SMG SI 422 Lecture Notes - Lecture 6: Pasteurization, Miller Lite

• School: Boston University
• Department: Strategy & Innovation
• Course: SMG SI 422
• Professor: John Kirks

Document Summary

The brewers cannot sell to the end consumer and can only distribute through wholesalers and retailers because of the regulations. The retailers and wholesalers have a lot of buying power because they are the ones who decide if they want to stock that certain type of beer. The consumers ultimately drive the decisions of the retailers and wholesalers because they are who (cid:272)o(cid:374)su(cid:373)e the produ(cid:272)t. if they do(cid:374)"t like a (cid:272)ertai(cid:374) (cid:271)eer, they (cid:449)o(cid:374)"t (cid:271)uy it a(cid:374)d the (cid:271)re(cid:449)ers lose (cid:373)o(cid:374)ey. The supplier power is medium due to the fact that brewers make their own production. The only thing they need to get from others are their raw materials, but these cost brewers over half their net revenue. There are many places that these commodities can be found. There are 6 major brewers and consumers tend to be brand loyal. There were different kind of beers targeting different segments.