We value Boston Beer Company (NYSE: SAM) at $63.38 per share, and recommend that investors hold these securities. Increased competition in the craft beer market will hinder Boston Beer's revenue growth and ability to expand, as market growth occurs within an overall stagnating beer industry. The current market price is $65.21 per share.
The document provides an analysis of Boston Beer Company conducted by a group of students. It includes an overview of the company's history and financials. The group values Boston Beer at $63.38 per share based on a discounted cash flow analysis and recommends investors hold their positions, though note increased competition may hinder growth given market stagnation in the industry. Sensitivity analyses show valuations ranging from $52.54 to $77.07 per share depending on scenarios for revenue, costs and growth rates.
Best Buy is a major electronics retailer that began in 1966 and has grown significantly since then. It has over 1000 stores across the US and has expanded internationally. While Best Buy has strong sales and market leadership, it also has high debt levels that have increased in recent years. However, as the economy recovers, Best Buy is well positioned to continue growing with demand for consumer electronics. The document recommends buying Best Buy stock for its growth potential over the next few years, despite some weaknesses like high costs and debt.
Samuel Adams had early failures in business and struggled financially until supported by John Hancock. He was a key figure in planning the Boston Tea Party and gaining support for independence through his writings. While respected by patriots like Paul Revere and John Adams, he was distrusted by the British and George Washington. Samuel Adams had a difficult personal life, with many children dying early and his wife's death after childbirth.
O ministério de administração inclui três tarefas principais: 1) aumentar os recursos espirituais por meio da multiplicação para alcançar os propósitos de Deus; 2) minimizar a desordem por meio da subjugação; e 3) manter a ordem por meio do governo. O maior exemplo de administração é Jesus Cristo, e o requisito principal para os administradores é que eles sejam fiéis.
Benjamin Franklin foi um estadista, cientista, escritor e inventor americano nascido em 1706. Suas principais contribuições para a ciência incluem a teoria de que relâmpagos são causados por cargas elétricas positivas e negativas e a invenção do para-raios. Franklin também desenvolveu invenções úteis como o fogão Franklin e a lente bifocal.
The alcoholic beverage market has long been formed by volatile demand trends, legislative regulation, and fierce competition in a highly-concentrated environment. Generating over USD 33.38bn of revenue in 2015, the beer segment faces great rivalry, declining demands, and threatening substitutes. Moreover, the industry has been characterized significantly by mergers and acquisitions in the past, such as the SABMiller plc being acquired by Anheuser-Busch InBev in 2016. This presentation, created with my workgroup for the Master in Management at IE Business School provides a thorough analysis of AB InBev. The multinational corporation, listed on the Euronext Brussels and focused on the beverage and brewing industry, is considered as one of the largest fast-moving consumer goods companies in the world. To analyse AB InBev the SCP approach was applied using Porter’s five forces and a dynamic overview of the industry applying a strategic group map.
If you have further interest in the beer industry, it’s characteristics and development, I highly recommend Harvard Business Review’s Beer Cases series (https://hbr.org/product/the-beer-cases-a-a-b-inbev/W11613-PDF-ENG).
The document provides an analysis of Boston Beer Company conducted by a group of students. It includes an overview of the company's history and financials. The group values Boston Beer at $63.38 per share based on a discounted cash flow analysis and recommends investors hold their positions, though note increased competition may hinder growth given market stagnation in the industry. Sensitivity analyses show valuations ranging from $52.54 to $77.07 per share depending on scenarios for revenue, costs and growth rates.
Best Buy is a major electronics retailer that began in 1966 and has grown significantly since then. It has over 1000 stores across the US and has expanded internationally. While Best Buy has strong sales and market leadership, it also has high debt levels that have increased in recent years. However, as the economy recovers, Best Buy is well positioned to continue growing with demand for consumer electronics. The document recommends buying Best Buy stock for its growth potential over the next few years, despite some weaknesses like high costs and debt.
Samuel Adams had early failures in business and struggled financially until supported by John Hancock. He was a key figure in planning the Boston Tea Party and gaining support for independence through his writings. While respected by patriots like Paul Revere and John Adams, he was distrusted by the British and George Washington. Samuel Adams had a difficult personal life, with many children dying early and his wife's death after childbirth.
