INTRODUCTION

The present report on the visit to the "Backus" Brewery Plant, located in the
southern zone of the country "Cusco". The Cusco plant of the brewery Backus has
currently with an average production of 6000 boxes of beer per day and 2,160
millions of boxes per year, making this amount beneficial for the interests of the Brewery
Backus.

In addition, the Cusco plant has international standards that certify its
production processes are of quality and do not affect the environment, in addition to that the
The working conditions that it is providing to its staff are the appropriate ones.

The company has the following certifications that ensure a good product.
final: ISO 9001, ISO 14001, OHSAS 18001, HACCP.

The following report outlines the history of the evolution of Cervecera Backus, as well as
Over the years, this company became number 1 in production and distribution.
About beers and beverages in Peru. Additionally, the environmental policies that are coming

managing Cervecera Backus, what are the implementation policies for Development
Sustainable

It also has policies for responsible consumption 'no to the sale of beverages
alcohol to minors" "drinking alcoholic beverages in excess is harmful.

1. GENERAL CHARACTERISTICS OF THE ORGANIZATION

1.1. HISTORIA DE LA EMPRESA

1879: The origin of Backus dates back to the year 1876, the year in which the gentlemen

Jacobo Backus and Howard Johnston, of American nationality, founded a

ice factory in the traditional district of Rímac, which became in 1879
Backus & Johnston Brewery Ltd. In 1890, they transferred the company to a partnership

formed in London.
1954: Backus & Johnston Brewery Ltd. is acquired by Peruvian entrepreneurs.
Led by Don Ricardo Bentín Mujica, who turns it into the Brewery
Backus & Johnston S.A., establishing an example of nationalization by initiative
private and distributed shareholding.
1993: Inauguration of the Ate Plant This important investment allowed for the
installed capacity necessary for the expansion of the beer market,
becoming one of the most modern in America.
1994: National Brewery Company S.A. is acquired. It acquires 62% of the
common shares of the National Beer Company S.A. (CNC), its main
competitor for over a century, in addition to entering the water market and
soft drinks of the country.
1996: Creation of Peruvian Breweries Union Backus and Johnston S.A.A. With
a vision for the future and looking to leverage synergies in the brewing business,
In 1996, the shareholders of Cervecería Backus y Johnston S.A., National Company
Cerveza S.A., Cervecería del Norte S.A. and Sociedad Cervecera de Trujillo S.A.
they decide to merge the companies by incorporating all of them into Backus
which modifies its name creating Union of Peruvian Breweries Backus
and Johnston S.A.A., the most important brewing company in Peru.
2000: South Brewery Company of Peru S.A. is acquired. In the year 2000,
Southern Peru Brewery Company S.A. (Cervesur) becomes part of the
Backus Group, with the aim of consolidating a company capable of competing
indeed in a globalized environment.
2002: The Bavaria Business Group enters the shareholding of Backus
Strengthening ourselves by making it a part of an important American multinational.
A process of divestment in sectors that do not constitute the
"core business" with the aim of consolidating the brewing and beverage business, with
you are looking at greater competitiveness.
2005: SAB Miller acquires the Bavaria Business Group with the merger of the Group
Bavarian Business and SAB Miller, a South African company, based in London;
 we became part of the second largest brewing group in the world, with presence
in more than 60 countries and with a portfolio of over 170 brands. The Cisneros Group
from Venezuela (Cervecería Regional) sold its stake in Unión of
Peruvian Breweries Backus and Johnston S.A.A. to SAB Miller.
2008: Record sales and consolidation of the brand portfolio of the Backus Group
in October 2008 announced a new record in annualized sales volume
from its beer brands, reaching a total of 10,028 hectoliters. To this
consolidation of its brand portfolio through a successful
segmentation strategy, positioning and clearly differentiated messages
for each of its brands.

1.2. datos generales.

Corporate Name: Unión de Cervecerías Peruanas Backus y Johnston S.A.A.

R.U.C.:20100113610
Dirección:Av. Nicolás Ayllón 3986, Ate Vitarte, Lima, Perú
Phone: (511) 311 3000
Web:[Link]
Email:[Link]@[Link]
Fernando Zavala Lombardi - General Manager

Board Members:

Mr. Alejandro Santo Domingo Dávila - Director

Mr. Carlos Bentín Remy - Director
Mr. Alex Paul Gastón Fort Brescia - Director
Mr. Juan Carlos García Cañizares - Director
Dr. Pedro Pablo Kuczynski Godard - Director
Dr. Francisco Mujica Serelle - Director
Dr. José Antonio Payet Puccio - Director
Mr. Carlos Pérez Dávila - Director
Mr. Manuel Romero Caro - Director
Mr. Jonathan Frederick Solesbury - Director
Mr. Fernando Zavala Lombardi - Director
Mr. Karl Gunter Lippert - Director
Mr. Andrés Mauricio Peñate Giraldo - Director
Mrs. Carmen Rosa Graham Ayllón de Espinoza - Director

1.3. organizational context.

