Boston Beer
Can we Compete With the Big Boys?
Suzanne Souza, Kristina
Saich, Ricardo Contreras, Albert
Brown, Annette Ortiz, and Josh Kern
BUS 305-02
Oct 2nd, 2012
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Overview
S History
S Growth
S Strengths/Weakness
S Opportunities/Threats
S Present Day
History
S 1984:
S Jim Koch saved $100,000 and family loaned $140,000
S 1985:
S Contracted with Pittsburg Brewing Co. to brew his beer
S $20 case to make a profit.
S No wholesaler would carry it.
S Company bought a truck to distribute cases
S Named beer Samuel Adams after Revolutionary War patriot
S Samuel Adams
Revolutionary
War patriot
Growth
S 1988
S Product became available in 48 states
S Boston Lager, Boston Ale, and Double Bock
S Sold 36,000 barrels of beer
S 1990
S Available in all 50 states
S 15 different varieties of beer
S Sold approx. 1,175,000 of beer by end of 90s
S 1992
S Great American Beer Festival
S Voted “best beer” in America 4 times
S Received 6 gold medals in blind taste testing
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Series 1
Series 2
Series 3
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Category 1
Category 2
Category 3
Category 4
Growth
S 1998
S Became 7th largest brewer overall
S Produce more than 2 dozen styles of beers
S Company Knowledge
S Boston Beer has won 287 awards and medals
S Jim Koch has drank 19,730 beers since creating his company
Strengths
S Largest Craft Brewer
S Makes Several different beers
S Has over 50 varieties
S Contracted Pittsburg Brewing Co.
S Saved $10 Million dollars
S “Best Beer”
Weakness
S Small Company
S Two Breweries
S Expensive Beer
S Ingredients
Jim Koch
S With the first
cases ready to
distribute.
(1985)
Jim Koch presented level 5 leadership skills
S Ambitious for the company
S Fierce Resolve to do what is best
S Humility
S Gives Credit to others
"And to this day, I taste a sample from every batch of Boston Lager and meet every
Sam Adams employee. You’ll never see me on Undercover Boss, because at some point
during the year, I work directly with just about everyone in the company.” – Jim Koch
Opportunities
S Beer is still best-selling alcoholic beverage
S 80% of total alcohol volume soled in U.S.
S Sales of craft beer surged 11.2%
S Large domestic beer brands favored less
S Sam Adams is considered KING of Craft Beers
S Won best beer in 2010 – Munich Oktoberfest
Threats
S Early 90s
S Big Brands began cutting prices
S Increase in price of ingredients
S Premium ingredients
S Cost 10x more to produce
S Lengthy brewing process
S Wines and Spirits market share is increasing
Present Day
S Working for Boston Beer
S Employs about 750 people
S Great Employers!
S Boston Magazine – One of the best magazines to work for
S Princeton Review – One of the best entry level jobs
S Company beer trivia contest
S Job revolves around the pure passion of beer
Boston Beer Awards
Present Day
S Small
S Independent
S Traditional
S Currently the largest American owned Brewery
S Represents only 1% of the U.S. beer market (but is leader in
craft brewing industries)
Present Day
S Net Revenue
S Second Quarter 2012 results
S Fiscal 2012 Outlook
54 Different types of Beer
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Boston Lager
Sam Adams Light
Noble Pils
Summer Ale
Octoberfest
Winter Lager
Boston Ale
Cherry Wheat
Latitude 48 IPA
Pale Ale
Irish Red
Black Lager
Cream Stout
Blackberry Witbier
Coastal Wheat
Scotch Ale
Revolutionary Rye
White Ale
Rustic Saison
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East West Kolsch
Bonfire Rauchbier
Harvest Pumpkin Ale
Old Fezziwig
Holiday Porter
Chocolate Bock
Black & Brew Coffee
Stout
Cranberry Lambic
Double Bock
Imperial Stout
Imperial White
Wee Heavy
New World
Stony Brock Red
American Kriek
Thirteenth Hour
Third Voyage
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Griffin’s Bow
Tasman Red
The Vixen
Latitude 48 Simcoe
Latitude 48 Ahtanum
Latitude 48 Zeus
Latitude 48 Hallertan
Latitude 48 Goldings
Cherry Chocolate Bock
Oak Aged Porter
Maple Pecan Porter
Oaked Ale
Double Pumpkin
Lavender Honey Ale
Blackened Hops
Friar Hops
Utopias
Infinium
S Boston Beer recently took control of a full 1% of U.S. beer market
Summary
S Jim Koch started Samuel Adams in 1985 after saving
combined $240,000.
S Being a craft brewer lacks quantity, but exceeds quality.
S Being able to contract out production, keeps cost down, and
allows room for growth and advertising
S The company present day remains small, independent, and
traditional
S Great Employers and forward thinkers
The End
References
S Boston Beer – Bostonbeer.com or Samueladams.com
S Management Mistakes and Successes, Robert F Hartley, 10th Ed
S 2011 Annual Report