20 Professor: Mengze Shi Project: The Boston Beer Company case Chernenko Kirill 998581510 The Boston Beer Company‚ Inc.‚ founded in 1984‚ is a leading brewer in United States‚ offering wide variety of high quality full-flavored‚ handcraftedbeers. It is distinctive due to the time-honored recipe of brewing and authentic‚ consistent quality of alcoholic beverages. Samuel Adams Boston Lager is the pride of BBC‚ regular handcrafted beer “stands for quality‚ inner self-worth‚ authenticity
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Case: Boston Beer Company Address the following questions in a 4-5 page write-up of the Boston Beer Company Case to explore the issue of Initial Public Offerings. 1) What do you think of Boston Beer’s business model relative to the traditional beer companies’ business model? Relative to Redhook and Pete’s? (Hint: consider their brewing‚ production‚ distribution‚ marketing strategies. How is each firm attempting to achieve its own sustainable comparative advantage in the market place
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of the craft beer segment relative to the market space occupied by the traditional "Big Three". (tip: use the Five Forces framework). a. High Threat of new competition: over 600 of specialty beer companies were founded over the past five years‚ approximately 40% growth each years. In addition‚ the existence of contract brewing companies lead to low entry cost. b. High substitution: The attractiveness of craft brewing industry are majorly based on unique styles and flavors of beer. there are many
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2. Boston Beer showed a promising growth as a company with a dozen reps in 1989 to a company going public in 1995‚ which was considered to have made a mark in the specialty brewing business. It successfully changed the consumer preferences from cheaper beers made by large breweries to expensive specialty brewers within its niche. With their variety of crafted beer‚ Boston Beer captured a niche market and proved itself a number of times by winning numerous competitions for its best taste. It placed
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Boston Beer Company- Case Analysis You are the investment banker assigned with the task of setting the IPO price for Boston Beer Company (BBC). Prepare a research report to support your recommendation. As you prepare this report‚ you may find that you would like to have more field information than what the case offers you. However‚ the case contains critical information that gives you a reasonable basis to compute its valuation. In addition use the following information for 1995.1 Sales ($ millions)
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Our group decided to focus on light beer that is targeted to mainly college students. Since our clients are college students‚ we wanted to relate to their preferences of mainly inexpensive beer. We agreed to focus on competitors such as Bud Light‚ Miller Lite‚ and Coors Light‚ who all target mainly college students. According to an online article “Social Media Overview of Coors light‚ Bud Light‚ and Dogfish Head Brewery” Coors Light beer is one of the most popular beer brands in North America. Coors
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perspective on this subject of light beer versus full flavor beer is an on-going argument that all beer drinkers have taken part in at one time or another. Once the truth had been discovered about light beer in this age of staying slim‚ many have traded in their full flavor beer for the light beer. One might bring into question the subject of such trivial importance‚ but one would think that if people cannot openly discuss a subject as trivial and inconsequential as beer‚ then how could they be expected
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BOSTON BEER COMPANY: LIGHT BEER DECISION _Background Information_: The Boston Beer Company‚ which was founded in 1984‚ had a very diversified thriving product line which entailed about twenty different kinds of beers. Their product was available in over nineteen various countries and used a network of around four hundred distributors. Revenues grew from 21 million dollars to 210 million dollars from inception to 1997. _Problem and Opportunity Identification_: As a result of the company’s product
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Accounting Analysis of Boston Beer 1990-1995 Making the analysis using the financial statements and assumptions (since the published reports for this period are not available freely since Boston Beer was a partnership for this duration)‚ we can make the following observations: Boston Beer Co. uses ACCRUAL method of accounting as do all its competitors‚ so comparisons will be easy for investors. ASSETS Since Boston Beer is a contract brewery‚ it out sources its production process to established
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1--------------------------------------------------- Boston Beer‚ in response to consumers’ preference changes to more flavorful and bitter tasting brews‚ was founded in 1894. Boston Beer implements a “quality at any cost” strategy with a strong emphasis on product differentiation and implementing quality ingredients into its products. For instance‚ Boston Beer was the first company to employ a stamped freshness date on its bottles and ingredients are imported from around the world. Additionally‚ Boston Beer relies heavily on contract
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