...thousands of smaller producers. We estimate that the global beer market represented approximately 1.85 billion hectoliters in 2010, producing total global revenue of approximately $160 billion. The most dynamically growing regions have been Asia Pacific and Africa/Middle East, which have seen the highest real GDP growth. The highest density of breweries in the world, most of them microbreweries, exists in the German Region of Franconia, especially in the district of Upper Franconia, which has about 200 breweries. In 2012 the four largest brewing companies controlled 50% of the market: Anheuser-Busch InBev, SABMiller, Heineken International, Carlsberg Group. Using the PESTEL analysis, the political factors are the actions against overconsumption and the restrictions by government (prohibition, taxes), the economical factors are the cost reduction, rise prices of packaging, and economy crisis. The fitness and health, the face of customers drink more wine than before, and the demand for flavered beers are the social factors of beer industry. The technological ones are the new brands and flavors, the innovation in beer production, increase in efficiency, and the centralization of production and administration. The acquisition and mergers, the green companies, and the lower pollution are the environmental factors and the legal circumstances are the question of drink driving, the age restrictions, and the restrictions in advertising. To analyse the industry we used Porter’s Five...
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...Global forces and the European brewing industry Mike Blee This case is centred on the European brewing industry and examines how the increasingly competitive pressure of operating within global markets is causing consolidation through acquisitions, alliances and closures within the industry. This has resulted in the growth of the brewers’ reliance upon super brands. In the mid 2000s the major centre for production of beer in the world was Europe; its production was twice that of the USA, which in 2003 was the world’s largest beer-producing country. In the alcoholic drinks sector beer sales are dominant: total sales across the world accounted for 74 percent of all alcoholic purchases (Euromonitor 2002). Although the European market as a whole is mature, with beer sales showing slight falls in most markets, Datamonitor 2003 reported that the alcoholic beverage sector grew at an annual rate in value terms by 2.6 per cent year between 1997 and 2002. Table 1 European beer consumption by country and year (000 hectolitres ) |Country | |1980 |1997 |1998 |1999 |2000 |2001 |2002 | | | | | | | | | | | |Austria | |7651 |9145 |8736 |8810 |8762 |8627 |8734 | |Beigium ...
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...Strategy Advantages v Disadvantages 28 Space matrix 29 SWOT Analysis 30 IFE Matrix 31 Company Overview As the largest brewer in the world, Anheuser-Busch InBev (AB/InBev) has had quite an intense but creative history. In 1852, George Schneider, St. Louis brewer and saloon operator opened the Bavarian Brewery. Four years later, he expanded into a larger location for his brewery to operate due to positive production. However, shortly after the second opening financial problems resulted in Schneider having to sell his brewery to various owners. In 1860, as the brewery reached a worsening financial position, William D’Oench, a local pharmacist, and Eberhard Anheuser, a wealthy German-born soap manufacturer, purchased the brewery and saved it from bankruptcy (Anheuser-Busch, 2012). After nine years, D’Oench sold his half of the business and Anheuser became the sole owner of the brewery. Eberhard Anheuser’s son-in-law, Adolphus Busch, immigrated to St. Louis Missouri from Germany years prior to marry Anheuser’s daughter. Busch served in the American Civil War and shortly after that became a salesman for the Anheuser brewery. Adolphus Busch...
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...beer business is still in its infancy.”2 Grolsch had hitherto focused on developed markets, particularly the UK, US, Canada, Australia, New Zealand and France, in pursuit of its goal of becoming one of the world’s top 10 global beer brands. Groslch was already the world’s 21st largest global brand, measured by international (nondomestic) volume (see Exhibit 1). International volume had grown to account for slightly over onehalf of total volume and, going forward, seemed to offer much more potential. Drinkers often rated Grolsch higher than larger brands, including Heineken, the top global brand as well as the leader in Grolsch’s home market (see Exhibit 2). And Grolsch had started up a state-of-the art brewery in 2004 that could be expanded at little incremental cost. The acquisition closed and in February 2008, Grolsch became an independent subsidiary of SABMiller. Rob Snel, head of Grolsch International since 1999 and an employee since 1984, was named Grolsch’s new CEO shortly thereafter. He...
