...Boston Beer Company has been able to grow at a fairly rapid pace without compromising its high standards (Cioletti, 2006). One of the Boston Beer Company’s main strengths is its strong commitment to its product line. It has many recipes that never make it to retail due to these standards. The brewer is reinventing old beers while maintaining its signature beer standard. Size There is strength in Boston Beer Company’s size. While still significantly smaller than a mass producer, it is the largest domestic craft beer producer. Sales of Samuel Adams Boston Lager (Samuel Adams) grew 5% annually over the past decade. This contributed to 6.6% growth overall for Boston Beer Co. This allows the company to have a larger distribution network than that of other craft beer producers and it is able to have a larger advertising budget. The company is the only craft beer that is sold in all 50 states, which is of major importance for name recognition. Furthermore, this contributed to the brand prospering so quickly in the beginning (Jannarone, 2011). Strong Word-of-Mouth Advertising The Boston Beer Co. has benefited from strong word-of-mouth advertising. The CEO, Jim Koch, never thought his beer company would grow so fast or so quickly. Koch’s five-year brewing goal was met in the first five months and his ability to maintain this growth made the company the size it is today (Cioletti, 2006). From helping others pair the correct beer with the type of meal to marketing the perfect...
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...Samuel Adams - Seasonal Beers Marketing Plan Outline Leesa Walker Marketing Management - MM522 DeVry University, Keller Graduate School of Management May 11, 2012 2.0 Situation Analysis Samuel Adams Boston Lager is an American Craft Brewer that has been operating since the mid-1980’s. Samuel Adams is brewed by The Boston Beer Company, Inc. The Samuel Adams products have been well received and marketing will be the key to the development of brand and product awareness as well as the growth of the customer base. Competition among American Craft Brewer’s is increasingly intense. Samuel Adams offers over twenty distinctive styles of beer. To gain the edge in this market, Samuel Adams must carefully target specific segments and plan for a next-generation product to keep brand momentum going. 2.1 Market Analysis Samuel Adams possesses good information about the market and knows a great deal about the common attributes of the most valuable customer. This information will be leveraged to better understand who is served, what their specific needs are, and how Samuel Adams can better communicate with them. 2.2 SWOT Analysis 2.2.1 Strengths Broad product line Customer loyalty Brand availability Bottle recycling efforts Stable business 2.2.2 Weaknesses Weak relative distribution channels Low industry market share Slow process improvements Low system capabilities Low productivity 2.2.3 Opportunities Light beer growth Increase consumption...
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...Market for Samuel Adams Kevin Galetto MKT/571 October 8,2014 James McCarthy Segmentation and Target Market for Samuel Adams Samuel Adams Boston Lager is a Boston Beer Company that was founded in 1984 by Jim Koch. Jim used his great–great–grandfather’s 1870 beer recipe to produce one of the most successful microbreweries in the United States. Samuel Adams produces quality craft beers and is perfectly positioned to capture a major segment of the American beer industry. Samuel Adams has produced double-digit growth in the custom handcrafted beer market and has developed new technology in brewing techniques and packaging to offer connoisseurs fresher beer in the most efficient and expeditious manner possible. Samuel Adams targets import beer drinkers, bar and restaurant decision makers and bartenders. The marketing team of Samuel Adams tries to educate potential customers using grassroots marketing campaigns and face-to-face customer communications. What they found was that import beer drinkers were making irrational decisions to drink import beers. They were not drinking import beers because of the taste, but because of tradition and did not know that handcrafted beer did not need to taste bitter. Samuel Adams set out to change the perception of custom crafted beers, one beer drinker at a time. Their marketing consisted of placing two cent pamphlets in bars and on their bottles that described their brewing process and explained why domestic handcrafted beer was the better...
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...Boston Beer Company- Britton McGlachlin As a relatively new entrant into the beer brewing industry, the United States has often been poked fun at and considered to be an inferior beer brewing country among global competitors. Up until 1984, most domestic beer options were pale lagers produced by the mass market brewers. If a person wanted to get a full and flavorful beer, it was considered that importing was the only option with beers such as Heineken and Beck’s establishing themselves as the premium beer leaders. American craft beers were virtually non-existent other than a few small basement and kitchen operations, and there were no widely distributed micro brewed, now known as craft, beers available. (History) In the early 1980s, Jim Koch, a would be sixth generation beer brewer, was convinced that he could find a niche in the competitive beer market for a high-quality American beer. In 1984, Koch used his great-great grandfather’s 150 year old recipe called “Louis Koch Lager” to brew his first batch of what eventually became Samuel Adams Boston Lager. (About) Jim began to take bottles of his beer bar-to-bar for tasting and received excellent feedback about the quality and flavor of his beer, which used all natural ingredients with no adjuncts. In 1985, Jim decided to debut in the Boston market with small batches focusing primarily on quality. Six weeks after its introduction, Samuel Adams was selected as “The Best Beer in America” in The Great American Beer Festival’s...