O ministério de administração inclui três tarefas principais: 1) aumentar os recursos espirituais por meio da multiplicação para alcançar os propósitos de Deus; 2) minimizar a desordem por meio da subjugação; e 3) manter a ordem por meio do governo. O maior exemplo de administração é Jesus Cristo, e o requisito principal para os administradores é que eles sejam fiéis.
Benjamin Franklin foi um estadista, cientista, escritor e inventor americano nascido em 1706. Suas principais contribuições para a ciência incluem a teoria de que relâmpagos são causados por cargas elétricas positivas e negativas e a invenção do para-raios. Franklin também desenvolveu invenções úteis como o fogão Franklin e a lente bifocal.
The alcoholic beverage market has long been formed by volatile demand trends, legislative regulation, and fierce competition in a highly-concentrated environment. Generating over USD 33.38bn of revenue in 2015, the beer segment faces great rivalry, declining demands, and threatening substitutes. Moreover, the industry has been characterized significantly by mergers and acquisitions in the past, such as the SABMiller plc being acquired by Anheuser-Busch InBev in 2016. This presentation, created with my workgroup for the Master in Management at IE Business School provides a thorough analysis of AB InBev. The multinational corporation, listed on the Euronext Brussels and focused on the beverage and brewing industry, is considered as one of the largest fast-moving consumer goods companies in the world. To analyse AB InBev the SCP approach was applied using Porter’s five forces and a dynamic overview of the industry applying a strategic group map.
If you have further interest in the beer industry, it’s characteristics and development, I highly recommend Harvard Business Review’s Beer Cases series (https://hbr.org/product/the-beer-cases-a-a-b-inbev/W11613-PDF-ENG).
Boston Beer Company (SAM) is recommended as a buy based on its position in the growing craft beer industry. SAM has successfully introduced new flavorful beer brands to the market, fueling revenue growth of 13.5% in 2015 and projected annual growth of 5.5% through 2020. This positions SAM well to benefit from industry expansion. Some risks include potential slowing of flagship brand sales growth and increased competition from spirits. Valuation models yield a target price of $218-$220, indicating 9% upside potential.
- BevCo, a leading producer of wine and spirits, is facing declining revenue and profitability due to shifting consumer tastes towards beer. Acquiring BeerCo, a craft brewer, could help BevCo diversify into the growing beer market.
- A SWOT analysis found BeerCo's established supply chain and brand in the US are strengths, while its lack of experience in wine and spirits is a weakness. Acquiring BeerCo could help counter threats from large brewers developing premium beers.
- Valuation of BeerCo using DCF analysis values it at $4.2 billion, while comparable transactions suggest a range of $1.9-7.2 billion. Factors like synergies, market
The document analyzes the beer industry and provides an overview of several major companies to recommend where to invest. It discusses the industry forces, threats, and profiles SABMiller, Diageo, Anheuser-Busch InBev, and Boston Beer Company. Anheuser-Busch InBev is the largest global brewer, while Boston Beer Company is the leading craft brewer. The recommendation is that a risk-averse investor would invest in Anheuser-Busch due to its size and stability, while a risk-seeking investor may prefer smaller microbreweries/regional brewers for their growth potential.
Heineken is a leading global beer brand with over 130 years of history. It aims to achieve sustainable growth through expanding its product portfolio and innovating in production, marketing, and packaging. However, it is facing challenges of losing US market share to competitors and operating in a mature beer industry. To address these issues, Heineken plans to accelerate growth, efficiency, and speed of implementation by focusing on priority markets and strengthening its brands globally through advertising, acquisitions, and developing new products like low-calorie beers.
Business case that proposes a strategy for a U.S. based Wine manufacturer to enter in the Craft Beer Industry. The presentation also includes the highlight of US Alcoholic Beverage Industry and Customer appeal in the Beer Market.
Heineken is one of the world's leading beer brands with over 130 years of history. It aims to grow sustainably through innovation, efficiency, and focus on markets it can win. It faces challenges from industry maturation and consolidation. Heineken can grow in the US by increasing advertising of brands like Tecate and Dos Equis to young and Hispanic drinkers. Developing lower calorie beers also taps into growing consumer interests. Global expansion through acquisitions maintains competitiveness.
