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Strategic Plan: Angry Orchard
Transcript of Strategic Plan: Angry Orchard
An American Hard Cider
Where We Want To Be
Sales, Distribution, Competitive position
How Do We Get There
Challenges and Opportunities
Where We Are
leading brewer in the Better Beer category
high quality full- flavored beers
well-trained sales organization and world-class brewers
Boston Beer Company 2012 Annual Report
Committed to excellence and innovation
Hands on approach
Casual and familiar
Line of business
Flavored Malt Beverages
Samuel Adams® product line
Focuses advertising and promotional dollars on Samuel Adams Boston Lager® and Samuel Adams® Seasonal Beers
- Boston Beer Company 2012 Annual Report
US Hard Cider Market
Size & General
Hard Cider Act: Modernize federal definition.
3.6% of wineries industry
Angry Orchard within the competitive context
Distribution, trade image
Product Development strategies
45/55 gender split
Young millennial who enjoy experimentation and sharing findings
26% of consumers 21-35 have consumed in a on-premise location once a week or more.
Relationships toward category
Increase awareness and knowledge of category
Angry Orchard is leading hard cider
Was originally alternative to beer but finding own voice
Buyer Decision Dynamics
Due to lack of options within on premise locations choices are limited
The millennial enjoys discovering new beverages on premise and purchasing them off premise to share with others for at home consumption
Demographic context for change
• Celiac disease is an immune reaction to eating gluten, a protein found in wheat, barley and rye. We are naturally gluten free.
According to Information Resource Inc. (IRI) Chicago Based Market Research Firm
ISBS world(marketing firm)
Beer Institute(industry group)
Boston Beer Company 2012 Annual Report
Mintel(Alcohol Consumption at home) & Neilsen article
Mintel & Nielsen,Technomics: Special trends and adult beverage report: millennial consumer insights.
Mintel & On premise observation
o Craft beer drinkers
o White wine drinkers
o Social drinkers
mid to late 20s
College educated, millennials
early adopters/ influencers
want to introduce their peer group to new products.
Currently makes up 7% of Boston Beer portfolio
Goldman-Sachs forecasts Angry Orchard to make up 20% of Boston Beer Company's total volume by 2015
Good quality ingredients.
Boston Beer Co., well established
Higher sales at on premise locations
FB & Mintel Survey
Angry Orchard vs. Woodchuck
Dominant in the East Coast,
Owned by Boston Beer Co, easier to reach distributors
Produced differently from competing brands – fermented with white wine yeast, and wood aged.
Uses traditional European cider making techniques.
Wide variation in product line:
Uses quality apples, French bittersweet, and Italian Culinary
A day in the life of our female consumer
"Our goal is for drinkers to be knowledgeable about cider. To that end, we’re introducing them to a variety of styles and encouraging that experimentation – whether drinkers enjoy a cider on its own, have fun pairing them with food, or even incorporating cider as a mixing ingredient in cocktails.”
- David Sipes, Angry Orchard
"We have found that hard cider is versatile and people can drink it year-round. However, sales spike during the summer months." David Sipes
2007-2012 sales tripled
Chains 85% sales increase
Increased corporate activity
Traditional apple leads 83%