S

Boston BeerCan we Compete With the Big Boys?

Suzanne Souza, Kristina Saich, Ricardo Contreras, Albert Brown, Annette Ortiz, and Josh

Kern

BUS 305-02Oct 2nd, 2012

Overview

History

Growth

Strengths/Weakness

Opportunities/Threats

Present Day

History

1984: Jim Koch saved $100,000 and family loaned $140,000

1985: Contracted with Pittsburg Brewing Co. to brew his beer $20 case to make a profit. No wholesaler would carry it. Company bought a truck to distribute cases Named beer Samuel Adams after Revolutionary War

patriot

Samuel Adams Revolutionary War patriot

Growth

1988 Product became available in 48 states Boston Lager, Boston Ale, and Double Bock Sold 36,000 barrels of beer

1990 Available in all 50 states 15 different varieties of beer Sold approx. 1,175,000 of beer by end of 90s

1992 Great American Beer Festival Voted “best beer” in America 4 times Received 6 gold medals in blind taste testing

Category 1 Category 2 Category 3 Category 40

1

2

3

4

5

6

Series 1Series 2Series 3

Growth

1998 Became 7th largest brewer overall Produce more than 2 dozen styles of beers

Company Knowledge Boston Beer has won 287 awards and medals Jim Koch has drank 19,730 beers since creating his

company

Strengths

Largest Craft Brewer

Makes Several different beers Has over 50 varieties

Contracted Pittsburg Brewing Co. Saved $10 Million dollars

“Best Beer”

Weakness

Small Company Two Breweries

Expensive Beer Ingredients

Jim Koch

With the first cases ready to distribute. (1985)

Jim Koch presented level 5 leadership skills

Ambitious for the company

Fierce Resolve to do what is best

Humility

Gives Credit to others

"And to this day, I taste a sample from every batch of Boston Lager and meet every Sam Adams employee. You’ll never see me on Undercover Boss, because at some point during the year, I work directly with just about everyone in the company.” – Jim Koch

Opportunities

Beer is still best-selling alcoholic beverage 80% of total alcohol volume soled in U.S.

Sales of craft beer surged 11.2%

Large domestic beer brands favored less

Sam Adams is considered KING of Craft Beers Won best beer in 2010 – Munich Oktoberfest

Threats

Early 90s Big Brands began cutting prices

Increase in price of ingredients Premium ingredients Cost 10x more to produce

Lengthy brewing process

Wines and Spirits market share is increasing

Present Day

Working for Boston Beer Employs about 750 people

Great Employers! Boston Magazine – One of the best magazines to work for Princeton Review – One of the best entry level jobs

Company beer trivia contest

Job revolves around the pure passion of beer

Boston Beer Awards

Present Day

Small

Independent

Traditional

Currently the largest American owned Brewery

Represents only 1% of the U.S. beer market (but is leader in craft brewing industries)

Present Day

Net Revenue

Second Quarter 2012 results

Fiscal 2012 Outlook

54 Different types of Beer

• Griffin’s Bow• Tasman Red• The Vixen• Latitude 48 Simcoe• Latitude 48 Ahtanum• Latitude 48 Zeus• Latitude 48 Hallertan• Latitude 48 Goldings• Cherry Chocolate Bock• Oak Aged Porter• Maple Pecan Porter• Oaked Ale• Double Pumpkin• Lavender Honey Ale• Blackened Hops• Friar Hops• Utopias• Infinium

• East West Kolsch• Bonfire Rauchbier• Harvest Pumpkin Ale• Old Fezziwig• Holiday Porter• Chocolate Bock• Black & Brew Coffee

Stout• Cranberry Lambic• Double Bock• Imperial Stout• Imperial White• Wee Heavy• New World• Stony Brock Red• American Kriek• Thirteenth Hour• Third Voyage

• Boston Lager• Sam Adams Light• Noble Pils• Summer Ale• Octoberfest• Winter Lager• Boston Ale• Cherry Wheat• Latitude 48 IPA• Pale Ale• Irish Red• Black Lager• Cream Stout• Blackberry Witbier• Coastal Wheat• Scotch Ale• Revolutionary Rye• White Ale• Rustic Saison

Boston Beer recently took control of a full 1% of U.S. beer market

Summary

Jim Koch started Samuel Adams in 1985 after saving combined $240,000.

Being a craft brewer lacks quantity, but exceeds quality.

Being able to contract out production, keeps cost down, and allows room for growth and advertising

The company present day remains small, independent, and traditional

Great Employers and forward thinkers

The End

References

Boston Beer – Bostonbeer.com or Samueladams.com

Management Mistakes and Successes, Robert F Hartley, 10th Ed

2011 Annual Report