Yuengling’s beer sales were up 225% in the last six years, but that the company’s old Eagle Brewery facility, which could only produce 500,000 barrels of beer per year, could not keep up with growing demand. After temporarily rerouting beer from Maine, Massachusetts, and Rhode Island to its home state and largest market, Pennsylvania, the company considered five options for expanding beer production: (1) adding new storage and finish tanks to Eagle Brewery, (2) outsourcing production to another company, (3) buying an existing brewery from another company, (4) building a new factory, or (5) “doing nothing.”

Question

Yuengling’s beer sales were up 225% in the last six years, but that the company’s old Eagle Brewery facility, which could only produce 500,000 barrels of beer per year, could not keep up with growing demand. After temporarily rerouting beer from Maine, Massachusetts, and Rhode Island to its home state and largest market, Pennsylvania, the company considered five options for expanding beer production: (1) adding new storage and finish tanks to Eagle Brewery, (2) outsourcing production to another company, (3) buying an existing brewery from another company, (4) building a new factory, or (5) “doing nothing.”

Answer 1

And what is your question? What do you think is the best answer? Why?

Answer 2

To analyze the best option for the company to expand beer production, we need to consider several factors:

1. Cost-effectiveness: Calculate the cost and benefits of each option to determine which one provides the best return on investment.

2. Production capacity: Assess the ability of each option to meet the growing demand for Yuengling's beer. Consider the current production capabilities of the Eagle Brewery facility and how each option could increase production capacity.

3. Quality control: Evaluate the impact of each option on the quality and consistency of Yuengling's beer. Consider any potential risks or challenges in maintaining product standards.

4. Distribution and logistics: Analyze the logistical implications of each option to ensure efficient distribution of the expanded production. Consider factors such as transportation costs, proximity to key markets, and delivery timeframes.

5. Market competition: Assess how each option may impact Yuengling's competitive position in the beer market. Consider the brand reputation, customer loyalty, and potential for growth in market share.

By considering these factors and conducting a thorough analysis, Yuengling can make an informed decision on the best option for expanding beer production. This analysis may involve financial modeling, market research, and consultations with industry experts to gain additional insights.