Sam Adams PLC
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Transcript of Sam Adams PLC
8/6/2019 Sam Adams PLC
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Introduction Stage:
Sam Adams was first introduced in the Boston area in 1984 by Jim Koch as ahome brew he literally made in his kitchen. When The Boston BeerCompany,Inc. became a publicly traded company in 1995, their net revenues were
$151.3 million. By 2010 that number hadgrown to $463.8 million. Thesignature beer is Sam Adams Boston Lager.
Growth Stage
Sam Adams is still very much in the growth stage but the acceleration ratehas dropped off from the early days of the founding of course. Theyexperienced an excellent year in 2010 which for many competitors was atough economic environment to sell a higher end premium beer product.Thedemand for our beers exceeded even our ownambitious goals. Thanks totheir excellent sales teamof 275 people who address the distributor marketand the agility of our indefatigable brewing staff,they were able to ship 2.3million barrels of ourproduct s to all 50 states and 22 countries. This isanincrease of 12 percent over last year.
Maturity Stage
The Company¶s Better Beercategory, either by developing their own beers,acquiring, in whole or part, existing craft brewers, or byimporting anddistributing foreign brewers¶ brands. The Company estimates that in 2010the craft beercategory grew approximately 10% to 12%, while the Better
Beer category was up 5% to 7% and the total beercategory was down 1% to2%. The Company believes that the Better Beer category is approximately21% ofUnited States beer consumptionbeers are primarily positioned in theBetter Beer category of the beer industry, which includescraft (small,independent and traditional) brewers, specialty beers and most imports.Better Beers aredetermined by higher price, quality, image and taste, ascompared with regular domestic beers. SamuelAdams is one of the largestbrands in the Better Beer category of the United States brewing industry,trailingthe imports Corona and Heineken. In addition, AB InBev andMillerCoors have entered the have entered the Better Beercategory, eitherby developing their own beers, acquiring, in whole or part, existing craftbrewers, or byimporting and distributing foreign brewers¶ brands. TheCompany estimates that in 2010 the craft beercategory grew approximately10% to 12%, while the Better Beer category was up 5% to 7% and the totalbeercategory was down 1% to 2%. The Company believes that the Better
Beer category is approximately 21% of the entire U.S. market.
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Decline Stage
Possible sales declines within the Sam Adams family of beers have beenavoided by expansion of the styles of beer brewed throughout the year. Thecompany currently brews about three dozen styles of beer. Styles change
based on the season as certain ingredients such as fresh cherries,blackberries or oranges of the quality Sam Adams demands may not beavailable. The primary seller within the line is the standard Sam AdamsLager and the second bestselling is Sam Adams Light. The light beercategory in the U.S. is the one area that all brewers can count on for growth.
Conclusion Beer is essentially liquid bread and freshness is one of the most important
elements that an experienced consumer notes in having a taste. In fact in
the last ten years most brewers have touted their µborn on date¶ or
freshness date in almost all their advertising. In 2010, playing off this trendand trying to ensure the customer in Los Angeles has the same taste
experience as someone in Boston the Company started testing a Freshest
Beer Program with five domestic wholesalers in differentmarkets to reduce
both the time and temperature the Company¶s beers experience at
wholesaler warehousesbefore reaching the market. Historically, wholesalers
carry three to five weeks of packaged inventory and threeto four weeks of
draft inventory.
The Company¶s goal is to reduce this through better on-time
service,forecasting, production planning and cooperation with the
wholesalers. I believe with a continued focus on innovative product and
brand expansion with an extreme commitment to quality Sam Adams will
continue on very strong growth path. Although the flagship Lager sales may
slow, the brand equity created allows for continued rapid growth within the
U.S. and globally as Sam Adams brings their craft beers to a global
audience.
Reference list:
Company Specific
http://www.bostonbeer.com/phoenix.zhtml?c=69432&p=irol-overview
http://www.google.com/finance/company_news?q=NYSE:SAM
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Industry Specific information:
http://www.brewersassociation.org/pages/business-tools/craft-brewing-statistics/facts
http://nbwa.org/