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WIKI ANALYSIS
Business Overview
Financial Performance and Business Metrics
Business Segments
Key Trends and Forces
Leading position in growing craft beer segment drives Boston Beer Company's sales
Boston Beer tops all craft brewers (small, independent and traditional), the fastest growing category in the beer industry with a 12% volume growth rate in 2007.[2] Currently this segment comprises 3.8% by volume of the beer market, generating $5.7B in sales in the U.S. during 2007.[3] Although Boston Beer claims only 0.8% of market share, the company boasts 20% of the craft beer segment.[4][5]
An economic decline disrupts the discretionary spending patterns of Boston Beer's core customers
Boston Beer expects to increase prices by 5% in 2008, a higher percentage than the two behemoths of the U.S. beer market, Anheuser-Busch and Molson Coors Brewing, who do not have to increase prices as much due to more efficient brewing techniques.[6] The current subprime mortgage fallout and resulting credit crunch contracts consumer spending, weakening the company's sales.
Competition
References
- ↑ SAM 2007 10k, Item 6:Selected Financial Data, pg.21
- ↑ Craft Brewing Statistics
- ↑ Craft Brewing Statistics
- ↑ Beer Industry Overview
- ↑ HSBC Global Research 02/07/08:SAM
- ↑ Morningstar 07/18/08:SAM
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