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...The Boston Beer Company BEM106 Final Project Brian Cleary Sarah Luxenberg Peter Seidel Bill Van de Water May 28, 2004 Overview The Boston Beer Company has had amazing success in its transition from a small scale microbrewer to a large scale national brewery. Almost all of the company’s success is due to the Samuel Adams Lager product line, which has hardly changed from the founding of the company in 1984, to the IPO in 1995, to the present day. In fact, much of the appeal of Samuel Adams comes from its microbrew image and the founder, Jim Koch’s, commitment to the brewing process and a premium beer. In recent years, however, the company has implemented a new strategy for growth which has included introducing a light beer that will have more mainstream appeal. While this has increased profits for the company, it has also left the company vulnerable to entry by diluting its brand name. For this reason, the company’s strategy for the immediate future has to make a significant shift, from a strategy of growth to a strategy of protection. It must focus on maintaining its current profits by preventing entry both from small breweries looking to copy the BBC’s strategy and from large breweries looking to use their expansive resources to steal some of BBC’s market share. History of Boston Beer The Boston Beer Company began as a microbrewery in Boston, Massachusetts in 1984. Its first cases of beer were only sold to Boston bars, but the company quickly branched out geographically...
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...The Importance Of Marketing In Your Business By Carael Knight Ads by Google Small order business www.hktdc.com Meet quality suppliers in Hong Kong Int'l Lighting Fair 2012. 6-9 Apr Create More Value www.thepartnershipmodel.com Develop stronger relationships with your customers and suppliers What do customers want? ey.com/global-insurance-survey-2012 How insurers can meet evolving customer needs. The true definition of marketing is setting up automatic, repeatable systems that create an environment where people want to buy from you instead of you having to sell them. Just as a bee is lured to the nectar of a flower, business people are lured to money. Entrepreneurs are the honeybees of our economy. Ultimately the goal of an entrepreneur is to extend the life of his or her enterprise for a lifetime. As a business owner, your ultimate product is a satisfied customer. Some facts about the Internet and search engines: Over 80 percent of Internet users use search engines to find information A typical search can often generate thousands if not millions of results Only those websites listed in the top 100 will ever see any significant traffic Each day, millions of online businesses are competing for those top 100 spots The best marketing advice I can give you is find the right audience, ask people what they what, and after that, simply give it to them. Marketing is the science behind encouraging interested people to buy. The success of any business basically comes down to...
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...Marketing Program Product Strategy Product Line. According to The Boston Beer Company’s 2012 Annual Report, they are the largest craft beer in the United States. They sold over fifty different beers under the Samuel Adams brand, ten flavored malt beverages under the Twisted Tea brand, five hard cider beverages under the Angry Orchard brand, and five beers under Alchemy & Science (2). The suggested retail price depends on each product. Product Quality. Boston Beer Company employed over fifteen brew masters to monitor, operate, and control the production of its beers and ciders. In order to ensure the quality flavor of each brand, each product is tested, tasted, and evaluated to meet the Company’s standards. The Company includes on each product a clear and legible “Freshness” label to ensure their customers that they are enjoying the freshest beer. They use sufficient quantities of ingredients which include, two row varieties of barley for their malt, noble hops for superior taste and aroma, strains of yeast which is stored and protected, and different varieties of apples to be used in their ciders (2). Packaging. The Boston Beer Company maintains competitive packaging materials in the form of shipping cases, six pack carriers, and crowns. They distribute their products to different vendors in all forms of packaging (2). Price Strategy The Boston Beer Company maintains competitive pricings in the United States. Their products range in price depending on the product...
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...of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Harvard Business School. 1 The Boston Beer Company, Inc. Making a buck at craft brewing has been as easy as falling off a barstool the last few years. So Wall Street is now bellying up for a couple of IPO brewers. They’d better start chugging; the party won’t last long. The intoxicating roundup of offerings began in August when Redhook Brewing, a specialty beermaker started in Seattle by former wine marketer Paul Shipman and Starbucks co-founder Gordan Bowker, tapped the market. The stock was priced at $17, never traded below $24.75 and was recently at $27.25. Again, investors went on a bender last month when Pete’s Brewing Company hit the market. The stock, priced at $18 a share, closed its first day of trading at $25.25 and hasn’t sold below $23.75 yet. Boston Beer, of Sam Adams fame, will roll out in mid-December; the Northwest’s Hart Brewing, which makes Pyramid Ales, is not far behind. 1 Eileen Gunn Fortune Magazine, December 11, 1995 Company Background History Boston Beer Company (BBC) was founded in 1984 by Jim Koch, who was the sixth generation of his German family to become a brewmeister. During the early 1980’s,...