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...beer business is still in its infancy.”2 Grolsch had hitherto focused on developed markets, particularly the UK, US, Canada, Australia, New Zealand and France, in pursuit of its goal of becoming one of the world’s top 10 global beer brands. Groslch was already the world’s 21st largest global brand, measured by international (nondomestic) volume (see Exhibit 1). International volume had grown to account for slightly over onehalf of total volume and, going forward, seemed to offer much more potential. Drinkers often rated Grolsch higher than larger brands, including Heineken, the top global brand as well as the leader in Grolsch’s home market (see Exhibit 2). And Grolsch had started up a state-of-the art brewery in 2004 that could be expanded at little incremental cost. The acquisition closed and in February 2008, Grolsch became an independent subsidiary of SABMiller. Rob Snel, head of Grolsch International since 1999 and an employee since 1984, was named Grolsch’s new CEO shortly thereafter. He...
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...INTERNATIONALIZATION STRATEGIES FOLLOWED BY THREE MEXICAN PIONEER COMPANIES GRUPO MODELO, GRUPO BIMBO and CEMEX ISSUES AND CHALLENGES José G. Vargas-Hernández, M.B.A;Ph.D. Profesor Investigador miembro del Sistema Nacional de Investigadores Departamento de Mercadotecnia y Negocios Internacionales Centro Universitario de Ciencias Económico Administrativas Universidad de Guadalajara. Periférico Norte 799 Edificio G-306 Zapopan, Jalisco C.P. 45100; México Tel y fax: +52(33) 3770 3343 Ext 5097 josevargas@cucea.udg.mx,jgvh0811@yahoo.com,jvargas2006@gmail.com Mohammad Reza Noruzi, EMBA, PhD Candidate Policy Making in Public Sector Islamic Azad University, Bonab Branch, Iran Young Researchers Club Member, IAU Bonab, Iran Tell: +98- 412-7238893-5 mr.noruzi@modares.ac.ir mr_norouzi@pnu.ac.ir mr.noruzi.pnu@gmail.com Abstract The opening of the Mexican economy and globalization bring new opportunities for Mexican companies to expand their markets and get their products around the world. The internationalization process requires a sound strategy for the consolidation in foreign markets. The aim of this study is to analyze the different internationalization strategies followed by three Mexican companies with a global presence: Grupo Modelo, Grupo Bimbo and Cemex. We conclude that the differences in their strategies arise from the characteristics of each of these companies. Keywords: Mexican companies, strategy, expansion, internationalization. 1 INTRODUCTION The landscape of this...
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...Adriaan Heineken in Amsterdam. It owns over 190 breweries in more than 70 countries and employs approximately 85,000 people. Cruzcampo, Tiger Beer, Żywiec, Starobrno, Zagorka, Birra Moretti, Ochota, Murphy’s, Star and Heineken Pilsener are some of it’s well known brews all over the world. Milestones of Heineken history; 1864 Gerard Adriaan Heineken buys the Haystack brewery on February 15th 1873 On January 11, HEINEKEN’s Bierbrouwerij Maatschappij N.V (HBM) is established. 1889 HEINEKEN is honored with the "Diplome de Grand Prix" at the World’s Fair in Paris 1900 HEINEKEN imports first beer into Africa. 1932 HEINEKEN co-founds Malayan Breweries and starts to brew Tiger for the first time 1933 After 13 years of prohibition, Heineken® sets foot on American soil 1937 HEINEKEN’s Nederlandsch-Indische Bierbrouwerij Maatschappij, Multi Bintang, begins operation 1939 HEINEKEN is listed on the Dutch stock exchange 1946 HEINEKEN enters Nigeria 1968 HEINEKEN acquires Amstel, its major rival in The Netherlands 1974 HEINEKEN acquires a majority stake in the Dreher Group 1975 A new Dutch brewery opens in Zoeterwoude, the largest modern brewery in all Europe at the time. 1991 The former Amsterdam brewery on the Stadhouderskade is converted to a Heineken museum which was renamed Heineken Experience in 2001. 2003-20010 HEINEKEN acquires Brau Union in Austria, Romania, Hungary, Czech Republic and Poland, the Krušovice Brewery in the Czech Republic, Scottish&Newcastle and...
