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The Business of Beer - Essay Example

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Beer might possibly be one of the things that we don't mind delving into history about. For most of us in the legal age, it is a quite familiar presence. We know about it, we see it, we drink it and we like it. In ancient Egypt, beer was a staple drink both for adults and children, as well as rich and poor alike…
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The Business of Beer

Download file to see previous pages... It must be stated then, that beer has a prominent place both in history and the present culture. Given its popularity and significance in society, it was only a matter of time before the profit-driven human being made a business out of this widespread drink. According to Wikipedia, the first breweries in history were actually the brewers' homes, specifically their kitchens.1 When brewing became industrialized, breweries were built as a different construction from the house. The brewery, Weihenstephan (in Germany) is believed to be the longest-standing brewery. While in Manhattan, Adrian Block and Hans Christiansen were the ones who established the first brewery in the New World. The year was 1612.
Today, there is a long list of the current top breweries of beer. The Webtender index cites the following in its top 5: Aldaris, Anheuser-Busch Companies Inc. (brewer of Budweiser, Michelob and Busch beers), UK's Aston Manor brewery, BO's Brewery and Bistro and Brewerania.
The success of beer companies in the U.S. shows how the country is a favorable market for the beer industry. Paul Gatza, director of Brewers Association, states: "The craft beer segment has grown steadily over the past ten years, but in 2004 it showed its biggest increase since 1996. The strong growth in craft beer sales shows American consumers' continuing interest in flavorful American beers."

Below is the table2 of the Top 10 craft brewers in the United States:

We can see the Boston Beer Co leading the pack of the top breweries. Headed by Jim Coch, the Boston Beer Company is the award-winning brewer of the popular Samuel Adams Lager among its many styles of beer.

The Success of Samuel Adams

The company's interactive annual report in 2003 gave us a preview of the tactics used by a powerful beer brewery to further solidify its place in the industry. First, it is important to establish what kind of beer does the company specialize in. In the case of the Boston Beer Co, the answer is Better Beer. Simply put, the Better Beer category is defined as the opposite of the regular, mass-produced beer. We can identify Better Beer by its contrast from the rest of the market-usually it is imported, highly advertised and more expensive. The Boston Beer Co aims to lock the top position in this product category.

Innovation, commitment and meticulous evaluation have paved the way to success of the company. The company put fervent focus on its products and its marketability. Its flagship brand, Samuel Adams Boston Lager and Sam Adams Light are the company's standards, already guaranteed to appeal to the consumers because of its reputation and having passed the test of time. Then like a special treat, the company also came up with its "Limited Edition Beers", this includes Samuel Adams Chocolate Bock, Samuel Adams Triple Bock and Samuel Adams Utopias. These products were sold at a higher price due to its "in short supply" appeal.

These strategies, along with venturing to other innovations (i.e. Twisted Tea), have helped the Boston Beer Co guarantee its place in the Better Beer competition. Having established its standard products (Samuel Adams Bosto ...Download file to see next pagesRead More
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