Heineken is one of the world's leading beer brands with over 130 years of history. It aims to grow sustainably through innovation, efficiency, and focus on markets it can win. It faces challenges from industry maturation and consolidation. Heineken can grow in the US by increasing advertising of brands like Tecate and Dos Equis to Hispanics and young drinkers. Developing lower calorie beers also taps an expanding market segment. Global expansion through acquisitions maintains competitiveness.
This document provides an overview of the Boston Beer Company through a mini-presentation. It includes analyses of the company's financial performance and stock price, its competitive positioning among major beer players and craft beers, and its resources and capabilities. The company positions itself as an "American Craft Brewer" and competes based on its small, independent size and attention to quality rather than price. It holds a niche position between larger domestic brewers and smaller microbrews.
Asia Investment & Banking Conference 2019 – HSBC M&A Competition Champions (A...Amir Hisham
AIBC 2019 HSBC M&A Competition
Our team in the Investment Banking Division has been selected to present a pitch book - to be termed as a ‘Strategic Review’ - to the Board of Directors of our client, The Coca-Cola Company (KO), regarding a potential acquisition target in the food and beverage industry in line with their growth strategy.
Note: Any mention of The Coca-Cola Company in the pitchbook has been redacted to avoid any conflicts of interests with HSBC (competition judges).
Market Research Report : Beer Market in China 2010Netscribes, Inc.
For the complete report, get in touch with us at : info@netscribes.com
The beer market in China is witnessing a steady rise. Growth in this sector is being propelled by increasing income in the hands of the Chinese consumers coupled with a strong distribution network.
The report begins with discussion on the global beer market. This is followed by the market overview section which discusses the market size and growth of the beer market in China, consumer preferences, price segmentation and volume of beer consumption. The market overview section also includes data about foreign trade covering the beer export and import figures. An analysis of the drivers influencing the industry growth includes rising income levels, strong distribution network, beer festivals, growing pub culture. The key challenges identified are volatility in barley prices and dependence on foreign stake holders.
An analysis of the trends includes collaboration amongst players, Chinese breweries focusing on premium beer categories, development of craft beer market, signing of low-carbon brewing agreement in China and change in packaging of beer products.
The competition section discusses the business overview, financial overview and future plans of the players.
SABMiller is focused on driving future success by leveraging its scale, focusing on beer category growth, and partnering with stakeholders. It will refresh core brands, increase premium offerings, accelerate global brands, and innovate across beer styles. SABMiller will also expand into adjacent categories and non-alcoholic drinks. It aims to optimize its supply chain and procurement through a shared services model. Sustainable development partnerships and dialogue with regulators on alcohol will also contribute to SABMiller's future success. Current headwinds in some developing markets are temporary, while long term fundamentals remain strong.
This document contains a summary of SABMiller's quarterly investor seminar. It includes presentations from several SABMiller executives on the company's marketing strategy and global beer vision. Their strategy includes driving topline growth by capturing new occasions for beer, improving premiumization, and ensuring affordability. It also involves liberating resources through cost savings initiatives and optimizing their global footprint. The executives provide details on segmenting occasions by beverage benefits, developing portfolios to target occasions, and establishing core and premium sub-categories to realize their vision of making beer the most admired beverage worldwide.
BevCo is considering acquiring premium craft beer brand BeerCo to diversify its portfolio. A strategic, financial, and operational assessment was conducted. The craft beer market is growing at 7.63% annually and BeerCo has an average 20% operating margin. Acquiring BeerCo could increase BevCo's operating margin to 28% through synergies. Factors like market conditions, attractiveness, financial parameters, and negotiation skills will impact the acquisition price, which is estimated at $2.574 billion based on BeerCo's $1.1 billion target revenue and comparable acquisition multiples of 2.34x. The production costs could be reduced further by establishing a new production facility. In conclusion, acquiring BeerCo would diversify
Boston Beer Company is facing challenges as the craft beer industry grows increasingly competitive. It is squeezed between large multinational breweries and small local breweries. While Boston Beer has strengths like its quality and brand recognition, it struggles with high competition and an inability to respond effectively. It should expand its successful Angry Orchard hard cider brand and acquire small craft breweries to gain market share. This will allow it to combat threats while leveraging opportunities in the changing beer industry environment.