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...Boston Beer Equity Valuation Valuation Date: April 1, 2005 Jason Boney jboneyttu@yahoo.com Jordan Gristy jgristy@yahoo.com Preston Madden preston.e.madden@ttu.edu Heath Stanley charles.h.stanley@ttu.edu Boston Beer Co. Equity Valuation Table of Contents Executive Summary Business and Industry Analysis Competitive Advantages Five Forces Model Industry Competitive Analysis Accounting Analysis Key Accounting Policies Degree of Accounting Flexibility Evaluation of Accounting Strategy Accounting Quality of Disclosure Red Flags Quantitative Analysis Ratio Analysis Liquidity Profitability Capital Structure Forecasting Balance Sheet Income Statement Statement of Cash Flows Forecast Summary Valuation Analysis Method of Comparables Valuation Tools Discounted Free Cash Flow Residual Income Long Run Residual Abnormal Earnings Growth (AEG) Conclusion of Valuation Work Cited Appendix 4 7 8 9 15 17 17 20 22 23 23 25 29 29 31 34 37 37 38 39 40 41 41 44 45 46 47 48 49 50 52 3 Boston Beer Co. By Valuation Proclamation Heath Stanley, Jordan Gristy, Preston Madden, Jason Boney Investment Recommendation: Buy, Undervalued Stock Ticker and Exchange Current Price (4-1-05) 52 week price range Revenue (2004) Market Capitalization Shares Outstanding 3-month Avg. Daily Volume Percent Institutional Ownership Book Value Per Share ROE ROA Est. 5yr EPS Growth Rate Cost of Capital Est. Beta Estimated 5-year -0.201 3-year 0.098 2-year 0.434 Published Beta 0.35 Kd WACC SAM-NYSE $22.14...
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...Page 33 Appendix: Page 38 PCS Data Sheets: Page 38 Works Cited: Page 89 Introduction Boston Beer Company (SAM) is one of the fastest growing breweries in the United States of America currently holding the largest market share of craft brewers in the country, and 6th largest of all brewers. Founded in 1984 in Boston, Massachusetts and staying true to both its local and family roots, this high quality beer has become an icon throughout the nation. Another extremely successful and predominant corporation in the beverage-alcohol industry is that of Anheuser-Busch Inbev SA (BUD) which will serve for the purposes of this paper as a benchmark for how a firm should be performing and operating in this field. Being that Anheuser-Busch has been operating since 1852, has 13 breweries nation-wide, and is one of the most iconic breweries in the world, it truly is a unique comparison of “David vs. Goliath” for these two companies. The History of the Boston Beer Company Jim Koch, founding member of The Boston Beer Company, has a long proud history of brewing a robust, full flavored beer in his family. In fact, it was his great-great grandfather Louise Koch, who concocted the original recipe for the brands metaphorical bread and butter “Samuel Adams Boston Lager” which is by far the bestselling brand in the portfolio of beers the company holds and distributes. The “Sam Adams” name (also the inspiration for the NYSE ticker the company holds “SAM”) was dubbed after the American...
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...NEW BELGIUM’S INITIAL MARKETING STRATEGY The idea for the New Belgium Brewing Company began with a bicycling trip through Belgium. Belgium is arguably the home of some of the world’s finest ales, some of which have been brewed for centuries in that country’s monasteries. As Jeff Lebesch, an American electrical engineer, cruised around that country on his fat-tired mountain bike, he wondered if he could produce such high-quality beers back home in Colorado. After acquiring the special strain of yeast used to brew Belgian-style ales, Lebesch returned home and began to experiment in his Colorado basement. When his beers earned thumbs up from friends, Lebesch decided to market them. The New Belgium Brewing Company opened for business in 1991 as a tiny basement operation in Lebesch home in Fort Collins. Lebesch wife, Kim Jordan, became the firm’s marketing director. New Belgium beers quickly developed a small but devoted customer base, first in Fort Collins and then throughout Colorado. The brewery soon outgrew the couple’s basement and moved into an old railroad depot before settling into its present custom-built facility in 1995. The company’s standard line has grown to include Sunshine Wheat, Blue Paddle Pilsner, Abbey Ale, Trippel Ale, 1554 Black Ale, and the original Fat Tire Amber Ale, still the firm’s bestseller. Today, New Belgium Brewing is America’s third largest craft brewer, with Sam Adams number one and Sierra Nevada number two. The craft beer market is about 3% of...
