business analysis_mthr brewery
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Macedonian Thrace Brewery S.A.
Dimitris Tsagkos || KFD555 Business Analysis & Law || Thomas Polesie Master of Business & Design || University of Gothenburg || January 2015
A Business analysis
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Macedonian Thrace Brewery S.A. : A Business analysis
INTRODUCTION
The following Business Analysis is about a greek brewing company called Macedo-
nian Thrace Brewery S.A. Its structure is based on the Triangle model. The triangle
has 3 sides that represent three key areas of interest one should examine when
trying to have a clear overview of a corporation:
1.Finances
from the company’s annual reports published on their website.
This part is about the human factor and the management style applied within the
company.
This part of the analysis deals with qualitative characteristics of the brand and refers
to issues such as the design management of the company or the image that the
consumers have imprinted on their minds about it.
Dimitris Tsagkos
FINANCES
SUBJECT
OBJECT
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Macedonian Thrace Brewery S.A. : A Business analysis
COMPANY PROFILE
Macedonian Thrace Brewery S.A. was established in 1998. Their factory lies in an
industrial park in Komotini, a midsize town a few hours’ drive from the Turkish border
and few minutes from the Bulgarian border. They produce 200.000 hectolitres of
beer per year, and that’s only for tax reasons because any production volume above
that limit is taxed higher according to the greek law.
Dimitris Tsagkos
The factory in Komotini
The location of the factory
Highlight from the production line
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Macedonian Thrace Brewery S.A. : A Business analysis
COMPANY PROFILE
THE PRODUCTThe company handles four different sub-brands:
Vergina Beer (Premium, Red and Weiss), Edelsteiner Premium Pils, Stadelbrau
Helles and Tuvunu.
EXPORTSThe company exports its beers to 9 countries around the world: USA, Japan, Aus-
tralia, Italy, Germany, Poland, Albania, Cyprus and Spain. This is a vital income
source for them, since the beer market in Greece is in recession. Furthermore, up
until recently it had the characteristics of a monopoly, with Athenian Brewery S.A.
controlling up to 90% of the market.
BUSINESS STRATEGYMacedonian Thrace Brewery is working for the expansion of the international pres-
ence of ‘Vergina’ beer, aiming to secure its distribution in the East and West Coast of
the USA. Furthermore, they want to strengthen their presence in the regional mar-
kets of Athens and the islands, where they can reach out more tourists and get a
slice of the pie from their competitors.
In July 2012, the company released to the market a new product called “Tuvunu”. It’s
a biological, offmountain traditional tea from Thrace with honey and lemon. The
100% Greek mountain tea with its antioxidant properties had never been exploited
commercially until then. CEO Mr. Politopoulos notes that Ice Tea Tuvunu is “only the
beginning of a plan to release to the market a range of healthy refreshments utilising
the thousands of herbs of the Greek land”. In other words, the company managed to
access a “blue ocean” of non-alcoholic, herb-based beverages.
In terms of productivity their goal is to exceed the cultivation of 10,000 acres of
crops and cover 100% of their needs in barley solely by domestic sources with noneed to import any of it.
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Macedonian Thrace Brewery S.A. : A Business analysis
FINANCES
2011 was the year when the company completed investments of 4.5 million euros
and introduced new designs for the production of different types of beer. Further on,
they invested in the cultivation of 2,500 more acres of barley and in the establish-
funded by their equity without any subsidies or loans.
Revenues : 16,060
THE RECTANGLE OF 2011
L i a b i l i t i e s
: 6 ,7 8 0
E q ui t y
: 8 , 9 5 0
N o n - C u r r e n t A s s e t s :
8 , 2
1 5
C u r r e n t A s s e t s : 7 , 8
7 0
Scale : 1 cm = 2 million € , All figures in € millions
Expenses : 15,350 Profit : 0,710
CEO Mr. Politopoulos in front of the malt plant
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Macedonian Thrace Brewery S.A. : A Business analysis
FINANCES
previous year, and the rectangle looks quite unchanged. However, despite the
Revenues : 16,480
THE RECTANGLE OF 2012
Expenses : 15,857 Profit : 0,622
L i a b i l i t i e s
: 6 ,1 4 0
E q ui t y : 9 , 6 0 0
N o n - C u r r e n t A s s e t s :
7 , 8
8 0
C u r r e n t A s s e t s : 7 , 8
6 0
Scale : 1 cm = 1 million € , All figures in € millions
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Macedonian Thrace Brewery S.A. : A Business analysis
FINANCES
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Dimitris Tsagkos
Revenues : 19,010
THE RECTANGLE OF 2013
Expenses : 17,105 Profit : 1,905
L i a b i l i t i e
s : 7 , 9 1 5
E q ui t y : 1 1 , 0 5 0
N o n - C u r r e n t A s s e t s : 1 1 , 9
7 5
C u r r e n t A s s e t s : 6 , 9
9 0
Scale : 1 cm = 1 million € , All figures in € millions
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Macedonian Thrace Brewery S.A. : A Business analysis
FINANCES OVERVIEW
Dimitris Tsagkos
2011
2012
2013
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Macedonian Thrace Brewery S.A. : A Business analysis
SUBJECT
THE LEADER
The company rather follows a “one-man show” management style. Its existence is
the result of persistent efforts by its owner, Dimitris Politopoulos, who has suffered
countless indignities in his 16-year battle to build a microbrewery and wrest a sliver
of the Greek beer market from the Dutch colossus, Heineken. His tires have been
slashed and his products vandalized by unknown parties, and his brewery has
received threatening phone calls. The problems were serious enough that the Hel-
competition.
