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Industry analysis beer
Craft Beer industry case study
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The Boston Beer Company and Samuel Adams have both had a long history. Since the 1870s, six generations of the Koch family have been involved with beer. In the early 1980s, the seventh generations almost turned his back on the family business. After graduating from graduate school, Jim Koch wanted to stray always for the family business and seek a career in management consulting. After a short time in the consulting business, Koch decided that he just could not ignore his destiny to create a new, different beer. In 1984, Koch was on the search for a “better beer”. The only options at the time on the market were pale lagers from mass producers (Company), Koch decided there needed to be a change. In April 1985, Samuel Adams made in bar debut. At first, Koch and his partner, Rhonda Kallmen, were the only employees and were only producing 500 barrels a year. The company has now grown to 400 wholesalers, 200 sales representatives and 6 million barrels of beer produced each year. Because of the creativeness of Jim Koch the craft beer industry has been forever changed.
Structure and Strategy
Boston Beer Company has always structured themselves as a craft beer maker. Their strategy is to always strive to give their loyal customers a “better beer”. Their idea of a better beer includes giving their customer a higher quality, a better and unique taste, and a sophisticated image. Along with the strategy to a better beer for the customer, Boston Beer and Samuel Adams also pay close attention to their operations strategy. Their operations strategy includes paying close attention to the brewing process from start to finish. The producers are involved in every step of the brewing process. They hand select all of the raw materials, they br...
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... on top of the craft beer industry. Through their business strategy, structure, strengths, and adaptability, Samuel Adams is a company that will continue to grow and continue to provide their customer with a better beer.
Works Cited
Company, Boston Beer. Samuel Adams- Our Craft Beers. n.d. 6 Nov. 2015. .
Polgar, by Richard. NYS Bottle Bill: Deposit & No Return. September 2011. 6 Nov. 2015. .
Ruggles, M. 4 Main Ingredients in Beer and Why They are Important. 29 April 2011. 6 Nov. 2015. .
SABMiller. Vers. ww.sabmiller.com. n.d. 8 Nov. 2015.
Verive, John. Los Angeles Times: Food. 19 September 2013. 6 Nov. 2015. .
The company launched an initiative collaborating with the “Lyft”, which will provide free rides for drunk customers [8]. This indicates the amount of dedication the company has towards its customers. It also provides tours to customers across the 12 flagship breweries in the United States [9] and would also help customers with samplers. Any company that values its customers would become a great success and Anheuser Busch has proved this again. It also values its employees making sure every one of them feels like an owner and everybody would work as considering the results to be personal [10]. All these put together has helped the ANHEUSER BUSCH to brew beers that are loved by their customers and in making it the leader of its domain of
Rosental, David W., Twells, Richard T. Madcap Craftbrew & Bottleworks, Inc.: Zebra Beer - It's Not All Black and White. Miami University, 1999
Simpson, B. (2008). “New Belgium Brewing (B)” in Ferrell, O. C., and Hartline, Michael D., Marketing Strategy, Fourth Edition, Mason, Ohio: Thompson Southwestern Publishing, pp. 1-5.
This report addresses the issue of whether Amsterdam Brewery should invest and promote new products or continue to focus on current products. And, whether Jeff Carefoote should pay attention to whole brands or spent expense to increase brewing capacity. The report describes a strategic plan to ensure Amsterdam Brewery’s competitiveness in the market.
From our research, Anheuser-Busch is content with being the number one beer company in the world, increasing sales each year in operation. We found that Anheuser-Busch met many views associated with the world, business, and behavioral dimensions. The company also displayed its stability as we reviewed one of its most successful products Budweiser, owned by Anheuser-Busch, under the marketing view and the financial view. Not only do they hold almost half of the market share in the industry but their stock prices, sales volume, and net sales have all increased from 2002 to 2003. We also looked at Budweiser in terms of geography and culture. We found due to the fact that the "western" countries consume the majority of beer, it only makes sense that Anheuser-Busch concentrates on that market. Along these lines, another key goal that is also important to Anheuser-Busch is to boost other beer markets that are located in other cultures, where at the time beer is not a major consumption.