SABMiller is the second largest beer company globally behind AB InBev. It faces intense competition from InBev as well as Heineken and Carlsberg. The beer industry is also impacted by consumer preferences, excise taxes, regulations, and health organizations. SABMiller has a history of acquisitions that has led to operations in 80 countries. Porter's Five Forces analysis identifies high competition and bargaining power of buyers as major issues. Recommendations include launching a new premium beer, offering local craft beers globally, and partnering with governments in developing markets to support infrastructure. These aim to attract customers with distinctive brands, expand margins, and ensure sustainable growth.
Bloomin' Brands is recommended as a buy with an 11.85% upside potential. It has strong domestic and international growth prospects through its portfolio of restaurant brands like Outback Steakhouse. Domestically, sales and traffic continue to outperform peers. Internationally, the global casual dining market is growing faster than the US market, allowing for expansion opportunities. Improving margins through cost savings initiatives and strong operating cash flow provide additional upside to the stock.
The document provides an equity analysis and strategic options for J.M. Smucker Co. It finds that SJM is trading relatively close to its calculated value based on comparable company and discounted cash flow analyses. Three strategic options are presented: 1) Sell the underperforming International and Away From Home segment to focus resources and raise margins, 2) Merge with Conagra Brands to expand into refrigerated/frozen foods, and 3) Acquire a "better-for-you" brand to diversify the portfolio for changing consumer preferences.
2.1. Functional area #1 Marketing Management and Decision Making .docxvickeryr87
2.1. Functional area #1: Marketing Management and Decision Making
Analysis of the starting conditions (based on the running case and the objectives of the owner)
Targeted characteristics for the first three years of operations of the new business unit
Application of the business simulation (for the selected functional area)
Our store is called Legal Harborside which is a three-floor restaurant serving legal seafoods. Now we are deciding to invest in the New BrewPub which could serve our customers with self-made Brew beer. The objective of investing in a New BrewPub is to increase the variety of our products and add one more profitable point into our restaurant.
The reason why we choose self-made brew beer is that recently, the demand for self-made brew beer is dramatically increasing in recent years. The demand of self-made brew even surpassed that of soda in summer 2018 in the whole Boston area (1). According to a research public by Columbia University, the BrewPub has become the 7th influencer that may affect customers coming to a restaurant or not, from 23rd in 2016. We think this reflect the preference of drinks of our customers has changed and we need to correspond to those changes and make use of the change to increase our revenue.
(1)
Before we start investing, we conduct a series of marketing analysis to evaluate the market of the self-made brew beer. The analysis of demand of Drinks in Boston is conducted with a survey delivering to residents in Boston area by a random sampling method. Therefore, it can represent the percent of self-made brew beer demand. Currently, the restaurant offering self-made brew beer is only 5% so there is an imbalance between the supply and the demand. In the radius of 5 miles around Legal Harborside, there are only 27 restaurant severing self-made brew beer, which can meet the demand of Among those who reporting the wants self-made brew beer, it has been reported that 62% of them may only consider the restaurant that has self-made brew beer. Offering self-made brew beer may turn to be one important advantage of a restaurant to attract more customers and start to be a requirement for a successful restaurant. These results show that self-made brew beer is worthy of investing.
3.1 please write this part!!!!!
SWOT Analysis
Strength
· Craft beer trend is growing
· Craft beers complement variation menus in the restaurant
· High quality for reasonable price
· High margins
·
Weakness
· Complication and risk of quality control
· Consistency of craft beers quality
·
Opportunity
· Sport & Music Festival marketing
· Boston craft beer culture
· Target customer (a lot of students in the area)
·
Thread
· City Tap House (100+ craft beer)
· Low barrier
· Winter/Snow inconvenience to travel/eat out
Question 4 DataHouse SalesRegionTypeSelling PriceLot CostMidwestTownhouse$85,145$17,030MidwestTownhouse$112,740$20,700MidwestTownhouse$115,350$18,030MidwestTownhouse$116,415$19,600MidwestTownhouse$133,070$2.
