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 Situation Analysis
Organizational

Oakshire Brewing is a privately owned brewing company, founded in Eugene Oregon in

October 2006. The company is owned by the Althaus family and friends of the founders. The

Althaus’ brothers, Jeff and Chris, founded the 15-barrel production brewery. Initially the

brothers brewed their beers at home, however Oakshire has grown and now operates as a 4000

square-foot production brewery in Northwest Eugene with a total of 23 employees, brewing

award winning craft beers. They also have a location in Eugene’s Whiteaker area, called

Oakshire Public House and the Oakshire Beer Hall in Concordia neighborhood in Northeast

Portland. The name Oakshire can be interpreted as a connection between people and place since

it incorporates the strength of an oak tree and Shire is an old name of a rural county. They don’t

only exist to craft beer, but to serve the community by creating and sharing excellent beer

experiences. Oakshire’s mission statement is the following: “Our mission is to brew the highest

quality beer while providing exceptional service to our consumers. We cannot achieve either of

these goals without the highest quality of ingredients.” According to their website, the brewery

has four core values. Firstly, they value craftsmanship. It means that on a daily basis the team

focuses on producing the highest quality packaged and draft beer both in cans and bottles. They

make sure that consumers get as fresh beer as possible. Furthermore, they value artisans and their

goal is to create creativity for the brand. The next value is Community. Oakshire’s goal is to

inspire communities they serve. They say: “Our community is the people we drink with, and give

back to throughout the Pacific Northwest and Colorado. We are inspired daily to create and share

great beer experiences for ourselves and our community.” Furthermore, the brewery values

Learning and Teaching and they aim to educate themselves on new beer techniques, learn from
competitors or make plans for the future. They also teach their community who they are, how

they operate, what they do. Lastly, they value Authenticity. Oakshire focuses on crafting beer

from all natural ingredients, brewing excellence, and staying loyal to their consumers in order to

keep long lasting relationships. The company’s philosophy is to serve the community by

handcrafting unique, high quality beers available in different flavors. Instead of focusing on big

economic market expansion, Oakshire is strengthening its brand in Eugene and around the

Pacific Northwest.  

Focusing on selling craft beers, Oakshire offers its consumers a premium product, while

at a premium price. Selling about 30% of their products directly to businesses and the other 70%

directly to consumers, Oakshire’s craft beers can be found in multiple grocery stores and in

Oakshire’s very own taprooms. Looking to continue to add taprooms, Oakshire is attempting to

shift even more towards business to consumer selling as they are trying to take advantage of

consumers' willingness to pay a premium price for quality beer. Trying to stay ahead of the

competition, Oakshire is also always looking for new products which they can offer to

consumers which will allow them to stand out among their competitors. Competing with

numerous breweries and companies, they strive to get ahead of trends in the market and continue

to be flexible so that they are able to best offer products which their consumers desire. Although

these products are often expensive for consumers, the prices are similar to their competitors,

ultimately allowing for consumers to feel comfortable paying a premium price for the quality

products which Oakshire offers. 

Oakshire Beer gains the most revenue by selling directly to customers in their taprooms.

People come to the brewery and are able to sit and enjoy their drinks. They also provide

entertainment and have local food trucks come to make the taproom experience enjoyable.
Another way they gain revenue is selling business to business, to grocery stores and taverns. This

accounts for about 30% of their revenue. In 2017 Oakshire made a huge shift in their focus,

wanted more people to come to their taproom then them selling to wholesalers. This added

online ordering by shipping directly and providing curbside pick-up for their customers. This

allows for people to buy directly from Oakshire instead of a reseller. To do this they have an

online ordering system on their website.  This shift was successful as taproom sales are 60% of

their profit. Oakshire currently has two locations one in Eugene and one in Portland. They plan

to keep the same model of wanting people to buy directly from them and coming to their

taproom for a great time. Which is why they are currently looking for a new taproom location to

expand the business for direct selling. Oakshire's Beer channels are successfully running a direct

selling business and continue to advance in the future.   

Oakshire Brewing uses a variety of different platforms to advertise their brewery. In

terms of digital promotional tools, Oakshire relies mostly on social media. They use Instagram,

Facebook, Twitter, and Pinterest, plus a Newsletter and an email subscription service.They

mostly use Instagram, where they use special tactics to show a photogenic view of their beer.

Instagram has proven to be the best to acquire new customers. In terms of traditional forms of

marketing, there are none. Oakshire relies heavily on digital forms of marketing.

