...& Microbreweries Craft breweries and microbreweries produce beer in limited quantities when compared to large breweries (generally under 10,000 barrels per year) and usually distribute their beer within a limited geographic region. Craft breweries often specialize in specific styles of beer, and focus on providing customers a superior product, using traditional brewing techniques. Certain craft breweries sell beer directly on their premises, and are called brewpubs. Craft breweries are known to develop clever marketing strategies with limited budgets in order to connect with their target markets. Industry Overview BC In 2009, 209 breweries were identified by Statistics Canada and 49 of those establishments were located in British Columbia. However, an article by The Province estimates that by the end of 2013 there will be more than 60 independent breweries (this number includes microbreweries, nanobreweries and brew pubs). This increase in breweries is mirrored by an increase of 6.4% of microbrewery beer sales in British Columbia in March 2007 to 12.7% in March 2011. In the last two years, this number have only grown. In an article published July 3, 2013, The Province asserts that craft beer is almost at 20% of the market share for beer in British Columbia, while BC Business cites the Craft Brewers Association of British Columbia in stating that the market share is currently around 15% but that many brewers are experiencing sales growth between 15 and 20% per year. ...
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...2011 Business Plan B.O.S.S. Brewers – Brew On Site Specialists Retail Brewers Supply Company GM600 – Capstone Instructor – Rich Ottum June 18. 2011 Management Team Charles, Mills, Todd Powell DeAdria Walton, Julie Weglewski Daniel Zimbardi B.O.S.S. BREWERS BUSINESS PLAN Table of Contents June 18, 2011 Executive Summary................................................................................................................. 4 Overview............................................................................................................................. 4 Vision and Mission .............................................................................................................. 4 Marketing P lan .................................................................................................................... 4 Operations Plan ................................................................................................................... 4 Financial Plan ...................................................................................................................... 5 Marketing P lan ........................................................................................................................ 8 Marketing Opportunity ........................................................................................................ 8 Service Description.........................................................................................
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...2000 brewers in the world, but three of them control 78% of the beer market. Anheuser-Busch controls approximately 45%, Miller Brewing maintains a 23% share, and Adolph Coors controls 10%. Anheuser-Busch's twelve breweries produce more than sixty varieties of beers in a number of families with operations around the world and distribution to over 60 countries. A few of these families are Budweiser, Michelob, Busch, Natural, Bacardi, and Grolsch. Miller Brewing produces more than 130 million barrels of beer annually and has operations in 40 countries with hundreds of brands. In July 2002, South African Breweries purchased Miller Brewing Company, forming one of the largest brewers in the world, called SABMiller plc. Brands range from Miller, Milwaukee's Best, Leinenkugel's, Peroni, Sparks, and Fosters. Adolph Coors produced 42.1 million barrels in 2006 through 12 breweries and more than 40 brands distributed to over 30 countries. Brand names include Coors Light, Milson Canadian, Coors, Killian's Irish Red, Keystone, Blue Moon, and Zima. Beer is distributed through a system called the "three-tier" distribution system. The three-tier system was established by the 21st Amendment to the Constitution and state and federal governments in the wake of the repeal of Prohibition as a means of checks and balances at each tier level. The first tier consists of brewers and importers, followed by wholesalers, and lastly with the retailers. The brewers and importers manufacture the beer and...
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...make up the “buyers” of beer are made up of distributors/wholesales, retailers/restaurants, and consumers. Distributor/wholesalers embody an essential link in the market channel for breweries here in the US given regulations prohibiting the sale of beer directly to both retailers and consumers. Thus, distributors/wholesalers have quite a bit of bargaining power and can impact market share by way of their support, marketing, and promotions depending on the incentives offered by the manufacturer. Retailers and restaurants are another cog of the buyer channel. The main goal of the retailer is to drive traffic through their stores in order to improve sales and, coincidentally, balancing profit margins. As a result, retailers are looking to stock their shelves or bars with the beer products that are selling with a recent focus on more sub-premium brands due to the recent economic situation, as well as supporting their growth of craft beers which have been outgrowing the industry and offer higher average selling prices as well as higher margins. Lastly, consumers ultimately drive the preferences of both the distributor and the retailer channel as they are the end “user” of the beer beverage. With the plethora of beverage choices in the market, both alcoholic and non-alcoholic, along with the consumer becoming increasingly knowledgeable, several themes have played out impacting the industry: As noted above, consumers are trading up to craft beers given consumers are drinking...
