Mountain Man

One of the reputed benefits which have allowed the new craft beer industry to grow and thrive is the better profit margins possible for making beer and ale on premises. Business scholars Kleban & Nickerson (2011) have noted that “Since 2006, the craft beer industry has been able to

With the number of alcohol brands in the world it is difficult for anyone to come to a full decision on the best beer, these are the 5 most high earning companies of the beer franchise.

Even though their shipping costs were twice the industry’s, average shipping costs would have been much more had they attempted to enter other states. Besides, Coors made up for the inefficiency with the scale of their plant, the largest in the nation. The location lent itself well to Coors’ ability to differentiate its product. For example Coors was brewed using “pure Rocky Mountain spring water.” Coors had a great opportunity to serve an underserved geographical market. Seven of 24 million barrels sold in the region had to be imported from production facilities outside of the region, and Coors’ Colorado facility was more central to the area than the three other closest facilities in Missouri, Texas, and Wisconsin. Coors had the second lowest production cost per barrel in the industry, in spite of their claim of the most expensive raw material costs. Their cost advantage stemmed from the industry’s highest capacity utilization, economies of scale through the country’s largest brewery, single product focus, and the industry’s fastest packaging lines. Matching their low production cost was the lowest advertising cost relative to the industry. The mystique that had been built up about Coors and their differentiating, all-natural appeal allowed them to get away with lower advertising costs than average for the industry. Coors differentiated their product, both in the

One of the weaknesses to distributing Coors beer in the two counties is the competition of other domestic and microbrew beers. Although the consumer and retailer willingness to buy Coors beer is high, will they actually purchase Coors beer when it becomes available to them? The questionnaires have strong feedback for Coors beer in the Delaware counties but people may become biased by their customer loyalty to other beer brand. There is a big enough marker share for Coors to be implemented, but will Brownlow be able to succeed in this competitive industry.

According to Boston Beer Portfolio (1997) showing that Boston Lager and Seasonals have grown by 5% and 10% respectively since 1996. Moreover, if we take a look at Exhibit 7 showing men preferences over regular beer we will see that 45% of weekly servings are SAM (Boston Beer Product). People may rely on their past experience of drinking regular beer by BBC and take a chance to try light beer by the same company, switching from Bud and Amstel to Lightship.

To further decrease the likelihood of cannibalization and to diversify its location offerings and customer base, the memorandum recommends that MMBC launch MMLight into on-premise locations (such as bars and restaurants). Industry observers remark that the crucial consumer segment for beer companies are younger drinkers ages 21-27 years who are not yet loyal to a brand of beer. Women and younger drinkers typically prefer light beer. These groups frequently visit on-premise locations and represent an exciting market for MMBC. For questions or concerns, please feel free to e-mail mducker2@illinois.edu or call 217.381.9578.

b) Large national brands that maintained economies of scale in brewing, transportation and marketing put tremendous pressure on the smaller, regional brewers like Mountain Man.

New Belgium brewery has increasingly grew throughout the years since their development in 1991. Despite the dominance of the “Big Three” (Budweiser, Miller, and Coors), NBB needs to be aggressive and strive to invest in the attractive beer industry in able to grow more. If positioned correctly, NBB and its main brand, Fat Tire, can continually grow. An evaluation of the industry, the business itself, its brands, and the customers and competitors is needed in order to be continuously successful.

Mountain Man Lager is currently offered by MMBC and is considered a premium beer product. Lager beer is generally seen to be in the mature stage of the product life cycle, and this carries implications for MMBC in terms of proposing appropriate measures to address the declining sales of its

With this plan Chris expects that MMBC regains the beer market leadership in the U.S. East Central Region.

Craft beer should not only be sold as premium beer among graduates and people with income of more than 75000 USD but also to people with moderate income.

There is also the consideration of price strategy in the market. Craft beer is known for its higher cost of production and higher purchase price to consumers, but as the trends in micro- and nano-breweries expands the question remains as to if they will take on a similar pricing model to that of the macro-brewers in the United States. Currently, the pricing trends amongst macro-brewers are almost solely based on a single manufacturer, as noted by Robert Uihlein, Chairman of the Schlitz Brewery, ‘a price increase is needed, but it will take Anheuser-Busch to do it,’ (Rojas, p.3). This trend has only slightly manifested itself on the smaller market and realistically has just adhered to a standard model of pricing thus far, with little fluctuation based on demand.

* It is the first beer under the Budweiser name that is brewed as an ale rather than a lager. The beer has a darker color which is a departure from other Budweiser brands

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

Strengths:The largest producer; Improved productivity; strategic with foreign producers; Two independent distribution Weaknesses:Low volume of sales of nonbeer products; Antitrust restrictionOpportunities:Positive volume growth of beer sales; New and attractive market Threats:Rising foreign firms’ competition; Tariffs elimination; Rising imported ingredients cost