Boston Beer Company (SAM) is recommended as a buy based on its position in the growing craft beer industry. SAM has successfully introduced new flavorful beer brands to the market, fueling revenue growth of 13.5% in 2015 and projected annual growth of 5.5% through 2020. This positions SAM well to benefit from industry expansion. Some risks include potential slowing of flagship brand sales growth and increased competition from spirits. Valuation models yield a target price of $218-$220, indicating 9% upside potential.
- BevCo, a leading producer of wine and spirits, is facing declining revenue and profitability due to shifting consumer tastes towards beer. Acquiring BeerCo, a craft brewer, could help BevCo diversify into the growing beer market.
- A SWOT analysis found BeerCo's established supply chain and brand in the US are strengths, while its lack of experience in wine and spirits is a weakness. Acquiring BeerCo could help counter threats from large brewers developing premium beers.
- Valuation of BeerCo using DCF analysis values it at $4.2 billion, while comparable transactions suggest a range of $1.9-7.2 billion. Factors like synergies, market
The document analyzes the beer industry and provides an overview of several major companies to recommend where to invest. It discusses the industry forces, threats, and profiles SABMiller, Diageo, Anheuser-Busch InBev, and Boston Beer Company. Anheuser-Busch InBev is the largest global brewer, while Boston Beer Company is the leading craft brewer. The recommendation is that a risk-averse investor would invest in Anheuser-Busch due to its size and stability, while a risk-seeking investor may prefer smaller microbreweries/regional brewers for their growth potential.
Heineken is a leading global beer brand with over 130 years of history. It aims to achieve sustainable growth through expanding its product portfolio and innovating in production, marketing, and packaging. However, it is facing challenges of losing US market share to competitors and operating in a mature beer industry. To address these issues, Heineken plans to accelerate growth, efficiency, and speed of implementation by focusing on priority markets and strengthening its brands globally through advertising, acquisitions, and developing new products like low-calorie beers.
Business case that proposes a strategy for a U.S. based Wine manufacturer to enter in the Craft Beer Industry. The presentation also includes the highlight of US Alcoholic Beverage Industry and Customer appeal in the Beer Market.
Heineken is one of the world's leading beer brands with over 130 years of history. It aims to grow sustainably through innovation, efficiency, and focus on markets it can win. It faces challenges from industry maturation and consolidation. Heineken can grow in the US by increasing advertising of brands like Tecate and Dos Equis to young and Hispanic drinkers. Developing lower calorie beers also taps into growing consumer interests. Global expansion through acquisitions maintains competitiveness.
Heineken is one of the world's leading beer brands with over 130 years of history. It aims to grow sustainably through innovation, efficiency, and focus on markets it can win. It faces challenges from industry maturation and consolidation. Heineken can grow in the US by increasing advertising of brands like Tecate and Dos Equis to Hispanics and young drinkers. Developing lower calorie beers also taps an expanding market segment. Global expansion through acquisitions maintains competitiveness.
This document provides an overview of the Boston Beer Company through a mini-presentation. It includes analyses of the company's financial performance and stock price, its competitive positioning among major beer players and craft beers, and its resources and capabilities. The company positions itself as an "American Craft Brewer" and competes based on its small, independent size and attention to quality rather than price. It holds a niche position between larger domestic brewers and smaller microbrews.
Asia Investment & Banking Conference 2019 – HSBC M&A Competition Champions (A...Amir Hisham
AIBC 2019 HSBC M&A Competition
Our team in the Investment Banking Division has been selected to present a pitch book - to be termed as a ‘Strategic Review’ - to the Board of Directors of our client, The Coca-Cola Company (KO), regarding a potential acquisition target in the food and beverage industry in line with their growth strategy.
Note: Any mention of The Coca-Cola Company in the pitchbook has been redacted to avoid any conflicts of interests with HSBC (competition judges).
Market Research Report : Beer Market in China 2010Netscribes, Inc.
For the complete report, get in touch with us at : info@netscribes.com
The beer market in China is witnessing a steady rise. Growth in this sector is being propelled by increasing income in the hands of the Chinese consumers coupled with a strong distribution network.
