History : The First Brewery

     In this paper I will be talking about the U.S. beer industry and in short an overview of the brewing industry worldwide. I will talk about the barriers to entry, economies of scale, government intervention, pricing, current market trends, product differentiation, and imports. The focus being mainly on the U.S. brewing industry oligopoly. The U.S. brewing industry has three major players: Anheuser-Busch, SAB Miller, and Coors/Molson. Anheuser-Busch is currently the largest brewer in the world, producing over 100 million barrels a year. Anheuser-Busch currently owns over 50% of the market in the United States, with Miller trailing behind at 20% and Coors at about 11% with the rest of the market occupied by imports and craft breweries. When analyzing any industry, how easy it is for newcomers to enter the market is a great importance. If there are high barriers to entry

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

In order to grow, Boston Beer must continue to increase its market share in the overall beer market. The market continues to be dominated by the large scale breweries like Anheuser Busch, Adolph Coors Co, and Miller Brewing Co. Craft Breweries are beginning to increase their share in the overall market. It is expected that craft breweries will account for 5% of the overall beer market in 2000, up from 1.4%. However, there is increased competition in the craft beer market. There were 165 new craft brewers in 1994. This increased the total of craft breweries in the US to 750. Boston Beer will be competing with these 750 breweries for 5% of the 5 billion in US beer revenues.

Also the borders and terrain of the united states made it impossible for prohibition persons to keep order because they couldn't enforce it within these said terrains it made it fair game for the bootleggers to continue their business and stores/bars stocked. Although closing the brewery's eventually had a downturn for the

In regards to business-level strategies and overall cost leadership, Anheuser-Busch is the undeniable industry leader when it comes to beer sales. Even if Anheuser-Busch beers aren 't the cheapest, they still are bought for their quality and Anheuser-Busch has gained tremendous market share for this. As for their focus, Anheuser-Busch focuses on a broad segment of customers producing a variety of beers for a variety of budgets to suit all personalities ' needs. Their differentiation factor is that even though Anheuser-Busch produces such cheaper beers as Budweiser and Bud Light, they also produce premium, more expensive beers like Bare Knuckle Stout and Shock Top Belgian White. Anheuser-Busch produces over 100 different brands of beer and

The craft-brewing segment of the beer industry has experience fluctuations in demand from a high of 58% growth in 1995 to a decline of 5% annually from 1997 to 2003 (Gilinksy et al., 2014, p. C-92). However, it is now experiencing rapid growth. At the commencement of 2012, 6.5% of U.S. beer sales were generated by craft brewers and that number increased by 15% by the conclusion of the year (Gilinksy et al., 2014, p. C-92). The growth of the market presents LBC with an opportunity to generate additional revenue.

A documentary film made in 2009, Beer wars features and describes the American beer industry distinguishing between the large and small breweries. The large breweries feature some main corporate companies like Coors Brewing Company, Anheuser-Busch, and Miller Brewing Company whereas the small breweries include craft beer producers like Moonshot 69, Stone Brewing Company, Dogfish Head Brewery, Yuengling, and others. The documentary shows how the beer market is controlled through advertising and lobbying, which is harmful for the competition in the market. There is a reason why the small companies are falling behind and the large corporates are controlling the market, which in turn makes it essentially oligopoly economy.

This is direct competition, but with Anheuser Busch InBev being the largest brewery in America, they should expect competition and could embrace the idea of smaller craftsmen and women to create different products. The market for craft beer is nowhere near as large as the market that Budweiser has niched itself into.

The discovery of beer is associate with the growth of the first “civilization” in the event that cereal grains were discovered to store food for consumption months or even years later. The history of beer begins with the development of cereal grains, farming, early migrations, and the development of river valley societies in Egypt and Mesopotamia. Beer is a discovery rather than an invention, and once beer was discovered its quality was improved through trial and error. It was first used alternately as a social drink, a form of edible money, and as a religious offering. Alcoholic beverages were used for pleasure, nutrition, medicine, ritual. As water became contaminated, beer also became a safer drink, being that drinking alcohol killed you

Within the craft beer market, consumers have many products to chose. A product is anything offered within a market that which fulfills a want or need (Armstrong & Kotler, 2015). In 2012, over 1,750 breweries operated in the United States (U.S.), with over 1,920 the following year (Brewers,

If you love good beer, as I do, I am sure that many of you have sampled Belgian and Belgian style beers. This style of beer is one of my favorites. There is a lot of unique history on Belgian beers, so for this article I would like to concentrate on Trappist ales only. While there are other beers from Belgium, Geuze, lambics and saisons, I will save those for another article.

Craft beer companies should focus more on young professionals, since they are in the target group of those identified to consume much craft beer. Furthermore, white Americans should be targeted as well.

The history of beer is an extensive one, the actual timing and individual that invented beer is unknown. It is estimated that beer was created by accident over 5,000 years ago. “Hard evidence of beer production dates back about 5,000 years to the Sumerians of ancient Mesopotamia” (Andrews, 2014.) The concoction to create beer was stumbled upon when bread and wheat got wet and because water was usually contaminated beer became the preferred beverage. Beer is primarily made up of “malt extract, yeast, hops, and water” (Flowers, 2014) these ingredients add the syrup taste, sweetness, and different flavors to the beer while it is being brewed.

Although sales of premium brands have fallen in a steady response to the growing popularity of the craft beer. The industry revenue has been stable over the past 5 years. As a result, from 2011 to 2016 the industry revenue is expected an increase and growth annually at 6.7 percent over the five years,with a total of $39.5 billion . (IBISWorld iExpert) In the long-term, these numbers are expected that grow 0.9 percent annually within the next five years. The potential growth will be seen in the traditional and premium beer sector. As a response, the giant companies in the industry Anheuser-Busch InBev and MillerCoors look forward into the merges and acquisitions as a strategy to maintain market dominance. The strategy is based on the

|The global beer industry is dominated by large corporations who have merged with rivals to increase their global and domestic market share. |