Alchocol in China

• The demand of American beer has been increased in Europe, Asia and South America.

Light beer sales have increased at a compound annual rate of 4% over the previous six years. Traditional premium beer sales have also declined annually by the same percentage.

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

Guo then introduced Canada to Yanjing’s alcoholic beer by 2007 after they granted Guo the right to represent their imported alcoholic beer and hard liquor. (Pg. 2) By 2009, Yanjing had received exclusive importer rights and sales agent status in Canada due to Guo’s hard work promoting the product to restaurants and grocery stores.

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.

This industry has seen very limited growth since 1986. Based on Exhibit 4 (C-271, the total wine consumption in the US) and Exhibit 5 (C-271, per capita wine consumption in the US) the wine industry is in the maturity stage. It could

2》 Other beer brands have occupied large market capacity, market share of Carlsberg and Budweiser far exceeds that of Tsingtao beer

India is a major manufacturer as well as a major importer of soft drink beverages. The 50 Billion soft drink market is at an annual rate of 28-30% for

China has become the second beer market in the world today. Tsingtao Brewery is the top beer manufacturer in China. The Tsingtao Brewery was founded in 1903 by German settlers in Qingdao, China.

table wine grew 22 percent, while over the same period inroads made by wine imports

China is more open now, we understand more western culture, and there are so many choices in the market so that we are not as loyal as in the old days. Cognac brand should try to create a close relationship with consumers. For example, build brand house, brand club, to educate, and to train consumers to become loyal fans. Don’t distribute only in those liquor shops or supermarkets, cognac should build its own specialty brand shop. Consumers will find the sense of belonging when shopping in a brand shop.

The uncontrollable factors such as the Chinese economy, political climate, technological, socio-cultural and legal factors are first extrapolated showing that China is the second largest economy in the world and plays an influential role in the global economy. The robust economy has given rise to high levels of disposable income, leading to increased demand for foreign products, and in particular, Australian wine. Politics and the economy are closely inter-related, with the Chinese

Porter’s Five Forces is used to assess the attractiveness of the market. The market environment forms part of the external environment. Mr Price has no control, but some influence on the market environment. Porter’s looks at: The level of rivalry in the market, the threat of new entrants that may join the market, the power of suppliers and the power of buyers.

The bargaining power of buyers is affected by the concentration and number of consumers, when buyer power is strong, they gain the power to choose between producers and ultimately equip themselves with bargaining power which then the producers will have to conform to in order to produce profit, under these conditions the buyer has the most influence in determining the price of products. Also when buyers have strong bargaining power in the exchange relationship, competition can be affected in several ways. Powerful buyers can bargain for lower prices, better

Obviously, China is a huge market for fast food industry. China’s food industry has a positive growth of over 10% over the previous 18 years