External Analysis Of The Boston Beer Company
While there are many similarities between large beer producers and smaller craft breweries, the content of this report will focus attention solely on the craft brewing market. Within the topics below, I will give an overview of external factors that have an impact on the Boston Beer Company.
In 2012, the craft brewing industry as a whole earned $10 billion in revenue; and increase of 32% over the previous year (Goddard, 2016). By 2014, the volume share for craft brewers market grew to 11% out of the entire beer market (Berman, 2015). Their collective efforts provided over 424,000 jobs, more than $55.7 million to the US economy, amounting to 1.5% of the US Gross Domestic Product. This is especially relevant as most Americans live within 10 miles of a craft brewery. For each job created by a brewery, 34 full-time positions are justified throughout the value chain; to include agriculture, manufacturing, wholesale and retail operations (bolstr, 2015).
Globally, beer trade totaled $12.8 billion in 2015 with Mexico leading the way and enjoying a 20% market share of net exports. Amazingly, the US accounted for 34.8% of global beer imports followed by China, France, Italy, and the UK with a cumulative 17.9%. It is also important to note that China’s imports have increased 46.3% annually between 2007 and 2015 (Ivonina, 2016).
Tennessee has whiskey, West Virginia has moonshine, and Boston has its beer. American cultural norms towards alcohol in…