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...
... middle of paper ...
... 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.
From our research, Anheuser-Busch is content with being the number one beer company in the world, increasing sales each year in operation. We found that Anheuser-Busch met many views associated with the world, business, and behavioral dimensions. The company also displayed its stability as we reviewed one of its most successful products Budweiser, owned by Anheuser-Busch, under the marketing view and the financial view. Not only do they hold almost half of the market share in the industry but their stock prices, sales volume, and net sales have all increased from 2002 to 2003. We also looked at Budweiser in terms of geography and culture. We found due to the fact that the "western" countries consume the majority of beer, it only makes sense that Anheuser-Busch concentrates on that market. Along these lines, another key goal that is also important to Anheuser-Busch is to boost other beer markets that are located in other cultures, where at the time beer is not a major consumption.
Ferrell, O. C. (2008). “New Belgium Brewing Company(A)” in Ferrell, O. C., and Hartline, Michael D., Marketing Strategy, Fourth Edition, Mason, Ohio: Thompson Southwestern Publishing, pp. 463-470.
Market moving toward favouring specialty beers (leading at LCBO beer section and growing each year), which can be sold at a higher
Using consumer survey information, we devised a metric for calculating and projecting Coors market share. While only 300 customers were surveyed (Research Study G), we made an assumption that this sample sufficiently represents the preferences of the greater population in the two-county market area. We also assumed that attitudes toward Coors were equally distributed amongst consumer weekly beer consumption levels. Then, we forecasted Coors market share by multiplying the percentage of people with a certain preference by the Coors purchase percentage for that preference. We projected an anticipated market share range, between 13.7% and 21.5%, illustrated in Exhibit 2. Calculations relied upon customers’ “Attitude Toward Coors” because we felt this measure was more indicative of regular purchasing frequency than simply an “Intention to Buy Coors”.
Legal production of near beer used less than 1/10 the amount of malt, 1/12 the rice and hops, and 1/13 the corn used to make full-strength beer before National Prohibition. (Blocker 7)
Deutsche Brauerei has been a family owned and operated corporation for 12 generations, which has created a high level of focus and control. Each generation has kept the management and operations processes relatively simple, centered on brewing practices and quality. Deutsche Brauerei’s rapid growth in recent years can be attributed to several factors. First and foremost, the company’s success is centered on the product itself, which has won numerous quality awards and is quite popular in Germany. Another contributing factor to the recent growth may have been a bit inadvertent. The purchase of new equipment in 1994, which was necessary as a result of a fire that destroyed the old equipment, allowed the company to increase brewing capacity and efficiency. Finally, Deutsche Brauerei’s decision to enter the Ukranian market in 1998 contributed significantly to the rapid growth. The collapse of the U.S.S.R. brought market reforms, and Deutsche Brauerei jumped on the opportunity to enter the fragmented beer industry, capture the large population and capitalize on the prime location in Europe. Lukas Schweitzer was savvy enough to hire local expert Oleg Pinchuk away from a competitor as the marketing manager, and Oleg was instrumental in building the business in Ukraine by securing accounts and implementing the field warehousing to support distributors. Deutsche’s beer was hugely popular in the Ukraine almost immediately, and volume sales more than offset the depreciation of the Ukrainian currency. Sales in Ukraine accounted for 28% of Deutsche’s total sales, and skyrocketed from 4,262 euros in 1998 to 25,847 euros in 2001.
The United States beer industry represents 233 million hectoliters of the world’s 1,501 million hectoliters and is a dynamic part of the United States national economy, contributing billions of dollars in wages and taxes. Within the U.S., the beer market accounts for nearly 50% of total volume of alcohol, with the import specialty and light beer segments driving growth.
... them. The expansion into other areas in the world is something that the company is constantly considering. Expanding their advertising and marketing to reach those individuals in the United States that have not “experienced” the craft beer industry is a constant tactic the company considers. There are also potential environmental threats that the company realizes and considers while making their business decisions.
America’s winemakers are making superior wines and reaping global acclaim. In a single generation the United States wine industry’s global success is a fascinating story of entrepreneurial vision and savvy marketing. The American industry has new innovations, new competition, and new markets, which make the future look bright for the wine industry.
Franklin, M. (2013, August 26). Top 15 craft beer breweries in USA. USA Today:The daily meal deal. Retrieved from http://www.usatoday.com/story/travel/destinations/2013/08/10/top-15-craft-beer-breweries-in-usa/2637493/
After 1996, the U.S. beer industry had consistent growth with about 3,500 brands on the market in 2002 (Alcoholic Beverages, 2005). The U.S. exported beer to almost one hundred countries worldwide. The beer industry peaked production with 6.2 billion gallons in 2003 (Alcoholic Beverages, 2005). The U.S. beer industry haws over 300 breweries. However, this industry is dominated by three companies: Anheuser Bush (45% of the industry), Miller Brewing (23% of the industry), and Adolph Coors (10% of the industry) (Overview of the U.S. Beer Industry, 2005).
Diageo has long been the front-runner in the premium drinks business. Its brands include Guinness, Smirnoff, Bailey's, Johnnie Walker, and Cuervo complimented by broad range of local and specialty brands from around the world. In 2002, Diageo held a 15% (United States-Spirits, 2002) market share and was by far the leading manufacturer of spirits in the United States followed by Pernod, and Fortune Brands, Inc. The market is expected to have 9.8% (Huddleston, 2005) growth in the next three to four years, so new entrants may find the going hard unless they have capital to sustain themselves.
It is always in high demand no matter the state of the global economy. The success of an alcoholic beverage is based on success of the company that promotes it. Diageo is a company that excels in the alcohol industry with their marketing and promoting of luxury brands through a strong global network. The results of this are brands that consumers identify themselves with. No matter where in the world they are located, consumers continually seek out Diageo products as a way to identify themselves as luxury
Monster Beverage Corp. shows that they understand their customers’ needs. They are a successful business with higher growing revenue every year. Their revenues did decrease during the economy’s recent recession (2008...
The brewing industry in the United States began in 1625 when the first brewery was founded. In the early stages the industry, competition among different breweries only existed in highly secluded small geographic areas. It was not until refrigeration and pasteurization that companies could transport beer across previous geographic limits and begin to grow into the industry it is today. After prohibition there was a sharp decline in the number of brewing companies. Almost 90% of the brewing companies from 1947 to 1995 went ...