Alcohol Industry, External Environments Essays

2664 Words Jun 7th, 2011 11 Pages
Diageo is a company that produces and distributes alcoholic beverages. Its products include all three branches of this industry – spirits, wine and beer. The brands that the company produces include well-known names like Smirnoff, Johny Walker scotch whiskey, Baileys, Captain Morgan rum, Tanqueray gin, Guiness beer, Don Perignon champagne, and many others. One can find the products produced by this company in nearly 180 countries all around the world. The company’s offices are located in 80 countries and employ 20,000 people. Manufacturing facilities are spread out all around the world, including Great Britain, Italy, Australia, Latin America, Canada, Ireland, United States, Caribbean and India (Diageo, 2011).
Every company experiences
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The growing number of Hispanic population increases demand for the liquor that is typical for that area, like tequila.
It is very important to always target different age groups while conducting a marketing campaign or advertising. Different age groups have different product preferences and different spending habits. The wine producing segment of Diageo, especially the premium wines, is going to benefit from the increasing numbers of consumers in the over-55 age group. Increasing number of young legal-age drinkers will contribute to the increase in beer consumption (Kwon, 2010).
In general, mature consumers drink moderately, and are very conscious about alcohol abuse and drunk driving.
Governmental environment
The United States government controls sales and marketing of alcoholic beverage products, collects taxes, and works on reducing underage drinking. Alcohol and Tobacco Tax and Trade Bureau is the main federal agency involved in the alcohol policy. It regulates labeling, packaging, advertising and is responsible for product approval (Alcohol and Tobacco Tax and Trade Bureau, n.d.).
All alcoholic beverage businesses have to get the authorization to produce and sell from Alcohol and Tobacco Tax and Trade Bureau under the Federal Alcohol Administration Act. Some of them also have to be authorized under the Internal Revenue Code. Before starting manufacturing, distilled spirits plant, brewery or winery have
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