The report begins with discussion on the global beer market. This is followed by the market overview section which discusses the market size and growth of the beer market in China, consumer preferences, price segmentation and volume of beer consumption. The market overview section also includes data about foreign trade covering the beer export and import figures. An analysis of the drivers influencing the industry growth includes rising income levels, strong distribution network, beer festivals, growing pub culture. The key challenges identified are volatility in barley prices and dependence on foreign stake holders.
An analysis of the trends includes collaboration amongst players, Chinese breweries focusing on premium beer categories, development of craft beer market, signing of low-carbon brewing agreement in China and change in packaging of beer products.
The competition section discusses the business overview, financial overview and future plans of the players.
SABMiller is focused on driving future success by leveraging its scale, focusing on beer category growth, and partnering with stakeholders. It will refresh core brands, increase premium offerings, accelerate global brands, and innovate across beer styles. SABMiller will also expand into adjacent categories and non-alcoholic drinks. It aims to optimize its supply chain and procurement through a shared services model. Sustainable development partnerships and dialogue with regulators on alcohol will also contribute to SABMiller's future success. Current headwinds in some developing markets are temporary, while long term fundamentals remain strong.
This document contains a summary of SABMiller's quarterly investor seminar. It includes presentations from several SABMiller executives on the company's marketing strategy and global beer vision. Their strategy includes driving topline growth by capturing new occasions for beer, improving premiumization, and ensuring affordability. It also involves liberating resources through cost savings initiatives and optimizing their global footprint. The executives provide details on segmenting occasions by beverage benefits, developing portfolios to target occasions, and establishing core and premium sub-categories to realize their vision of making beer the most admired beverage worldwide.
BevCo is considering acquiring premium craft beer brand BeerCo to diversify its portfolio. A strategic, financial, and operational assessment was conducted. The craft beer market is growing at 7.63% annually and BeerCo has an average 20% operating margin. Acquiring BeerCo could increase BevCo's operating margin to 28% through synergies. Factors like market conditions, attractiveness, financial parameters, and negotiation skills will impact the acquisition price, which is estimated at $2.574 billion based on BeerCo's $1.1 billion target revenue and comparable acquisition multiples of 2.34x. The production costs could be reduced further by establishing a new production facility. In conclusion, acquiring BeerCo would diversify
Boston Beer Company is facing challenges as the craft beer industry grows increasingly competitive. It is squeezed between large multinational breweries and small local breweries. While Boston Beer has strengths like its quality and brand recognition, it struggles with high competition and an inability to respond effectively. It should expand its successful Angry Orchard hard cider brand and acquire small craft breweries to gain market share. This will allow it to combat threats while leveraging opportunities in the changing beer industry environment.
SABMiller is the second largest beer company globally behind AB InBev. It faces intense competition from InBev as well as Heineken and Carlsberg. The beer industry is also impacted by consumer preferences, excise taxes, regulations, and health organizations. SABMiller has a history of acquisitions that has led to operations in 80 countries. Porter's Five Forces analysis identifies high competition and bargaining power of buyers as major issues. Recommendations include launching a new premium beer, offering local craft beers globally, and partnering with governments in developing markets to support infrastructure. These aim to attract customers with distinctive brands, expand margins, and ensure sustainable growth.
Bloomin' Brands is recommended as a buy with an 11.85% upside potential. It has strong domestic and international growth prospects through its portfolio of restaurant brands like Outback Steakhouse. Domestically, sales and traffic continue to outperform peers. Internationally, the global casual dining market is growing faster than the US market, allowing for expansion opportunities. Improving margins through cost savings initiatives and strong operating cash flow provide additional upside to the stock.
The document provides an equity analysis and strategic options for J.M. Smucker Co. It finds that SJM is trading relatively close to its calculated value based on comparable company and discounted cash flow analyses. Three strategic options are presented: 1) Sell the underperforming International and Away From Home segment to focus resources and raise margins, 2) Merge with Conagra Brands to expand into refrigerated/frozen foods, and 3) Acquire a "better-for-you" brand to diversify the portfolio for changing consumer preferences.