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...exported to India in the early days of the British Empire, including porter and India Pale Ale, also known as IPA. Although as alcohols are not unknown to India thousands of years ago.It is mentioned in some epics of India like The Mahabharatha, called "sura paniyam", which means a liquid that can potentially make the drinker unconscious. The first brewery in India was set up in Kasauli, in the Himalaya mountains, near Shimla, in the late 1820s by the Englishman Edward Dyer. Dyer's brewery produced Asia's first beer, called Lion. The brewery was soon shifted to nearby Solan (close to the British summer capital Shimla), as there was an abundant supply of fresh spring water there. The Kasauli brewery site was converted to a distillery which Mohan Meakin Ltd. still operates. Dyer set up more breweries at Shimla, Murree,Rawalpindi and Mandalay. Another entrepreneur, H G Meakin, moved to India and bought the old Shimla and Solan Breweries from Edward Dyer and added more at Ranikhet, Dalhousie, Chakrata, Darjeeling and Kirkee. In 1937, when Burma was separated from India, the company was restructured with its Indian assets as Dyer Meakin Breweries, a public company on the London Stock Exchange. Following independence, in 1949 N.N. Mohan took over management of the company and the name was changed to Mohan Meakin Ltd. The company continues to produce beer across India to this day and Lion is still available in northern India. Lion was changed from an IPA to a lagerin the 1960s, when due...
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...rP os t 9-207-039 REV: JUNE 28, 2010 BELÉN VILLALONGA RAPHAEL AMIT SUN Brewing (B) op yo In late July 2004, Nand Khemka and his sons Shiv and Uday assembled in Paris to discuss their holdings in SUN Interbrew Limited (SIL), a leading Russian beer producer. SIL was a joint venture formed in April 1999 between their beer company SUN Brewing and Belgian beer giant Interbrew.1 SUN Brewing was part of SUN Group (SUN), an international commercial and investment group owned by the Khemka family. SUN’s shareholders were firm believers in the long-term growth potential of the Russian beer market and in the value creation potential of SIL. The family was extremely pleased with the recent success of the management team led by Joe Strella and felt they shared a common vision with the shareholders and management of Interbrew. However, the last few months had led SUN to consider carefully the situation in which they found themselves. First, the Alfa Group, a large financial and industrial conglomerate in Russia, had accumulated 15.8% of the voting stock in SIL, thereby becoming the third largest voting shareholder in the company.2 Alfa had approached both Interbrew and SUN separately and had expressed their desire to buy out SUN’s interest and to become a partner with Interbrew in the future growth of the business. SUN had also been approached by Interbrew about buying SUN’s stake. tC Although the family was keen to remain a long-term shareholder in the business, the present situation...
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...Analysis A. Strengths and Weaknesses B. Opportunities and Threats IV - Marketing objectives V - Marketing strategies A. Target markets B. Marketing Mix 1-Product 2-Pricing 3-Distribution 4-Promotion VI - Implementation - Marketing structure Bibliography I. Intro on company Heineken N.V. has wide international presence through a global network of distributors and breweries. It owns and manages one of the world’s leading portfolios of beer brands and is one of the world’s leading brewers in terms of sales volume and profitability. Its principal international brands are Heineken and Amstel, but the group brews and sells more than 170 international premium, regional, local and specialty beers and ciders, including Cruzcampo, Birra Moretti, Foster's, Maes, Murphy's, Newcastle Brown Ale, Ochota, Tiger, Sagres, Star, Strongbow and Zywiec. [3] Heineken has the widest presence of all international brewers, thanks to their global network of distributors and 125 breweries in more than 70 countries. The Heineken brand is positioned as a premium brand all over the world except for its domestic market, the Netherlands. History The Heineken story began more than 140 years ago in 1864 when...
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...growww.businessmonitor.com Q4 2010 AUStrALiA food & drink report INCLUDES 5-YEAR FORECASTS TO 2014 iSSn 1749-2580 published by Business Monitor international Ltd. AUSTRALIA FOOD & DRINK REPORT Q4 2010 INCLUDING 5-YEAR INDUSTRY FORECASTS BY BMI Part of BMI’s Industry Report & Forecasts Series Published by: Business Monitor International Copy deadline: July 2010 Business Monitor International Mermaid House, 2 Puddle Dock, London, EC4V 3DS, UK Tel: +44 (0) 20 7248 0468 Fax: +44 (0) 20 7248 0467 Email: subs@businessmonitor.com Web: http://www.businessmonitor.com © 2010 Business Monitor International. All rights reserved. All information contained in this publication is copyrighted in the name of Business Monitor International, and as such no part of this publication may be reproduced, repackaged, redistributed, resold in whole or in any part, or used in any form or by any means graphic, electronic or mechanical, including photocopying, recording, taping, or by information storage or retrieval, or by any other means, without the express written consent of the publisher. DISCLAIMER All information contained in this publication has been researched and compiled from sources believed to be accurate and reliable at the time of publishing. However, in view of the natural scope for human and/or mechanical error, either at source or during production, Business Monitor International accepts no liability whatsoever for any loss or damage resulting from errors...
