alcohol lager 12.9 Ales, stouts and bitters 12.8 Premium lager 12.3 Specialty beer 4.8 Total 100 Table I. Segmenting the Source: Datamonitor (2008) Australian beer market MIP Two successive generations continued to develop the company throughout the 27,4 twentieth century, maintaining the firm’s traditional products, whilst introducing new lines such as lagers. By the mid-1990s, it was apparent that expansion in capacity would be needed for the firm to develop. To this end, a new state of the art brewery was designed for the Adelaide suburb of Regency Park. Dr Tim Cooper, a fifth generation member of the family, oversaw the development of the new site and is now the 518 Managing Director and Chief Brewer. His cousin, Glenn Cooper, is the Chairman and Marketing Director, with various other members of the Cooper family occupying seats in the boardroom and within the company itself. The expansion of the brewery at the new site allowed Coopers to increase production and expand away from its South Australian heartland into the larger markets on Australia’s eastern seaboard. Exports have also become more significant, with 35 per cent volume growth between 2006 and 2007. This has been achieved in part through an agreement with the leading British supermarket chain Tesco and also via an arrangement with the Outback Steakhouse Chain to sell beer in their 775 outlets in the USA.
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