Saku Brewery Case Study

Saku Brewery Case Study Saku Brewery is a beer company that has the reputation of being ran by different hands along the years of existence. The company officially started producing beers in 1820 under Count Karl Friedrich von Rehibinder. The brewery was passed along to the Baggo family, who converted it to a modern industrial steam-fired brewery. At the end of the cold war the Estonian government owned the company then in 1991, Baltic Beverages Holding group bought sixty per cent of the company, with the remaining forty per cent still being controlled by the government. With BBH being owned by Prips Beverage Company and Hartwell Brewery, they understood that Saku needed to revamp its image and overall quality. Saku continued to struggle as they were having problems appealing their product to their market. The company had experienced a decline in this popular line, domestic beer because Estonians were choosing import beers such as Heineken. Domestic competitor such as Tarta, also challenged Saku Brewery’s market share then they introduced A Le Coq . With these concerns Saku began to search for answers. Saku had several different varieties of domestic and imported beer to choose from. Their line consists of Saku Original, Saku Tume, Saku Sorts, Saku Rock, Saku Dark Presidendi Pilsne, and Saku Original Light. Saku’s complete portfolio of beer brands command about 42% market share, with its most prominent beer being Saku Original. Saku also developed other alcoholic products such as long drinks and hard ciders. Saku does carry non-alcoholic lines such as, water and soda. Saku’s most successful products are the long drinks because of their rapid popularity and the domestic beer line, where Saku holds their largest market share. Saku’s water and soda lines neither have very much market share nor produce many sales.
Strengths
* Saku beer’s hold a 42% share in Domestic beer. * 65% of Estonia adult population has bought a Saku Original in the past 6 months.