Boston Beer Company Case Study

Pages: 4 (1511 words) Published: November 11, 2013
Samuel Adams - Inventory
The Boston Beer Company is the country’s largest producer of craft beer, with their flagship brand being Samuel Adams. An American Craft Brewer is defined as small, independent, and traditional. To be considered these terms, the brewery must adhere to the following guidelines: Annual production of 6 million barrels of beer or less. Less than 25% of the craft brewery is owned or controlled (or equivalent economic interest) by an alcoholic beverage industry member who is not themselves a craft brewer. And a brewer who has either an all malt flagship (the beer which represents the greatest volume among that brewers brands) or has at least 50% of its volume in either all malt beers or in beers which use adjuncts to enhance rather than lighten flavor. Despite being the largest craft brewery, they are only the seventh largest brewer in the US with 1% of total beer volume in the US. Like all consumer products in the marketplace, the Boston Beer Company faces the same logistical, economical, and social issues that any product might face. The main object for any publicly traded company is to increase revenues and profits every quarter while maintaining quality. A difficult task at hand with a consumer good dealing with a large distribution network is inventory. Inventory is the lifeblood of a company appealing to a mass market. Time, energy, resources, and money are all tied up in inventory. To be successful, product needs to move and be sold in the right place, at the right time. Samuel Adams is a perishable good, and therefore needs special attention when created, distributed, and sold.

Samuel Adams is brewed in several locations throughout the country. Started in Boston, MA in 1983 by Jim Koch, the beer was first brewed under contract with Pittsburgh Brewing. Contract brewing remains a key feature of the company’s strategy for national distribution. The company owns three breweries, in Boston, MA, Cincinnati, OH, and...
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