Toboggan Brewing Company: Sliding to Success
(6 pages of text)
In 2017, the owner of Toboggan Brewing Company (Toboggan) needed to increase production capacity for his craft beer without making a capital investment. Toboggan was a very small player in the Ontario market; however, its craft beer had significant opportunity for growth due to the owner’s strong business acumen and a proven consumer demand for the product. The owner had four options for potential contracting partners. The trade-offs between his contract partners were price, experience, location, and distribution.
After completing the case and assignment questions, students will understand the following concepts:
- The lowest cost alternative is not always the most productive option for a brand. When an external party represents a brand, the brand owner must be certain that they are acting in the best interests of the product.
- Inherently, the goal of a business is to grow and be profitable. Some contracts will offer a far larger opportunity to expand than others but will come at a greater risk. It is important to consider risk tolerance when deciding which alternative to choose.
- Relationships are the most important when working in many sales processes. It is far easier to work with existing relationships than it is to develop new relationships.
Canada, Small, 2017
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