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...that make up the “buyers” of beer are made up of distributors/wholesales, retailers/restaurants, and consumers. Distributor/wholesalers embody an essential link in the market channel for breweries here in the US given regulations prohibiting the sale of beer directly to both retailers and consumers. Thus, distributors/wholesalers have quite a bit of bargaining power and can impact market share by way of their support, marketing, and promotions depending on the incentives offered by the manufacturer. Retailers and restaurants are another cog of the buyer channel. The main goal of the retailer is to drive traffic through their stores in order to improve sales and, coincidentally, balancing profit margins. As a result, retailers are looking to stock their shelves or bars with the beer products that are selling with a recent focus on more sub-premium brands due to the recent economic situation, as well as supporting their growth of craft beers which have been outgrowing the industry and offer higher average selling prices as well as higher margins. Lastly, consumers ultimately drive the preferences of both the distributor and the retailer channel as they are the end “user” of the beer beverage. With the plethora of beverage choices in the market, both alcoholic and non-alcoholic, along with the consumer becoming increasingly knowledgeable, several themes have played out impacting the industry: As noted above, consumers are trading up to craft beers given consumers are drinking...
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...Brewing is a new and innovative craft beer brewing company. Big Wheel Brewing is dedicated to bringing their customers craft brews of the highest quality. Big wheel beers are made for people who prefer quality over quantity. Taste is the most important thing when it comes to brewing fine craft ales. An internal and external analysis will be conducted to determine the factors that have an impact on the success of the company. A SWOTT analysis will also be conducted to determine the strengths and weaknesses of Big wheel brewing along with threats and trends in the brewing industry. When analysis is complete it will help Big Wheel brewing know what they need to do to stay successful in the brewing industry. SWOTT Analysis Conducting a SWOTT Analysis requires Big Wheel Brewing to answer questions necessary to properly evaluate the strengths and weaknesses along with the threats and trends. Assessment of factors that will play a role in profits and losses is imperative to how effective the SWOTT analysis will be. The internal factors such as marketing and advertising will play a role as well as external factors such as customer’s wants and needs. After figuring out what the company’s strengths and weaknesses are Big wheel must identify the opportunities that can be taken advantage of for future company growth, Trends in the beer industry such as the consumers every changing taste for different kinds of beer. Keeping up with the different types of beer people are currently interested in...
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... | |The Beer Industry | |Spring 2010 | [pic] 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...
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...Company Overview 3 Executive Summary 5 Mission Statement 6 Vision Statement 6 Objectives 6 Strategies 6 Products 8 External Assessment 9 Competition 9 AB/InBev 9 SABMiller 11 Heineken 12 Craft Beer 13 External Trends 14 AB/InBev Trends 14 Water Management 15 Energy Use 16 Recycling 16 Government/Political/Legal 17 Economics 17 Internal Assessment 18 Growth Strategies 24 AB/Inbev Strategies 25 SAB Miller Strategies 26 Heineken Strategies 27 Craft Beer Strategies 28 Growth Strategy Advantages v Disadvantages 28 Space matrix 29 SWOT Analysis 30 IFE Matrix 31 Company Overview As the largest brewer in the world, Anheuser-Busch InBev (AB/InBev) has had quite an intense but creative history. In 1852, George Schneider, St. Louis brewer and saloon operator opened the Bavarian Brewery. Four years later, he expanded into a larger location for his brewery to operate due to positive production. However, shortly after the second opening financial problems resulted in Schneider having to sell his brewery to various owners. In 1860, as the brewery reached a worsening financial position, William D’Oench, a local pharmacist, and Eberhard Anheuser, a wealthy German-born soap manufacturer, purchased the brewery and saved it from bankruptcy (Anheuser-Busch...
