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.
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