Mountain Man Beer Company - Case Analysis Essay
Mountain Man Brewing Company:
Bringing the Brand to Light
Mountain Man Brewing Company (MMBC) was founded by Guntar Prangel in 1925. He reformulated an old family brew with quality ingredients, resulting in a flavorful bitter tasting beer which was launched as the Mountain Man Lager. The brand grew to claim a respectable market share for an independent-family-owned-brewery, in whole of the East Central United States by 1960. Even today, after 80 years, the lager is a legacy brew, awarded as the Best Beer in West Virginia for many years in a row.
MMBC is still a single product company and generates over $50 million in revenue and selling …show more content…
Over the past four years per capita beer consumption in the US has declined by 2.3% due in some part to competition from wine and spirit based drinks but also due to changing cultural mores encouraging moderation and personal responsibility. If this trend continues MMBC will be competing for an ever shrinking piece of the market.
The potential economic and marketing response from the major brewery competitors is daunting to a company the size of Mountain Man. With economies of scale in brewing, transportation and marketing, the Budweisers of the world are formidable rivals to say the least. They could respond in such a way as to make doing business very difficult moving forward.
Governmental involvement in the beer industry is another issue at hand. The Federal Government has already raised the excise tax and with laws changing how beer can be promoted in a retail setting newly passed in WV could other states in the East Central region be too far behind?
The biggest potential threat is the shift in beer consumers taste to light beer and away from the premium beers overall. Light beer sales account for over 50% of all beer sales and are growing at a compound rate of 4% per year. One of the most troubling aspects of the surge in