2.1. Functional area #1 Marketing Management and Decision Making .docxvickeryr87
2.1. Functional area #1: Marketing Management and Decision Making
Analysis of the starting conditions (based on the running case and the objectives of the owner)
Targeted characteristics for the first three years of operations of the new business unit
Application of the business simulation (for the selected functional area)
Our store is called Legal Harborside which is a three-floor restaurant serving legal seafoods. Now we are deciding to invest in the New BrewPub which could serve our customers with self-made Brew beer. The objective of investing in a New BrewPub is to increase the variety of our products and add one more profitable point into our restaurant.
The reason why we choose self-made brew beer is that recently, the demand for self-made brew beer is dramatically increasing in recent years. The demand of self-made brew even surpassed that of soda in summer 2018 in the whole Boston area (1). According to a research public by Columbia University, the BrewPub has become the 7th influencer that may affect customers coming to a restaurant or not, from 23rd in 2016. We think this reflect the preference of drinks of our customers has changed and we need to correspond to those changes and make use of the change to increase our revenue.
(1)
Before we start investing, we conduct a series of marketing analysis to evaluate the market of the self-made brew beer. The analysis of demand of Drinks in Boston is conducted with a survey delivering to residents in Boston area by a random sampling method. Therefore, it can represent the percent of self-made brew beer demand. Currently, the restaurant offering self-made brew beer is only 5% so there is an imbalance between the supply and the demand. In the radius of 5 miles around Legal Harborside, there are only 27 restaurant severing self-made brew beer, which can meet the demand of Among those who reporting the wants self-made brew beer, it has been reported that 62% of them may only consider the restaurant that has self-made brew beer. Offering self-made brew beer may turn to be one important advantage of a restaurant to attract more customers and start to be a requirement for a successful restaurant. These results show that self-made brew beer is worthy of investing.
3.1 please write this part!!!!!
SWOT Analysis
Strength
· Craft beer trend is growing
· Craft beers complement variation menus in the restaurant
· High quality for reasonable price
· High margins
·
Weakness
· Complication and risk of quality control
· Consistency of craft beers quality
·
Opportunity
· Sport & Music Festival marketing
· Boston craft beer culture
· Target customer (a lot of students in the area)
·
Thread
· City Tap House (100+ craft beer)
· Low barrier
· Winter/Snow inconvenience to travel/eat out
Question 4 DataHouse SalesRegionTypeSelling PriceLot CostMidwestTownhouse$85,145$17,030MidwestTownhouse$112,740$20,700MidwestTownhouse$115,350$18,030MidwestTownhouse$116,415$19,600MidwestTownhouse$133,070$2.
2.1. Functional area #1 Marketing Management and Decision Making .docx
Samuel Adams %281%29
1. Boston Beer Company Group 4 Jose Aleman Andrew Fulham Scott Sorensen Stephanie Soybel Taylor Williams 1
2. Recommendation We value Boston Beer Company (NYSE: SAM) at $63.38 per share, and recommend that investors hold these securities. Current Market Price of $65.21 Increased competition will hinder revenue growth and company expansion Market Growth within Industry Stagnation 2
7. Domestic Beer Production is Decreasing Source: www.ibisworld.com Overview Financials Strategy Valuation 7
8. Boston Beer operates within the “Better Beer” category Craft, Import, and Specialty Beer 20% of Domestic Beer Market Category profitability realized by Major Brewers Samuel Adams is the largest domestic brewer and 3rd largest Brewer in the Better Beer Category Overview Financials Strategy Valuation 8
11. New BelgiumCraft Beer drinkers are loyal to the Craft Beer Industry Overview Financials Strategy Valuation 9
12. Boston Beer sells 2 of the top 3 Craft Beers Top Selling US Craft Beers in 2009 1) Sierra Nevada Pale Ale 2) Samuel Adams Boston Lager 3) Sam Adams Seasonal 4) New Belgium Fat Tire Amber Ale 5) Shiner Bock 6) WidmerHefeweizen 7) Sam Adams Variety Pack 8) Sam Adams Lite Source: Beverage Industry Magazine Overview Financials Strategy Valuation 10
13. 3 Tier Distribution System Brewery Wholesalers Retailers Overview Financials Strategy Valuation 11
14. Diverse Product Portfolio Boston Beer Co. (SAM) 8 Flavored Malt Beverages (13%) 1 Hard Cider (0.06%) 20 Unique Beers (87%) Overview Financials Strategy Valuation 12
