D. G Yengling Case Analysis

895 Words2 Pages

Overview
Who is D.G. Yuengling & Son, Inc? Yuengling is the oldest brewery in America and has remained family owned and operated since 1829. Yuengling has resiliently survived in the most challenging markets by adapting to the modern marketplace while holding true to company and traditional values. At Yuengling, “think differently” isn’t just creative encouragement; it’s a way of business.
Where are we? D.G Yuengling & Sons, Inc. operates two breweries in Pottsville, PA, and a third in Tampa, Florida serving 15 states as of 2014.
What is our market position? ” In a highly polarized market, Yuengling is considered a “bridge-brand“; appreciated by mainstream and craft beer drinkers alike. Demand increased when market trends shifted and consumers sought out “better beers”, unique in culture and flavor. Our low price-point and mild flavors compete with low-quality daily beers and offers an edge in the marketplace.
How are we doing? D.G. Yuengling & Son, Inc. is now the #1 beer producer in America. Our market only consists of 14 states whose demand exceeds that of Boston Beer Co. who previously held the #1 spot and serves all 50 states.
So what’s the problem? Growing pains. An exponential increase in demand can be expected as we penetrate new markets and this can bring challenges, especially since the beer market has been increasing 7% over the last couple years.
Problem
Increased demand is both an opportunity and a problem. There have been problems in the past. When sales skyrocketed in the 1990s, demand grossly exceeded production and Yuengling had to make sacrifices. Choosing to forfeit market share in several states was an unlikely success but it didn’t come without opportunity cost.
Growth before Expansion: balancing producti...

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... not sell sex or excitement like other alcohol producers.
PYTAK, S. J. (2011, October 29). Yuengling extends reach to Ohio, will increase Mill Creek hours. News. Retrieved March 13, 2014, from http://republicanherald.com/news/yuengling-extends-reach-to-ohio-will-increase-mill-creek-hours-1.1224929. This article discusses how Yuengling approaches production of their beer.
Pedersen, B. (2013, July 8). ONE-ON-ONE WITH DICK YUENGLING Billionaire brewer plans to keep company lean, nimble and growing in existing markets | Lehigh Valley Business. Lehigh Valley Business. Retrieved March 13, 2014, from http://www.lvb.com/article/20130708/LVB01/307039999/ONE-ON-ONE-WITH-DICK-YUENGLING-Billionaire-brewer-plans-to-keep-company-lean-nimble-and-growing-in-existing-markets. This article goes in depth about how Yuengling managers its debt and expansion plans for a long-term gain.

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