Brooklyn Brewery Case Analysis

March 24

Global beer industry earned $514.6 billion in 2013. The US was the globe’s second largest beer market in terms of total beer sales volume. Europe was largest beer-drinking region, with 37.4$ of world’s beer volume. Europeans spent $192.6 billion in 2013 to enjoy their beers. In 2013, two-thirds of US adults consumed alcohol, among those 41% preferred beer versus 31% wine, and 23% spirits. On-premise beer sales reached $56.2 billion, equal to 53.3% of dollars and 17.9% of volume. Off-premise beer sales reached $49.3 billion in 2013, equal to 46.7% of dollars and 82.1% of volume sold. Craft beers captured $19.6 billion in sales, representing 11% of total US beer market volume consumed.

Expert brew master Garret Oliver joins firm, wins Carlsberg’ Semper Ardens Award for brewing innovation and the James Beard Foundation Award for culinary excellence. Brooklyn Brewery was listed among top 10 US craft brewers by 2014, was sold in 26 states and exported to 20 countries.

Cases of beer had to be shipped 250 miles to the Brooklyn warehouse. Craft Brewers Guild was distributing 120,000 barrels of competitors’ craft brands. Small craft breweries do not have the capital to spend on traditional advertising media.

Brooklyn represents crime and industrial decay, but had a huge brewing tradition in 1900. Industry analysts had long noted a decline in the number of macro brewer firms. Half the beer Americans consumed was light beer. Among millennials, 44% had never taste Budweiser.

Giant industrial brewers like AB InBev and MillerCoors were entering the craft beer marketplace. Major industrial firms controlled 79.4% of US beer volume in 2013. Independent private breweries and regional producers controlled a nearly 10% share.