A Global Alcohol Industry

Bonny Doon Vineyards, a successful winery business based in Santa Cruz, California, has grown from selling 5,000 cases of wine a year in 1981 to 200,000 cases a year in 1999. To keep growing and be more profitable, the business must choose amongst three possible strategic directions. The first strategy is to start importing wines from Europe into the United States. The second alternative is branching into a retail outlet for unusual wines of great value, accompanied by a high level of service. Lastly, the business’ D.E.W.N could be expanded to include wines not made by the company itself but by other wineries that follow the same values and philosophy.

The structure of the wine industry is quite different around the world. The barrier to entry is relatively higher in the New World than in the Old World. Referring to the market data on the level of concentration in 1998, people can see a few players dominate the markets in Australia and the U.S. while the level of concentration is quite low in Europe. Therefore, the rivalry in Old World is intense there.

The premium wine segment is quite concentrated with high barriers to entry making mergers and acquisitions a strong and prevalent growth strategy. With industry analysts forecasting the demand for premium wine to grow at 8% to 10% per year, many former non-rivals are now becoming a threat. Jug wine producers are entering the premium market and beer and spirit producers

The buyer’s power within the wine industry varies between different places in the world. There are for example strategic differences between Europe and the “New World”. The “New World” includes countries like the US, Australia, Chile and South Africa. In Europe there is a big competition

Political –Governments tend to exercise significant control over beer as it contains alcohol which has caused many problems in society and has addicted people. This attention from the government will affect Heineken in sale volume in the market. Many governments have imposed heavy taxes on liquor and beer imports, and with globalisation many brewers are looking for new markets where they can gain maximal profits. This proves to be a threat for Heineken. Heineken must conduct thorough research on countries policies on alcohol such as drinking in public, alcohol contents in drinks, legal drinking ages and must strategically plan their integration into these markets based on the research.

The collaboration is well thought in the food aspect of the industry, if they would just do the same in their wine marketing it can really boost sales in reference to the consumer, while also generating more spending with wine vendors can also maintain to drive down cost per unit.

In the article, it talks about the growth of alcohol consumption of 15% over the decade through 2015. Population growth is the primary driver and well as generational effects as American millennials. These millennials are more interested in cocktails and craft beer that major liquor companies put the U.S. front and center of their strategies. But it also explains that as the new generation takes over, the liquor sales will slow to just 0.2%. The new generation drink less due to increased pot smoking. Therefore, these liquor businesses need to plan for a soberer future.

Hammond, D., Fong, G. T., Mcdonald, P. W., Brown, K. S., & Cameron, R., 2004, American Journal of Public Health, 94(8). Copyright 2006 by American

Everyone has choices. Everyone should be given the right to decide what is best for their well-being and enjoyment. If one is presented with temptation, then the individual should also be presented with the pros and cons of the temptation in order to make an educated decision.

In 2001 there were over 1 million wine producers worldwide, and no firm accounted for more than 1% of global retail sales. Because of this, it would be nearly impossible for the Robert Mondavi winery to dominate sales in any region. Due to Mondavi’s efforts, the winery became one of America’s most innovative,

The United States wine industry is a 12 billion dollar industry and is composed of 7,000 wineries and around 1,800 different companies. The three major companies within the industry are Constellation brands, E&J Gallo, and The Wine Group Inc. The industry has made its way through the economic crisis at a better rate than some of the other U.S industries however in order for them to continue to see any type of growth it is important that they acknowledge their issues and find ways in which they can rectify them. The majority of the issues among the industry are problems that cannot be directly controlled by individual wine companies. Therefore it is imperative that wineries find away to use these issues to their

As we all know, alcohol is a product that has provided a variety of functions for people in the world. Alcoholic beverages have been consumed by humans in the very early time, they were one of the most popular drink and have been widely used in everywhere of the world. Also they were used medicinally, chemically, physically and so on.

Argentina is the second largest country in Latin America, and its economy has been increasing for more than ten years since the recovery in 2001, moreover, the Argentine government also started some policies to renew the customers and inventors’ confidence in 2010 while experiencing a new record in economic recovery, thus in this case, the new target market is aimed at Argentina since its marketing is booming with resurgent economy. Moreover, as a top 5 wine business of the world, the alcoholic drinks industry can fully take

Economists assume consumers of alcohol are rational beings capable of responding to incentives and disincentives on decisions about its consumption ADDIN EN.CITE Gwartney2008465(Gwartney, Stroup, Sobel, & Macpherson, 2008)4654656Gwartney, J.D.Stroup, R.L.Sobel, R.S.Macpherson, D.A.Economics: Private and Public Choice2008United StatesSouth-Western Cengage Learning9780324580181http://books.google.co.ke/books?id=yIbH4R77OtMC( HYPERLINK l "_ENREF_2" o "Gwartney, 2008 #465" Gwartney, Stroup, Sobel, & Macpherson, 2008). An economist will formulate policy to guide in solving the problem of alcohol abuse reducing the benefits associated with alcohol consumption. The assumption of ceteris paribus (all things remaining constant) will be used to determine and influence individual choices surrounding consumption of alcohol. Marginal changes in the levels of alcohol consumption are evaluated against marginal changes in the factors influencing consumption of alcohol. An individual's choice to consume a unit of alcohol is evaluated against price and the income earned.

|After seeing a reduction in gross profit in 2008 Grupo Modelo recovered and increased their gross profit 10.6% in 2009. However, Grupo |