The document analyzes whether The Boston Beer Company is a reasonable investment for Tech Shield. It finds that The Boston Beer Company has experienced significant growth in revenue, production, and stock price from 2011-2014. However, its future growth may be threatened as larger beer companies enter the craft beer market. The document recommends a short-term investment in The Boston Beer Company to potentially benefit from its current success, but cautions that its growth may not continue long-term.

1. i
Qualities That Make The Boston Beer
Company a Reasonable Choice for
Investment
Prepared for Dr. Beehler, Professor
Written for Cori Knight, Teaching Assistant
Written by Israel Moreno, Business Administration Student
Determining if investing in The Boston Beer Company will be beneficial to Tech Shield.
What are the reasons for investing in The Boston Beer Company?
10/27/2015

2. ii
Executive Summary
To provide Tech Shield with a profitable investment, this report recommends proceeding with a
short-term investment in The Boston Beer Company, which is currently the leading producer of
craft beers in the United States (“2014 The Boston Beer Company, Inc. Annual Report” 2).
To support this recommendation, financial documents and information pertaining to the
organization were investigated through the use of the company’s own website, NASDAQ’s
website, and other online resources offering information on the company.
Corporate image and growth, as well as financial growth were set as the main focus of this
report. These categories were chosen due to the relative ease in which they can be researched and
for the objectivity financial data provides. Product recognition, marketing, and programs the
company supports are included as sub-categories to corporate image due to the fact that through
these mediums is where most consumers develop their perception of a company. Quarterly
financial results and stock performance are the sub-categories of financial growth because
through the observation of these sets of data, it is possible to more readily view how a company
has grown financially.
The data gathered showed a trend of increased growth in product variation, product supply,
revenue, stock prices, and advertising expenses. Compared to growth in years closely following
the year 2000, The Boston Beer Company has grown significantly in the four year period ranging
from 2011-2014 (“Boston Beer Reports Fourth Quarter 2014 Results” “Boston Beer Reports
Third Quarter 2014 Results” “Boston Beer Reports Second Quarter 2014 Results” “Boston Beer
Reports First Quarter 2014 Results” “Boston Beer Reports Fourth Quarter 2012 Results”
“Boston Beer Reports Third Quarter 2012 Results” “Boston Beer Reports Second Quarter 2012
Results” “Boston Beer Reports First Quarter 2012 Results”).
The growth can be attributed to the increased market share of beer sales in the United States craft
beer companies have obtained and the different subsidiaries The Boston Beer Company has
acquired. In 2014, according to the Brewers Association, craft beers held 11 percent of the
market share for beer sales (“National Beer Sales and Production Data”). This growth however is
not guaranteed to last long since large beer producers are yet to increase their influence in the
craft beer market substantially (“2014 The Boston Beer Company, Inc. Annual Report” 13).

3. iii
TABLE OF CONTENTS
EXECUTIVE SUMMARY ............................................................................................. II
INTRODUCTION............................................................................................................. 1
CORPORATE IMAGE .................................................................................................... 1
MARKETING TACTICS AND PRODUCT RECOGNITION ............................................. 1
COMMUNITY OUTREACH AND ENVIRONMENTAL RESPONSIBILITY .................... 3
FINANCIAL AND CORPORATE GROWTH.............................................................. 4
QUARTERLY FINANCIAL RESULTS 2011-2014 ............................................................. 4
FIGURE 1: QUARTERLY NET REVENUE FOR THE BOSTON BEER COMPANY
2011-2014........................................................................................................................... 5
STOCK PERFORMANCE AND FLUCTUATIONS ........................................................... 7
FIGURE 2: 5-YEAR STOCK INFORMATION CHART FOR THE BOSTON BEER
COMPANY ........................................................................................................................ 7
RECOMMENDATIONS.................................................................................................. 8
CONCLUSION ................................................................................................................. 8
WORKS CITED........................................................................................................... 9,10

