CASE 30

The Boston Beer

Company
VISION
• To become the leading brewer in the Better brewer category by
creating and offering high quality and full flavoured beers
MISSION
• To seek the long term profitability growth by offering the highest
quality products to the US beer drinkers
• SUCESS
• Premium products produced from highest quality ingreadients
• An unwavering commitment to the frashness of it's beer
• Constant creativity and innovation that resulted in the introduction of
a new flavor of beer every year
• The passion and dedication of its employees
 Gist of the Case(Summary)
• The Boston Beer Company was founded by Jim Koch in 1984, after he
discovered his great grand father’s micro-brew recipe in Ohio. Today that
batch is known as Samuel Adams. Boston Beer Company is known for its
distinct taste and freshness in its beer. Founder Jim has a concrete agenda that
is not to compromise with the components of the beer to maintain the taste
and quality in the product. Jim opened his first brewery in 1988, then in mid
1990s it expanded to Cincinnati by purchasing other brewery operations. Jim is
known for bringing the revolution in craft beer in US. It is the largest craft
brewery having 25 different styles of boston beer products brewing over 1
million barrels. Company revenues are growing by average 22% and its stock
price is performing wonderfully at $67. from 2010, the scenario is changing
and for boston beer, there are some challenges from competition, industry
also some of the opportunities are knocking the doors. The time is here,
however, company has log way to go in brewery sector.
 SWOT ANALYSIS
• Strength:
• The quality and unique taste of the beer is an extra advantage.

• With a portfolio of 25 different beer products.

• Brewing over 1 million barrels

• Largest brewing company in craft beer segment.

• Large scale operations with acquiring existing players.

• Company doesn’t have any long term debt and COGS is performing great.
 SWOT ANALYSIS
• Weakness:
• Only in craft beer segment, that is small in front of spirit segment.

• They only focus on upper class segment (better beer category) and leaving a
large size of other segment which like to have the products.
• Only roaming around to the traditional formula, not heading towards any
innovations and any risk.
 SWOT ANALYSIS
• Opportunities
• Better beer segment in increasing.

• Flavored malt beverages sector in picking gear up with 2% market share.

• Airlines engagements and path for innovation.

• Motivation in light beer segment

• Women are also attracting to craft beer and also considered as opportunity
costumers from a long time.
 SWOT ANALYSIS
• Threats
• Competitors’ interests like Sierra Nevada Brewing company acquired some
brands in craft brewing segment to compete with boston beer.
• Entrance of Corona and Heinken in US market from quit a long time.
• Increasing expansion of the segment leads to interests of many giant
companies(such as Miller Cools and AB Inbev) to enter in the segment.
• Decline in the consumption in US market which leads to low sales.
• Interest of young youth in Spirits like Wine and other spirits over crafted
beers.
• People’s choice of normal beer over Better beer segment.
 FINDINGS AND SUGGESTIONS
• Findings: Boston Beer has a great capital and stability interms of its
financial balance, also company is expanding their portfolio to other
segments such as light beer market by presenting Samuel Adams
light beer. Also there are many opportunities are coming to its door
steps such as Airlines Engagements(collaborating with airlines to sell
only boston beers while flight)
Suggestions: As company has entered into light beer market, boston
beer should consider CAN based beers for flights as proposed by flights
agreements. Additionally, company was planning to expand their area
to other spirits, this planning should execute rightly as early as possible.
In a line CONCLUSION
“Quality and Uniqueness lead market.”