MACKINNON BROTHERS BREWING COMPANY:
BUILDING A FARM-BASED BREWERY CASE
STUDY SOLUTION
e
pl
SYNOPSIS
m
Sa
In April 2024 Dan MacKinnon was working to resolve his growth strategy. Dan and his brother Ivan
MacKinnon grew up on a farm in Bath, Ontario, where they learned about the importance of farming and
local supply chains. In 2014, the brothers put together their farming assets and brewing and engineering
skills and launched MacKinnon Brothers Brewing Company, their farm-based brewery. After nearly 10
n
years of operations, the MacKinnons were faced with a growth challenge. Should they leverage their farm
tio
brewery brand and grow its distribution beyond the local region? Or should they “dig in” on their local farm
concept and explore more sustainable growth options in the food and beverage tourism industry?
lu
So
OBJECTIVES
• Describe the growth decisions and challenges for a small business operating in the Canadian craft beer industry.
• Apply the product market matrix to the analysis and evaluation of growth opportunities.
• Evaluate growth decisions within the context of neolocalism and an emphasis on local economies.
• Describe the distinct industry dynamics of the Canadian craft beer industry.
The Case Solution Starts From page 5
, e
pl
ASSIGNMENT QUESTIONS
m
1. Describe MacKinnon Brothers Brewing Co.’s business model and what makes it distinctive.
Sa
2. Using the product market matrix, describe the growth options that MacKinnon Brothers Brewing Co.
is considering and the resource implications for each.
3. What are the biggest challenges facing MacKinnon Brothers Brewing Co. moving forward?
4. What would you recommend that MacKinnon Brothers Brewing Co. do, and why?
n
tio
lu
So
The Case Solution Starts From page 5
,ANALYSIS
1. Describe MacKinnon Brothers Brewing Co.’s business model and what makes it distinctive.
See Exhibit -1: Business Model Canvas Analysis of MacKinnon Brothers Brewing Co. for a suggested
analysis. There are several aspects of MacKinnon Brothers Brewing Co.’s model that make it distinctive if
not unique, including the following:
• What differentiates the brewery from most other big and craft breweries is that MacKinnon Brothers Brewing
Co. grows many of its own ingredients and brews, packages, and distributes its craft beer on the farm.
• For consumers interested in supporting local, farm-based products and neolocalism in general, the brewery
offers a compelling value proposition. Consumers can tour the farm and brewery, enjoy special events and
the farm environment, and derive satisfaction from consuming locally produced craft beer at the farm.
• The brewery provides a strong value-added revenue stream for the farm assets with high-margin on-
site product sales
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pl
m
Sa
n
tio
lu
So
The Case Solution Starts From page 5
, EXHIBIT -1: BUSINESS MODEL CANVAS ANALYSIS FOR
MACKINNON BROTHERS BREWING CO.
Key partners Key activities Value Customer
propositions segments
-Local farms -Beer production
and development -Crafted local
-Local -Organizing/hosting beer
distributors events -Farm-based
-Farming ingredients
and production
-Authenticity Channels
-Value-added
agricultural
products
-Neolocal
e
producer
pl
Cost and expense structure Revenue streams
- -
m
Sa
- -
-
n
tio
lu
So
The Case Solution Starts From page 5
BUILDING A FARM-BASED BREWERY CASE
STUDY SOLUTION
e
pl
SYNOPSIS
m
Sa
In April 2024 Dan MacKinnon was working to resolve his growth strategy. Dan and his brother Ivan
MacKinnon grew up on a farm in Bath, Ontario, where they learned about the importance of farming and
local supply chains. In 2014, the brothers put together their farming assets and brewing and engineering
skills and launched MacKinnon Brothers Brewing Company, their farm-based brewery. After nearly 10
n
years of operations, the MacKinnons were faced with a growth challenge. Should they leverage their farm
tio
brewery brand and grow its distribution beyond the local region? Or should they “dig in” on their local farm
concept and explore more sustainable growth options in the food and beverage tourism industry?
lu
So
OBJECTIVES
• Describe the growth decisions and challenges for a small business operating in the Canadian craft beer industry.
• Apply the product market matrix to the analysis and evaluation of growth opportunities.
• Evaluate growth decisions within the context of neolocalism and an emphasis on local economies.
• Describe the distinct industry dynamics of the Canadian craft beer industry.
The Case Solution Starts From page 5
, e
pl
ASSIGNMENT QUESTIONS
m
1. Describe MacKinnon Brothers Brewing Co.’s business model and what makes it distinctive.
Sa
2. Using the product market matrix, describe the growth options that MacKinnon Brothers Brewing Co.
is considering and the resource implications for each.
3. What are the biggest challenges facing MacKinnon Brothers Brewing Co. moving forward?
4. What would you recommend that MacKinnon Brothers Brewing Co. do, and why?
n
tio
lu
So
The Case Solution Starts From page 5
,ANALYSIS
1. Describe MacKinnon Brothers Brewing Co.’s business model and what makes it distinctive.
See Exhibit -1: Business Model Canvas Analysis of MacKinnon Brothers Brewing Co. for a suggested
analysis. There are several aspects of MacKinnon Brothers Brewing Co.’s model that make it distinctive if
not unique, including the following:
• What differentiates the brewery from most other big and craft breweries is that MacKinnon Brothers Brewing
Co. grows many of its own ingredients and brews, packages, and distributes its craft beer on the farm.
• For consumers interested in supporting local, farm-based products and neolocalism in general, the brewery
offers a compelling value proposition. Consumers can tour the farm and brewery, enjoy special events and
the farm environment, and derive satisfaction from consuming locally produced craft beer at the farm.
• The brewery provides a strong value-added revenue stream for the farm assets with high-margin on-
site product sales
e
pl
m
Sa
n
tio
lu
So
The Case Solution Starts From page 5
, EXHIBIT -1: BUSINESS MODEL CANVAS ANALYSIS FOR
MACKINNON BROTHERS BREWING CO.
Key partners Key activities Value Customer
propositions segments
-Local farms -Beer production
and development -Crafted local
-Local -Organizing/hosting beer
distributors events -Farm-based
-Farming ingredients
and production
-Authenticity Channels
-Value-added
agricultural
products
-Neolocal
e
producer
pl
Cost and expense structure Revenue streams
- -
m
Sa
- -
-
n
tio
lu
So
The Case Solution Starts From page 5