4. 1
Introduction
Our company, Tech Shield, has outperformed the market recently and as a result has considered
investing in a company to utilize the increased revenue it has earned. There has been much
debate about which company should be invested in. The Boston Beer Company, the United
States’ leading craft beer producer (“2014 The Boston Beer Company, Inc. Annual Report” 2), is
an option whose financial information and corporate representation in the media and community
has been reviewed through the gathering of information from its own corporate website and
outside articles. The Boston Beer Company has maintained sustained corporate and financial
growth while developing a positive image with the community through the programs the
company supports. As such, investing in this company should provide steady financial returns
with little risk while diversifying Tech Shield’s investments.
Corporate Image
Maintaining a positive image is essential in establishing brand loyalty and increasing sales for a
company that sells consumable products due to the amount of trust in quality a consumer must
have to purchase them. The following section examines how The Boston Beer Company portrays
itself to the public through the use of varying marketing tactics and corporate programs.
Marketing Tactics and Product Recognition
The Boston Beer Company uses traditional methods of marketing, social media, and the
packaging of products to demonstrate their identity as craft brewers committed to quality beer.
The company has increased advertising spending every year to promote product awareness
through various mediums (“Boston Beer Reports Fourth Quarter 2014 Results” “Boston Beer
Reports Fourth Quarter 2012 Results”). The reason for this is attributed to the advertising of its
staple Samuel Adams line of products, and the advertising of subsidiaries it has acquired over the

5. 2
course of its operations. From 2011-2013, The Boston Beer Company has acquired Alchemy &
Science, The Traveler Beer Company, Angel City Brewery, Coney Island Beer Company, and
the Concrete Beach Brewery (“Subsidiary Information”). Each of these subsidiaries has its own
website and media presence which are part of the expenses incurred by The Boston Beer
Company. The subsidiaries owned by the company are located throughout the United States and
offer diverse products and allow the company to ship products more readily throughout the
country (“Subsidiary Information”). The Boston Beer Company is proud to be considered a craft
brewer (Samuel Adams). It demonstrates this by mentioning it on their website, advertisements,
and on the packaging of Samuel Adams’ flagship beer, Boston Lager, by stating how and where
the company got its start. The company’s social media presence currently is somewhat small. In
the company’s annual report for 2014, it is stated that the company had about 61,000 followers
on Twitter and less than three million unique visitors to their website (“2014 The Boston Beer
Company, Inc. Annual Report” 3). Outside of Twitter, the company uses Facebook, LinkedIn,
YouTube, and Instagram among others (Samuel Adams). The company also enters its products
into international beer competitions, including the World Beer Awards, through which it has
earned various medals and awards as is mentioned in their annual report (“2014 The Boston Beer
Company, Inc. Annual Report” 3). The company also created the Freshest Beer Program to
reduce the time it takes for its products to get to retail (Samuel Adams). Although this may
promote the freshness of its product to consumers, it can prove counterproductive as mentioned
in Form 10-K, which is located in the company’s annual report (“2014 The Boston Beer
Company, Inc. Annual Report” 16-17). To ensure the product ships in the desired timeframe, the
company must increase expenditures and reduce the amount of product it produces. Whether this
program benefits the company is unknown at this time. The company also utilizes other

6. 3
programs which involve the community which show a more direct impact on the perception of
its operations.
Community Outreach and Environmental Responsibility
The Boston Beer Company uses programs ranging from business assistance, recycling, and
community events which allow consumers to have a fun experience with their products. First, the
programs used to assist small business owners will be discussed. The Boston Beer Company
launched the Sam Adams Brewing the American Dream Program in 2008 (“Brewing the
American Dream”). The program provides microloans to small food and beverage business
owners with the average loan size being around $7,000. The company uses donations to partly
fund this program, and the money repaid from the loans is reinvested into the fund creating a
steady flow of income for the program. Apart from loans, the program also gives small business
owners assistance through coaching and mentoring in various facets of running a successful
business along with a chance to create a collaboration beer with Samuel Adams and attend
events in the beer industry. There are also small speed mentoring programs provided by the
company to provide entrepreneurs with information they may need to improve how they run their
respective businesses (“Brewing the American Dream”). The company has according to its
website, also established a recycling program to reuse brewing byproduct, bottles, and pallets
(“Corporate Responsibility”). The company has also have installed energy-saving fixtures and
has focused on reducing carbon dioxide emissions (“Corporate Responsibility”). Community
programs used to promote the product are also used. One such example is the Octoberfest Stein
Hoisting Competition in which people compete to see who can hold on to a Stein glass
containing Samuel Adams Octoberfest the longest (“Stein Hoisting”). This event is held in
various cities in the eastern United States in the fall. To increase the awareness of this event, the

