Alexandria Brewing Company Case Analysis
Situation
The U.S. craft beer market is still in growing stage and it has experienced 20.1% annual growth from 2010 to 2015 in terms of revenue. As a result of the high growth rate, craft beer currently accounts for 8.1% in the overall U.S. beer market and has $5.8 Billion revenue by 2015. In the future, the craft beer market is estimated to grow at a steady rate and the industry’s average net margin is estimated to increase from 9.4% to 11% by 2021 which means it means craft beer manufacturers will become more profitable.
As a startup craft beer producer, Alexandria Brewing Company (ABC) is trying to build up its brand image and seize more market share in Alexandria in the first year and then expand to Greater Cincinnati with Cavalier
The U.S. craft beer market is still in growing stage and it has experienced 20.1% annual growth from 2010 to 2015 in terms of revenue. As a result of the high growth rate, craft beer currently accounts for 8.1% in the overall U.S. beer market and has $5.8 Billion revenue by 2015. In the future, the craft beer market is estimated to grow at a steady rate and the industry’s average net margin is estimated to increase from 9.4% to 11% by 2021 which means it means craft beer manufacturers will become more profitable.
As a startup craft beer producer, Alexandria Brewing Company (ABC) is trying to build up its brand image and seize more market share in Alexandria in the first year and then expand to Greater Cincinnati with Cavalier