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...Rhine. Rhinegeist wants to bring the tristate area together through enabling connections with their brew house. Through this, Rhinegeist will revive the community in Over the Rhine. However, they are still trying to attract customers from the northern Kentucky region. Enabling Connections 3 Summary of SWOT Analysis Rhinegeist is a local brewing company ran by Bryant Goulding and Bob Bonder. Rhinegeist produces and sells a wide variety of unique crab beers and ciders. Their target customers consists of millennials in the local tristate area who enjoy crab beers and ciders. Rhinegeist is currently positioned as a unique flavored local crab beer with brew house heritage. The average price of a Rhinegeist six-pack is around $9.99. Rhinegeist is also an experience, as they also offer tour services in their brew house. Major competitors of Rhinegeist are: MadTree, Budweiser, and River town Lagerhouse. Being pert of an extremely saturated market, Rhinegeist must to communicate the value of their crab beers compared to others. By attracting millennials from NKY, developing their products...
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...National Diploma in Business L5 ASSESSMENT TASKS Unit 1994 Version 6 Title Manage the development of small business ventures L 6 C 5 NOTE: USE SEPARATE SHEETS FOR YOUR ANSWERS. THE ANSWER SHEETS SHOULD INCLUDE THE CASES AND QUESTIONS AND MUST BE SUBMITTED IN SOFT COPY TO FACILITATE ANTI-PLAGIARISM CHECKING. Task 1 Directions In this task you are required to select and assess the implications of relevant national indicators for specific small business ventures. Before you commence each question, carefully read through the relevant Case associated with the question. This is to ensure you understand the facts and issues the small business venture’s is facing. After reading the case, assess the implications that the specified national economic indicator will have on the small business venture. You will be required to write descriptive paragraphs explaining at least two (2) of the implications. Your description must be specific to the information in the Case. Use examples from the Case to reinforce your descriptions. Answer these questions: 1.1 Assess the implications of inflation on Burger King’s business operations. (O1 – ER 1.1) Case 1: Inflation Burger King (BK) raised the price of a double cheeseburger from $1 to $1.19 and to removed one slice of cheese from the double cheeseburger on its dollar menu (they now call it the BK Dollar Double) due to the inflation dilemma that business ventures are dealing within the current economic environment . © IANZ | 1994 Manage the...
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...Exam 1 1. The US beer industry was transformed significantly since 1980s. identify two important variables in this environment. Discuss the different strategy used by Anheuser-Busch’s and Samuel Adams? Change in environment: - Demand in US: 1980: 34.0 gallon/person, 2003: 29.1/person, 2010: 1.5% drop from 2009. - Technology allows production in very high quantity Anheuser-Busch: SAB-Miller and Molson Coors - High volume and standard quality - Economy of scale (production, marketing) - Commands about 80% of sales, sometimes result from M&A Micorbrewers: Samuel Adams, Corona and Heineken - Low volume, crafy, higher quality - The only segment that experienced growth 2. One of the “excuse” for business executives act unethically is moral relativism. What is it? Describe an example. Moral relativism is relative to some personal, social, or cultural standard and there is no one method for deciding whether one decision is better than another. Dennis Kozlowiski, who is the CEO of Tyco in 1990-2002. Tyco financed the acquisitions by taking on significant debt commitments, which by 2002 exceeded $23 billion. As Tyco expanded, some questioned the company’s ability to service its debt commitments. Other claimed that management was engaging in accounting tricks to pad its books and make the company appear significantly audited every year, and the outside accountants had detected no problems. These criticisms, which were ignored for some time, were finally shown to have...
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...Risk and Financial Impact As with all new ventures, potential risks may have a financial impact* on Boston Beer Company (BBC). In short, the latent risks of BBC’s new hard soda product line may cause revenue loss. Events (e.g. regulatory changes, supply shortages or natural disasters) may have a substantial economic impact to business, based on how business activities are effected (InvestorWords, n.d.). The following three sections address the major potential risks and financial impact, and the mitigation plan which addresses risk. Potential Risks Table 1: Potential Risks Suppler/Vendor Concerns Federal, State and/or Local Regulations Raw Material Prices Access to Capital Ability to Innovate to Meet Customer Needs Distribution Disruption Economic Conditions Competition Less Demand for Products Source: (Toomey, 2014)...
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