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
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
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
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”
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
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)
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
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