Boston Beer Co. Analysis

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Category: Business and Industry

Date Submitted: 11/14/2012 04:57 PM

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There has been an ever so popular trend growing throughout the beer industry, a shift from main stream, mass production beers to a more eclectic, quality drive craft beer. Craft beers (breweries) currently posses around 4.5% of the overall market share. In order to comprehend the magnitude of scale, the overall US beer market is trending well over $100 Billion dollars, selling over 205 Million barrels of beer annually. In comparison the smaller more specialized craft breweries are selling a combined total of over 9.1 Million barrels of beer annually, (about 4.5% market share). The crafting brewing industry has reported continued growth year over year from 2008 to date. In spite of the downward trending sales of the entire US beer industry from 2008 to 2010, (overall import beer sales were down almost 10% in 2009) the craft brewing industry grew over 7% in volume over these same years. As the number of breweries continues to grow, there are currently over 1600 operating in the US, employing over 100,000 people.

The Boston Beer Company (BBC) primarily recognized by its most popular label Samuel Adams, is the largest and most successful of all the US small craft brewers. The Boston Beer Company represents 24% of the entire craft beer market, and is current #1 in craft beer volume sales, which equates to being the 5th largest in US sales. While being recognized as the largest craft brewer, BBC accounts for only 1% of the total US beer market. “As in comparison to the three largest brewers, which collectively share 80% of the market share, BBC’s true competitors are other craft brewers, where BBC maintains 24% of the entire craft beer market.” (BBC, 2011).

Craft Beer’s are a niche market and the future growth and increase in market share will be reliant upon development of new products and the ability to meet Customer / Production demands for their current corner stone beer Samuel Adams. BBC...