THE EMPLOYEES
Today, the company has a committed team of approximately 80 employees. They
have managed to retain a close-knit “family atmosphere”, while at the same time
in Greece. They have generally managed to communicate a “healthy” image of
themselves, one of a company that cares about its employees and enhances the
local society.
THE PRODUCERS
Planning for the future, the company is implementing an important farming program,
budgeted at 400,000 euros. According to their plan, 200 new producers in the
region of Xanthi will supply them with an extra 80 tons of organic tea, which is indis-
pensable for the production of Tuvunu. With all these producers being directly linked
with the Brewery, one can understand the impact that the production of the refresh-
ments has in the local economy. The producers know that there is a stable companyout there to buy the bulk of their production annually, and new job opportunities are
created in the area so that young people don’t have to immigrate abroad to acquire
a better life.
Dimitris Tsagkos
The producers in action
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Macedonian Thrace Brewery S.A. : A Business analysis
OBJECT
QUALITATIVE CHARACTERISTICS OF THE BRAND
The herb industry has been growing rapidly worldwide, as the customers turn to
more healthy products. The company’s decision to penetrate the herb-based healthy
When it comes to beer, although “Vergina” now has a 5.5 percent share of the beer
market — ranking behind only Heineken and Carlsberg, and ahead of about 12
hotel. As a result, it remains unknown to a big part of potential consumers. Moreover,
its low price has contributed in the product being perceived by the consumers as a
“poor man’s beer”, growing its popularity among the lower income layers of society.
The perception of Vergina Lager as a cheap beer provides the company with some
loyal customers (e.g. students), but repels some other consumer groups from
buying the product. In order to deal with it, the company has released through the
years two more types of beer (Red and Weiss) which are of higher quality and are
appealing to more demanding consumers that are willing to pay higher prices to
in the biennial International Brewing Awards of London in 2013, under the category
“Speciality Wheat Beer”. Surprisingly, on behalf of the company there was no organ-
ized effort to take advantage of this success and capitalize it through an advertising
campaign.
environmentally friendly as possible. Their factory uses modern technology, such as
the cooling water recycling plant which annually saves 20,000 cubic meters of
drinking water. This amount of water corresponds to the average annual consump-
tion of a town of 300 residents. However, they didn’t seem to make any effort to
remains an “unused weapon” in their hands.
On a funny level, Vergina has gained some publicity on the internet among young-
sters in Anglo-saxon countries, as the brand name’s pronounciation corresponds to
the one of females’ genitals. It remains unknown how the company could deal with a
complex sensitive issue like that, in terms of communication.
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Macedonian Thrace Brewery S.A. : A Business analysis
CONCLUSION
Macedonian Thrace brewery seems to make small but stable steps towards the
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SOURCES
Macedonian Thrace Brewery S.A. corporate website
http://www.verginabeer.com/
http://www.euromonitor.com/beer-in-greece/report
Imerisia newspaper, Article about the Greek beer market, Retrieved 1st January,
2015
http://www.imerisia.gr/article.asp?catid=26519&subid=2&pubid=112879832
Goodnews.gr, Article about “Tuvunu”, Retrieved 1st January, 2015
http://en.goodnews.gr/Articles/Traditional-tea-Tuvunu-is-the-
latest-new-export-from-Greece_1570.html
NYTimes, Interview with Mr. Politopoulos, Retrieved 1st January, 2015
http://www.nytimes.com/2011/01/30/business/30greek.html?pagewanted=all&_r=0
To Vima newspaper, Article about greek beer consumers’ habits, Retrieved 2nd
January, 2015
Imerisia newspaper, Article about the supermarket beer trends, Retrieved 2nd Janu-
ary, 2015
http://www.imerisia.gr/article.asp?catid=26519&subid=2&pubid=112992850
http://sete.gr/EN/Home/
Pbs.gr, Arcticle about Tuvunu lancement in the market, Retrieved 5th January, 2015
http://www.pbs.gr/cms/?q=node/3255
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