Milestone Three
Michal Killian
Southern New Hampshire University Costs of Production
The Boston Beer Company is heavily dependent on key suppliers. The company has purchased a substantial amount of materials in order to create their products. These materials include malt, hops, and barley from a small number of domestic suppliers. Boston Beer predominantly uses Noble Hops for their flagship product, Samuel Adams Lager. Noble Hops are far more rare and expensive compared to a variety of other hops. Other hops that are used for their production are English hops such as East Kent Goldings and English Fuggles are used for their other ales.
Year Ended Dec. 29 2012 Dec. 26 2015 Dec. 27 2014 Dec. 28 2013 (53 weeks) Dec. 31 2011 (in thousands, except per share and net revenue per barrel data)
Income Statement Data:
Revenue $ 1,024,040 $ 966,478 $ 793,705 $ 628,580 $ 558,282
Less excise taxes 64,106 63,471 54,652 48,358 45,282
Net revenue 959,934 903,007 739,053 580,222 513,000
Cost of goods sold 458,317 437,996 354,131 265,012 228,433 …show more content…
On December 31, 2011, The Boston Beer Company’s COGS was $228,587. At the end of 2015 on December 26, the COGS has doubled to $458,317 (Boston Beer). Multiple factors have contributed to this including the growth of the company as well as an increase in the pay of Noble Hops over the years. The expenses for The Boston Beer Company have also increased throughout the years. In 2011, the company’s total operating expenses equaled $180,912. With most of its expenses going towards advertising and administrative expenses. At the end of 2015, the company’s total operating expenses have added up to $345,445. With the advertising expenses increasing substantially from $157,261 to