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Category: Business and Industry
Date Submitted: 03/12/2012 11:23 PM
The Global Brewery Industry
Presented by Sobithan Sekar
Objective
Formulation of International Business Strategy by the Beer Companies with the perspective of reconciling the twin issue of
Standardisation: To achieve economies of scale to stay competitive. Localisation: To achieve market share
IBS
Why Brewery Industry is Unique?
Case 1: There is no Global Beer only Local.
Top Ten Brewers Worldwide 2006 Millions of Barrels, Hectolitres Reasons: 1.Beer is bulky and too expensive to export, it is brewed domestically 2. Foreign producers will license their brand name products to local producers to gain a local market presence. 3. In addition, imports of alcoholic beverages are traditionally heavily taxed 4. Rival domestic producers usually tie up local distribution channels.
5. Government also product domestic breweries , such as in Germany where the Reinheitsgebot purity rules have protected indigenous beer for over 400 years.
Source: Anheuser- Busch (2007) via http://www.anheuserbusch.com/mediakits/08/08%20Top%2010%20Brewers%20Worldwide%20-%20Oct%2007.pdf
ABInbev Brand Portfolio
Budweiser brand is sold in North American Zone. The Budweiser family of brands had 11.6% share of the U.S. market and remained the number one brand in Canada. Budweiser is the number one beer in North America. Stella Artois Brand is the number one International beer brand in Argentina. Beck is the number one German beer in the world; Germany is the largest market grew in both volume and share.
SABMiller Brand Portfolio
SABMiller has an attractive brand portfolio that meets customer needs in different markets. The premium international beer includes Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch along with market leading local brands such as Aguila, Castle, Miller Lite, Snow and Tyskie.
Carlsberg Brand Portfolio:
Case 2: Imports of Alcoholic beverages are heavily taxed.
Scenario in UK
Source: Alcohol: Tax, price and Public health (2008)...