Samuel Adams Beer Company

Brewmaster

Background of Samuel Adams

• Samuel Adams Beer Company was started by Jim Koch. He was the son of a fifth generation beer brewer.

• This company is headquartered in Boston, Massachusetts.

• They manufacture 17 unique, award-winning beer brews.

Financial Highlights2006 Revenues- 2005 Revenues- 2004 Revenue- $315,250 $263,255 $239,680Increase - 19.7% Increase- 9.8%

2006 Net Income- 2005 Net Income- 2004 Net Income-$18,192 $15,559 $12,502

Increase- 16.9% Increase- 24.4%

2006 Barrels Sold- 2005 Barrels Sold- 2004 Barrels Sold-1612 1364 1267Increase -18.2% Increase-7.6%100% of Net Revenue 100% of Net Revenue 100% of Net Revenue

Competitor Comparison

Samuel Adams Anheuser-BuschROA – 11.8 % ROA – 12%

Net Profit Margin – 5.8% Net Profit Margin – 10%

Current Ratio – 295% Current Ratio – 81.5 %Current Assets-120,562/Current Liab.-40,870 Current Assets-1829.5/Current Liab.-2246.1

Debt-to-Assets – 29.7% Debt-to-Assets – 75.3%

Total Assets Turnover - 204.1% Total Assets Turnover – 109.7%

1st Recommendation

• Problem: 21-27 year olds consider Samuel Adams to be their “Father’s Beer”.– Purchasing new creations such as Fat Tire

and Magic Hat or imported beer

• Resolution: Creating a new label for the younger age demographic (21-27)

We need a Brewmaster

Have You Experienced these Situations?

Have You Experienced these Situations?

• Frustrated with people who have the right skills, are great people, but create chronic tension with your team?

• Place people in positions who just don’t produce results?

• Hire good people who were performing well, but end up quitting anyway?

• Frustrated with people who have the right skills, are great people, but create chronic tension with your team?

• Place people in positions who just don’t produce results?

• Hire good people who were performing well, but end up quitting anyway?

What Do the “Right” People Look Like?

Job Description• Responsible for the general operation of the brewery such as:

• Set-up

• Monitoring of material flow

• Viewing and tasting the beer

Education

• Bachelor’s degree in chemical engineering

• Vocational training from an accredited Brewer’s Guild

• Minimum of 10 years experience in Brew Mastering

The primary duty of the brew master is to ensure the quality of the beer brewed

Gathering the necessary ingredients, some of which must be handpicked by the brewer depending on the uniqueness of the beer.

Making sure batches of the same beer are consistent.

Entails long hours of tedious work of mixing, bottling, cleaning, purchasing ingredients,

and tasting brewing mixtures

A safety background in first-aid and fire prevention is a must.

Interview Questions

Applicant’s Qualifications

•Preparation

•Interview

•Follow-up

• Contact the Siebel Institute

• Contact the Brewers Guild

• Advertise in brewing publications

• Send out Head hunters

• Employee referral *

• Internet

Methods for Recruitment

Methods for Selection

Applicant must:• Provide resume of experience.• Demonstrate various scientific skills in the brewing field.• Provide evidence of specialty brews they created.• Discuss goals for further interest in creating new brews.• Demonstrate willingness to grow with company.

• Contact the Siebel Institute

• Contact the Brewers Guild

• Advertise in brewing publications

• Send out Head hunters

• Employee referral *

• Internet

Methods for Recruitment

Current Strategies

• Extreme Beer

• Beer is competitive with sherry, cognac, and port.

• Samuel Adams & Chef David Burke join forces.

OUCH !