25. Competitive Strengths Leadership built on scale, quality and branding Consumer preferences are shifting towards premium beer Agreements with suppliers and distributors yield stability and predictability. Overview Financials Strategy Valuation
26. Threats Increasingly competitive segment Low switching costs among consumers Intensified efforts from industry leaders to penetrate the market Low barriers to entry at the microbrewer level Need to increase differentiation from premium products in wine and spirits industry Overview Financials Strategy Valuation
27. Opportunities Geographic expansion Domestic International – Emerging markets Risks Direct competition with regional brewers Competition with major industry leaders Product diversification 23 Overview Financials Strategy Valuation
33. Recommendation We value Boston Beer Company (NYSE: SAM) at $63.38 per share, and recommend that investors hold these securities. Current Market Price of $65.21 Increased competition will hinder company expansion Market Growth within Industry Stagnation 29
Recent acquisition of Anheuser Busch by Inbev and the joint venture of Miller Brewing Company and Coors Brewing Company to create Miller Coors LLCMiller Coors Sells: Miller Lite Coors Light, BLUE MOON, Killian Irish Red Milwaukee's Best, Foster’s, KeystoneBoston Beer sells its product mainly in the US, but also markets them in Canada, Europe, Israel, Pacific Rim, Mexico and the Caribbean.99% of revenue comes from US but, but also markets them in Canada, Europe, Israel, Pacific Rim, Mexico and the Caribbean.Further, these two major brewers have entered the Better Beer category recently, either by developing their own beers, acquiring, in whole or part, existing craft brewers, or by importing and distributing foreign brewers’ brands. On January 11, 2010, Heineken N.V. (“Heineken”) announced its acquisition of the beer operations of FomentoEconomicoMexicano, SAB de CV (“FEMSA Cerveza”) which will make Heineken the number two brewer internationally by revenue and significantly increase Heineken’s ownership position in the Better Beer Market with the addition of FEMSA Cerveza brands, including Dos Equis ®, Sol® and Tecate®.
“Determined by higher price, quality, image and taste, as compared with regular domestic beers”(10-k)Better Bear includes most imports and specialty beersPrimarily but not entirely within the Better Beer CategoryIn the Better bear category only behind Corona and Heineken Further, these two major brewers have entered the Better Beer category recently, either by developing their own beers, acquiring, in whole or part, existing craft brewers, or by importing and distributing foreign brewers’ brands. Heineken N.V. (“Heineken”) announced its acquisition of the beer operations of FomentoEconomicoMexicano, SAB de CV (“FEMSA Cerveza”) which will make Heineken the number two brewer internationally by revenue and significantly increase Heineken’s ownership position in the Better Beer Market with the addition of FEMSA Cerveza brands, including Dos Equis ®, Sol® and Tecate®.
Beer Category was flat but Craft Beer rose 12%
-SAM is heavily dependent on about 400 wholesale distributors sell to retailers (pubs, restaurants, grocery chains) -These distributors are the same distributors used by AB InBev and SABMiller and are often influenced by these larger companies. -SAM holds this same distribution advantage over smaller regional breweries. -Distributors can terminate service on very short notice and there is no guarantee SAM could find other distributors offering comparable prices. Beer is produced at breweriesThe second tier is distribution. Producers will often provide exclusive rights to a certain company to distribute its product to different retailers, and the post-prohibition landscape usually makes distributors powerful entities within each individual state. This reduces competition and can raise prices, since fewer distributors mean less incentive to reduce prices. Some states also have regulations further defining the relationship between the brewer and a distributor, even going as to legally bind a brewer to a distributor. This can create a headache for consumers since disputes between brewers and distributors can result in certain beers becoming unavailable in an area.The third tier is retail. This is the point at which the general consumer can purchase the product, whether that be a grocery store, bar or state-regulated vendor. As with many things, there is an exception: brewpubs - restaurants or pubs that produce beer on site for sale on site.