Boston Beer Essay examples

Profitability ratio Earnings Per Share Book Value per Share Profit margin on sales Return on assets Return on shareholders’ equity Return on Investment: DuPont Model (ROI) Liquidity Ratio Current ratio Quick ratio (acid test) Working Capital 2009 2008 2007

In a world where large, corporate breweries rule the market, craft beer is created to please an audience that applauds the styles, techniques and flavors. Though craft beer can be purchased through several different outlets, the best place to thoroughly enjoy the entire experience of the specially made beer is in the brewery where it was made. The article titled, “In Lean Times, a Stout Dream” in The Wall Street Journal1 states that, despite the hard economic times and consequent consumer cutbacks, sales of craft beer, the industry 's fastest-growing segment, rose

• Valuation of the company—application of sophisticated quantitative valuation models, IRR, net present value and forecast of future cash flows.

The Boston Beer Company, Inc., founded in 1984, is a leading brewer in United States, offering wide variety of high quality full-flavored, handcraftedbeers. It is distinctive due to the time-honored recipe of brewing and authentic, consistent quality of alcoholic beverages. Samuel Adams Boston Lager is the pride of BBC, regular handcrafted beer “stands for quality, inner self-worth, authenticity, and unique New England or Yankee toughness” ( Martin Roper, Chief Operating Officer). Unfortunately, the company experienced the failure of conquering light beer segment

Address the following questions in a 4-5 page write-up of the Boston Beer Company Case to explore the issue of Initial Public Offerings.

In conclusion, 2007 shipments and orders-in-hand suggest that core shipments for the first fiscal quarter are up approximately 23% as compared to the same quarter in 2006. The Boston Beer Company 's 2007 plan calls for depletion growth in the double digits, which is slightly lower than 2006 trends. However, the company 's pricing plan includes a 3% increase which should be attainable given the

Overview The Boston Beer Company has had amazing success in its transition from a small scale microbrewer to a large scale national brewery. Almost all of the company’s success is due to the Samuel Adams Lager product line, which has hardly changed from the founding of the company in 1984, to the IPO in 1995, to the present day. In fact, much of the appeal of Samuel Adams comes from its microbrew image and the founder, Jim Koch’s, commitment to the brewing process and a premium beer. In recent years, however, the company has implemented a new strategy for growth which has included introducing a light beer that

Energized by recompenses and acknowledgment from prestigious brew celebrations, Samuel Adams Boston Lager was accessible on a significant part of the East Coast by the late 1980 's and broadly by 1992. The organization opened up to the world on the New York Stock Exchange in 1995. The Boston Beer Company 's procedure for development was one of separation. The organization made a higher quality brew than the larger part of American lagers by utilizing more costly fixings and less water, and it utilized its bundling and its ads to promote this dedication to quality. Indeed, in view of its utilization of just grain, jumps, yeast, and water as its fixings, Samuel Adams won the honor of being the primary American brew to be sold in Germany, a refinement that helped its picture in America considerably more.

Boston Beer Company founded in 1984, along with many other big league giants have decisions to be made in regards to the direction they wish to take their brand. Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well- developed image uses the same brand name in a different product category. Brand extensions have been used successfully by many corporate giants, such as Arm & Hammer with the starting product being baking soda and extensions such as laundry detergent. However, extending the brand isn’t always as lucrative as it may appear. Arizona,

Every Wednesday at Terrace Club, we take part in wedding of sorts…the marriage of our Tastes of the World menu and Fine Beer Wednesday. This year, Chef Rick and I have worked hand in hand with Guillermo Martinez Cabalga ’17 and Jack Hollingsworth ’17—otherwise known as the Beer Chairs—to pair the Wednesday dining room menu with its beer counterparts in the tap room. So far, the marriage seems strong and appears to be in a permanent honeymoon phase.

The overall industry however is not a reflection on the specific segments; in particular the craft brewing industry. Boston Beer Company’s sales grew at a compound rate of 40% over the five year period ending 1994 emphasising the wave of success the craft brewing industry was experiencing. The growth spurred the founding of over 600 specialty beer companies. There were again, a number of social factors which could attribute to such figures including an increased popularity in the speciality beer reflecting trends in the overall food and beverage market for an

Boston Beer Company (SAM) is a brewery in Massachusetts most commonly known for its Samuel Adams line of “craft” beers. The Samuel Adams line of beer was introduced in 1985. Since then the company has grown to do over 580 million dollars in revenue each year. 580 million is a very small piece of the food and beverage industry but the amount of shareholder wealth they are providing is impressive. Boston Beer Company has been named one of the top publically traded businesses to watch in 2013 by Forbes.

In order to stay competitive in the beer market, MMBC can introduce a new product under the same brand. As MMBC has been producing only one beer, MM Lager, which is more appealing to older consumers, MMBC can introduce MM Light to target new market segmentation, the younger consumers. “Over the past six years, light beer sales in the U.S. had been growing at a compound annual rate of 4%” (Adelli, 2007). The light beer is equally popular among men and women, especially in their 20’s. These consumers are mostly first-time drinkers who have no brand loyalty yet. They will keep on trying any beer to find the best one, and MM Light might be the one. This younger consumer segment is accounted for more than 27% beer consumption and is still growing; they also spent twice on alcoholic beverage than consumers aged above 35. MM Light can increase MMBC total sales as it appeals to more consumers, MMBC beers can serve consumers across all age groups with these two beers, MM Lager and MM Light. As the target market for the light beer, younger consumers and women, frequently visit on-premise location, MM Light can help MMBC gain recognition in on-premise locations. Besides that, producing a new product under the same brand will help in reducing the cost and as more people begin to know the MM Light, MMBC can get more recognition and results in boosting MM Lager popularity and sales.

Financial Statements Balance Sheet Income Statement Cash Flow Statement Stockholders’ Equity Financial Ratios Accounting Principles Bookkeeping, Debits and Credits Accounting Equation Adjusting Entries Bank Reconciliation Petty Cash

The U.S. beer industry is a highly concentrated industry since two large firms (Anheuser-Busch InBev and MillerCoors) occupy a significant market share. As the craft beer industry experiences an explosive growth, the competition becomes fierce. As the largest craft brewery and the seventh largest brewery in the United States, the Boston Beer Company is facing growing competitive threats from larger breweries and premium imported beer companies, including Anheuser-Busch InBev, MillerCoors, Heineken, Sierra Nevada, New Belgium Brewing, and Crown Imports. More than that, it has to face the competitive challenges from the small breweries, which are growing rapidly and want to surpass the Boston Beer Company. Samuel Adams produced by the Boston Beer Company is one of the most popular craft beer because it has won more awards in the beer tasting competitions than any other brewery in the world since 2000 (Dess et al. C129). As the competition within the craft beer industry, the Boston Beer Company has to figure out a way to maintain growth, increase customer awareness, and continue to brew flavorful beers that customers enjoy.