Clients
National audience, over 18 years old
(Alcoholic beverage consumers).
Media
Focus groups
 Meetings with stakeholders
Memoria Anual y Reporte de Desarrollo Sostenible
Advertising
Website, and mailing
Press releases, among others

Suppliers:

We are continuously training our suppliers, according to the

identified opportunities for improvement in the certification and evaluation processes
of performance. We have developed various workshops, with the aim of
provide tools for improving the supply service, integrate
the suppliers and promote the culture of quality in the country. These courses are
developed and taught by qualified specialists from our company. In the
In the last 2 years, workshops were held in the cities of Arequipa, Cusco, Chiclayo,
Trujillo and Pucallpa and in the year 2005, twenty of our main suppliers of the
city of Lima.

They received training in:

Quality Management and Assurance.

Quality Manual and Continuous Improvement and Total Quality Program.
Purchasing Process - Procurement.
Stock Control.
ISO 9000 Supplier Certification.

During the year 2005, the

Total purchase volume in the
National market rose to
US$ 100,355,865, strengthening
the productive chain and
Promoting the development of local economies.

Clients

National points of sale (direct attention).

 Includes open sheet metal and sheet metal points of sale.

Closed.

Technology. There is access to the acquisition of state-of-the-art equipment.

that beer production refers to, but the cost of it limits its access;
and therefore we consider it a neutral barrier.

1.4. PLANTS:

Ate Plant: Located in the province of Lima, it has an annual capacity of 6.1
millions of hectoliters of production of beer, soft drinks, and nutritional beverages.
Motupe Plant: Located in the province of Lambayeque, it has a capacity
annual production of 2.8 million hectoliters of beer and 0.6 million of
hectoliters of soda and water.
Arequipa Plant: Located in the province of Arequipa, it has an annual capacity
of 1.56 million hectoliters of beer production.
Pucallpa Plant: Located in the province of Coronel Portillo, it has a capacity
annual production of 1.05 million hectoliters of beer. This plant belongs to
San Juan Brewery S.A.
San Mateo Plant: Located in the province of Huarochirí, it has a
annual capacity of 1.05 million hectoliters of beverage production and
waters.
Cusco Plant: Located in the province of Cusco, with an annual capacity of 0.74
millions of hectoliters of beer production.
Malting Plant: Located in Ñaña, in the province of Lima, it has a capacity
annual of 89,000

2. DESCRIPTION OF THE INFORMATION COLLECTION PROCESS.

2.1. ingredients for making a beer.

Malta: It is made up of barley grains that have germinated for a period.

time-limited, and then dried. Generally, the malt used in the
beer production is not made in the factory itself but obtained
directly from external suppliers.
Hops: Hops are an indispensable ingredient in the production of
beer and has no substitute. Hops are essential for the
 brewing of beer, its pleasant bitter taste and its soft aroma
characteristic, also contributes to its better preservation and to provide more
stay on the foam.
Attachments (Grits): Due to the high diastatic power (enzyme) of the malt
it is necessary to add unmalted grains to the beer for it to
stability is good. The use of adjuncts produces beers of a lighter color.
clear with a more pleasant flavor and greater brightness and better
qualities of cooling acceptance.
Water: The characteristics of manufactured water greatly influence the
quality of the beer. In the brewing of beer, drinking water is used and
its organoleptic characteristics must be completely normal.
Yeast: They are unicellular microscopic fungi that transform
sugars and amino acids in alcohol and CO2. The beers made with
floating yeasts (that is, those that float on the surface of the must in
(fermentation) are called ale type; the beers that are brewed
with yeasts that ferment at the bottom of the tank are called
lager type.

2.2. PROCESS OF PRODUCTION IN THE BREWING OF BEER

STAGES.

GRAIN STORAGE: Modern reinforced concrete structures that

Inside, they store malted barley and other attached cereals, materials
essential ingredients for the production of the best beers in Peru. These
 raw materials are transferred by conveyor belts from the silos of
storage towards the grinding area, where after the grain is crushed
son enviadas para su posterior derivación a las pailas de cocimiento.

WATER EXTRACTION AND TREATMENT: We have large wells.

depth, from where the water is extracted to then be subjected to a process
of partial ionization thus achieving optimal conditions and concentrations of
sales and minerals necessary for the production of our beer brands,
ensuring a high and uniform quality product.