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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 biggest producer of beer in American is Anheuser-Busch (AB). Formally the largest brewer in America, Anheuser-Busch is now part of the global beverage company InBev, the maker of approximately 200 brands of beer and soft drinks that primarily includes Stella Artois, Becks, Leffe, Hoegaarden, Skol, and Michelob. AB InBev, through its interest in Grupo Modelo, also offers the Corona brand. The company is valued at 130 billion dollars with revenues over 31 billion worldwide. The flagship product is Budweiser, the most popular beer brand in North America with a 20% market share along with Bud Light. Part of the reason for this control of the market is the complex system of distribution in the beer industry put in place since the end of prohibition. This system has enabled brewers to tightly control their distributors and in turn, distributors have control of their individual markets. Before prohibition, brewers controlled their own bars. If you wanted Budweiser you had to go to a Budweiser bar. They provided the bar owners not only with beer but gave loans for furniture, beer equipment and other needs. They required the owners to carry only their brands. After the repeal of prohibition, states enacted strict laws to control the alcohol industry. The three-tier system of beer distribution was developed. This is a 2-level vertical marketing system where the brewer awards a distributorship to a geographic area. AB does not sell directly to consumers; they sell Budweiser to the...
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...Business Case for Sustainability Recommendation: Packaging The process of brewing beer is essentially the same for the industry as a whole. There are two stages in the brewing process; (1) the extraction of sugars from cereal grains and (2) the fermentation of these sugars to make alcohol. However, the packaging for large breweries, consists upwards of 50% of the weight during shipping from the brewer to the distributor and then to retailers (Dornbusch, 2010). Studies have shown that the aluminum can beats out the glass bottle when it comes to life cycle analysis of the materials including the recycling and reuse of each material. Aluminum cans, when recycled, use 95% less energy and produce 95% less carbon emissions than the glass bottle, which uses a mere 2-3% less energy when recycled (EPA, 2012). Another important fact is that while consumers often complain about taste differences in aluminum cans versus bottles, studies show that aluminum is better at protecting beer from the elements, especially during transport when temperatures fluctuate the most (Presidio Economics, 2011) . I will further explore the “consumer taste” issue in the next recommendation. Other evidence for producing more product in aluminum cans versus glass bottles is that aluminum cools quicker in a cooling environment than glass (Shevlin & Soffen, 2009), requiring less refrigeration when shipping beer in aluminum cans rather than glass bottles. Another obvious savings in both cost and...
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...deals with a firm that had been a pioneer in establishing itself as a global competitor in the beer business, gaining recognition around the world based on its well-known green bottle. Heineken had to respond to a wave of massive consolidation in the beer market. Many beer brewers had been moving aggressively to establish themselves as global players by acquiring smaller regional and national players. Jean-Francois van Boxmeer was appointed as Heineken’s first non-Dutch CEO in October 2005. Since his appointment, Heineken restructured itself to increase its ablity to respond to the mega-acquisitions done by its formidable competitors such as Belgium’s InBev and South Africa/United Kingdom’s SAB Miller. Most recently, Heineken entered into a joint venture deal with Denmark’s Carlsberg to acquire Scottish-based brewer Scottish & Newcastle. This would help establish Heineken as the leading brewer in Europe. Heineken needed to raise its stature in its various worldwide markets and respond to the changes that were occuring in the global beer industry. After InBev’s acquisition of Anheuser-Busch in 2008, the top 3 beer companies in the world are InBev (Belgium), South Africa/United Kingdom’s SAB Miller, and Heineken (Dutch). Other top companies worldwide include Carlsberg (Denmark) and Grupo Modelo (the Mexican maker of Corona). Regarding American consumption, Pabst is the only top selling beer in America whose brand is still owned by a U.S. company – although Pabst owns no actual breweries...
