RUNNING HEAD: Forecasting Sales at Ska Brewing Company 1

Ska Brewing Company:

Summary Report

Emily Grueninger
James Palacpac
Amy Von Ludwick

EBTM350400
Professor Rana Rassipour
Towson University
March 31st, 2019
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Pre-Analysis

There are many classifications of breweries; this is because of the production level and

the regulations that companies must follow to brew (The Beer Community). A craft brewery is a

microbrewery that has expanded into a larger brewery (The Beer Community). Craft breweries

must produce less than 6 million gallons per year and be owned independently (The Beer

Community). Craft beer is mostly made with traditional ingredients like barely, yeast, and hops

(The Beer Community). Most Americans live within 10 miles of a craft brewery (“Craft

Brewer”). Craft breweries are known to attend product donations, and community events (“Craft

Brewer:). A brewpub is a bar or restaurant that is owned by the brewery (“Brewery..”, 2019). A

brewpub has to sell at least 25% or more of its beer at the establishment (“Brewery…”, 2019).

Consumers enjoy brewpubs because of the aesthetic of the dispensary tanks and knowledge of

where the product is coming from (“Brewery…”, 2019). In the table below, it is demonstrating

the comparison between the barrels produced annually by large breweries such as, MillerCoors.

Brewery Produced Annually

Anheuser-Busch InBev 567 million hectoliters

● About 483 barrels

MillerCoors 63 million barrels

Boston Beer Company 2 million barrels

Source(s): (“Brewing Locations”,2017), (Furnari, 2018), (“Production volume…”, 2018)

Craft brewing has made a great deal of growth throughout the years. In the U.S., craft

breweries has grown from eight in 1980 to 537 in 1994; now more than 6,000 in 2018

(“History..”, 2019). According to The Brewers Association, the craft beer industry had sales of
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$26 billion and 23.4% of the overall beer market in 2017 (Morris). But, the percentage growth

has slowed throughout these past few years because of market saturation (Morris). Big

breweries have reacted to craft beer popularity by acquiring companies across the United States

(Noel). Recently, from 2011 to 2017, Anheuser-Busch bought 10 craft breweries such as, Goose

Island Co., Elysian, and Devils Backbone (Noel). This aggressive strategy has paid off for

Anheuser-Busch because, in 2018, it became the nation’s top craft beer company in dollar sales

(Noel).

Charts and Interpretations

2.1.1

2.1.2
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2.1.3
Barrels- 26,180.30
Sales- $7,313,259.24

2.2

2.3
The last four points on the graphs seem to be growing exponentially.
2.3.1
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2.3.2
Barrels- 30,559
Sales- $6,000,000.00
For the sales in 2013, we will have predicted to make 30,559 barrels of beer. But the sales will
only be 6,000,000. Which is less than in 2012, when we made 25,771 barrels of beer, that
accumulated $6,553,145 in sales.
2.4 & 2.5

2.6

2.6.1
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2.6.2

2.6.3

Our Final Prediction

What is your final forecast?

Dave is correct when saying "accurate forecasts would help tremendously, allowing Ska to

increase efficiencies from a production standpoint".

We have determined that in the year 2013, the number of barrels will be increasing to 30,559.00.

And the Sales the business will be making are $6,000,000. This will be a decrease from the year

2012. This is an $553,145 decrease in sales.

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How do you justify that prediction?

Using the data collected, we were able to predict that the sales were in fact decreasing in 2012

and were going to affect the business overtime. The increase of efficiencies helped show that the

business overtime was increasing their sales.

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References
Brewing Locations - Breweries. (2017). Retrieved March 28, 2019, from

https://www.millercoors.com/breweries/brewing-locations

Brewery, Microbrewery, Brewpub. What's the Difference? (2019, January 31). Retrieved March

28, 2019, from https://www.evergreenhq.com/blog/brewery-microbrewery-brewpub-whats-the-

difference/

Craft Brewer. (2019). Retrieved March 28, 2019, from

https://www.brewersassociation.org/statistics/craft-brewer-defined/

Furnari, C. (2018, May 25). Brewers Association Publishes 2017 Brewery Production Figures.

Retrieved March 28, 2019, from https://www.brewbound.com/news/brewers-association-

publishes-2017-brewery-production-figures

History of Craft Brewing. (2019). Retrieved March 28, 2019, from

https://www.brewersassociation.org/brewers-association/history/history-of-craft-brewing/

Morris, C. (2018, March 27). Craft Beer's Days of Explosive Growth Are Over. Retrieved March

28, 2019, from http://fortune.com/2018/03/27/craft-beer-2017-sales/

Noel, J. (2018, August 14). Anheuser-Busch on its way to becoming king of craft beer too.

Retrieved March 28, 2019, from https://www.chicagotribune.com/dining/drink/beer/ct-food-

anheuser-busch-craft-beer-top-sales-0809-story.html

Production volume of Anheuser-Busch InBev by region, 2018 | Statistic. (2018). Retrieved

March 28, 2019, from https://www.statista.com/statistics/269114/production-volume-of-

anheuser-busch-inbev-by-region/

The Beer Community. (2019, January 15). Macro Brewery vs. Micro Brewery vs. Craft
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Brewery: What is the Difference? Retrieved March 28, 2019, from

https://justbeerapp.com/article/macro-brewery-vs-micro-brewery-vs-craft-brewery-what-is-the-

difference