This is a brief analysis of the Boston Brewing Company\'s competitive advantages.

1. Mini-Presentation The Boston Beer Company By: Sharlene Gale, Kelsey Schmidt, Jeff Schafer, Caitlin Smith, Brian Doran, Colin Keil

2. Financial Analysis

3. Balance Sheet & Other Financial Data (Million$) Year ended Dec. 31 Financial Analysis Copyright ©2010 The McGraw-Hill Companies, Inc. Source: S&P.

4. Financial Analysis Normalized Stock Price Chart2006 – 2010 Copyright ©2010 The McGraw-Hill Companies, Inc. Source: S&P.

5. Financial Analysis Sub-Industry Stock Review Copyright ©2010 The McGraw-Hill Companies, Inc. Source: S&P. Boston Beer Company P/E ratio lower than historical Average Beta Recent stock price $20 > Fair Value Calc B+ Quality Ranking Highest Sub-Industry IQ Percentile

6. 5 Forces

7. 5 Forces

8. 5 Forces + Positive Sum Competition + Miller-Coors Merger - High Exit Barriers - Slow Industry Growth Rivalry Among Existing Competitors

9. Competitive Positioning “American Craft Brewer” SMALL - Annual production of beer less than 2 million barrels INDEPENDENT - Less than 25% owned by an alcoholic beverage industry member who is not themselves a Craft Brewer. TRADITIONAL - either an all malt or has at least 50% of its volume in beers which use adjuncts to enhance rather than lighten flavor. Exclusive Best Beer Source: http://www.samueladams.com/company/about-us.aspx

10. Competitive Positioning Perceived as both a major player and a small, exclusive beer. Perceived as being bigger and more mass-distributed than it actually is. Consumers don’t realize it only has <1% of total market share. “Growing Up Small” campaign

11. Positioning Among Major Players Source: http://www.stealingshare.com/content/1148399654031.htm

12. Positioning Among Major Players Source: http://www.stealingshare.com/content/1148399654031.htm

13. Positioning Among Major Players Source: http://www.stealingshare.com/content/1148399654031.htm

14. Positioning Among Major Players Source: http://www.stealingshare.com/content/1148399654031.htm

15. Positioning Among Craft Beers Attributes used to describe Sam Adams: Best Beer Full-bodied Masculine Special American Small Exclusive Perfectionist Brewing Variety

16. Positioning Among Craft Beers

17. Positioning Among Competitors Major domestic beers are working with same audience. Distinctive taste and brand currently belongs to imports, micro-brews, and some specialty beer. Major brewers trade off personality and brand image, not product benefit.

18. Positioning Among Competitors Premium brands are on the rise – suffered a setback during current recession. Domestic brewers are partnering with import brands to increase product and packaging innovation. In the long run, the domestic beer industry will still experience higher net revenues per barrel.

19. Positioning Among Competitors As demand for premium beer rises, Boston Beer Company is in a good position. Firm generates high returns on its invested capital. Offers higher-margins for both distributors and retailers. Gaining a space in the market is an achievable goal.

20. Positioning Among Competitors Boston Beer Company has the chance to grow geographically. Currently concentrated on the east coast of the United States. The firm has yet to enter many markets in the west. This expansion will be costly, because it will require additional production facilities.

21. Positioning Among Competitors Overall, Boston Beer Company is in a good position as the beer industry changes. Currently, though, the company has much higher costs than its domestic producers. This is a much larger disadvantage in the market during the recession.

22. Competitive Positioning “American Craft Brewer” SMALL - Annual production of beer less than 2 million barrels INDEPENDENT - Less than 25% owned by an alcoholic beverage industry member who is not themselves a Craft Brewer. TRADITIONAL - either an all malt or has at least 50% of its volume in beers which use adjuncts to enhance rather than lighten flavor. Exclusive Best Beer Source: http://www.samueladams.com/company/about-us.aspx

23. Competitive Positioning Perceived as both a major player and a small, exclusive beer. Perceived as being bigger and more mass-distributed than it actually is. Consumers don’t realize it only has <1% of total market share. “Growing Up Small” campaign

25. 4 vessel brewing process

26. Craft brewery

28. Company culture