Legal production of near beer used less than 1/10 the amount of malt, 1/12 the rice and hops, and 1/13 the corn used to make full-strength beer before National Prohibition. (Blocker 7)
Strives to be the leader in micro brewing while maintaining the core values it started with and had employee buy in even before it went” 100 % employee owned in2013” (Gorski, 2013).
Deutsche Brauerei has been a family owned and operated corporation for 12 generations, which has created a high level of focus and control. Each generation has kept the management and operations processes relatively simple, centered on brewing practices and quality. Deutsche Brauerei’s rapid growth in recent years can be attributed to several factors. First and foremost, the company’s success is centered on the product itself, which has won numerous quality awards and is quite popular in Germany. Another contributing factor to the recent growth may have been a bit inadvertent. The purchase of new equipment in 1994, which was necessary as a result of a fire that destroyed the old equipment, allowed the company to increase brewing capacity and efficiency. Finally, Deutsche Brauerei’s decision to enter the Ukranian market in 1998 contributed significantly to the rapid growth. The collapse of the U.S.S.R. brought market reforms, and Deutsche Brauerei jumped on the opportunity to enter the fragmented beer industry, capture the large population and capitalize on the prime location in Europe. Lukas Schweitzer was savvy enough to hire local expert Oleg Pinchuk away from a competitor as the marketing manager, and Oleg was instrumental in building the business in Ukraine by securing accounts and implementing the field warehousing to support distributors. Deutsche’s beer was hugely popular in the Ukraine almost immediately, and volume sales more than offset the depreciation of the Ukrainian currency. Sales in Ukraine accounted for 28% of Deutsche’s total sales, and skyrocketed from 4,262 euros in 1998 to 25,847 euros in 2001.
Gorman realized that building on the L.L. Bean brand would be critical to the success to the company. The company’s goal was to associate the brand name with the image of “Maine’s natural beauty”, along with the legend of the company’s founder. These efforts led the company thirty years of 20% annual growth. Most impressive is the fact that the company was able to finance this growth internally, ad remain privately held by family members.
Monster Beverage Corp. shows that they understand their customers’ needs. They are a successful business with higher growing revenue every year. Their revenues did decrease during the economy’s recent recession (2008...
Relationships with interest groups and the public policy makers has been one of the many things that the Boston Beer Company has strived to maintain and expand. The company realizes that these relationships are critical for the future success of the company. Being in the brewing industry the policies and publics opinion can influence the changes in future policies and procedures that would affect the industry. Developing and maintaining the relationships with the interest groups as well as the policy makers could prove to be very beneficial to not only the company but the brewing industry as a whole.
When the 1980’s rolled around, it was a thriving company, in the Seattle area. However, the co-founders began to have other interests and were involved in other careers simultaneously. Despite that, the company was about to undergo a major turnaround. A man by the name of Howard Schultz started to pursue an interest in the company. He noticed that the coffee shop had a wonderful environment.
After 1996, the U.S. beer industry had consistent growth with about 3,500 brands on the market in 2002 (Alcoholic Beverages, 2005). The U.S. exported beer to almost one hundred countries worldwide. The beer industry peaked production with 6.2 billion gallons in 2003 (Alcoholic Beverages, 2005). The U.S. beer industry haws over 300 breweries. However, this industry is dominated by three companies: Anheuser Bush (45% of the industry), Miller Brewing (23% of the industry), and Adolph Coors (10% of the industry) (Overview of the U.S. Beer Industry, 2005).
The United States of America has a population of 260 million people. This is a big market with substantial purchasing power. As of 1997, Breckenridge Brewery has only expanded eastwards and the west side of the country is relatively untouched. According to Exhibit 2 in the case study, there were only distributors in 32 states and that leaves a potential to sell to the other 19 states as w...
It is one of an effective organization with around 400 wineries and a few more brands. This organization delivers brilliant item and offer it in generally low cost and through this they have possessed the capacity to offers to a little market specialty and gets no promoting help. The organization disperses across the country through alcohol and brew wholesalers arranged in metropolitan ranges. 50 percent of its distributers are the organization's proprietor. The organization utilizes a key record strategy with reps taking a shot at the central command of vast chain stores.