Sam Adams Porter Analysis

Topics: Beer, Brand, Brewing Pages: 7 (2077 words) Published: November 2, 2013
SAM Adams Porter Analysis

Copyright 2013 GlobalData Ltd., All Rights Reserved
GlobalData - SWOT Analysis
October 13, 2013
The Boston Beer Company, Inc.
Suite 850, One Design Center Place
Boston, MA 02210
United States
* * * * * * * * * * SWOT ANALYSIS * * * * * * * * * *
Strong Brand Equity
Boston Beer gained brand equity as a result of its efforts to create robust brands over the years. The company offers beverages under various brand names such as Samuel Adams, Sam Adams Light, Twisted Tea, Angry Orchard, and HardCore. The company markets more than 50 beer products under Samuel Adams and Sam Adams brands, 10 flavored malt beverage products under the Twisted Tea brand, a hard cider product under HardCore brand, five hard cider beverages under the Angry Orchard brand, and five beers under two brands of its Alchemy & Science subsidiary. The company's Samuel Adams brand is the third largest brand in the Better Beer category of the US brewing industry, after Corona and Heineken brands. According to Men's Journal, Samuel Adams NoblePils is one of the 25 best beers in the world. According to Fox News of USA, Samuel Adams ranked number one place among 10 best perceived beers in America, heading Budweiser, Dos Equis, Bud Light, Corona, and Heineken among others in 2013. The company's brand equity enables it to respond profitably or adopt skillful measures while marketing these brands. Sales and Marketing Capabilities

The company has a strong sales and distribution channel network, which helps Boston Beer to reach various customer groups and serve its comprehensive product portfolio. The company sells its low-alcohol beverages to a network of more than 340 wholesale distributors across the world. The company products reach retailers including, pubs, restaurants, grocery, convenience stores, package stores, stadiums and other retail outlets through wholesale distributors. It distributed its products principally across the United States, Canada, Europe, Israel, the Caribbean, the Pacific Rim and Mexico. Also, the company's manages Freshest Beer Program with domestic wholesalers to provide better on-time service, forecasting, production planning and cooperation with the wholesalers. As of December 2012, the company reported 89 wholesalers participating in the program at various stages of inventory reduction, which constitutes over 59% of its volume. Boston Beer expects between 65% and 75% of its production volume will be in the Freshest Beer Program by the end of 2013. Moreover, the company undertakes media campaigns through television, radio, billboards and print. Also, though participation in sponsorships of cultural and community events, local beer festivals, industry-related trade shows and promotional events at local establishments, to the extent permitted under local laws and regulations.

Brewing Strategy
The company brewed and packaged approximately 90% of its core brand volume at company-owned breweries in 2012. The company-owned breweries are located in Breinigsville, Pennsylvania; Cincinnati, Ohio; Boston, Massachusetts; and Los Angeles, California. Currently, the company has a brewing and packaging services agreement Page 1

with City Brewing Company, LLC, to produce its products at facilities in Latrobe, Pennsylvania and La Crosse, Wisconsin and an agreement with Pleasant Valley Wine Company to brew and package at facilities in Hammondsport, New York. Also, Boston Beer's capital investments in 2012 reported $67m for efficiency of projects, support the Freshest Beer Program, and to expand the quality, capacity and capabilities of its breweries. Moreover, the company expects to invest $70m to $85m in 2013. Such brewing investment and agreements provides significant scope to produce high output and derive profits.

Significant Influence of Class B Shareholder
Boston Beer's Class A common stock is entitled to voting rights only as a class to approve certain mergers and...
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