...that brewed one beer, Mountain Man Lager, also known as “West Virginia's beer”. Mountain Man Lager held the top position among lagers in West Virgina for almost 50 years and had respectable market share in most states. The company over the years relied on its history and its status as an independent, family owned brewery to create an aura of authencity and position the beer with its core drinker – blue collar, middle to lower income men over age 45. However, Mountain Man Lager was a legacy brew in a mature business. By 2005 Mountain Man generated revenue of just over $50 million and primarily distributed Lager in Illionis, Michigan, Ohio and its native West Virgina. However, the recent changes in the beer drinkers' preferences, the company is experiencing decline in sales. Over the previous six years light beer sales in the United States had grown at a annual rate of 4% while traditional premium beer sales had declined annually by same percentage. With this on going trend Mountain Man Brewing Co. was set to loose 2% each year annually, see section A. for projections for next 4 years. In the lights of such industry trend Chris Prangel, needs to decided whether to produce Mountain Man Light, a light beer formulation of Mountain Man Lager, in the hopes of attracting younger drinkers to the brand. Alternatives Mountain Man Brewing Co. has been facing serious challenges from maturing market and new products which threaten to steal its customer based. Light beer is sweeping the...
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...of the distribution 11 Promotional Strategies 13 Social Responsible Behavior 15 Recommendations 16 Appendix 18 Bibliography 19 The history of Stanley Park Brewery Stanley Park Brewery, which is actually based in Delta, has opened what may be Canada’s first sustainable brewery. A 110-foot- tall wind turbine provides the energy for the state-of-the-art complex, which uses less water and energy than a conventional brewery. The brewery’s somewhat confusing name refers to the original Stanley Park Brewery, which was established way back in 1897 on the shores of the park’s Lost Lagoon by Belgian pioneer and brew master Frank Foulbert. (Green beer) The brewery is actually owned by the Mark Anthony Group, the leading distributor of wine and beer in Canada. Some people point out that Stanley Park Brewery is not...
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...a quality beer. Enable to meet the needs of the consumers. Reduce take-up risk by customers Easy to convince retailers to stock your beer extensions. Introductory marketing need not create awareness. Possible packaging and labeling efficiencies. Brand loyalty With a rate of 53% in the East Central region. Mountain Man brand loyalty rate is higher than that of competitors (42% Budweiser and 36% for Bud light) Strong associations to Mountain Man Lager Brand Defined as for working-class, tough, down-to-earth and not ‘corporate’ but local, authentic brand with strong heritage. The young would not like to be associated with a “tough” and “old brand, while the old would not like to be associated with the young drinking “tasteless” beer. Weaknesses Limited economic resources Limited geographic coverage Strategy is not updated to the current market needs to reach Is this essay helpful? Join OPPapers to read more and access more than 650,000 just like it! get better grades out to potential customers. Grass-root marketing in building brand awareness. Mountain Man had always relied on grass roots marketing to spread its beer quality message by word of mouth. Opportunities New product (light beer) Overall shift of market to light beer due to changes in beer drinkers’ preferences. Light Beer grows with 4% CAGR. Light beer could re-invigorate lager. Light beer could dilute lager equity. Potential for cannibalizations of brand. Light beer could potentially...
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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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...Corona Beer "A multi-country strategy is appropriate for industries where multi-country competition dominates and local responsiveness is essential. A global strategy works best in markets that are globally competitive or beginning to globalize." Corona Extra has been the world’s fourth best selling beer in terms of volume in 2005 due to its strategy in differentiation. Corona marketing campaign of “fun in the sun” and its light and citrus flavor helps products to expand its target customers far beyond its competitors. However due to merger and acquisition that occur in the industry, Corona needs to adjust itself in order to sustain its growth and improve its competitive position. 5-Force Analysis Rivalry (High Threat) * There is competition from both domestic products and import products as well as threat from merger and acquisition which large company may dominate the industry as they might gain advantages from cost efficiency and market share after merging. New Entrants (Low Threat) * There is low threat from emerging entrants since the large companies will have advantages in economy of scale. Also new entrants will need to have heavy start-up cost of capital. Substitute (High Threat) * High threat from substitute because there are various kinds of liquor in the market. Altogether with non-liquor drinks in the market are also considered as substitutes for beer. Consumer (Moderate) * Since there is price sensitive for beer in the market, company needs to...
