The Brewing Co Of Michigan Breweries

     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 a world where large, corporate breweries rule the market, craft beer is created to please an audience that applauds the styles, techniques and flavors. Though craft beer can be purchased through several different outlets, the best place to thoroughly enjoy the entire experience of the specially made beer is in the brewery where it was made. The article titled, “In Lean Times, a Stout Dream” in The Wall Street Journal1 states that, despite the hard economic times and consequent consumer cutbacks, sales of craft beer, the industry 's fastest-growing segment, rose

The purpose of this research paper is to analyze Sam Adams and the global craft beer market. I will apply microeconomic models to analyze the supply and demand conditions for Sam Adams, its price elasticity of demand for products, cost of production and the overall market. There will be recommendations to maximize future profits and sustain success for Sam Adams. In this paper I will also analyze the craft beer industry and recommend actions for better management of supply and demand, improving the cost of production and the different barriers of entry that Sam Adams can utilize to impact its future in the craft beer industry. Applying the concepts of variable and fixed costs, I will make recommendations for its output decisions and profitability that will help them succeed in a monopolistically competitive market structure. In the conclusion of this paper I will make recommendations to manage future production and sustain its success, as well as evaluate the business structure and effective decision-making strategies. The craft beer industry is a monopolistic competition because it has the ability to allow many firms to produce similar good or services, but it at the same time allows each firm to make independent production decisions and differentiate their product from the competition by creating its own pricing.

The Coors brewing industry had many ups and downs throughout its history dating back to its start in 1873 (Adolf Coors in the Brewing Industry). There were times of great growth and expansion that would get interrupted by numerous different setbacks. Some were small and some led to extreme changes. It sounds similar to any type of business. However, the different generations of the Coors family seemed to find ways to usually compete with their competitors and maintain the success of the company. It was also very challenging. Different changes had to be made for each new obstacle that came their way. Over a century has gone by since its start in Golden, Colorado, and the business seems to still be available in stores around the world

As previously stated, one of the greatest strengths of the Lazy Magnolia Brewing Company is the reach of its success. The company already maintains a presence in several of the southeastern states and continues to expand its distribution sites. Lazy Magnolia has also found a way to get around the Mississippi state law that prohibits shipping alcohol to the public. They have done so by collaborating with Half Time Beverage, an online retailer of craft beer (“Lazy Magnolia”, 2015). The creation of this relationship has allowed Lazy Magnolia to offer its products to consumers in additional states in spite of constraints brought about by local laws.

Canadians purchased what might as well be called 235 flasks of brewskie for every individual in 2012 at brew and alcohol stores and offices.

New Belgium is, however, the third-largest craft brewery in the nation, with estimated sales of over $100 million, equaling approximately 700,000 barrels of beer per year. An analysis of the craft beer industry as a whole suggests that there is continued growth potential for New Belgium. Exhibit 5.1 of the New Belgium Brewing (B) case shows that craft beer is the fastest growing segment of the U.S. alcoholic beverage market, with an increase in market share of over 100 percent from 1999-2011. It is also an industry whose customers tend to be extremely loyal, making them less likely to view craft beer as a commodity. Consequently, craft beer has a higher probability of being immune to competition from inferior goods and substitutes. This is particularly applicable to New Belgium’s target market of “beer connoisseurs” that appreciate the high quality and taste of craft beer and who include “executives, lawyers, and accountants” with the continued ability to pay higher prices for craft beer, enabling the craft beer industry to achieve gross margins of up to 30 percent (Clark & Rogler, 2013).

The craft beer story is interesting because of how quickly the craft beer trend has caught on in the food service industry. The story would focus on how bars, restaurants, and grocery stores are adapting to the increased demand of craft beers. The first source for the story would be Frederique Boudouani who is the owner of Abu Nawas Beverage Company. The Abu Nawas Beverage Company is a craft beer wholesaler and sells beer from countries across the globe. The second source of the story would be the owner of Drew’s Sports Bar and Grille in Elkader, Andrew Armstrong. Armstrong would provide valuable information on how craft beer sells in small towns and insight into how bar owners decide what beverages to sell. The third source would be Zachary Ingles who works as a night manager at John’s Grocery in Iowa City. John’s Grocery has a wide selection of craft beer and Ingles regularly attends beer tasting events to help John’s decide which beer to stock. The fourth source would be an employee at an actual craft beer brewing company, Neil Blair. Blair would provide insight into how craft brewing companies operate and how the companies go about selling their

The Coors brewing industry had many ups and downs throughout its history dating back to its start in 1873 (Adolf Coors in the Brewing Industry). There were times of great growth and expansion that would get interrupted by numerous setbacks. Some were small and some led to extreme changes. It sounds similar to any type of business. However, the different generations of the Coors family seemed to find ways to usually compete with their competitors and maintain the success of the company. It was also very challenging. Different changes had to be made for each new obstacle that came their way. Over a century has gone by since its start in Golden, Colorado, and the business seems to still be available in stores around the world (Adolf Coors in the Brewing Industry).

The brewing industry can be characterized by Porter’s Five Forces framework. New entries to brewing have a relative ease in creating home micro-breweries, which is aided by

Volume decreased for the first time in over twenty years in 1975 by four percent, during that same time Coors started to push out further in an attempt to become a national brand. 1985 marked a major year for the company as it set records in volume sold and revenues from the brewing division. Between 1975 and 1985 there were major changes in the company that eventually led to the company possibly opening its second brewing facility in history in Virginia. Through these years there were many new strategies implemented to foster this growth. In this paper I will diagnose key decisions, analyze potential solutions and show the actions needed to achieve the suggested changes.

Within the craft beer market, consumers have many products to chose. A product is anything offered within a market that which fulfills a want or need (Armstrong & Kotler, 2015). In 2012, over 1,750 breweries operated in the United States (U.S.), with over 1,920 the following year (Brewers,

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.

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

Beer Company 1 is a “national brewer of mass-market consumer beers sold under a variety of brand names” (pg. 120). As one might expect, this national company has “an extensive network of breweries and distribution systems and owns some beer-related businesses” (pg. 120). It also owns several major theme parks.