7. 4
final was held on Jimmy Kimmel Live this year on October 13th (“Stein Hoisting”). These events
can increase interest in the company’s products and increase sales to allow the company to grow.
Financial and Corporate Growth
Craft brewers have benefitted from increased sales in recent years. Craft beers made up 11
percent of the beer market last year according to the Brewers Association (“National Beer Sales
and Production Data.”). The following section analyzes the different financial information The
Boston Beer Company has provided on its corporate website that shows how the company has
benefitted from this current trend.
Quarterly Financial Results 2011-2014
Upon examining the quarterly results for The Boston Beer Company, a variety of were seen in
the financial reports. To begin, the growth of net revenue will be explored further. When the
financial statements for the four year period of 2011-2014 were reviewed, it was seen that the
company has earned more revenue in each respective quarter than it has in the years preceding it
(“Boston Beer Reports Fourth Quarter 2014 Results” “Boston Beer Reports Third Quarter 2014
Results” “Boston Beer Reports Second Quarter 2014 Results” “Boston Beer Reports First
Quarter 2014 Results” “Boston Beer Reports Fourth Quarter 2012 Results” “Boston Beer
Reports Third Quarter 2012 Results” “Boston Beer Reports Second Quarter 2012 Results”
“Boston Beer Reports First Quarter 2012 Results”). Figure 1 shows the net revenue earned per
quarter for each year in the period reviewed.

8. 5
This consistent growth in revenue each year can be attributed to the growth of the company.
Each year, The Boston Beer Company increases the amount of barrels of beer it ships and sells
throughout the country and world (“Boston Beer Reports Fourth Quarter 2014 Results” “Boston
Beer Reports Fourth Quarter 2012 Results”). The company has been steadily increasing its
shipments as it expands its operations and builds distilleries in new locations allowing it to
provide its products to a wider range of the population. This increase however, still has its
limitations. Being a relatively small and new company, being founded in 1984, most of its
product is shipped mainly around the eastern United States near where it was founded (The
Boston Beer Company). This can be overcome by the expansion of operations mentioned before,
since the establishing of new distilleries allows the company to send its product to more
wholesale distributors. The company’s operations are predominately focused in the United States
since it has yet to establish an international presence (The Boston Beer Company). Shipments to
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113271
147503
166448
153000
135932
181332
216414
205375
183845
231611
269734
217817
0
50000
100000
150000
200000
250000
300000
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Thousands
2011
2012
2013
2014
Figure 1: Quarterly Net Revenue for the Boston Beer Company 2011-2014 Source: The Boston Beer Company

9. 6
other countries are limited in quantity and do not make up much of the sales volume. Another
possible inconvenience pertaining to production is the company’s pride as a craft brewer.
According to their corporate website, a craft brewer produces less than six million beer barrels
annually (Samuel Adams). The amount of barrels sold in 2014 was roughly 4.1 million barrels
(“2014 The Boston Beer Company, Inc. Annual Report” 2). There may seem to not be much
room for increased revenue if the company is only willing to increase production by 2 million
barrels, but in the four year period examined, beer production only increased by 1.6 million
barrels with substantial gains in revenue (“Boston Beer Reports Fourth Quarter 2014 Results”
“Boston Beer Reports First Quarter 2012 Results”). As such, there is still some room for the
company to expand production which should take at least a few years for the company to achieve.
This allows Tech Shield to benefit from increased sales resulting from larger production for at
least few years.
Another trend shown in Figure 1, which may be concerning at first glance, is the decrease in net
revenue experienced in the fourth quarter. This trend can possibly be explained by The Boston
Beer Company’s seasonal products. The company establishes its financial information on a
calendar year basis, beginning on January 1st and ending December 31st with the quarters ending
every three months. Starting in the third quarter, the Boston Beer Company sells its popular
Octoberfest Beer which usually helps increase revenue in the fall, but is discontinued for the
winter (Samuel Adams). Although the company has seasonal products for the winter, most are
not as successful sellers as Octoberfest. 2011 is the exception which can be explained by the
releasing of a higher priced limited edition seasonal beer for the winter in that year (“Infinium
Uncorked for a Limited Time This Holiday Season”). At this point in time, an in-depth

