Case Name :      Aquarius Ales: How Much Should the Brew Cost

Authors :           Susan V. White, Pascal Villager

Source :             North American Case Research Association (NACRA)

Case ID :            NA0003

Discipline :        Finance

Case Length :    12 pages

Solution sample availability : YES

Plagiarism : NO (100% Original work)

The owners of Aquarius Ales, a popular Sixth Street pub in Austin, Texas, received an offer to sell their business to a pair of University of Texas business school graduates for $450,000. Was this a fair offer? If not, what would be an appropriate counter offer? The case looks at the prospect for revenues for the pub in light of declining alcohol consumption among the general population. Aquarius Ales’ niche was appealing to those who liked 60s and 70s music, with its name coming from a song in the hit sixties musical “Hair.” Although the pub’s main product – alcoholic beverages – was a commodity, the pub had the advantage of a desirable location, decrease in the number of competitors and a population of college students who enjoyed “oldies.”