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the boston Beer Company analysis


Company Analysis
            The Boston Beer Company is the biggest brewer in craft beer industry and is also the 6th biggest brewer in the entire U.S. It was started by Rhonda Kallman and James Jim in the year 1984. It produces various product under the brand name Samuel Adams. Samuel Adams has always been and has remained to be the third best beer brand in the past five years. Samuel Adams offers different flavors which comes from its broad selection of the beer that are seasonal and different types of beer. Boston beer also makes production of cider beverages and malt under the hardcore cider and twisted tea brands (Adam Nason 2011)). In addition, the company sells the products to the distributors who later sell them to various retailers. They sell their products to countries like Canada, Israel, Caribbean and Europe. The company has in past few years made a little acquisition. In 2012, it acquired Southern California Company’s brewing assets. The success of the company occurred in conjunction with the U.S craft beer movement. By the year 1995 almost 500 independent breweries were producing specialty beers in the U.S.
It is currently located in the U.S beer market. In the year 2009, the Boston Beer company, reached the production mark of the annual two million barrel cutoff. The products from this company compete with other craft beers although the Samuel Adams are technically considered to be mass produced. SAM has made use of the combination of brewing in its own contacted facilities. In the year 2007 and 2008, the Boston beer company had various concerns about the availability and the pricing in the near future. They came to a conclusion that better brewing control was the answer (June 2015). It decided to buy Diageo’s brewery at $ 55 million and this lead to an increase of the company owned volume hence allowing the company to produce fresh products and at the same time lowering the transportation fee. Looking in the future the Boston beer company will continuously grow by the means of organic.
            There is a great opportunity for this company. The fact that there is an increasing trend of the customers who are moving to beer products that are better like the crafts beer, creates a good market opportunity for the company through the increase of sales. The weakness that the company is facing is, being located in a competitive environment, and in this it competes in the craft beer segment and that is the most concentrated part of the beer industry. The financial performances on the other hand is dependent on the conditions of the market. If there is for example a second dip in the market, then the company can be highly affected by it (June 2015)). Additionally, if the company’s product has to meet the heightened competition or to have the pricing measures intensify, it would have a huge effect on the performance of the company as well.
              In 2007, the Boston purchased the F & M Schaefer Brewing Company that used to brew in Breinigsville. Since the year 2001, the ownership of the F & M Schaefer Brewing Company had been on Diageo North America and at the time it used to produce Smirnoff Ice malt beverages. In the year 2012, the Boston Beer Company started the Angry Orchard hard cider company that was based in Cincinnati. It twisted the tea brand in the year 2000. In the year 2014, the company had attained 1,325 employees (Adam Nason 2011). However it is very difficult to make an accurate comparison of the SAM to the mentioned companies due to the private holding of many craft beer brewers. It is so unclear how the Boston beer Company will act towards the increased completion, mostly having seen the negative effects it currently had on earnings. Looking in the future the Boston beer company will continuously grow by the means of organic.





Reference
Adam Nason (2011). Boston Beer Co. Quietly Launches Angry Orchard Cider Brand Beer    Pulse.
June Sawyers (2015). Discovering Vintage Boston’ Highlights the Good Old Spots. Chicago           Tribune.
Boston Beer Company (2012). http://www.bostonbeer.com


           





                                              













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