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The Beer Industry

"brew pub" Willcontinue to sell locally.Boulder Brewing Company- Bottles only! Will not expand into draft. Increased capacity. Matnow go outside of existing Colorado market.The Old New York Beer Company- National Microbrewery. 21 states and counting. Will expandinto more states. Financially sound for a microbrewery. Will open new brewery/restaurant inManhattan. Increase in capacity by 300% when new facility is open.KEY SUCCESS FACTORS1. Maintain Quality in existing plant2. Must build a stronger network of distributors3. Make attractive packaging4. Quality control in new facility.5. Improve access to financial capital for future endeavors.6. Innovative low cost ideas to promote product( Beer sponsorship at local pub's, exploit be rated best brew in America, etc.)INDUSTRY ATTRACTIVENESS/ PROFITABILITYFactors making the industry attractive- -Market Size $13.7 Billion-Preference for better quality Brew over domestics.-Microbrewer/brew pub trend increasingFactors making the industry unattractive- -Decline in consumption of beer due to healthierlifestyles-Decreasing profitability due to heavy taxation-Flat Sales-Extensive competition(too many competitors)Special industry issues/ problems--Increasing consumption despite stricter laws and healthier lifestyles.-Oversees expansionProfit Outlook--Not very good because of flat sales, increased taxation, and limited success of previous microbreweries.COMPANY SITUATION ANALYSISSTRATEGIC PERFORMANCE INDICATORSThe company is actually doing pretty good. For the first five months of the new year he will show a profit. Last years numbers are misleading as to the direction in which the company is going. If it were not for the huge advertising expense, he would have shown a profit last year. The company's competitive approach is as follows. Differentiation. GGB brews a full-bodied lager instead of the mass marketed lighter, paler beers. They use the best hops in the world($4.50/lb as oppo...

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