about 50% of production capacity, the company suffered a net loss in 1997 that continued into 1998. Redhook brewed only specialty beer, referred to as craft beer. Craft beer is a more flavorful, fuller bodied premium beer. follows traditional old world brewing methods. and uses high-quality materials. The company started as a microbrewery but grew continually and reached national status by the end of 1996. Shipman, one of Redhook's founders, had guided the company from a small player in one city to
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IPO Pricing for Boston Beer Company Inc. Case Summary We address the following key questions regarding Boston Beer Company (BBC) to explore the issues surrounding its Initial Public Offering. First of all, we determine the fair value of BBC to be $211 million based on a DCF valuation of projected future cash flows and explain our key assumptions and potential problems arising from those assumptions. Second, we find BBC’s fair value to be $314 million by relative valuation and discuss how
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Strategic Audit (Question #8) In this financial analysis, I will investigate Craft Brew Alliance (BREW). They are a brewing company that is on the verge of becoming a true American craft brewer that is taking full advantage of the flourishing craft-beer industry. By definition there is only one publically traded American craft brewer. This company is The Boston Brewing Company (SAM). Defined by the Brewers Association an American craft brewer is small, independent and traditional. Craft brewers
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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
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Boston Beer Company Performance and Competition Boston Beer’s sales performance triumphs over its leading two competitors, Redhook Ale Brewery and Pete’s Brewing Company. As seen in the table (appendix 1), BBC achieved net sales of $114,833,000 in the year ending 31 December 1994. This was a growth of 48.84% from the previous year, compared to Redhook’s 30% growth in net sales to $14,929,000 and Pete’s striking growth of 152.02% to net sales of $30,837,000. Pete’s impressive growth in net sales
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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
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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
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One Design Center Place, Suite 850, Boston, Massachusetts. 2. 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. With the support of a large, well-trained sales organization, the Company strives to achieve this goal by increasing brand availability and awareness through advertising, point-of-sale, promotional programs and drinker education. 3. Various beers, flavored malt beverages and hard cider
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New Belgium Brewery 1) What environmental issues does the New Belgium Brewing Company work to address? How has NBB take strategic approach to addressing these issues? Why do you think the company has taken such a strong stance toward sustainability? New Belgium Brewing Company strives to take an environment friendly approach to their manufacturing process and facility, focussing on reducing their carbon footprint and energy usage. They were the first-ever American brewery to fully incorporate
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Boston Beer Co. Inc. (SAM) Boston Beer Co. Inc. (SAM)’s business primary engaged in producing and selling alcohol beverages in domestic market. The company’s revenues are derived by selling beers and hard ciders to distributors, who then distribute the products to retailers and drinkers. According to SAM’s 10-K, the company’s net revenue increased by 6.3% in 2015, primarily due to the increase of shipments and revenue per barrel. Moreover, the gross margin for the company’s core products was 52
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