The Beer Is Not A New Thing

4. Maintain brand equity with the distinctive bitter flavor and slightly higher-than-average alcohol content of Mountain Man Lager.

     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 terms of quality, the company created a premium beer by its selective use of ingredients and less water. Boston Beer has won honors such as being the first American beer sold in Germany due to its use of only barley, yeast, hops, and water as its ingredients. With the increase in health consciousness among beer drinkers and the rise in more distinctive and flavorful brews, the Boston Beer Company has been able

The Boston Beer Company, Inc., founded in 1984, is a leading brewer in United States, offering wide variety of high quality full-flavored, handcraftedbeers. It is distinctive due to the time-honored recipe of brewing and authentic, consistent quality of alcoholic beverages. Samuel Adams Boston Lager is the pride of BBC, regular handcrafted beer “stands for quality, inner self-worth, authenticity, and unique New England or Yankee toughness” ( Martin Roper, Chief Operating Officer). Unfortunately, the company experienced the failure of conquering light beer segment

Mountain man Brewing Company was founded in 1925. The company specializes in producing Mountain Man Lager that is a family owned recipe that has a unique bitter award winning taste. Mountain Man Brewing Company holds a strong brand name in the premium beer segment of the beer industry. MMBC lager Beer has won several awards and has high brand recognition in the region that it operates. Since 1960, MMBC has operated primarily in the Midwest distributing product in Illinois, Indiana, Michigan, Ohio, and West Virginia. MMBC Lager is a strong hoppy beer that is preferred by customers in the working class that are between 55 and 60 years of age out of liquor stores. Mountain Man Brewing Company Lager is MMBC only product. In 2005, MMBC Lager sold 520,000 barrels and generates $50 million in revenue. By identifying the facts of the of the Mountain Man Brewing company, identifying the problems and why they exist, additional information needed, possible solutions for the problem, the pros and cons of each option, determine a direction for the company, and ways to measure the future result it will be possible to identify if the light beer industry will be a market for MMBC to enter.

First of all, Mountain Man light should target on female and younger generation. According to the profile of beer drinkers, females account for 42% of light beer drinkers and those who are younger than 35 years old account for 29%, which means the total proportion of them is as high as 58.8%. Thus, Mountain Man light should choose them as our target. Second, we focus its positioning on “Pure and Refresh”, making youngers believe Mountain Man light is the best beer for

The images of both the product(s) and the company have been crucial; one might even say integral to MMBC’s success. To introduce a new product like light beer might very well hurt that image. While light beer is popular nationwide, that refers to a national trend that may

High alcohol content that appealed to the blue collar market along with these specific factors added to MMBC brand.   It caters to regional tastes (dark, bitter). MMBC also has class cachet (it’s a miner’s beer) it’s family-owned, it’s perceived as being high-quality and it’s a legacy product. People seem to drink Mountain Man as a way to connect with past generations of their family. Brand played a critical role in beer purchasing decision. The promotion of MMBC was done by accentuating its dark color by packaging it in a brown bottle, with its original 1925 design of a crew of coal miners printed on the front. Mountain Man Lager was priced similarly to premium domestic brands such as Miller and Budweiser but below specialty brands such as Sam Adams. MMBC used its own sales force to focus on off-premise locations (liquor stores or supermarkets) with much success. Blue collar males purchased 60% of the beer they drank at these off-premise locations. The decline in MMBC was due to changes in beer drinkers preferences. This decline was happening across the whole United States to the traditional premium beer category at an annual rate of 4%.

Beer has been around longer than a few countries today. It has a lot more history to it than one might believe, for example, Raley states that “Historians speculate that prehistoric nomads may have made beer from grain & water before learning to make bread.” (Raley 1998) Despite that speculation no person can deny the time and effort has been put to perfecting a fine brew. Brewing beer can be very rewarding however it does requires time, the right ingredients, and most importantly the complex steps to create the perfect beer.

Light Beer Introduction and Expansion- Boston Beer has just unveiled their newest product of Samuel Adams Light to the better beer market. In 2004, the light Samuel Adams out sold the original for the first time in the company’s history. We believe that this will be the key to Boston Beer’s success to maintain its hold in the better beer industry and bring in new demand for Boston Beer. Financial Stability Boston Beer’s financials are impressive as compared to the big names in the beer industry. One of the more impressive areas is the lack of debt and the ability to leverage the company to new heights. In 2000, Boston Beer had no actual long term debt on the books and since has brought on very little. This is mainly due to the strategy of contracting to other brewers to maintain low risk for the well being of the company. The profitability, capital structure, and liquidity for Boston Beer all appear to be stronger than the averages in the alcoholic industry which shows the strong stability of the firm. Boston Beer’s Altman Z-score is at 3.49 which is considered safe and good investment grade quality. In conclusion, Boston Beer has many choices on where to take the company in the 21st Century. With overall high quality in its financial structure, Boston Beer has the ability to one day grow and become a dominant force within the beer industry as a whole. Valuation Models such as the free cash flow, long-run residual income, and abnormal earnings growth showed

There is a rich history surrounding beer which incidentally has been around nearly as long as history itself. Prehistoric man is thought to have created beer before learning that grain could be used to create the dietary staple we call bread. Noah stocked it on his ark and ancient Babylonian clay tables revealed beer recipes that date as far back as 4300 BC.

Although the launch of a new product is always going to be a risk, banking on the withering demand for a single offering is surely not going to alter the fortunes of the Mountain Man Beer Company. More importantly, light beer is the largest sales opportunity and it is what the market demands, therefore, to introduce the Mountain Man Light can be a gateway necessary for MMB to attract new customers and expand its market. Here are a series of recommendations offering to the company in order to help it successfully launch the Light beer.

Beer has a long history. In 2000 B.C.E., Sumerians had prepared eight different beer types, ranging from “strong,” “red brown,” and “good dark” (Mauk, 2013). Breweries have created their own recipes, brewed their own beers—some with alcohol, some without. Over the past few years, craft beer gained steady market share away from the national and international breweries (Murray & O 'Neill, 2012). Separating one beer from the next is the product itself, and what the product has to offer. Competition is ferocious due to more informed, sophisticated consumers, as well as globalization and the spread of technology (Murray & O 'Neill, 2012).

Summer is officially in swing and there's no better time to enjoy an ice cold brew out on the water, at the beach, or on your front porch as the sun’s going down. But when the weather is just too nice to pass up that second or third drink, craft beer aficionados are in for a long day – and that’s a good thing!

Around the late 1800’s the birth of modern beer took place in response to commercial refrigeration, pasteurization, automatic bottling and railroad transportation. Before the “Modern Era” the average person only had access to beer through taverns because it would have been too costly to individually bottle. They were stored in large barrels for the tavern and had a finite shelf life. Transportation was also an issue before railroads because the large barrels were burdensome to transport. Due to the hassle and cost of transportation, it was rare to see beer outside town limits. In the modern era, beer could be bottled cheaper and pasteurized so it could survive a longer rail journey in less than ideal temperatures. Beer was