Craft Brewing Economic Analysis

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Who is a Craft Brewer? ________________________________________________________ 4 Facts _______________________________________________________________________ 4 Types of Breweries: ___________________________________________________________ 5 Microbrewery:____________________________________________________________________ 5 Nano-brewery:____________________________________________________________________ 5 Brewpub: ________________________________________________________________________ 5 Contract Brewing Company: ________________________________________________________ 6 Regional Craft Brewery: ___________________________________________________________ 6 Large Brewery: ___________________________________________________________________ 6

The Top 10 Craft Breweries in US: _______________________________________________ 7 1. 2. Boston Beer Co. _______________________________________________________________ 7 Sierra Nevada Brewing Co. _____________________________________________________ 7

3. New Belgium Brewing Co. ________________________________________________________ 8 4. 5. 6. 7. 8. 9. 10. Spoetzl Brewery ______________________________________________________________ 8 Pyramid Breweries Inc. ________________________________________________________ 8 Deschutes Brewery ____________________________________________________________ 9 Matt Brewing Co. _____________________________________________________________ 9 Magic Hat Brewing Co. ________________________________________________________ 9 Boulevard Brewing Co. _______________________________________________________ 10 Harpoon Brewery __________________________________________________________ 10

Craft Beer Sales Stats

1st half of year 2010 ______________________________________ 11

First Half 2010 Craft Beer Industry: ________________________________________________ 11 2009 Craft Beer Industry Production Volume: ____________________________________________ 11 How big is the US beer market? ________________________________________________________ 12

Craft-Brewery

A strategic group of Brewers _____________________________________ 13

Product Characteristics:___________________________________________________________ 13 Brewing Operations: ______________________________________________________________ 13 Market Structure and Competition: _________________________________________________ 15 Marketing Focus: ________________________________________________________________ 16 Market Characteristics: ___________________________________________________________ 16 Business Strategy: ________________________________________________________________ 18 Production of superior quality of Craft Beers: ____________________________________________ 18

Diversified product lines: ______________________________________________________________ Strategic Relationships with Distributors: ________________________________________________ Control of Production: _________________________________________________________________ Targeted Sales and Marketing Efforts: __________________________________________________ Variety:______________________________________________________________________________ Safe storage and Transportation: _______________________________________________________ Chain of Custody:_____________________________________________________________________ Market Access: _______________________________________________________________________ State Alcohol Control: _________________________________________________________________ Choice and Convenience: _____________________________________________________________ Economic Contribution and Community Support: ________________________________________

18 18 19 19 20 20 21 21 21 22 22

Distribution: ____________________________________________________________________ 20

Alcoholic Beverages Regulation and Taxation: ________________________________________ 23 Licenses and Permits...
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