Essay about Boston Beer Company

1. Was Borg-Warner’s Industrial Products Group a good candidate for a leveraged buyout in 1987? Evaluate the price paid and the structure of the deal that closed in May 1987. Are you optimistic about BW/IP’s prospects?

1. The first issue before all others is to clarify what is meant by 12-15% organic growth is that revenues or profits? That's rather important to know.

4) Do you think the total market value of Redhook, Pete’s and Boston Beer (at your proposed IPO price) makes sense, given the total size and profitability of the beer industry, and the craft-brewing segment? What profitability and growth assumptions are necessary to justify the total market value of these three craft brewers? (Hint: First determine the total market value of these three companies. Then figure out what the average after tax operating profit margin is for these three companies. Figure out what the value of these three companies would be if their after tax earnings continued forever, but did not grow at all. Then take the difference between their total Market Value and this (no growth) perpetuity value. This difference reflects the market value due to GROWTH. Try to figure out what growth rate in revenues is implied here by projecting total revenues for 10 years, and finding the after tax earnings for 10 years, and then discounting the after tax earnings at the cost of equity. Don't forget to calculate the terminal value (grow earnings at 4% after year 10.)

Larry Brownlow, a young entrepreneur, wanted to operate his own business after completing graduate school. He agreed to a distributorship opportunity with Coors. The brewery company was looking at expanding their market potential of a Coors beer distributorship to a two-county area in southern Delaware. Brownlow used his resources to find and contact Manson and Associates, a research company,

The documentary shows how the two small beer entrepreneurs, Rhonda and Sam try to establish themselves in the beer industry and success in the high potential market. The film shows that the beer industry is governed by some difficult and outdated laws along with an oligopoly of the large brands. These large brands manipulate the beer industry by acquiring and buying off the smaller brands which they find competitive among the market. The small brewers thus face difficulties and barriers establishing themselves in the American beer industry. The big giants like the Coors Brewing Company, Anheuser-Busch, and the Miller Brewing Company face challenge from the independent craft beer producers when these new brands are put on shelves; so they seek ways to prevent distribution and production of these small brands, which is harmful for the competition in the beer industry. Sam Calagione and Rhonda Kallman are considered as small entrepreneurs in the beer industry who struggle from the large brands, the difficult laws, and the less competitive but highly profitable

Molson Coors is a thriving international brewing company that has nine Signature Brew drinks and 123 Special Brew drinks that ranges from non-alcoholic to alcoholic (Molson Coors Brewing Company, 2016b). They have multiple markets around the world which contributes to the success of the company in the brewing industry. This report analyzes Molson Coors’ internal and external environments which determines their position in the brewing industry. It also discusses strategies the company uses in order to be successful in their industry. Molson Coors shares the industry with its main competitors but has its own uniqueness that makes its business stand out. Molson Coors is a successful business that presents opportunities for economic growth.

1. What environmental issues does the new belgium brewing company work to address? How does NBB taken a strategic approach to addressing these issues? Why do you think the company has taken such a strong stance toward sustainability?

A newly-appointed director of a small German beer brewer must prepare to vote on three issues coming before the board of directors the next day: (1) approval of the financial plan for 2001, (2) declaration of the quarterly dividend, and (3) adoption of an incentive compensation plan for the marketing manager. The student’s task is to evaluate the past and prospective financial performance of the company and to critique its liberal credit and inventory policies. The objectives of the case are to:

The Adolph Coors Case Study proved the dedication and self-reliance Coors brings to the beer industry. Having overcome great adversity by surviving the prohibition years, Coors durability and sustainability are also complimentary points on the structure of the company. Coors is a family owned company that had humble beginnings in Colorado and within 100 years grew into a multimillion-dollar company. Coors’ controlled manufacturing process is a sign of their individuality in the beer industry, this was not an unknown fact, however, as they were receiving orders to ship Coors beer all across the nation as of 1972. The case study allowed an internal and external point of view, which was highly beneficial to properly analyze their upcoming problem within the company.

From the time when August Busch III, delivered a case of Budweiser to Franklin Roosevelt in 1933, to the present year of 2005, Anheuser Busch has been one of the largest brewers. They have been named one of "America's Most Admired Companies" by Fortune Magazine and are ranked 142 in the Fortune 500. August Busch III is the President and CEO of the company. When he resigns, Patrick Stokes will take his place as the first President and CEO to be a non-family member. This company not only owns international breweries, but also own amusement parks and manufactures cans. They are continuously seeking better sales by investing in top breweries and introducing new products. Their Budweiser Select and B to the E have not yet improved sales

The Moore Beer Incorporation is a brewing company that was profiting 25 million dollar a year. The company opened two online marketing and direct distribution channels and soon after the websites went live, technology problems along with slow moving sales killed the company’s profits. As an effect of the company’s slow sales they have decided to abandon its new direct marketing plan and to reduce its employees. The President of the company was given a list to terminate some employees. Some employees may be given an option to transfer into existing openings in other areas of the company. In 1978, Congress enacted the Worker Adjustment and Retraining Act (WARN ACT) to deal with plant closings and mass layoffs. It requires employers that have 100 or more employees to give a 60-day notice of a plant closing if 50 or more workers at one site lose their jobs. A mass-layoff provision of the law requires a 60-day notice of layoffs to affected workers if the affected workers make up at least 33 percent of the workforce at the site (with a minimum of 50 affected workers). If 500 or more employees are to be laid off, notice is required regardless of the percentage of the workforce to be laid off at the site (Twomey, David, p.689, 2013). During a layoff or reduction process the selection should be based on measurable and unbiased job-related factors such as:

However, the company expects that its sales will grow 25 percent annually for the next five years. As illustrated in Table 1 the demand after 5 years will be approx.

The quick ratio for Boston Beer Company is 1.33. A company’s quick ratio is an indicator of a company’s short-term liquidity. This ratio is a more conservative form of the current ratio because it does not take into account inventory of the company when determining its current assets. Boston Beer Company still has a favorable ratio well above 1.0. While their current ratio is much better with all the inventory, Boston Beer Company is still a reliable company that can pay off its short term debts if need be.

When calculating our forecast the conservative way we find out the short term investment account will be good enough to finance the anticipated growth. The main outcomes for 1997 (for 20% increase in sales) are:

In around two to three years my company expects the product to move into the growth stage. Growth is expected to increase by improving its marketing strategies, profit might be quite low for some time but on the long term it will have large sums of profit in return.