Beer Brewers Industry Analysis

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Beer Brewers Industry Analysis 1 of 17 M E M O R A N D U M Date: April 16, 2008 Subject: Beer Brewer Industry Analysis To: Dr. Matt Ford From: Liz Boeing Brian Casey Jeff Colson John Cropenbaker David Edwards Craig Lyons Tom Poe Andy Rauf Industry Analysis of Beer Brewing Industry This report will provide an industry analysis for the beer brewing industry, discussing the attractiveness of the industry in regards to sustainable profitability. We will first give background on the industry, and then will use Porter’s Five Forces, a tool that will help us to determine the attractiveness of the industry. Industry Background Industry name. The industry that we chose is the beer brewing industry, and we are focusing on operations based in the United States. We chose to focus on a larger scope because the top three competitors in this industry control about 90% of the market. Industry Players. We are focusing on the big three, which are Anheuser-Busch, Coors Molson and SABMiller. These three companies control about 90% of the market. Anheuser-Busch owns Budweiser brands, Michelob brands, Busch, O’Douls as well as malt beverages. Coors Molson owns Coors brands, Blue Moon brands, George Killian's Irish Red Lager, Keystone, and Zima. SABMiller owns Miller brands, Hamm’s brands, Sparks, Ice House, Red Dog and SouthPaw. We also will be considering the operations of one comparison company, Boston Beer Co., throughout this report. We are doing this in order to have a point of comparison between the big three and other players in the market. Industry Classification. The NAICS code is 312120, which is breweries. Google finance categorizes the industry under consumer noncyclical, with the subcategory beverage (alcoholic). Yahoo finance classifies it under consumer goods, with the subcategory beverages-brewers. Output description. The actual output of this industry is

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