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...Mapping The % Tiger's Brand DNA 36 Tiger Beer In order brand DNA. for any brand to be successful, it must have a strong brand DNA. The brand DNA simply refers to the things that make a brand all the clutter in the market. What is the sign of a strong brand DNA in any brand? If you take away the logo and the name, and people are still able to tell that it is your brand, then that is a strong For example, part of the Coca-Cola DNA is the patented Coke bottle design and the fact that Coke is "The Real Thing". These are the elements that make Coca-Cola what it is. Take away the logo and the brand name, and you can still tell that it is Coca-Cola. Although Tiger Beer has not gotten to the stage where Coca-Cola is now, it has still done a great job of creating and developing the Tiger Beer brand DNA. In this chapter, we will look at the things that make a Tiger Beer... a Tiger Beer. These are the things that define the Tiger Beer brand. They are the strands that make up the Tiger Beer brand DNA. what it is. A strong brand DNA will allow the brand to cut through THE BUILDING BLOCKS THE CATEGORY—LAGER Tiger Beer is a lager beer There is no Tiger Beer Lite, Tiger Beer Ice, Tiger Beer Draft, Tiger Beer Strong Brew, Tiger Beer Pilsner or Tiger Beer Dark. Tiger Beer stands for lager and nothing else. It is closely identified with that category of being a lager beer. Category is what defines the brand, not the other way around. People are not interested in the brand...
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...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 in the case of importers, import...
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...Ingredients Found In Beer are Beneficial to Our Health Drinking beer for some people who likes to go to the party or just relaxing their body is a habit. However, some people think beer is the alcohol drink that effects bad habit, cause be hangover, and has high risks for some diseases. Besides that, some people consider that consuming beer intake too much can damage the body’s digestive system, kidney, and fetuses of pregnant women. Apparently that drinking beer has positive effects to our health as long as normally consumption though consuming of beer has the bad effects too such as bad habit, hangovers, and addiction. However, several study says that benefits of beer consumption is able to minimize some of disease symptoms. Beer consist of 5 main ingredients (Water, Malt, Barley, Hops, Yeast), but some sources says that 3 of the ingredients (Water, Malt, Yeast) are useful to reduce the risk of kidney stones, diabetes, and gastric acid, which means has certain good effects to our body. The first main ingredient that are useful for beer is 93 percent comes from Water. Water in beer should free and clean from bioligical, physical, and chemical contamination in brewing. Water containing oxygen and soda in beer which able to allow oxygen to the kidney so it will help avoid kidney disease, and give fresh oxygen to kidney stone. You can imagine how importants it is for our body. Researches from Finland has completed their study and says that drinking beer can reduce the risk...
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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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...Milgram 1 Cory Milgram WR 121 Abby Grewatz Essay 3.2 3/13/13 Beer and Sports Sports are a huge source of entertainment in the world. Watching sports is an excellent activity that the whole family can enjoy. More than ever before, fans in America can turn on their HDTVs and tune into their sporting event of choice. With such a large quantity of viewers glued to their TV sets, companies have begun paying top dollar to direct their advertisements at sports enthusiasts. Commercials relating to sports have commonly been extremely successful and consumers purchase these companies products at an astounding rate. The problem I have with sports related advertisements specifically relates to the beer industry. These are some of the most profitable corporations and suck people in with multimillion-dollar commercials. These commercials are clever yet often deceitful. Beer commercials also air more frequently than that of nearly any other product. This gives viewers a constant reminder to purchase a product that, in fact, can be dangerous and detrimental to one's health. Beer commercials should be banned from televised sporting events because beer commercials make viewers believe they are dependent on alcohol consumption to enjoy watching sports. Watching televised sports is viewed as a social event. Gathering around the television with friends, living and dying with every pitch, is a rich part of the American culture and its tradition. These are the moments people look forward...
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...Individual Written Report: Tiger Beer AB112 Marketing Nanyang Business School Tutor: Mr Craig Ewan Done By: Eufratia Raissa Mandhela 1. Company Introduction Tiger Beer was first introduced in October 1932 by the Malayan Breweries which was first established in 1930. Despite its modest starting point, Tiger Beer has expanded vastly and can be found in over 70 countries today. It is also brewed it 11 different countries such as Singapore, Malaysia, Thailand, Vietnam, Cambodia, China, New Zealand, Papua New Guinea, Sri Lanka, India – more than any other Asian beer brand. Tiger Beer has grown from a local brand into a globally recognized icon at present. Through its history, the brew has won more than 40 awards internationally. Tiger Beer received its first Bronze medal in 1939 for Bottle Beer Competition in London. Over the years Tiger picked up many more achievements and the most outstanding includes winning the Gold Medal for Brewing Industry International Award in 1998 (London, UK), that can be considered as winning Oscar Award for the industry. Most recently it has also won another Gold Medal at the 2004 World Beer Cup that is equivalent of winning the Olympic in beer industry. Today Tiger Beer is acknowledged as the leading global brand through its active participation in the sponsorship of many sports events and vibrant brand campaigns. As recognition to the brand, Tiger was awarded as a leading brand in UK Cool Brand Leader for 3 consecutive years:...
