Mountain Man Brewing Company Case Analysis
Topics: Beer, Brand, Brewery / Pages: 7 (995 words) / Published: Jul 7th, 2014

Katia Herrera
Dr. Barksdale
MK4900
June 23, 2014

Mountain Man Brewing Company Case Analysis

Situation Analysis

1. Industry

“The beer industry in the United States generates $75 Billion in annual sales.” (Abelli, 4)

Light beer sales have increased at a compound annual rate of 4% over the previous six years. Traditional premium beer sales have also declined annually by the same percentage.

The beer industry can be considered a monopoly since large national brewers maintain economies of scale in brewing, better distribution tactics, spend heavily on advertisement, and create barriers of entry for other smaller brands.

Brand plays a key role in the beer-purchasing process, along with taste, price, special occasion, brand image, authenticity, and tradition.

Four different categories in the U.S. beer market-major domestic producers, second-tier domestic producers, import beer companies, and the craft beer industry.

2. Company

According to the case, “By 2005 Mountain Man was generating revenues just over $50 million and selling over 520,000 barrels of Mountain Man Lager.”

Mountain Man Brewing Company creates an aura of authenticity with its status of an independent, family-owned brewery.

Mountain Man’s revenue declined in 2005 by 2%. Assuming 2% drop in revenues every year, I have calculated the following: By 2006 revenues will drop to $49,431,200; 2007-$48,442,576; 2008-$47,473,724; 2009-$46,524,250. (See Appendix)

The main competition in Mountain Man’s region is the major domestic producers, Anheuser Busch, Miller Brewing Company, and Adolf Coors Company, which control 74% of beer shipments in the East Central region.

Anheuser-Busch, Miller, and Coors also accounts for 84% of market share in light beer in 2005.

Mountain Man is part of the craft beer industry, but it has a higher craft beer volume than most of the other four markets (brewpubs, microbreweries, contract breweries, and regional craft breweries). Craft

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