Brewing Industry

In: Business and Management

Submitted By tharun4
Words 1380
Pages 6
Introduction to USA Brewing Industry: * The Economic impact of brewers, distributors, retailers, our supply-chain partners and induced industries totalled more than $246.5 billion dollars in 2012. * The industry today includes more than 2800 brewers and importer establishments and over 3,700 beer distributor facilities across the country * The Brewing industry employs more than 2 million Americans, providing nearly $79 billion in wages and benefits. * The industry pays over $49 billion in business, personal and consumption taxes. * Each year U.S. brewers, importers and distributors pay over $3.6 billion in federal excise taxes and almost $1.7 billion in state excise taxes. * Brewing industry has over 129,500 people work for distributors and more than 900,000 work for retail outlets that sell beer * The American brewing industry has now crossed more than 3,000 breweries which is a biggest milestone in the history of brewing industry

1. Threat from potential new entrants * Every business do have the entry barriers but in Brewing Industry there are some unique challenges like creative thinking and sustaining in the competitive market * Creating the market space and brand in the brewing industry for the new entrants is very difficult as there are many such existing companies. * Brewers should follow the government regulations and other state legislative rules like the three tier rule of production and sales. * At the federal level, brewers should have to wait for a long time for the approval. Sometimes it may take sixty to hundred days to approve the brewing manufacturer processes * Adopting the Advertising strategies is very difficult in the Brewing industry because advertising expenses are very high and it is not easy for the new entrants to spend that much of money * The biggest barrier for new entrants is…...

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