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Category: Business and Industry
Date Submitted: 03/15/2013 06:37 PM
Foreign Market and Diversification
Foreign Market Entry and Diversification
Trends in the Beer Market
In the mid- 1990s, the global beer market outpaced the established markets of Europe and North America, although Europe outperformed the global marketplace in 1999, 2001, and 2002. The region contracted in 2008. South America had been contributing significantly to the growth of the international beer market until economic turmoil in the region interrupted its vigorous advancement. Strong regional growth resumed in 2004 and continued in 2005. In 2005, beer production increased more muscularly in South America that in any other region. Growth persisted in 2006 and 2007. In 2008, a revived South American beer market outperformed the still dynamic Asian market.
Asia and the Middle East has been the fastest growing region in the past several years. Asia and the Middle East outpaced the global average in every year since 1998. Growth slowed considerably in 2008, though Asia contributed to enlarge more forcefully than the global beer market.
Modelo’s International Expansion
Modelo’s international expansion was made possible through strategic partnerships with experienced distributors in local markets like Toluca y Mexico Brewery. The country’s oldest established brand of beer. This move, proved a period of strong growth for the company, with production sky rocketing as well as their reputation. Another great idea came when Madelo’s first entry into the U.S. beer market in 1979 with Corona distributed by Amalgamated Distillery Products Inc. This was due to its nonrefundable policy, it’s clear and unique bottle, and different marketing. Carlos Fernandez encompassed all the attributes needed to take the company into the new millennium. Carlos carried a vision of an international business model. One that had the company expand internationally in order to capitalize on the newly introduced North American Free Trade Agreement and streamline the company’s...