Beer and Man Brewing Company Essay

Mountain Man Brewing Company was established in 1925, and since because has come to be known as West Virginias Beer. In 2005, despite a 2% drop in annual sales they interchange approximately 520,000 barrels and reported revenue close to $50,000,000.Mountain Man Brewing Companys average consumer is male, above the age of 45 and typically in the middle-to-lower income bracket. With a small number of Mountain Man Brewing Companys consumers making up a large percent of their sales, it is beta for the company to appeal to that small number of consumers, and ensure they are satisfaction to their brand loyal.Competition Recently, the state of West Virginia repealed the arcane law allowing retail stores to make out beer at discount prices. This creates pressure on old school regional breweries, like Mountain Man Brewery Company, to try and compete with the top-dogs of the industry.Future of the Beer Industry As beer sales are not largely affected by economic downturns, Sales are however, affected by change in consumer (taste) take aim.Current demand In 2005 light beer accounted for over 50% of total beer sales putting pressure on Mountain Man Brewery to introduce a light beer barrier into the market ( or make some other change), in order to remain profitable.Financial Assumptions1) Mountain Man Brewing Company exit altogether be able to achieve .15% of thelight beer industry market share.2) Mountain Man Brewing Company will spend $1,500,000 on advertising their sensitive light beer in their first year.3) In association with producing a light beer, Mountain Man Brewing Company will have an additional $69,000 in fixed expenses per year.4) Mountain Man Brewing Company will be able to sell their light beer at $0.29 per bottle.5) Mountain Man Light will not erode sales of Mountain Man Lager anytime in the near future.6) All else will be help comparable to the current swell structure of Mountain Man Brewing Company.