Government European are
strongly against drunken
Economic crisis in Europe (-)
Pub (retailer) are closing
assively in Uk (and Europe) (-)
Rate Beer consummation per
capita decrease but varies
widely between countries
Development of BRIC and US
Increasing awareness of the effect
affect on health and fitness: “Binge
Wine is becoming popular in
northern countries (-)
The of trade is increased from 63
of volume (2000) to 67% in 2008
whereas pub decrease (-)
Demand is changing (premium
product, falovor beers) (+)
the European commission
fined several brewer for price
Law against drunk driving (-)
Restriction on this age of the
Innovation to improve
Improve in packaging (+)
POTENTIAL NEW COMPETITORS
The threat is very low:
The Market is very concentrated
You can”t make economy of scales
Need strong brands
Access to supply and distribution channels
Differentiation and market penetration costs
But some German retailer have success with their own
The bargaining power of customer depend of the
Off Trade is more and more present (63% of volume,
67% in 2008) and have high bargaining power (Huge
international companies, Market increasing, they can
create their own brands, can cut prices…)
On trademarked have a less important Bargaining
power because they are smaller and represent a less
Industry knows more and more alliances and closure.
Nowadays, the suppliers are bigger, and the market is
The Ten bigger companies accounted for more than 60%
of the world share market
even in Europe where there were many small players, the
market is heavily concentrated (2000: top 2 player 19,3%
and int 2009 they take 28,5%
The main purchasing cost for Brewers are
packaging (50% of non labor cost), barley and
Packaging company belong to international
companies and it’s a market very concentrated
For Example there is manly Crown and Owen
illinois for glass bottle
There are only 3 can maker In England
Wines become popular in Northern European
HOW THIS TRENDS WILL IMPACT
DIFFERENTLY ON THESE DIFFERENT
The company Anheuser -Busch InBev was located mainly in
Europe and choose to developed itself through various
acquisition on new developing market.
The company has developed a significant market position. It is also present on an international level. It has nearly 300 brands. Now, they are present on developing market, The company wants to continue its increasing to become the largest brewery in the world and the Best, by improving efficiency, margin and
creating global brands (central coordination of procurement, new media technologies, network optimization brewery, improved margins).
The company Greene King acquired the competing brands in
Europe and concentrated its production in just one site. Its strategy is to acquire as more as possible brands and then
keep only the leading brands. They kill minors brands, and
close breweries. All their product are produced in their brewery in Saint Edmunds.
They are only present on European market, and face to its
decrease, the company choose to improve the quality of its
beer with a portfolio of targeted brands.
But they also developed Its owns retail network (2000 pubs) and restaurants in order to diversify its activity.
Tsingtao is a Chinese beer brewer.
They are present in China (the largest market in the world) with 13% market share.
However they chose to penetrate other markets, like the United States or...
Please join StudyMode to read the full document