Oakshire’s target market differs from other breweries in that it does not only attract the

industry’s most common target market, which are middle-aged white men, but also more people

of color and women. Their target market is men between the ages of 3-55, but they are also

trying to attract more women and people of color by introducing non-traditional drinks. They

also have a higher willingness to pay and enjoy high-quality beer. Their top priority is to create

an experience for their customers. Oakshire wants to create wonderful experiences for their
customers. By doing this, their core values are demonstrated. 60% of their sales come from their

taprooms, so their most important customers are the ones that are willing to pay premium prices

and enjoy non-traditional beer flavors. Although wholesale is a big priority, only 30% of sales

come from wholesale.  They try to bring people in and even increased outdoor seating by two

times and providing loud music. The key message to all target segments is “we exist to create

great experiences”, but to their women, BIPOC community, and other non-traditional beer

drinkers, Oakshire wants them to feel safe at the taprooms.

Oakshire has a database of customers, they use a cheaper version of Salesforce to gather

data and keep the information updated. They actively collect data from Instagram and from their

wholesale partners. In addition, they send out emails frequently to their customers to gain more

data.

A senior leadership group consisting of four people work together to create and

implement marketing plans and strategies. No longer having a full-time marketing coordinator

due to budget cuts associated with the COVID-19 pandemic, the senior leadership group reviews

and updates the marketing plan every quarter in order to make sure that the business is using its

resources in an effective and efficient manner which allows for them to attract and retain

customers. Taking advantage of free marketing resources, they consistently use social media

platforms to update and connect with consumers. Wanting to use customer relationship

management (CRM) to track consumers, they also emphasize establishing positive relationships

with all of their consumers as this is a focal point in their business model. 

To define Oakshire's brand the two words described were strength and independence.

Oakshire defines themselves as fiercely independent. This is because it is not a corporation, but

they stand on their own with their own products. They have strength within their community,
hiring locals and participate in community events. Using the community, they position their

product to be easily understood by everyone. They participate in farmers markets or church to

say that they are there for life's important events. This accounts for being relevant to all people

and model a sense of diversity. They want to attract different people so they are not just selling

to regulars. By participating in different community events allows them to spread the word of

their brand to gain more customers. Oakshire encompasses a wide range of people and

community events to show their strength and independence. They are similar to other local

breweries in Eugene and Portland. For example, Ninkasi Brewing is a similar company that

focuses their efforts around community and the people. Oakshire stands out because they are the

top of only a few Small Batch Brewing Companies. Most of their competitors are basic

breweries. Oakshire reaches an audience for everyone to relate to their beer and the community

involved.

When looking at Oakshire’s controlled media, there is a simple logo that is associated

with our brand. Their website contains a sharp and organized layout that is easy to navigate.

There are links that lead to various categories such as the types of beer they offer, news/videos,

and more information about Oakshire’s two locations. Looking through other forms of controlled

media such as Instagram, you are able to see how they carry themselves within the digital world.

Many posts are in the range of promoting their beers, specials, or just simply showing their

interactions with local customers who visit their public house in Eugene. Seasonal advertisement

posts on their Instagram page are starting to come around. Their “Ill Tempered  Gnome Hoppy

Brown Ale” is a good example of how Oakshire is using their social media presence during the

Winter season. Also, their 1% for Watershed initiative is also a big part in representing the
values they carry as an entity, and they show their personality by having employees enjoying a

cold “The Perfect Storm IIPA” while rafting down the McKenzie River near Eugene. 

Reiterating the 1% for Watershed, most Oregonians take pride in being sustainable and

having a clean, prosperous environment to conduct recreational activities. Oakshire’s founding

location of Eugene was chosen partially due to the clean and accessible water of the Mckenzie

River. This initiative allows for their customers to purchase Watershed IPA’s, while the one

percent of this revenue is allocated to keeping sustainable and protecting local watersheds in the

surrounding territory. This is a key message in part to the role they play in restoring natural

systems, protecting special lands, and connecting people to places they care about. Another key

message that Oakshire tries to pride themselves with is their four core values craftsmanship,

community, teaching/learning, and authenticity.  

Oakshire is operating within the Craft Beer Industry. This industry produces beer for

resale or consumption on premises. According to IBIS World, a microbrewery makes a limited

amount of beer, usually no more than 6 million barrels of beer annually. It is also known as

microbrew, specialty beer, or simply ‘good beer’ since this industry, unlike the big beer

companies such as Coors or Miller, produces small amount, more flavorful beer. Craft brewers

serve local communities instead of shipping beer nationwide. In 1997, even though the overall

beer market shrinked, the market of craft beer inclined by 5% (Business Insights). The major

products of the market: IPA, Seasonal, Belgian witbier, Pale ale, Amber ale, Lager, and Fruit.