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...University of New Hampshire University of New Hampshire Scholars' Repository Honors Theses Student Scholarship Spring 2012 Microbrewing in the US: An overview of the microbrewery industry and a business plan for future success Kevin Lapoint University of New Hampshire - Main Campus Follow this and additional works at: http://scholars.unh.edu/honors Part of the Entrepreneurial and Small Business Operations Commons Recommended Citation Lapoint, Kevin, "Microbrewing in the US: An overview of the microbrewery industry and a business plan for future success" (2012). Honors Theses. Paper 9. This Senior Honors Thesis is brought to you for free and open access by the Student Scholarship at University of New Hampshire Scholars' Repository. It has been accepted for inclusion in Honors Theses by an authorized administrator of University of New Hampshire Scholars' Repository. For more information, please contact scholarly.communication@unh.edu. Microbrewing in the US An Overview of the Microbrewery Industry and a Business Plan for Future Success Kevin Lapoint Business Administration, Finance and Management Whittemore School of Business & Economics Kpe8@unh.edu (603) 988-3438 Advisor: Prof. Fiona Wilson Whittemore School of Business & Economics 5/5/2012 Kevin Lapoint Microbrewing in the US Acknowledgements I would like to thank my brother Douglas, my mother and father, and especially my brother Richard. Without their support, edits, and...
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...Environment – Porter’s five forces The global beer market is growing around 36% year on year, however Chahal, (2013) states that sales in the UK beer market are decreasing by 4.8% year on year, forcing the industry to invest in more advertising to stem the flow. According to WSTA, (2013) there are 204,684 licensed premises in the UK and around 26 million people visit regularly on-trade premises. However one of the reasons for UK sales decline is due to consumer off-trade spending preference as there is more alcohol beverage variety and people are more encouraged to stay at home. (MarketWatch, 2010; Datamonitor, 2010) The beer market competes with many different other alcoholic beverages and Lager is operating in a very difficult market in the UK. Barriers to Entry According to Casey’s beer, (2013) to start a new successfully brewery will probably need around half a million pounds to start with, however some people have managed to start breweries with a budget of £60,000 it all depends on the size of the new business. There are a number of legal requirements that new breweries need, for example, local licenses. Also growing a recognizable brand within the beer market can take a long time. (Perleberg and O’Brien, 2012) There is a high barrier to open a new brewery, because successful large chains, which have economies of scale, dominate this market in the UK, such as Heineken together with other brewers like Bass plc, SaBMiller, AB InBev, Guiness, Scottish...
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...Analysis of the Anheuser-Busch Company Report by Valanium Analysts: Chris Rigopulos, John Schneider, Jayne Tan Investment Recommendation: MARKET PERFORM December 5, 2001 BUD – NYSE (11/30/01) 52 week range Revenue (2001E) Market Capitalization Share Outstanding $43.10 $36.75 – $49.00 $14.9B $38.2 B 884.3M EPS Forecast (FYE 12/30) EPS Ratios Trailing P/E Forward P/E Leading PEG M/B Price/Sales 1999A 2000A 2001E 2002E $1.49 $1.71 $1.89 $2.09 Dividend Yield 1.67% Avg. Daily Trading Volume (3mo) 2.13M Book Value per Share (mrq) Return of Equity (ttm) Return on Assets (ttm) Est. 5 Years EPS Growth Rate Sector: Consumer/Non-Cyclical Industry: Beverages (Alcoholic) $4.83 40.39% 10.71% 11.0% BUD 23.2 20.6 1.87 8.93 3.11 Competitors Avg. 17.4 15.9 1.37 3.10 1.21 Valuation Predictions Actual Current Price Trailing P/E Valuation Leading P/E Valuation PEG Valuation M/B Valuation Price/Sales Valuation EBO (Abnormal Earnings) Valuation DCF Valuation Performance (Trailing, Annualized) Return on BUD Return on S&P 500 Return on Competitors $43.10 $32.38 $33.24 $31.48 $14.95 $16.73 $19.25 $46.87 6 mo -2.1% 18.3% - 2.9% 12 mo 24 mo -7.4% 9.9% -13.4% -10.3% 2.1% 8.9% Source: finance.yahoo.com, Valanium analysis • • Our valuations reflect a range of predictions, all falling below the current price point with the exception of the DCF estimate. However, we believe that A-B’s brand value and domestic presence are not captured within the accounting numbers...
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