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...generally referred to as "beer" has been brewed for centuries. Beers are obtained by the yeast fermentation of malted cereal grains, to which hops and water have been added. Brewing has evolved from a cottage craft into a modern industry where large breweries export their beers worldwide. On a per capita basis, Germans consume the most beer at about 40 gallons (151 1) per person per year. Beer drinkers in the U.S. rank fourteenth in the world, with American breweries producing approximately 156,900 million barrels of beer a year. Each barrel is the equivalent of 117 liters or approximately 31 gallons. The true origin of beer can only be conjectured. Early attempts at brewing occurred around 7000 B.C. in Mesopotamia. The Egyptians and Greeks also brewed alcoholic beverages by various methods, but the term "beer" did not appear in these early languages. The Babylonians offered brewing recipes, and there are various references to beer in the Bible. The English word "beer" seems to stem from the Celtic word "beor," which referred to a malt brew made by monks at a North Gaul monastery. In the Middle Ages, monasteries were the leading producers of beer, and monks are credited with many early brewing techniques, such as the addition of hops to improve the aroma and help preserve the beer. The distinction between ales, lagers, and darker bock beers began to appear in French and Irish writings in the 13th century. It is generally accepted that the modern beers as we know them today date...
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...Case 13: Corona Beer: From a Local Mexican Player to a Global Brand 05/17/12 Identify and discuss the trends in the global beer markets. The global trends in beer markets once were to brew, market, and sell locally. Now, in the global world we live in, the trends are to expand worldwide. International beer sales have shown a steady growth in consumption and sales. With a small downturn in 2009, due to the economic crisis, sales in 2010 have seen increase once again. Global beer market trends also indicate consolidation is a major factor. The four largest brewers produce about half of all beer and claim almost 70% of profits. Africa, Asia, and Latin America have experienced smaller consolidations. (SABMiller, 2011) The global beer market has expanded into other countries with China seeing the largest increase. Until 2003, the United States had the largest beer market in the world, then China gained a larger percentage of the market, even though America recorded six times the consumption rate per capita than did China. (Thompson, 2009) “Beer consumption continues to rise in Africa, Latin America and Asia, driven by growth in population and incomes and improvements in beer quality and appearance.” (SABMiller, 2011) In these emerging countries, commercial beers are seeing an increase in market share over home or local brews. Despite the economic downturn, “over the past five years, the global beer category has maintained an average...
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...YifengBao Boston Beer Company The Appendix 1 below presents the strategic group model of beer industry. In my perspective, Boston Beer Company fits the position with moderate high price and high percentage of alcohol volume. Since the strategic group model contains the variables of two competitive characteristics which are average price and percentage of alcohol by volume in the industry, the positions that companies locate in the model are suited to tackle competitive pressures. We could conclude that both of the prices and quality are key competitive elements in beer industry. Boston Beer Company follows the combination strategy with low-cost and differentiation strategies. The case introduced that the company invested in efficiency initiatives to lower costs and increase margins during the its development. Facing the competitive environment in the craft brewery industry, the Boston Beer Company has promoted some specializations of their products, which are popular in the industry. The company brews over 50 beer flavors, for example, Samuel Adams Cherry Wheat beer is one of the most popular beers in the company. Also, the company promotes other alcoholic beverages that are with high popularity among consumers. In addition, the company pays much attention on the brand recognition. The Boston Beer Company has tried to expand the brand to other countries outside the United State and made their products be recognized nationwide. Furthermore, the fact that the Boston Beer Company created...
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...446 - 436,332) / 436,332 = 3.92% 3. What was SAM's Gross margin in fiscal 2008 and 2009? 2008: $183,887,000 2009: $213,818,000 4. What were SAM's Operating expenses (as a % of sales) in fiscal 2008 and 2009? = (Operating Expense / Revenue) *100 2008: 169,825 / 436,332 = 38.92% 2009: 159,547 / 453,446 = 35.19% 5. What was SAM's Effective tax rate in fiscal 2008 and 2009? 2008: 48.9% 2009: 42.8% 6. What effective tax rate does SAM anticipate for 2010? The company believes that the effective tax rate for 2010 will be 42%. 7. What is SAM's outlook and goal for future sales growth? List SAM’s risk factors. The Company’s business goal is to become the leading brewer in the Better Beer category by creating and offering high quality full−flavored beers. The company expects full year 2010 gross margins of approximately 54%. Based upon the Company’s best estimates at this time, the Company is targeting 2010 earnings per diluted share to be between $2.35 and $2.65, but actual results could vary significantly from this target. (10K, Page 23) SAM’s risk factors are: * Faces substantial competition. * Consolidation among brewers increases costs to compete, leads to reduction in contract brewing capacity and decreases distribution support and opportunities. * No assurance of continued growth. * Stock prices fluctuate because of fluctuation of company’s quarterly results. * The addition of Pennsylvania Brewery has high capital costs and increased...
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