Swot Analysis Of Budweiser

Anheuser-Busch “is among the global company’s largest and most technologically capable breweries” (About, n.d.). On Anheuser-busch.com, you can find a lot of information about the company and their products. The headquarters of Anheuser Busch is located at One Busch Place St. Louis, MO 63118 (About, n.d.). The most known beer families that they produce are the Budweiser and bud light Family. There are numerous brands that Anheuser-Busch produces aside from Budweiser and Bud light. Initial searching for Bud Light Company because most of my family is enthralled by this beer, and upon further researching the beer brand, it was surprising to find that it was actually owned and manufactured by another company, Anheuser-Busch, that also manufactured

     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

Strives to be the leader in micro brewing while maintaining the core values it started with and had employee buy in even before it went” 100 % employee owned in2013” (Gorski, 2013).

Prohibition was a time in American history where any type of alcohol consumption, production, and distribution was banned. The thirteen-year, dry period finally came to an end because of the temptation and social urges alcohol presents. Throughout these thirteen years, people corruptly consumed, produced, and distributed alcohol as if the regulations instituted by the government were suggestions. Speakeasies would be held underground where drinkers would distribute gin they produced in their own bathtubs and have parties without law enforcement knowing (“Prohibition”). After the Prohibition laws were lifted in 1933 to create more revenue to aid the failing economy during the Great Depression, the drinking age was set at 21 but was later lowered

The American company Anheuser-Bush (AB) cannot market its beer using their trademark name Budweiser in every country around the world. This is due to the fact that there is an European brewing company that uses the same trademark.

When the Prohibition era in the United States began on January 19, 1920, a few sage observers predicted it would not go well. Certainly, previous attempts to outlaw the use of alcohol in American history had fared poorly. When a Massachusetts town banned the sale of alcohol in 1844, an enterprising tavern owner took to charging patrons for the price of seeing a striped pig—the drinks came free with the price of admission. When Maine passed a strict prohibition law in 1851, the result was not temperance, but resentment among the city's working class and Irish immigrant population. A deadly riot in Portland in 1855 lead to the law's repeal. Now, Prohibition was being implemented on a national scale, and being enshrined in the Constitution no less. What followed was a litany of unintended consequences.

Boston Beer Company Mission statement is to “seek long-term profitable growth by offering the highest quality product to the U.S. beer drinker”

“It was a spasm of desperate joy fueled... by great quantities of "bottled sunshine" liberated from "cellars, bank vaults, and other hiding places." Now, on January 16, the sunshine was surrendering to darkness."(Okrent 1). On January 16, 1919 the manufacture, distribution, and sale of liquors was banned under the 18th amendment. Thousands lost their jobs and America was ushered into an era of prohibition. Drinking was seen as the cause of every societal ill and Prohibition was the cure. Dubbed “The Noble Experiment”, it’s intentions were held high but eventually failed. Although Prohibition was seen as an effective way to end drinking, ultimately it formed organized crime and economic ruin through loss of taxes and exploitation.

Kansas was the first state to ban alcohol. On the other hand, New York and Chicago were having trouble keeping smugglers out of the state. On January 1, 1881 Kansas became the first official state to ban and support alcohol. Meanwhile in New York, crime rate has rapidly changed. Since alcohol was prohibited, bootlegging became very popular during this time.

Foods such as cheese included in the product will have to be chosen offering longer shelf lives;

During the prohibition there were many anti-drinking groups, but the anti saloon league led the way by influencing many people against alcoholic beverages and to join together for a prohibition. They started the group in 1893 in Columbus, Ohio as a state organization. In 1895 the anti saloon league started making progress and began to go nationwide with their cause for no alcohol. The anti saloon league during the years of prohibition started to decrease. After the prohibition the anti saloon league collapsed. While the anti saloon league was disintegrating many people brought it upon to themselves to bring people the alcohol they needed for a nice profit into their own pockets without any taxes imposed on them(“Corruption”). These people were called bootleggers. They were the people who stocked their cars full of alcohol and raced it to a drop point trying not to be caught by the law. During the prohibition there were many ways to become a bootlegger and some of them were even in high places with government

In 1932, Franklin Roosevelt ran on, among other things, a platform to abolish prohibition. In 1933 the United States passed the 21st Amendment, which repealed the 18th Amendment. A few states in the south, remained “dry” until 1966, when the last vestiges of the 18th Amendment. www.history.com/topics/prohibition

The Boston Beer Company is currently the largest craft beer company in the United States, however, the craft beer industry is growing in an otherwise shrinking market increasing the amount of serious competition that The Boston Beer Company is facing.

The Coors Brewing Company was founded back in 1873 by two German immigrants Adolph Coors and Jacob Schueler. The two combined invested $20,000, $18,000 of which came from Schueler and the other $2,000 from Coors. The location of the brewery was in the mining town of Golden, Colorado. This location was picked because Mr. Coors believed the key ingredient in beer was the water source. The river that flowed through this mining town was perfect for his beer. The two investors worked together for seven years until Coors bought out Schueler and became the sole owner of the brewery in 1880. When prohibition finally hit Colorado in the year 1916, Mr. Coors was forced to find other means of making money. The brewery was converted to produce malted milk which he would then sell to candy companies. Four years after Adolph Coors passing, in 1929, prohibition is ended and his son, Adolph Coors Jr., takes over the family business. The distribution range of the company quickly expands and by 1948, it stretches across 11 states. It would remain this way for almost 30 years before they start to expand to try and reach a nationwide audience. In 2005, now in its fourth generation of Coors family management, the Coors Brewing Company votes to merge with Molson Brewing Company in Canada to form the Molson Coors Brewing Company. Together they are the world’s seventh largest brewer. Two years later

Boston Beer Company (SAM) is a brewery in Massachusetts most commonly known for its Samuel Adams line of “craft” beers. The Samuel Adams line of beer was introduced in 1985. Since then the company has grown to do over 580 million dollars in revenue each year. 580 million is a very small piece of the food and beverage industry but the amount of shareholder wealth they are providing is impressive. Boston Beer Company has been named one of the top publically traded businesses to watch in 2013 by Forbes.