Boston Beer

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History of the BBC
Founders: Jim Koch, Rhonda Kallman, founded in 1984
Koch: successful management consultant with the BCG(Boston Consulting Group);but wanted to do his family recipe. He believes : Domestic Microbrewery 可以打败 imported beers的弱点, by making consistently high quality---emphasized local character Background : Few craft brewers when BBC began.

Critical element of Koch’s plan: use of established brewers’ production facilities: Pittsburgh Brewing Company Benefits : 1. Low starting fee, no need to build or buy a brewg facility. 2. Outsourcing production freed Koch to focus on selling and on a distribution network in…areas Marketing approach:

1. Stressed the product’s ingredients & quality brewg process. 2. Consumers’ sense of patriotism
3. The beer earned rcg within the beer industry as well.
Boston Beer Company, 1995
10years: grown from 7-thousand-barrel microbrewer to the largest crft brewer in U.S. Exhibit 2: growth over last 5 years
Koch is the driving force: initial vision---market-driven microbrewey with a wide distribution pioneered: a strong sales force Koch’ s commitment to the production of fine beer: hand-select the noble hops that gave the unique flavor. R&D facility was key to BB’s growth and success.

Sales volume: higher than the next six combined. Exhibit 3. Industry anticipation : continue to grow its Sales Volume @ similar rate through 1997 and then lower through the end of the century. The company’s expectation: profit margin decline slightly, due to competitive pressures on prices, higher production costs on specialty beers, and increased advertising, promotional, and selling expenses related to the new product intro. And capital expenditures of …

Has financed its working capital requirements and capital expenditures using cash flow operations and currently maintained only $1.95 million in L-T debt. Exhibit 4 :The company’s B/S...
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