10. 7
breakdown of sale revenue by beer could not be obtained. As a result, further investigation
should be conducted to ensure the trend shows with certainty causation, and not merely
correlation. An examination of the company’s publicly traded stock may also provide some
insight to the success of their operations.
Stock Performance and Fluctuations
The Boston Beer Company’s stock price and amount traded increased consistently over the first
years of it being publicly traded, but has grown exponentially rather recently as can be seen in
Figure 2.
Figure 2: 5-Year Stock Information Chart for the Boston Beer Company Source: NASDAQ
This may be seen as a reason to invest, but there is no guarantee for consistent growth (“2014
The Boston Beer Company, Inc. Annual Report” 15). Increased competition can also impact the
company (“2014 The Boston Beer Company, Inc. Annual Report” 15). If the company decides to
stay at a relatively small size compared to the other giants in the industry such as Anheuser
Busch InBev, there may be an eventual loss of market share. AB InBev, among other large

11. 8
corporations, has decided to invest in craft beer and thus threaten to reduce into The Boston Beer
Company’s profits (“2014 The Boston Beer Company, Inc. Annual Report” 13). Tech Shield
may want to consider whether it should invest in this period of growth or wait to see if the
company is negatively impacted by increased competition. The stock prices have also shown
large increases and decreases over the years as seen in Figure 2. Currently, the stock price is
experiencing a decrease and a short-term investment may prove profitable, but the likelihood of
such an event is still unknown as of yet.
Recommendation
Investing in The Boston Beer Company seems to be beneficial at this time. There is uncertainty
about whether or not the company will continue to be successful in the future, but at this point in
time it is doing fairly well. A short term investment may be best as major beer producers have
yet to substantially increase their influence on the craft beer market.
Conclusion
It was found that The Boston Beer Company provides many programs which enable it to have a
positive representation in the community and has shown considerable growth in financial gains
and range of operations. However, this growth may be short-lived once larger organizations
begin to influence the craft beer market. Tech Shield may be able to benefit from an investment
from this company but should be cautious of when the growth The Boston Beer Company has
enjoyed will no longer be able to continue.

12. 9
Works Cited
“2014 The Boston Beer Company, Inc. Annual Report.” The Boston Beer Company. The Boston
Beer Company. Web. 26 October 2015
“Boston Beer Company, Inc. Stock Chart.” NASDAQ. NASDAQ, 26 October 2015. Web. 26
October 2015
“Boston Beer Reports Fourth Quarter 2014 Results.” The Boston Beer Company. The Boston
Beer Company, 24 February 2015. Web. 23 October 2015
“Boston Beer Reports Third Quarter 2014 Results.” The Boston Beer Company. The Boston Beer
Company, 30 October 2014. Web. 23 October 2015
“Boston Beer Reports Second Quarter 2014 Results.” The Boston Beer Company. The Boston
Beer Company, 30 July 2014. Web. 23 October 2015
“Boston Beer Reports First Quarter 2014 Results.” The Boston Beer Company. The Boston Beer
Company, 30 April 2014. Web. 23 October 2015
“Boston Beer Reports Fourth Quarter 2012 Results.” The Boston Beer Company. The Boston
Beer Company, 20 February 2013. Web. 23 October 2015
“Boston Beer Reports Third Quarter 2012 Results.” The Boston Beer Company. The Boston Beer
Company, 1 November 2012. Web. 23 October 2015
“Boston Beer Reports Second Quarter 2012 Results.” The Boston Beer Company. The Boston
Beer Company, 1 August 2012. Web. 23 October 2015
“Boston Beer Reports First Quarter 2012 Results.” The Boston Beer Company. The Boston Beer
Company, 2 May 2012. Web 23 October 2015
“Brewing the American Dream.” Samuel Adams. Samuel Adams. Web. 25 October 2015

13. 10
“Corporate Responsability.” The Boston Beer Company. The Boston Beer Company. Web. 25
October 2015.
“Infinium Uncorked for a Limited Time This Holiday Season” Samuel Adams. Samuel Adams,
21 November 2011. Web. 26 October 2015
“National Beer Sales and Production Data.” Brewers Association. Brewers Association. Web. 25
October 2015
Samuel Adams. Web. 25 October 2015
“Stein Hoisting.” Samuel Adams. Samuel Adams. Web. 25 October 2015
“Stock Quote & Chart.” The Boston Beer Company. The Boston Beer Company, 23 October
2015. Web. 23 October 2015.
“Subsidiary Information.” The Boston Beer Company. The Boston Beer Company. Web. 25
October 2015.
The Boston Beer Company. Web. 25 October 2015