Introduction
This paper is intended to review the history of brewing beer, the differences between the breweries, the trends, the process and ingredients used in brewing beer and the styles of beer. Detailed information will be discussed on how to adequately serve beer with food and how to compliment them together to make them appealing to the public. Beer was invented many centuries ago and was first known as a homemaker skill. Over the years beer has become very popular and technology has made the process of brewing beer less complex and more flavorful allowing for extreme success in the brewing industry.
Analysis
The history of beer is an extensive one, the actual timing and individual that invented beer is unknown. It is estimated that beer was created by accident over 5,000 years ago. “Hard evidence of beer production dates back about 5,000 years to the Sumerians of ancient Mesopotamia” (Andrews, 2014.) The concoction to create beer was stumbled upon when bread and wheat got wet and because water was usually contaminated beer became the preferred beverage. Beer is primarily made up of “malt extract, yeast, hops, and water” (Flowers, 2014) these ingredients add the syrup taste, sweetness, and different flavors to the beer while it is being brewed.
Microbrewers sell less than six million barrels a year, macro brewers sell more than six million barrels a year, and brew pubs sell on sight only. Craft brewery’s and regional brewers make less than micro and macro
The use and creation of beer is closely linked to the domestication of cereal grains and the practice of farming.
Beer, the first beverage appeared as a result of changed lifestyle for the early humans. Before, humans were nomads, who would follow their food (pg. 9). But starting about 12,000 years ago humans had picked up on a new lifestyle (pg. 9). These small bands of about 30 people were now settling down in more permanent areas and had abandoned their old ways of constantly traveling (pg. 9). This drastic turning point in human history seemed to primarily come from one reason, the discovery of beer (pg.11). As beer was basically formed from the gathering of barley and wheat, humans had to form some type of permanent residency, and abandon their old nomadic lifestyle (pg.11).
The purpose of this research paper is to analyze Sam Adams and the global craft beer market. I will apply microeconomic models to analyze the supply and demand conditions for Sam Adams, its price elasticity of demand for products, cost of production and the overall market. There will be recommendations to maximize future profits and sustain success for Sam Adams. In this paper I will also analyze the craft beer industry and recommend actions for better management of supply and demand, improving the cost of production and the different barriers of entry that Sam Adams can utilize to impact its future in the craft beer industry. Applying the concepts of variable and fixed costs, I will make recommendations for its output decisions and profitability that will help them succeed in a monopolistically competitive market structure. In the conclusion of this paper I will make recommendations to manage future production and sustain its success, as well as evaluate the business structure and effective decision-making strategies. The craft beer industry is a monopolistic competition because it has the ability to allow many firms to produce similar good or services, but it at the same time allows each firm to make independent production decisions and differentiate their product from the competition by creating its own pricing.
So what makes one beer more interesting than another? It begins with the brewer, choosing ingredients, mixing flavors, and making subtle changes.
2. The author uses sources that date back to the Stone Age, to gather his information on the use of beer. He outlines how society changed from being hunter-gatherers, and relying on the environment for nutrition, to farmers who were independent of scavenging the environment for nutrition.
Beer started out as gruel, and as the gruel fermented it turned into beer. Now it was not the first form of alcohol, but it was an important kind of alcohol. Beer was made from cereal crops, which were very abundant, and because it was so abundant it could be made whenever it was needed. They then found an even easier way to make beer by using beer-bread. Beer bread is basically everything needed to make beer in a loaf, making it convenient to store the raw beer materials. Beer started as just a social drink but then blossomed into a “hallmark of civilization”, as seen by the Mesopotamians. Grain was the basis of the national diet, it was
Boston Beer, in response to consumers’ preference changes to more flavorful and bitter tasting brews, was founded in 1894. Boston Beer implements a “quality at any cost” strategy with a strong emphasis on product differentiation and implementing quality ingredients into its products. For instance, Boston Beer was the first company to employ a stamped freshness date on its bottles and ingredients are imported from around the world. Additionally, Boston Beer relies heavily on contract brewing to gain competitive advantages. Boston Beer’s contract brewing strategy results in lower overhead and transportation costs, as well as
A documentary film made in 2009, Beer wars features and describes the American beer industry distinguishing between the large and small breweries. The large breweries feature some main corporate companies like Coors Brewing Company, Anheuser-Busch, and Miller Brewing Company whereas the small breweries include craft beer producers like Moonshot 69, Stone Brewing Company, Dogfish Head Brewery, Yuengling, and others. The documentary shows how the beer market is controlled through advertising and lobbying, which is harmful for the competition in the market. There is a reason why the small companies are falling behind and the large corporates are controlling the market, which in turn makes it essentially oligopoly economy.
Belgium is home of the finest ales and have been known to brew for centuries. So when Jeff Lebesch, an electrical engineer from Fort Collins, Colorado took a bicycle trip through Belgium it made him realize there may be a market back home to sell Belgian-style ale. Jeff returned home with hopes to experiment and brew his own beer in his basement from the various ingredients he received on his trip. When his friends approved of the ales he started marketing them to the local town. He later opened New Belgium Brewing Company in 1991. His wife, Kim Jordan was the company’s marketing director. They named their first brew “Fat Tire Amber Ale” after Jeff’s
In terms of quality, the company created a premium beer by its selective use of ingredients and less water. Boston Beer has won honors such as being the first American beer sold in Germany due to its use of only barley, yeast, hops, and water as its ingredients. With the increase in health consciousness among beer drinkers and the rise in more distinctive and flavorful brews, the Boston Beer Company has been able
Craft beer should not only be sold as premium beer among graduates and people with income of more than 75000 USD but also to people with moderate income.
of a microbrewery is a brewer that produces less than 10,000-15,000 barrels per year. This
In this paper I will be talking about the U.S. beer industry and in short an overview of the brewing industry worldwide. I will talk about the barriers to entry, economies of scale, government intervention, pricing, current market trends, product differentiation, and imports. The focus being mainly on the U.S. brewing industry oligopoly. The U.S. brewing industry has three major players: Anheuser-Busch, SAB Miller, and Coors/Molson. Anheuser-Busch is currently the largest brewer in the world, producing over 100 million barrels a year. Anheuser-Busch currently owns over 50% of the market in the United States, with Miller trailing behind at 20% and Coors at about 11% with the rest of the market occupied by imports and craft breweries. When analyzing any industry, how easy it is for newcomers to enter the market is a great importance. If there are high barriers to entry
Beer has a long history. In 2000 B.C.E., Sumerians had prepared eight different beer types, ranging from “strong,” “red brown,” and “good dark” (Mauk, 2013). Breweries have created their own recipes, brewed their own beers—some with alcohol, some without. Over the past few years, craft beer gained steady market share away from the national and international breweries (Murray & O 'Neill, 2012). Separating one beer from the next is the product itself, and what the product has to offer. Competition is ferocious due to more informed, sophisticated consumers, as well as globalization and the spread of technology (Murray & O 'Neill, 2012).
From fancy beer to the lowest quality that you could receive, beer was presented in celebrations or events because this drink “brought people together since the dawn of civilization” and this bringing together allowed the exchange of cultures and traditions to be passed down from generation to generation just like wine (39). These interactions shaped the mind of man, and helped them have