South Delaware Coors

Chris is considering the production of a light beer for Mountain Man Brewing Company as a way to compensate for the recent decline in sales and increase in the market for light beer sales. How can the production of a light beer appeal to a younger demographic. What about their light beer will be different from competitors. How much is this new product going to cost and how will he go about launching the new product. How long is it going to take before the company begins to break even and then make a profit?

Which research studies should Larry ask Mason and Associates to complete?  Upon consideration of the research study results, is this new business venture a go?

1. Keep the price at the trial estimations rates, those were very similar to those of the competition( $ 1.31 and $ 1.94 for the 8 and 16 ounce sizes.

Boston Beer Company (BBC) has enjoyed much success with their craft beers with Samuel Adams as their main focus. Being the leader of this segment, overtopping five of their competitors combined (Exhibit 1), the company now must decide how to take advantage of the light beer market. Boston Lightship, their current light beer, had been a small contributor in BBC’s product line. Currently, it is facing dwindling sales with product volumes down from 12 000 cases per month to 3000 cases per month.

The total product and per bottle cost under allocation based on direct-labor hours for Buffalo Ale, Bismark Bock and Four Heads Stout is $450.86 and $0.85, $347.79 and $0.91 and $369.96 and $0.86, respectively. Under activity based costing the total product and per bottle cost for Buffalo Ale, Bismark Bock and Four Heads Stout is $317.58 and $0.60, $615.5 and $1.6 and $379.29 and $0.88, respectively. Calculations can be found in Appendix A.

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

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,

Management has decided that the suggested retail price for the 8-ounce can to the consumer will be $1.00. The only unit variable costs for the product are $0.36 for materials and $0.12 for labor. The

As a beer lover and a native to the region, I had so many questions when I started Capital Beer by Garret Peck. What part did D.C. play in the beer industry? What was the beer scene in D.C.? Did anything interesting happen? Did D.C. play an important part? Was the beer scene of years before anything like today? I was expecting a slim history on the beer industry in Washington, D.C. Instead, I got a well thought out retrospective on the industry, its place in history, and its role in the development of the District of Columbia(D.C.) and the United States. There were four things that stood out from all the rest the first brewery in D.C., Catherine Dentz, Robert Portner, and beer gardens.

The UK population is ageing noticeably, with only slow growth predicted in the adult population.

In the growing global market, beer companies could possibly face the challenge of water becoming a scarcer resource. It requires approximately 75 liters of water to make single

Lizzy’s Hot Apple Cider sells for $2.50 per gallon and the demand for it is very high because of the delicious and warm taste you receive. More than half the town wanted to purchase this delicious product! Lizzy's Hot Apple Cider met the needs %100 of the consumers. The quantity of Lizzy's Hot Apple Ciders supply and demand were at equilibrium.

The Captain Morgan brand will introduce the new flavor by having retailers sell the new flavor at a set price per volume. This new Apple Pie flavor will only be sold in three different volumes, 750ml, 1Liter, and 1.75 Liters. The 750ml price would be $17.99, 1 liter would be sold at $22.99 per liter, and the 1.75 liter bottle would be sold for $29.99. These prices will reflect the strategy of selling a top shelf rum at an affordable cost for all. These prices are also based off of other special flavors from the Captain Morgan brand (Captain Morgan Rum). The prices may very depending on

To appease the U.S. Federal Trade Commission, AB agreed to cede its 58% ownership of the MillerCoors brand to Molson Coors for $12 billion and to accommodate greater competition from craft breweries.

The product will sell for $13.45 per case (how this figure was arrived at can be found in the appendix under pricing). Each case will contain twelve 20oz containers. This is a reasonable price as compared to competition. The top brand will sell their cases for around $13.34. We are marketing our product for its convenience, ease of use, and taste therefore making it a premium product which leads to a higher price level. Coupons will also be widely available to help create even less of a discrepancy between prices.