GRINDING: In the grinding process, the grains of malt and the attached cereals are crushed.
From here, the grains are transferred to containers with the aim of facilitating the points of

contact of the ground grain with water during the mashing process facilitating
and accelerating enzyme reactions.
COOKING: In our cooking rooms, we obtain from the use
from malt, adjuncts, previously treated water and hops, a liquid with an extract of
high quality called must that is the essence of beer in the process
brewer.
WORT CHILLER: The filtered and boiled wort is cooled to the temperature of
fermentation using a plate heat exchanger, where in countercurrent
circulate the hot must and the cold water, allowing for a must with a
ideal temperature for yeast planting and at the same time sterile air injection
to facilitate the subsequent fermentation process.
FERMENTATION :

El proceso de fermentación dura entre 6 y 7 días, se caracteriza por la formación

carbon dioxide and alcohol gas, the process is exothermic and must be controlled
strictly the temperatures in such a way that they always allow for a
controlled fermentation. Once the fermentation process is complete, the harvest is done.

yeast and the next stage begins which is maturation.

 MATURATION: In this stage, the beer is kept at temperatures below
from 0°C allowing to round out the characteristic flavor and aroma of our
products in addition to the stabilization and clarification of beer. In this process
The tanks are maintained under pressure to allow for the saturation of carbon dioxide.
in the liquid, the sedimentation of yeast and proteins also occurs
suspension allowing the clarification of the beer.

FILTRATION: Once the maturation process is completed, the beer is filtered.

the temperature of -1.5ºC through filters with filtering aids which allows
separate the insoluble materials. Through filtration, the beer acquires its typical color.
bright golden. Once filtered, the beer is stored in the tanks of
pressure to be sent to the fillers where they are bottled.

PACKAGING: The packaging halls of our breweries have

modern filling machines for glass bottles, aluminum containers, and chopp barrels.
After filling and crowning, the packaged beer is pasteurized by
hot water showers that raise their temperature up to 60ºC, to ensure
its biological stability. Pasteurized beer is labeled, coded,
boxed, palletized, and stored for later dispatch to the market.

DISTRIBUTION: Our brands are distributed to various points across the country and
from abroad through our efficient distribution system.

2.1. Organizational structure.

The brewing group Backus is part of the Backus Corporation, which is a

conglomerate of twenty-seven companies within the industrial, agro-industrial, and
services.

The following business groups are present:

Food and Beverage Group.

Group of Containers and Packaging
 Transport Group
Group of Services
Social Projection Companies
Investment Companies in Securities.

3. STRATEGIC PLANNING OF BACKUS

3.1. Mission

To produce and market goods and services of optimal quality as a priority

targeted at the food and beverage sector, both for the local market and for
export

Seek to satisfy the actual needs of consumers.

Generate a continuous change process to maintain productive units
modern, efficient, profitable, and competitive at a global level.
Contribute to the country's development process.

Vision
To own and promote the preferred local and international beverage brands
consumer.

3.2. SWOT Analysis

Fortresses

Only national beer producer.

There is a strong horizontal and vertical integration.
High barriers to entry for new competitors.
Solid equity support, strengthened by the acquisition of 49% of the shares.
on behalf of Grupo Bavaria.
Adequate managerial management.
Brand positioning in the local market and in the Peruvian neighborhoods.
foreign countries.
Important knowledge of the industry and the production process, constituting a
important learning curve.
Strategic alliances with German companies to ensure the quality of the
products, in accordance with international standards.

Weaknesses
 The main weaknesses of Backus are:
Rivalry among shareholders.
Plant capacity lower than that of Latin American competitors.
High dependence on the domestic market, low level of exports.

Opportunities

The main opportunities for Backus are:

Recovery of the purchasing power of the population, reflected in the projection of
Gross Domestic Product.
Possibility of penetration into foreign markets.
National and Latin American market with low per capita consumption, which can
to be increased.
Support for its shareholder, Bavaria Business Group of Colombia and Polar of
Venezuela, with the aim of penetrating Latin American markets.
Utilization of the current idle installed capacity.

Threats

The main threats to Backus are:

Smuggling of products across the southern border of Peru.
Greater penetration of imported products through retail channels.
Maintenance of low tax burden on beverages with higher alcohol content.
Changes in tax policies. High sensitivity to changes in the ISC (Tax)
Selectivo on Consumption) in the domestic market
There are no tariff barriers for the entry of imported products.
Oligopolies in Latin American markets, with brand positioning
regional.
Close substitutes.

