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Beer Industry Report

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Submitted By rjendrnyl
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Pages 21
|BA 630 |
|Industry Analysis |
|The Beer Industry |

|Spring 2010 |

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Beer Industry

The term beer means “…any beverage brewed from a starch (or farinaceous) grain. Because the grain is made into a malt, another term for beer is malt liquor”. (The Beer Industry)

According to the North American Industry Classification System, the beer industry is found in section 312: Beverage and Tobacco Product Manufacturing. NAICS states that “Industries in the Beverage and Tobacco Product Manufacturing subsector manufacture beverages and tobacco products. The industry group, Beverage Manufacturing, includes three types of establishments: (1) those that manufacture nonalcoholic beverages; (2) those that manufacture alcoholic beverages through the fermentation process; and (3) those that produce distilled alcoholic beverages…” Although beer is within the same section as wine and distilled spirits, they do not consider them the same. Within section 312 they have five separate sections: Beer can be found under section 312120 Breweries. Within this section the term Breweries is comprised of “establishments primarily engaged in brewing beer, ale, malt liquors, and non-alcoholic beers”. However, Standard & Poor’s would say that distilled spirits, wine, beer and tobacco are all a part of the same industry the “Alcoholic Beverage and Tobacco Industry”.

The question we must ask is who is right? How do we determine if beer is an industry on its own or

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