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American Beer Industry

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Rebekah Grim

on 18 October 2012

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Transcript of American Beer Industry

An overview American Beer Industry How It's Made The Product History of Beer The Main Players Current Market Structure Domestic vs. Imported
Beer Step One Wort is prepared by mixing the starch source with hot water, which is known as "mashing" Step Two The starch has been converted to sugars and the sweet wort is drained off the grains in a process called "sparing" Step Three Wort separation or "lautering" the process of filtering the spent grain from the wort Each time this process tales place it results in a weaker beer Step Four Wort is collected and boiled for about an hour, all water is evaporated, and only sugars remain. Hops are added during boiling for flavor 1980 Domestic Share: 97%



2010 Domestic Share: 87% Step Five Yeast is added to the cooled hopped wart in a fermentor for a period of weeks or months depending on the type of yeast and desired strength of beer Hot Water tank Copper Fermentor Hops Malt Mash Turn Heat Hopback Keg Beers are fermented from grains after the starch in them is first converted to sugar. Beers range from 2% to 8% by volume Beer is one of the world's oldest prepared beverages, as recorded in written history of ancient Egypt and Mesopotamia The earliest known chemical evidence of barley beer dates to Circa 3500-3100 BC from the Zargros mountains of western Iraq Types of beer Stout Dark beers, roasted malts or roasted barley Pale Ale Top fermenting yeast Tax on imported Beer:
13.2 ¢/Liter Wheat Larger proportion of wheat compared to malted barley Lager Cool fermenting beer In order to import beer into the US, must have several certifications and permits usually between 32-39 f Mild Malty palate usually between 3% and 3.6% ABV Consumption of Beer Gallons Per Capita Beer Consumption 1994: 22.3
2010: 20.7 Top US producers Anheuser-Busch InBev Consumption per capita by state: Utah: 12.4
Connecticut: 16.2
New York: 16.5
New Jersey: 16.8 SABMiller
Molson Coors Pabst Brewing Co. There are 1700 breweries in the US ranging in size from the industry giants to microbreweries Market Share AB InBev 47.%
MillerCoors 28.9%
Crown Improts 5.3%
Heineken USA 4.0%
Pabst 2.7% South Dakota:27.5
North Dakota:29.8
Montana:30.5
New Hampshire:32.7 Lowest Level Consumers Highest Level Consumers Stock Market Performance Top Brands Bud light 28.3%
Budweiser 11.9%
Coors light 9.0% Corona extra #1 import % of Imports Demographics Race: White
Gender: Male
Age: 21-29 Beer and Women -Health concerns

-Preferences for lighter, fruiter beverages

-Male-oriented advertising Advertising Geared toward men
Highly regulated
Must present company as being responsible Anheuser-Busch InBev Ticker= BUD NYSE Molson Coors Brewing Company Ticker= TAP NYSE SAB Miller Trades on London Stock Exchange Sales Revenues and Profits Non-Price Competition Product Differentiation Innovative Packaging
Distinguished flavor
Advertising Microbreweries Appeal to higher class and women
Offer a distinct product
Experiential "A brewery that produces less than 15,000 barrels (17,600 hectoliters) of beer per year with 75% or more of its beer sold off-site."
-American Brewers Association U.S. Beer Sales Totaled $98 Billion In 2011 3% incresease on premise, 1% increase off premise Total amount of dollars in beer revenue made each year in U.S.$196 billion www.beer-universe.com. retrieved 9/20/12 "How Beer Saved the World", Discovery Channel, Martyn Ives, 2011. www.urbanbeerhunt.com; retrieved 9/20/12 www. csupueblotoday.com; retrieved 9/20/12 catnipoflife.wordpress.com; retrieved 9/20/12 www.onlyhdwallpapers.com; retrieved 9/20/12 www.kegworks.com; retrieved 9/21/12 www.servingbeers.com; retrieved 9/21/12 www.drinkhacker.com; retrieved 9/22/12 www.greetingsfrommoviecity.blogspot.com;
retrieved 9/21/12 "Craft Brewing Industry Statistics". Brewersassociation.org. http://www.brewersassociation.org/pages/business-tools/craft-brewing-statistics/breweries-per-capita. www.vermontbrewers.com; retrieved 9/23/12 Sources:
“American Breweries”. American Brewers Association. Web 21 Sept 2012.
< http://www.brewersassociation.org/pages/business-tools/craft-brewing-statistics/breweries-per-capita>.

“Beer Industry Statistics”. Alcohol and Tabaco Tax and Trade Bureau, US Department of Treasury. Web 20 Sept. 2012
< http://www.ttb.gov/beer/tax.shtml>.

“Beer Institute Advertising and Marketing Code”. Beer Institute.org. Web 20 Sept. 2012
<http://www.beerinstitute.org/BeerInstitute/files/ccLibraryFiles/Filename/000000001166/BI%20Ad%20Code%20Text%20w-Logo%20-%20FINAL%202011a%20-%20Upddated%20Census.pdf>

“The Beer Institute Economic Contribution Study”. The Beer Institute. Web. 20 Sept 2012
<http://www.beerservesamerica.org/resources/BI_Impact_Methodology_Short.pdf>.

“Consumption Per Capita”. American Brewers Association. Web. 22 Sept. 2012
< http://www.brewersassociation.org/pages/business-tools/craft-brewing-statistics/beer-sales>.

"Craft Brewing Industry Statistics". Brewersassociation.org. Web. 20 Sept. 2012 <http://www.brewersassociation.org/pages/business-tools/craft-brewing-statistics/breweries-per-capita.>
“How Beer Saved the World”. Martyn Ives. Web. 20 Sept. 2012
<http://www.youtube.com/watch?v=Au4tbHUbRyI>.

“MarketWatch.” MarketWatch. N.p., n.d. Web. 27 Sept. 2012
<http://www.nasdaqtrader.com/trader.com/trader.aspx?id=Marketwatch>.

“Per Capita Consumption”. Beer Institute.org. Web 21 Sept. 2012
<http://beerinstitute.org/BeerInstitute/files/ccLibraryFiles/Filename/000000001270/State%20Per%20Capita%20Consumption%202003%20to%202011.pdf>

"Philip H. Howard." Michigan State University. Est. 1855. East Lansing, Michigan USA. N.p., n.d. Web. 27 Sept. 2012. <http://www.msu.edu/~howardp./beer.html>. Fermented at higher temps
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