1.2. STRUCTURE OF THE COMPANY 'BACKUS' (HORIZONTAL)

 III ORGANIZATIONAL CULTURE OF BACKUS

3.1. ORGANIZATIONAL CLIMATE.

We are constantly concerned about knowing the satisfaction of our

collaborators; we conduct the Satisfaction Survey twice a year
Organizational (ESO). The goal of ESO is to understand perceptions of the
collaborators on various topics related to satisfaction and commitment
the employees, in addition to their opinion regarding the implementation of the plans
action y other critical events, identify the aspects that generate
satisfaction/unsatisfaction, in order to then analyze and understand, qualitatively, the
quantitative results obtained in both studies. In this way, the identified ones are
focus areas through the analysis of different dimensions and factors.

3.2. Backus values.

leadership: It is forged through a process of honesty and development of

virtues. It is to make people do what needs to be done.
 Good example: Practice what you preach. It is the way the leader conveys their
values and principles.
trust-friendship: A condition to achieve commitment to the company and autonomy
to create. It stimulates efficiency and avoids limiting oneself to pointing out mistakes, but by
On the contrary, it helps to correct and overcome them. It is the foundation for working as a team.
teamwork: Association of efforts. Team members share
the objectives, plans, strategies, and mistakes, making the objectives of the set
take precedence over individual objectives.
innovation: It involves supporting personal and team initiative and creativity,
tolerating errors and seeking permanent action. Without this value not
They would take advantage of the opportunities, as these are uncertain by definition.
total quality - productivity: Producing well from the beginning, in a chain of
responsibilities, meeting the needs of the customer. It is about achieving results by
lower cost, optimizing the use of resources, which are scarce and expensive,
seeking to achieve competitive advantages.
respect for the environment: It is to act in harmony with the ecological surroundings.

promoting the conservation of nature, a basic requirement to achieve

better living conditions in the future.
morality of acts: It is to act in accordance with the law, without engaging in acts
dishonest or of questionable negotiation ("no to bribery"). It is to respect the rights
from others, avoiding taking advantage of our business position. Gives
stability in the long term and is an example for the moralization of our country.

3.3. Basic presumptions

Regarding diversity, being respectful of cultural differences, we expect the development of

equal opportunities in employment without discrimination based on race, religion, and gender, or others
arbitrary reasons.

3.4. Interrelationship standards

Freedom of affiliation and collective bargaining The processes of collective bargaining, of both
últimos años, representaron un cambio importante en la relación Empresa-Sindicato. El concepto del
The union as a business partner prevailed as a basis to ensure a climate of labor harmony. This
facilitated the implementation of a fluid and open internal communication of the progress of the
 negotiation, as well as the change in the approach to generate proposals that guarantee
internal equity at the level of the Operation Peru offices.

Summer Backus

It is the program that promotes the proper use of free time through recreational activities,
cultural, artistic, sports, and educational activities for the children of our collaborators, between 5 and 15
years old. During the summers of 2006-2007, 1,483 children and adolescents participated.

b) Study scholarships

We have an Educational Scholarship program through a strategic alliance with the Institute.
Peruvian Educational Promotion (IPFE), aimed at the children of workers in school age,
technical and higher education with a high academic performance during the previous year. During 2006 and 2007
919 scholarships were awarded. To ensure transparency in the selection of beneficiaries, the IPFE
Evaluate the candidates. This scholarship is reflected in an annual financial allocation.
granted to the worker

3.5. Safety symbols.

Respect the pedestrian crossing signs.

signage of organic inorganic waste for environmental protection

3.6. Symbols and prizes.

IV CONCLUSIONS
 REFERENCIAS

[Link]

Backus & Johnston Corporation. [Link]

Association of Foreign Trade of Peru. Source Customs. December 2002.

Consultora Apoyo. [Link]

Maximixe Consultant. Market Reports. November 2002.

America Economy Magazine. [Link]

Credit Bank of Peru - Credit Division. Risk Report. December

2001 and July 2002.

Bavaria Business Group. [Link]

Polar Company. [Link]

Modelo Brewery. [Link]

Hitt, Ireland and Hoskisson. 'Strategic Management'. Fifth Edition, 2003.

George S. Day. "Maintaining the Competitive Edge: Creating and Sustaining"

Advantages in Dynamic Competitive Environments. The Wharton School,
Department of Marketing, 1997.

Michael E. Porter. "Internal Scrutiny at the Business Level". Chapter 6, Part II.
Business Strategy.
Michael E. Porter. "How Competitive Forces Shape Strategy". Harvard Business
Review, 1979.

Michael E. Porter. "What is Strategy". Harvard Business Review, 1996.

G. Stalk, P. Evans, and L. Shulman. "Competing on Capabilities: The New Rules of

Corporate Strategy. Harvard Business Review, 1992.

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