7/23/2019 MMBC Analysis 1

1/1

Without a change in strategy, Mountain Man Brewing Company will risk its existence in

the market and operate in a loss of $1,096,973 by 2009.

How this concerns Mountain Man

Increasingcompetition

Competing against national major domesticbrands, as MM lacks the financial and marketing

resources to defend brand as aggressively.

Increasing

pressure

from

distributors

Looking for high margins and MM is not as

attractive and powerful as its competition, may

risk being dropped if they do not meet demand

requirements and contribute profitably.

Changes in

beer

drinking

preferences

Premium segment of beer market is shrinking,

light beer is increasing and currently accounts for

50.4% of the market.

Loss of core

customers

The current core demographic is aging , resulting

in less consumption and is unable to capture a

younger consumer base.

Mountain Man Lager

2006 2007 2008 2009 2010

Market Share 1.36% 1.32% 1.28% 1.24% 1.20%Net Income

$ 3,387,446.97 $ 2,010,049.67 $ 518,820.53 -$ 1,096,973.86 -$ 2,849,129.65

2

Mountain Man Consumption by Age

21-24 2%

25-34 15%

35-44 19%

45-54 32%

55-64 19%

65+ 13%

Consumption by Type of Beer

Light Beer +4%

Premium

Beer

(4%)

Imported

Beer

(5%)

Specialty

Beer

+9%

MMBCs core customers are

aging and not consuming as

much beer and are not being

replaced. Mountain Man iscurrently viewed as an older

mans beer and is therefore

not seeing its consumption

in the younger demographic.

Although light beer is

growing, people who would

consider drinking MM,

would not consider drinking

light beer.

Specialty and craft beers

beers with bold flavour,

similar to MM are growing

(which further concerns

MMs recent decline)