Lowering The Bourbon Supply Chain Is A Shortage Of Barrels

Just like he building’s details and craftsmanship has withstood the test of time, the bourbon industry isn’t going anywhere. Concord Hospitality realized the benefits of the growing global thirst for bourbon. The industry is filling more and more barrels, creating more good-paying jobs, generating more tax revenue and attracting more tourists to local distilling communities.

     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

Stability. The returns received by bottlers are less than returns received by concentrate producers due to the risk levels as well. The concentrate producers are responsible for brand promotion and invest heavily in trademark to stimulate sales. High returns are what they get as the result. However, bottlers have little risk in their operations as they are given the famous name well-known all over the world. This development provides them with stable returns, and low risk.

Climate change is a change in regional weather patterns which occur over time. Climate change causes are pollution, deforestation, and the burning of fossil fuels. An area which has already been affected by climate change is Alberta. Alberta has been dealing with quite a few problems now due to climate change, but the three main points that affect Alberta the most are increasing temperatures, water levels rising, and seasonal changes of agriculture including irrigation decrease.

While in England Molson bought brewery equipment. Molson induced he growth of barely in and around Quebec, by selling the farmers the seeds and agreeing to purchase the barley after it had ben harvested. Molson dedicated 20 yeas of his life to his business. Molson was smart, he stayed away from the import export business, it took much to long to get a return on your investment for Molsons liking, if you received a return at all because of the high risk business. In addition to seeing the danger in the import export business, Molson could tell that the money in the fur fade was coming to an end. Therefore staying away from it. As Molson predicted the fur trade ended, and in the early 19th century it switched to the lumber business. With time comes new technology, and this was a field that Molson was highly interested in and would later invest large amounts of money into. After receiving 10,000£ and his old family home, Snake Hall, Molson sold the home as it was back in England. All the money Molson had received went back into enlarging his facilities and reinvesting in his brewing establishment. With an influx of loyalist immigration from both England and the soon to be United States of America, the demand for beer increased, even the French, who had never taken a liking to Molsons product were showing an increased interest in it. Molsons money was always on the for front of technology. With steam being the new energy source of the time, Molson was very interested. Molson invested money in the testing of new

The state of Kentucky has long been known for its versatility in alcohol, and bourbon is no exception. Popularity in all types of bourbon is on the rise across the United States, and this directly impacts the state of Kentucky in part due to ninety-five percent of all bourbon being produced here in the state (Dickson, 2011). However, with the current economic boom, the bourbon industry is seeing trends it has never seen before. One of the most popular brands in bourbon currently is Woodford Reserve. Woodford Reserve Distillery is located in Versailles, Kentucky and has become one of the most widely known bourbons from this alcohol crazed state. They even have their own club called the Woodford Reserve Club and is located in

Changes in climate have affected the growth of crops. Particularly climate change has increased the amount precipitation fall in North Dakota.

All whiskey must be aged for a certain amount of time, and so it makes

- The recent market position of Samuel Adams beer is very strong, as well as growth prospects.

L.L.Bean’s supply chain faces numerous global challenges. These challenges are not unique to L.L.Bean and affect almost all players in the global marketplace. The first issue facing L.L.Bean is the continued volatility of customer demand for premium products. While US markets have shown strong economic recovery, other global markets are still battling recovery (Gyorey, Jochim, & Norton, 2010). This results in restrained global spending, a substantial challenge for L.L.Bean who distributes their catalogs to over 170 countries (“About L.L.Bean: Company Information”, 2015).

The Irish whiskey industry in particular has suffered tremendously in the 20th century. in 1779, Ireland had 1,200 distilleries that accounted for nearly 60% of the world market. However, into the 80s, there were only two remaining distilleries. At its lowest point, Irish whiskey sales accounted for only 2% of scotch whiskey sales, and seemed that it would inevitably be obsolete. However, there was a

In 2007, Compass Box Whiskey Company a booming small, private high-end whiskey maker, located in London. John Glaser the founder successfully managed a supply-chain involving several separate distilleries to produce innovative, hit record resulting in an overall company valued at approximately 2.5 million. However, the London-based company is facing several alarming changes to its current business model’s supply-chain of essential component whiskeys. However, due to an increase in demand in the market for Scotch Whiskey, and a supply of component whiskeys, Compass Box Whiskey Company have to transform its business model and transition into a more inventory-intensive company to remain in the industry.

* The manufacturing process doesn't stop with the newly produced bourbon; why it isn't even marketable in that form. Aging is an absolutely essential part of the manufacturing process, and I think the cost of barrels and part of the warehouse labor should be treated as direct costs of the product.

At Sandusky Winery, there seems to be several issues going on within the company’s operations, resulting in a huge inventory mess. The first issue I have noticed is the eagerness of Sandusky Winery’s marketing department. The marketing department wanted to expand product lines and aggressively promote its new products, without taking storage and warehousing into consideration. This high level of production has resulted into a massive surplus of product that has the storage room packed from the floor to the ceiling.

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