Due to the COVID-19 pandemic, the Craft Beer Production industry faced its first revenue

decrease in 2020. Demand for industry products has been high, but the operators have difficulty

targeting their end customers as tasting-rooms, restaurants and on-site bars were unable to serve

normally due to regulations. The major competitors in the industry are Boston Beer Company,
and Pete’s Brewing Company. There are 8 major trends that have been affecting the Craft Beer

Industry. COVID-19 had a side effect on DTC (direct-to-consumer) rules. As bars had to shut

down, beer delivery laws allowed taprooms to make up their losses by delivery and shipping

sales. A report from SOVOS indicates that since the pandemic started, 25% of craft beer drinkers

had their beer delivered to home from a brewery. It is assumed that DTC craft beer shipping in

2021 is going to be rising as a significant area of growth for craft beer companies. Secondly,

outdoor seating is relatively crucial, nowadays because of the pandemic. However, for breweries

it is even more important to have a creative, well-designed outside patio where people can enjoy

their beverage. Some breweries have made their parking lots and sidewalks available for outdoor

seating, however in some places breweries should have a permit to get access to outdoor space.

In addition, most smaller craft breweries have a food menu service; this allows them to stay open

for indoor service as well. Many breweries are partnering with food trucks or other third-party-

deliveries, such as GrubHub or Doordash. The 4th trend in the industry is going digital with

contactless software and applications. Contactless QR-code menus, online order systems,

curbside pickup options, waitlist and check-in apps are trending now among microbreweries. Co-

brewing spaces and taprooms are new types of commercial brewing concepts that help new

breweries who may be unable to build their own brewing space. A good example for this is

District Brew Yards, a brewery in Chicago who bought a warehouse and re-organized the space

for their own needs. A significantly new trend within the industry is craft seltzers. Right now

White Claw and Truly are the biggest seltzer brands on the market, however multiple other beer

companies recognized a niche on the market. There are craft seltzers recipes already available

online so local craft breweries could add them to their menu selection. Another rising trend is

CBD-Infused beer recipes. Since hemp is becoming more and more available across the US, craft
breweries have started to use them in their brewing process. CBD-infused beers have some

benefits such as they contain fewer calories than usual beers, pain relief, and no hangovers.

Lastly, purchasing beers in bulk has become more common since COVID-19 began and the new

packaging trends involve 12-packs with bright colors.

Crafbeer.com and Brewers Association are the two biggest websites where people would search

for if they would like to get more information about small local breweries. The latter operates to

promote and protect craft breweries in the United States while CraftBeer.com provides stories

and support independent craft beer companies. Furthemore, there is a Facebook group called

Craft Beer Community that is set up for people who love craft beer in the US and abroad.

Operating in a very competitive industry, Oakshire has many competitors. Providing stiff

competition in the beer industry, Ninkasi Brewing, Breakside Brewery, and Steelhead Brewing

Company are all similar to Oakshire as they own their very own taprooms and also have their

products located in various retail stores. Also located in Eugene, Oregon, Ninkasi and Steelhead

Brewing are the biggest threats to Oakshire as they also attempt to draw consumers to their

taprooms by offering a unique and quality beer. Seeking to have a majority of their sales directly

to consumers, these taprooms pose a threat to Oakshire as they have the ability to attract

consumers whom Oakshire would be targeting, ultimately causing them to lose business and not

be able to create consumer loyalty. In addition to competition among taprooms, Breakside

Brewery is also a main competitor as their products are often found throughout many retail

stores. Although this is not the main area which Oakshire is targeting, retail sales still serve as a

large part of their business model, and therefore any Brewing company which threatens them in

this aspect of their business can be seen as a main competitor. Needing to differentiate

themselves from competition in the industry, Oakshire consistently offers new craft beers and
recipes which have never been seen before in an attempt to stay ahead of their competitors and

provide consumers with products that they desire. However, although they have been able to

consistently create new product offerings for their consumers, Oakshire has fallen behind its

competitors by not offering as many consumer interactive experiences as other brewing

companies. Lacking taste testing events, beer drinking contests, cash giveaways, and many more,

Oakshire’s competitors have used various outlets such as social media and their own personal

websites in order to promote interactive experiences which resonate with fans and can create

consumer loyalty, something which ultimately has allowed for them to gain an advantage over

Oakshire.
 Words Cited

“Our Story and Values.” Oakshire Brewing, 14 Sept. 2020, https://oakbrew.com/about/.

Dan. “Oakshire Brewing: 1% for Watersheds Thefullpint.com.” The Full Pint - Craft Beer News,
8 Mar. 2013, https://thefullpint.com/beer-news/oakshire-brewing-1-for-watersheds/.

Olmstead, Levi. “8 Craft Beer & Brewery Trends to Watch (2021).” 2ndKitchen, 2ndKitchen, 27
Apr. 2021, https://2ndkitchen.com/breweries/brewery-trends/.

IBISWorld, Inc. “Industry Market Research, Reports, and Statistics.” IBISWorld,

https://www.ibisworld.com/.