Craft Brewing Case Study

[THE CRAFT-BREWING INDUSTRY CASE-STUDY]

Submitted By
Andrew Bankui
Laith A.Rahim
Sergio Mattos

TABLE OF CONTENTS

EXECUTIVE SUMMARY.................................................................................................3
a) PURPOSE OF THE REPORT………………………………………….3
b) CRAFT-BREWING INDUSTRY ANALYSIS ……………….3
c) RECOMMENDATIONS ………………………………………………….4

INTRODUCTION….............................................................................................................5

CASE ANALYSIS...............................................................................................................6
a) MARKET ANALYSIS……………………………………………….6
b) CONSUMER ANALYSIS………………………………………….7
c) SWOT ANALYSIS……………………………......………………….8

SUGGESTED QUESTIONS WITH ANSWERS …….………………………………………….………..9

WORKS CITED ..................................................................................................................11

Executive Summary

PURPOSE OF THE REPORT

This study examines craft brewers as a niche market for the malting industry. Results suggest that catering to craft brewers ' needs and preferences offers potential opportunities for malt suppliers. Through our study, a detailed analysis of the industry is reported. Opportunities, its possible threats and proposed solutions for the industry are documented as well.

CRAFT-BREWING INDUSTRY ANALYSIS

Mass production, product uniformity, and mass marketing are characteristics of the brewing industry. The brewing industry can be analyzed using Porter 's five competitive forces: threat of new entrants, bargaining power of suppliers, bargaining power of buyers, substitutes and rivalry among existing competitors. All five competitive forces jointly determine the intensity of industry competition and profitability. Furthermore, the five forces narrow in on why the brewing industry became more concentrated and key features defining industry success.

In the brewing industry,

Cited: 1) Victor J. Tremblay and Carol H. Tremblay, The US Brewing Industry Data and Economic Analysis, © 2005 Massachusetts Institute of Technology. 2) Sara Doersam, The Craft Brewing Renaissance, http://www.sallybernstein.com/beverages/beer/renaissance.htm, visited 2.11.2009 Brewers Association, A Passionate Voice for Craft Brewers, on http://www.brewersassociation.org/pages/business-tools/craft-brewing-statistics/market-segments, visited 2.11.2009 3) www.jstor.org/stable/1349898 4) www.beertown.org 5) Niche market potential : the case of the U.S craft brewing industry , review of agricultural economics , Vol.21 , No.2 (autumn-winter, 1999 ) retrieved on the world wide web on October 31,2009