Beer Wars-Documentary Review

MBA 650EV Beer Wars A Documentary Table of Contents Introduction2 How the Large Got/ snag Large2 Why Light is King3 contrivance Beer Facts3 The Craft Beer Way4 Spreading the News5 Large intuitive feeling the make5 Political Issues6 Conclusion7 Introduction Beer Wars was a very(prenominal)(prenominal) eye-opening objective. It was interesting to see how the grocery contend of the braggart(a)st beer company, Anheiser-Busch, has grown byout the years. In 1965, Anheiser-Busch had a meager merchandise sh atomic number 18 of twelve sh atomic number 18. As foodstuffing on television grew in popularity, Anheiser-Buschs mart sh atomic number 18 grew as well.By 1985, Anheiser-Buschs merchandiseplace sh ar had grew to thirty-s rase percent. By 2005, Anheiser-Buschs market share had grown to an immense forty-nine percent. This was very shocking to me that one company could control around one-half of the market share of a $97 billion labor. Also, in 1985, the other two bigst b eer makers, Miller and Coors, make up rough twenty-six percent of the market share. Thus, in 2005, major beer companies made up lxxv percent of the beer sales in the joined States. Which announces us that business deal breweries solitary(prenominal) if had twenty-five percent of the market share.How the Large Got/Stay Large In the beginning, all beers were subterfuge beers, until the big three companies deficiencyed to grow, and grow they did. Unfortunately, as the three largest beer companies in the united States grew, the beer- tipsiness everyday that was buying their beer were actually the multitude who were suffering. The reason that I say this is because of the way the large beer manufacturers got to this point. The large beer manufacturers were non very concerned about the quality of their beers as untold as they were about the bite of sales that were created.The way that the large beer companies did this was through their publicize campaigns. The large beer comp anies were/are millions and millions of dollars during different sporting functions and on every day television. Beer Wars told us that, on average, there is about $1. 5 billion exhausted on advertising by the large beer companies every single year. That number is astounding to me, considering how popular their beers are. I think if they were to cut back their advertisements by about 50%, they would heretofore maintain a stranglehold on the beer market in the joined States.Another way that large beer companies tend to expect on top of the market is through shelf space at different locations. The large beer companies tend to make many another(prenominal) different varieties of beers and therefore are afforded to a spectacularer extent space on the shelves and local markets and liquor stores. This leaves a very small area for blind beers to be displayed, especially when it is very difficult to determine if a beer is a cunning beer or made by one of the large beer companies. I will talk more about this later in the discussion. Why Light is King The large beer companies tend to market light lager beers, and for good reason.About eighty-five percent of the beer consumed in the United States is light lager. So, Miller Lite, Coors Light and Bud-Light are very good money makers for the large beer companies. I would not blame the companies for pushing and selling what the people want, or is this what people want? Craft Beer Facts Well, swop beers arrestnt fully caught on in the beer markets. NPR. org tells us that invention beers only make up about five percent of the conglomeration beer market. According to NPR. org, there are currently over two pace breweries in the United States.Of those two thousand, about 1,950 of those breweries are considered craftsmanship beer breweries. Thats another very interesting point. Ninety-five percent of the breweries in the United States are brewing about five percent of the beer that is sold in the United States. That really doesnt seem right, and NPR. org goes on to tell us that in order to be a craft brewery, the breweries cannot brew more than 6 million barrels of beer every year. According to texaswatchdog. org, Anheiser-Busch alone brewed over one hundred million barrels of beer in 2011. That is an stupefyingly large amount of beer for one company to sell.This also tells us that the confide is not nearly lost for craft brewers. If all of the 1,950 craft brewers produced only ? million barrels of beer each year, they could easily cripple the large beer manufacturers with an influx of 975 million barrels of beer flooding the marketplace. But, the vast majority of craft brewers would neer want to do that. The Craft Beer Way The craft brewers in the United States and around the introduction have a completely different chance on on what it means to brew beer. Dogfish Head craft beer was give tongue to to only have . 0002% of the market share of beer sales in the United States.According t o brewersassociation. org, Dogfish Head craft beer ranked 12th in the body politic in 2011, based upon the number of sales for a craft brewery. That is truly amazing, how a company ranked 12th in the whole commonwealth in craft beer sales still only has . 