1. BOULEVARD BEER CO.BOULEVARD BEER CO.
Opportunity Analysis
“Beer is living proof that God loves us and wants us to be happy.”
-Benjamin Franklin
2. Current SituationCurrent Situation
• Lack of product innovation across categories
• Limited SKUs to take advantage of volume channels
• Untapped in-store merchandising opportunities
• Minimal channel presence
• Under-represented in terms of volume sales in KC
area.
3. Current Product LinesCurrent Product Lines
• Year round beers:
– Unfiltered Wheat
– Pale Ale
– Bully Porter
– Lunar Ale
– Dry Stout
4. Current Product LinesCurrent Product Lines
• Seasonal Beers
– Irish Ale
• January - April
– Zon
• May - August
– Bob’s 47
• September - October
– Nutcracker Ale
• November – December
5. Current Product LinesCurrent Product Lines
• Smokestack Series
– Long Strange Tripel
– Saison
– Double Wide IPA
– The Sixth Glass
7. Situation AnalysisSituation Analysis –– ConsumerConsumer
• Beer is more widely purchased than any
other type of alcoholic beverage in the US.
• Beer is widely consumed - 37% of US
adults are past month beer drinkers.
• Beer is broadly enjoyed across all key
demographics segments.
• The beer industry is projected to grow
steadily fueled by the growth of key
demographic segments.
• Most beer shoppers are also beer
consumers
8. Situation AnalysisSituation Analysis –– ConsumerConsumer
• Convenient is where beer is purchased more frequently.
• Where available, shoppers prefer to buy cold beer.
• Half of adults are beer drinkers in the last year.
• 4 of 10 U.S. adults are beer drinkers in the last month.
• Beer is consumed the most by male, 21-27, white, blue collar
demographic group.
• The fastest growing demographic groups:
– 21-27 year olds
– 50+ year olds
– Latinos
– African Americans
9. Situation AnalysisSituation Analysis –– CategoryCategory
• Alcohol beverages account for 16% of total
beverage sales.
• Beer is a $91.6 billion dollar category.
• Alcoholic beverages are up 4% globally.
Beer category is up 1% in the US.
• Micro Brewers experienced a 18% growth
in dollar sales and 12% in volume in last
year when purchased with food.
• Specialty Brewers experienced a 10%
growth in dollars and 6% growth in volume
in last year when purchased with food.
• Micro Brewers represent the best
opportunity for growth.
10. Situation AnalysisSituation Analysis –– ChannelChannel
• Beer accounts for over half of all
alcohol dollar sales.
• Beer is very important category
at retail regardless of channel.
• Most shoppers purchase more
than just beer on their shopping
trips.
• Beer has much higher
productivity than liquor and
wine.
11. ChannelChannel -- OnOn--PremisePremise
• Bar and nightclub beer
consumers skew male,
younger, educated, white and
moderate to high income
households.
• Beer is sold in on-premise
establishments at a rate of:
– 10 times greater than wine.
– 14 times greater than liquor.
• Beer represents 85% of total
alcohol volume sold to
on-premise accounts.
12. ChannelChannel -- GroceryGrocery
• Grocery is the most popular channel
for beer purchasing.
• Beer is the 4th largest edible category.
• Domestic beers account for 80% of
the beer dollar share in supermarkets.
• Supermarket beer shoppers skew
male, younger, moderately educated,
blue collar, white and moderate to
high income households.
• Beer drives the shopping trip for 3 of
10 beer buyers.
13. ChannelChannel -- ConvenientConvenient
• Convenience is important
volumetrically, driven by store
count and purchase frequency.
• Beer is the #2 selling category in
convenience trade with 13.2% of
total in-store sales.
• Beer outsells all other categories
in the cold vaults.
• Beer shoppers skew 35+ years of
age, white, moderate income
males.
14. ChannelChannel -- Club StoresClub Stores
• Other than supercenters, club store
represent the greatest level of growth of
any channel.
• Warehouse clubs are posting strong sales
future potential.
• Warehouse club shoppers skew 35-50+,
white and affluent. Versus all channels
beers skew middle-aged, white, affluent
women.
• There is an opportunity to make warehouse
clubs stores a beer shopping destination.
15. ChannelChannel –– LiquorLiquor
• 4 in 10 beer shoppers
purchase other items in
the store.
• Shoppers most likely to
be found are male, 35+,
higher income whites.
• Premium and specialty
beers are most likely
purchased at liquor
stores.
16. ChannelChannel –– DrugDrug
• Drug channel beer shoppers
skew male, younger,
moderately educated, blue
collar with moderate
incomes.
• Package liquor accounts for
31% of consumable sales in
the drug channel.
• 34% of beer purchasers
decided while in the store.
17. Channel OpportunitiesChannel Opportunities
• Enhance store profits with strategic
merchandising, displays and POS
materials.
• Increase sales with key feature
offerings.
• Leverage beer’s higher sales
productivity.
• Because is most often purchased
with other items, use merchandising
and cross promotions that will
resonate with beer shoppers.
18. Situation AnalysisSituation Analysis –– BrandBrand
LandscapeLandscape
• Locally, Boulevard only represents a
2.8* share.
• Boulevard does business in 13 states.
• The Brewers Association currently ranks
Boulevard as the 7th largest craft
brewery.
• 18th largest active brewery in the United
States.
• After producing 132,000 barrels in
2007, 140,000 barrels are expected to
be made in 2008.
19. Growth OpportunitiesGrowth Opportunities
• Product Innovation
• Packaging Innovation
• Cross Merchandising with items
that resonate with beer shoppers
• Retail Merchandising
Opportunities
• National Expansion
• Line Extensions
• Channel support strategies
29. OnOn--Premise AdvertisingPremise Advertising
• Micro and specialty beer brewers
enjoy preferential status when
coupled with meals.
• On-premise food is the fastest
growing segment for micro and
specialty brewers.
• This represents an unique
opportunity to leverage add-on
sales and cross promotions.
34. Retail Cross MerchandisingRetail Cross Merchandising
• Leverage micro brewer’s unique position as the
preferred alcoholic beverage with food to drive
retail sales.
• Cross brand with other brands with on-pack
couponing and other promotions.
• Offer ‘How-to’s and recipe information to broaden
consumer interest creating secondary sales.
39. Holiday Event PromotionsHoliday Event Promotions
• Most Holiday events correspond to seasonal beer
offerings.
• Offer the best opportunity for broad brand exposure
and create excitement in category.
46. SummarySummary
• Micro and specialty brewing is the fastest growing segment in beer.
• Half of US adults drink beer in the last year.
• Convenience and grocery represent the largest opportunities for volume
increase.
• Consumers prefer micro and specialty beers with on-premise food.
• Beer shoppers are overwhelmingly beer consumers.
• Impulse buyers are heavily influenced by packaging and in-store POS.
• Aluminum cans are fastest way to volume entry in convenient and
supermarket channels.
• Premium beers and imports such as Guinness and Saporro are switching
to spun aluminum cans.
