Samuels Adams Helping to Brew the American Dream

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April 3 (Bloomberg) -- Boston Beer Company Founder Jim Koch discusses his craft beer strategy and mentoring entrepreneurs with the Boston Beer Company’s foundation Brewing the American Dream with Alix Steel on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

Cook.

Welcome.

A beer right on site.

Well done.

Just to give the viewer the sense of what it means, in section -- in 2008, it has meant 4000 entrepreneurs and provided $3 million in micro-financing to over 300 food, beverage, hospitality and craft brewing businesses nationwide.

Truly amazing lending facility.

The american dream came out of starting it in my kitchen 30 years ago.

I have a lot of passion for beer but things i wish i had been able to get but did not get with loan money.

That's and bolts practical business advice.

Sam adams dream program has microloans and coaching and counseling for small businesses.

What has been one of your biggest success stories?

What is the biggest success?

We have had lots of really wonderful stories.

It is something called bruewla.

They make airy healthy ice pops.

You go down the aisle in the grocery store where there is unhealthy stuff.

They make these rude pops -- brewed pops.

Low calorie and low equivalent of an ice cream bar.

A product that makes sense.

They are very passionate about it.

Yes.

They are in about 120 stores right now.

Last year they won the pitch room competition.

Sam adams brewing the american dream program.

They have the best story and were able to present it in two minutes.

One of the judges was the buyer for fairway.

He put the product into the stores right away.

What is the biggest mistake most people make?

I think small business are very precarious.

They often make a lot of mistakes.

To me tom of the most important thing we look for in a business that we think will be successful is a great product, that is truly superior.

A little business cannot be a little product.

It has to taste better.

If you couple that with a lot of passion, that is a pretty good combination.

Talking specifically about boston beer in your business and product.

You had to guide lower versus estimates for the full year.

You blame that on advertising and promotion.

What does that say about the huge competition that beer is having right now?

Beer is going through a transformation.

I think as people discover flavorful comer rich craft beers like sam adams, they are migrating away from the big, mass-produced and mass marketed beers into something special.

Last year we grew almost 25%. seems like you're having to spend more on the advertising side to offset.

Not only that, but we have to build up the buries.

We have two foul -- by another tank, bottling line.

Beer is capital intensive.

What is the hardest part of the business right now?

I am thinking it is hard to get aluminum when you try to buy it from the london metal exchange.

What is the hardest thing?

Or us, certainly one of the hardest is a very specialty commodity type of product called hops.

They are an agricultural product.

Right now, the success of craft beer has put pressure on some of the really interesting american hops.

We have been struggling to get those.

We also by german hops.

The main hop in sam adams is grown on literally a couple thousand acres in the entire world.

We have to contract that out five years in advance.

As the craft area beer is getting more competitive, is it getting harder?

It is getting more exciting.

We really are needing to plan in advance.

You do pray for great weather in the upper midwest so that the barley crop comes in well.

We buy natural gas that goes into beer where there is a spike with cold weather in the northeast.

You always have those kinds of things.

Luckily people drink beer every day and do not have to worry about that.

The top five beer companies represent 48% of sales.

What are you seeing?

More than that when you look at the united states.

98% of the beer is made by just two big global brewing conglomerates.

Then you come to my end of it, which is craft beer.

There are 3000 in the united states.

All 3000 of us have seven or eight percent market share.

Sam adams a little over one percent.

We can double.

They cannot double.

Here is the most important question i will ask you today, what is your most important labor?

Still the original.

You will find sam adams boston lager in my refrigerator.

Still the best beer.

Lex what are you working on next?

Lots of others we are working on.

We are working on things like a stout.

Things on like a double ipa.

Working on introducing other interesting flavors.

For worse -- br like a shelfewers are -- brewers are like a chef.

I can use rows for more chocolate or vanilla.

I put all of those things into beer.

Innovation is key.

Such a pleasure to have you here.

Thank you.

Open up my beer form a right now?

Never drink alone.

No fun.

Thank you for being here.

I appreciate it.

Founder of boston beer.

-- sam adams beer.

This text has been automatically generated. It may not be 100% accurate.

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