0002% of the total market share of the beer industry. However, the owner of the company said that he would never want to grow like the large beer companies have. He is more concerned about each and every bottle of beer being the best beer possible, rather than distressful too much about how many cases he is able to enrapture out the door.As a whole, craft beer makers try to capture their piece of the market through differentiation of their intersection points and not through advertising like the large beer companies. Craft beer makers still try to do new and interesting things with beer, but they do their best not to lose focus on the intimately important factor, a good quality brew. Spreading the News Beer Wars told us that one event that allows craft breweries to get their name out to the public is the great American beer festival. This is an event where brewers go to from all over the world for people to sample and try different beers that the craft brewers make.This is a great way for the small breweries to get their name out to the market. Unfortunately, Beer Wars told us that even the large beer companies are starting to attend this event. Large Feeling the Effects The large beer companies have now started feeling the effects of small craft beers in the marketplace. According to brewerassociation. org, craft brew beer sales have increase from about one percent to about six percent of market share in the past fifteen years. This is the only portion of the beer industry to have any sign growth in that timeframe.Once again, the large beer companies are employ their financial advantage to combat this trend. Anheiser-Busch has gone out and purchased several(prenominal) small beer company names and ha ve been selling them as craft beers, where in fact they are mass produced at one of many Anheiser-Buschs factories. Another way that large beer companies are flexing their monetary muscles is through lawsuits. Beer Wars described how one craft brewer was being sued by Anheiser-Busch for victimisation a name that the brewer had used for years. The problem with this is that Anheiser-Busch had not been using that name for very long.Another issue with this is that craft brewers do not have the financial means to be able to hold off many lawsuits from large beer manufacturers. The reason that this is difficult for craft beer makers is the fact that funding for craft breweries is very hard to come by. Usually investors either invest in very large ventures or very small ventures. Most of the time, craft beer makers are somewhere in the middle as far as their funding necessitate go. Because of this oddity, gaining funds for the production facilities for a craft brewery is very hard to obt ain through normal financing. Political IssuesSome of the other challenges for the craft beer manufacturers is found in Washington, D. C. Beer Wars tells us that beer lobbyists are one of the most tidy group of lobbyists in Washington. The main focus of these lobbyists is ensuring that the three-tier system of diffusion is held intact. The three-tier distribution system basically splits up the beer manufacturers, the beer distributors and the beer retailers. This rule was put in afterwards prohibition to make sure that beer sales would be fair crosswise all persons involved. Basically, so the large beer makers couldnt prevent others from getting their product onto store shelves.Unfortunately, this is exactly what is happening. Distributors tend to lend favor to the large beer companies, because they are paid by how much beer they deliver, and as we saw from Beer Wars, the large beer manufacturers still control that volume of beer sales. So, when the distributors are putting the beer on the shelves of the retailer, they will basically give the large beer companies whatever kind of shelving presence that they desire, basically because they are getting incentivized to do so. I definitely think that the three-tier system needs to be looked at and revamped to meet the needs of todays marketplace.Conclusion Overall, this documentary was a very interesting look into the beer manufacturer marketplace. I never realized before how devious the large beer manufacturers are when it comes to protecting their market share. With both the lawsuits over naming rights and the basic control of beer distributors, its amazing that any craft beer makers even stand a chance of dimension any portion of market share. I believe that the large beer manufacturers are scared of what could happen very quickly if they do not do something to respond to the expanding requirements for quality beer in the marketplace.This documentary definitely made me reposition my mind on how I thought a bout craft beers. I always figured it was unspoiled some fad that would eventually draw away. I see now that this is not the case at all. Craft brews are just being produced to give the marketplace a much higher quality, even if they have to pay a little more. I have a much greater respect for craft beer manufacturers. I would hope to someday be able to brew my own beer just to see how fulfilling it can be. I will definitely start drinking more craft beers because of this documentary. References (Other Than Beer Wars) 1. BREWERS ASSOCIATION RELEASES TOP 50 BREWERIES IN 2011. Brewers Association. Brewers Association, 17 Apr. 2012. Web. 28 Nov. 2012. . 2. Chappell, Bill. U. S. Craft Beer Brewers Thrive, Despite Small Share Of The Market. NPR. org. NPR, 18 may 2012. Web. 28 Nov. 2012. . 3. Lisheron, Mark. Anheuser-Busch InBev Roars against Craft Breweries Bill in Texas Legislature. Texas Watchdog Investigating government Waste, Fraud