Boston Beer and Samuel Adams: SWOT Analysis
Strength:
The biggest strength of the company is the brand image it has among the consumers . Boston Beer , specifically the Samuel Adams ,well known from the superior quality and expensive ingredients used along with the traditional brewing techniques which give it an excellent flavor , which cannot be easily copied by the other competitors . In addition the use of less water in its products also has given it a positive advantage in terms of product quality .
Weaknesses:
Opportunities:
The idea to continue to grow in the already overcrowded market of specialty brewers is critical to the success of this company. There are currently over thirteen hundred micro-brewers in the United States with The Boston Beer Company ranked number one in overall sales and sixth in the overall domestic market. Currently the Heineken and Corona brands rank ahead of Samuel Adams in this category in the world market. In the near future the company is leaning towards owning more breweries and cutting back on the contract brewers. Currently the different cost associated with contract brewing involves raw materials, excise taxes and deposits for pallets and kegs and specialized equipment required for beer production. Brewery ownership would involve significant capital investment which could easily exceed $50 million for the combination of purchase, expansion and improvement, or for original construction.
Threats:
In recent years, all brewers have had to contend with a stagnant beer market and per-capita consumption that is on the decline. The reasoning behind this ongoing trend are attributed to underlying factors such as the low carbohydrate diet rave that has taken off in recent years, the unstable economy, and an increase in market share of wines and spirits.
BBC should attack the light beer market. Light beer is the largest selling type of beer on the market, and accounting for five of top ten best-selling beers. As light beer becomes more popular, BBC should
The biggest strength of the company is the brand image it has among the consumers . Boston Beer , specifically the Samuel Adams ,well known from the superior quality and expensive ingredients used along with the traditional brewing techniques which give it an excellent flavor , which cannot be easily copied by the other competitors . In addition the use of less water in its products also has given it a positive advantage in terms of product quality .
Weaknesses:
Opportunities:
The idea to continue to grow in the already overcrowded market of specialty brewers is critical to the success of this company. There are currently over thirteen hundred micro-brewers in the United States with The Boston Beer Company ranked number one in overall sales and sixth in the overall domestic market. Currently the Heineken and Corona brands rank ahead of Samuel Adams in this category in the world market. In the near future the company is leaning towards owning more breweries and cutting back on the contract brewers. Currently the different cost associated with contract brewing involves raw materials, excise taxes and deposits for pallets and kegs and specialized equipment required for beer production. Brewery ownership would involve significant capital investment which could easily exceed $50 million for the combination of purchase, expansion and improvement, or for original construction.
Threats:
In recent years, all brewers have had to contend with a stagnant beer market and per-capita consumption that is on the decline. The reasoning behind this ongoing trend are attributed to underlying factors such as the low carbohydrate diet rave that has taken off in recent years, the unstable economy, and an increase in market share of wines and spirits.
BBC should attack the light beer market. Light beer is the largest selling type of beer on the market, and accounting for five of top ten best-selling beers. As light beer becomes more popular, BBC should