beer: a product price profile russell howard. beer is a fermented alcoholic beverage brewed from...
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Beer:
A Product Price Profile
Russell Howard
Beer is a fermented alcoholic beverage brewed from malt and flavored with hops. Beer is sold in many different forms, including, bottles, cans, and kegs. The beer industry itself is dominated by three companies, Anheuser-Busch, Miller Brewing, and Coors Brewing Co. These three companies control 80.7% of the domestic market share
Breweries
Wholesalers
Retailers
Beers place in the vertical product chain is differentiated into a 3 tier system with breweries, wholesalers, and retailers.
Per Capita Beer Consumption 1966-2001
15.0
16.0
17.0
18.0
19.0
20.0
21.0
22.0
23.0
24.0
25.0
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005
Year
Gal
lon
s o
f Bee
r
Source: www.ers.usda.gov/Data/FoodConsumption/Spreadsheets/beverage.xls
Beer Consumption by Month 2001
0
100,000,000
200,000,000
300,000,000
400,000,000
500,000,000
600,000,000
700,000,000
Janu
ary
Febru
ary
Mar
chApr
ilM
ayJu
ne July
Augus
t
Septe
mbe
r
Octob
er
Novem
ber
Decem
ber
Month
Ga
llon
s o
f b
ee
r
Source: http://www.progressivegrocer.com/progressivegrocer/profitguides/beer/images/powerpoint/beer_sales_by_month_00_01.ppt
Beer Consumption(Gal.) Per State
0
100,000,000
200,000,000
300,000,000
400,000,000
500,000,000
600,000,000
700,000,000
W
yom
ing
D
istr
ict o
f Col
V
erm
ont
A
lask
a
Nor
th D
akot
a
Sou
th D
akot
a
Del
awar
e
Rho
de Is
land
M
onta
na
Idah
o
Mai
ne
Haw
aii
U
tah
N
ew
Wes
t Virg
inia
N
ebra
ska
N
ew M
exic
o
Ark
ansa
s
Kan
sas
C
onne
ctic
ut
Nev
ada
O
klah
oma
M
issi
ssip
pi
Iow
a
Ore
gon
K
entu
cky
A
laba
ma
M
aryl
and
S
outh
C
olor
ado
M
inne
sota
T
enne
ssee
Lo
uisi
ana
W
ashi
ngto
n
Indi
ana
M
assa
chus
e
Mis
sour
i
Ariz
ona
N
ew J
erse
y
Virg
inia
W
isco
nsin
G
eorg
ia
Nor
th
Mic
higa
n
Ohi
o
Illin
ois
P
enns
ylva
nia
N
ew Y
ork
F
lorid
a
Tex
as
Cal
iforn
ia
State
Gal
lon
s o
f B
eer
Sources: www.progressivegrocer.com/progressivegrocer/profitguides/beer/images/powerpoint/consumption_beer_by_state.ppthttp://eire.census.gov/popest/data/states/tables/files/NST-EST2003-01.xls
Per Capita Beer Consumption by State 2001
0
5
10
15
20
25
30
35
Uta
h
New
Jer
sey
C
onne
ctic
ut
New
Yor
k
Mar
ylan
d
Cal
iforn
ia
Ark
ansa
s
Ken
tuck
y
Kan
sas
Id
aho
In
dian
a
Okl
ahom
a
Ten
ness
ee
Was
hing
ton
V
irgin
ia
Mas
sach
use
M
ichi
gan
G
eorg
ia
Ala
bam
a
Rho
de Is
land
M
inne
sota
O
rego
n
Mai
ne
Nor
th
Illin
ois
W
est
A
lask
a
Ver
mon
t
Haw
aii
P
enns
ylva
ni
Mis
sour
i
Flo
rida
C
olor
ado
Io
wa
M
issi
ssip
pi
Ohi
o
Del
awar
e
Dis
tric
t of C
o
Neb
rask
a
Sou
th
Ariz
ona
S
outh
T
exas
W
yom
ing
N
ew M
exic
o
Loui
sian
a
Nor
th D
akot
a
Wis
cons
in
Mon
tana
N
ew
Nev
ada
State
Gal
lon
s o
f B
eer
Per
Per
son
Sources: www.progressivegrocer.com/progressivegrocer/profitguides/beer/images/powerpoint/consumption_beer_by_state.ppthttp://eire.census.gov/popest/data/states/tables/files/NST-EST2003-01.xls
Wine15%
Spirits31%
Beer54%
Share of Total Beverage Alcohol Retail Dollar SalesRetail Dollar Sales
Wine8%
Spirits5%
Beer87%
Share of Total Beverage Alcohol VolumeConsumption
Source:http://www.progressivegrocer.com/progressivegrocer/profitguides/beer/images/powerpoint/industry_overview.ppt
Beer has to compete in the alcoholic beverages market. Generally accepted substitutes include wine and distilled spirits. The entire industry is worth 137.2 billion dollars at the retail level
Alcholic Beverage Consumption 1966-2001
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
1965 1970 1975 1980 1985 1990 1995 2000 2005
Year
Gal
lon
s C
on
sum
ed P
er C
apit
a
Beer
Wine
Distilled Sprits
Total
