Megan SchmittShiann Miller

Karleigh ShannonJacque Stuckens

Meredith CarlsenMac and Jacks Brewery

External Environment

Our state’s changing economic, political and social environments, bring up new challenges and opportunities for Mac and Jacks in the microbrewery industry

Economic:

• Craft beer sales have shot up 15% in the past year.

• Washington is the number two in terms of number of microbreweries per state.

• Financially, retailers often refrain from selling craft beer because they can make much more profit off of the corporate swell of name brand beers.

Political:

• Current state laws favor multi-national brewing corporations over small-time local breweries.

• Threat of continually raising state tax rates on microbreweries.

• Continually raising state production caps for microbreweries as demand for craft beer grows; but with that comes higher taxation.

Social:

Drinking age of 21 narrows potential audience.

• Rising social trend of ‘supporting local’.

• Mac and Jacks attracts hipster, outdoorsy, trendy, PNW crowd.

• Drinkers are attracted to the stronger taste of craft beer, higher alcohol percentage and the use of blending unique flavors like coffee or chocolate into craft beer.

Client and Industry

People want quality over quantity. That’s why microbreweries are successful. Retail dollar value from craft brewers in 2013 was roughly $14.3 billion, up from $11.9 billion in 2012. There are currently 264 microbreweries in the state of Washington and craft breweries provide about 360,000 jobs in the US. Growth of the craft brewery industry in 2014 was 18% by volume and 22% by dollar shares. The

retail dollar value from craft brewers in 2014 was about $19.6 billion, which was up from $14.3 billion in 2013 (craftbeer.com).

Mac & Jacks is only sold in Washington, Oregon & Idaho. Redmond is the only brewery location and all other locations sell Mac & Jack’s on tap. They do not bottle Mac & Jacks and do not plan to anytime in the current future. Many people do however request Mac & Jacks to grow outside the PNW. Mac Rankin and Jack Schropp founded Mac & Jack’s in 1993 and are still active in the day-to-day operations. Mac & Jack’s has only twenty employees and the first keg was sold in April of 1994 in Redmond, WA.

African Amber started as a house beer for the Park Pub, which is located next to the Woodland Park Zoo. The beer was named off the Zoo theme to create the name. The next house beer Mac created for the Park Pub was Serengeti Wheat, it was named in the same fashion.

Product, service or issue

They currently serve ales and are expanding to scotch and whiskey. Most of the ingredients found in their brew are from the Northwest while the malted barley and hops are grown in Yakima, Wash. Mac and Jacks’ retail store offers: kegs, growlers, glass pitcher, pint glass, banners, coasters, tap handles, growler covers, t-shirts, hoodies, hats, vests. A current issue is that Mac and Jacks does not bottle their beers which has been an issue for some customers. They do not plan on bottling but they are quoted on the website saying, “never say never” regarding possibly bottling beer.

Promotions

Mac and Jack’s brewery offers free tours of the brewery every Saturday and Sunday from 1 p.m. to 3 p.m. They also host and take part in many additional events in the Northwest.

Market Share

Sales History:

Past

• Founded 1993 in Redmond, Wash.

• Began in a garage at two kegs per day

• Currently 6,000 kegs per month

• Compared to The Pike Brewing Company in 2005 reaching 7,500 barrels total

Present/Future

• Sold in Wash., Oregon & Idaho

• No bottles or intention to in the future, Draft brew & kegs only.

• 95% of production is African Amber

• 24 hour, 7 days a week production

First keg was sold in April of 1994 but the brewery was founded in 1993. Only sold in Wash.,

Oregon and Idaho. There are no bottles or plans to bottle, it’s only a draft brew unless in the Redmond,

Wash. store. T shirts, hats and other memorabilia have recently been added. Began producing two kegs

a day and now averages over 6,000 kegs per month (Rankin & Schropp). African Amber accounts for 95%

of their production (http://www.redmond-reporter.com/business/39891748.html#). The future of Mac

and Jack’s will continue to grow as the are “the number one distributed and number one selling draft

beer in Washington state.” Owners, Mac and Jack, will continue to push for 24 hour, 7 days a week

production of beer to please their customers (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 customers of Budweiser, Coors, Miller

• Cost

• Older generations

• Low socio-economic status

• Alcoholics

Resources/Reviews of Mac & Jack

“Our tour guide was super informative and clearly enjoys his job. I was surprised to learn how small the brewery is considering how much beer they supply to the Northwest - it's a pretty cool operation and you get to learn about all the cool methods they employ to make more/better beer. I left the brewery having a much greater appreciation for Mac & Jack's and I'm more inclined to order their beer because of it. Thanks for supplying so many good drinks and good times, Mac & Jack's!”

http://www.yelp.com/biz/mac-and-jacks-brewery- redmond

• “It's not a big brewery or a long tour, but you get free pint glasses, free tastings, and a really good history of the beer. Additionally, with the smaller group, there were a lot more questions being asked. From this, I learned that a lot of their ingredients are sourced locally! Growler fills are SUPER reasonable, they have great hours, and the staff is really, really friendly. I sometimes wish I could pick up a six pack at the store, but having these guys nearby makes it worth the trip out for the growler fill. Also, although the African Amber is amazing, try all the different types of beer they have, you'll find they're all JUST as amazing as the African Amber. Last time we went on the tour, there were some batches brewed by employees (experimental flavors) and they were really tasty.”

http://www.yelp.com/biz/mac-and-jacks-brewery-redmond

Market Research

The majority of the reviews found on local news and beer review websites describe Mac & Jack’s as a local company that creates world-class products.

• Mac & Jack's brewery is one of the largest craft breweries in Washington State, best known for their African Amber.

• The community of Redmond has a positive perception of the brewery and many of the customers are extremely loyal. Mac & Jack’s Brewing Company dedicates itself to preserving a clean environment and maintain a responsible resident status to the Redmond community.

• Most of the ingredients are from the Northwest. The malted barley and hops are grown in Yakima, Wash.

• Mack & Jack’s re-uses water and all byproducts created during the brewing process are recycled. Mac & Jack’s also encourages waste reduction by offering a discount to customers who recycle their growlers and kegs.

Works Cited

Rankin, M., & Schropp, J. Retrieved April 6, 2015, from http://www.macandjacks.com/

Craft Brewing Statistics. (n.d.). Retrieved April 13, 2015, from http://www.craftbeer.com/breweries/support-your-local-brewery/craft-brewing-statistics