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...The increasingly globalized economy has created boundless opportunities for firms to expand and concurrently forced them to improve their comparative advantage by integrating with each other. Today, cross-border mergers and acquisitions (M&A) have rapidly increased, reshaping corporate leadership and unlocking corporate value. The Thai billionaire Charoen Sirivadhanabhakdi’s takeover of Fraser and Neave (F&N), the largest region takeover, has illustrated the strategic corporate governance of both the acquirer and target firms, the reaction of their leaders and the evaluations of F&N’s worth. Furthermore, this transaction also had significant impacts on various key stakeholders – F&N’s Board of Directors, TCC Assets Ltd and Thai Beverage PCL, Overseas Union Enterprise (OUE), and other F&N’s shareholders such as Kirin Holdings Co. Nowadays, most corporate leadership consists of two main management bodies, which are the Board of Directors and the Board Executive Committee. In F&N, Board of Directors acts as a crucial internal governance to set strategic directions, to oversee management and most importantly, to protect the interests of its shareholders. During merger transactions, they are supposed to monitor the transactions so as to maximize its shareholders’ wealth. In October 2012, F&N directors rejected Mr Charoen Sirivadhanabhakdi's takeover offer because the offer price of $8.88 per share (which valued F&N at S$7.2bn) is at the low end of the...
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...Heineken Brewing Company Case Study MBA650 Business Policy John Barber Abstract Heineken is a major competitor in the mass production beer industry. The firm is facing internal and external environment challenges which are affecting its sales and profitability. The corporation is involved in a competitive, concentrated, and differentiated industry that has allowed major rivals to achieve growth through mergers and acquisitions. The case study addresses the issues that the organization is encountering. The company is facing declining sales due to changing consumer tastes and increased competitive pressure. Heineken is attempting to increase sales and retain its position as a premium beer, but is faced with a lack of support from two key demographic groups which includes Hispanic American's and young Americans (Dess, Lumpkin, Eisner & McNamara, 2012). A case study of the firm, and its market environment, utilizing value chain analysis, and Porter’s Five Forces was conducted. Recommendations and alternative strategies were developed to increase the position of the Heineken brand and regain sales from Hispanic Americans and young Americans. The implementation of the recommendations and alternative strategies may increase Heineken’s opportunity of sustainable long term growth within the industry. Introduction Heineken is the third largest brewer in the world and currently distributes more than 170 brands of beer in over 150 countries worldwide. However, over the past...
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...S T R A T E G Y – II S T R A T E G Y – II S T R A T E G Y – II S T R A T E G Y – II S T R A T E G Y – II www.ibscdc.org 1 Transformation Corporate Transformation Korean Air: Chairman/CEO Yang-Ho Cho’s Radical Transformation A series of fatal accidents, coupled with operational inefficiencies snowballed Korean Air into troubled times. Then, at the beginning of the 21st century, its CEO/ Chairman, Yang-Ho Cho undertook various transformation initiatives - for instance, improving service quality and safety standards, technology integration, upgrading pilot training, better business focus; putting in place a professional management team, improving corporate image through sponsorship marketing, etc. He gave a new corporate direction in the form of '10,10,10' goal. However, Korean Air is held up by a slew of challenges. Among which are inefficiencies of - Chaebol system of management, possible clash of its cargo business with its own shipping company, limited focus on the domestic market and growing competition from LCCs. How would Korean Air manage growth as a family-owned conglomerate? The case offers enriching scope for analysing a family business’s turnaround strategies, with all the legacy costs involved. Pedagogical Objectives • To discuss the (operational) dynamics of Korean Chaebols - their influence/ effects on the country’s industrial sector and the economy as a whole • To analyse how family-owned businesses manage the transition phase - from a supplier-driven...
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