Alcohol Oil In Africa Case Study

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

     In this paper I will be talking about the U.S. beer industry and in short an overview of the brewing industry worldwide. I will talk about the barriers to entry, economies of scale, government intervention, pricing, current market trends, product differentiation, and imports. The focus being mainly on the U.S. brewing industry oligopoly. The U.S. brewing industry has three major players: Anheuser-Busch, SAB Miller, and Coors/Molson. Anheuser-Busch is currently the largest brewer in the world, producing over 100 million barrels a year. Anheuser-Busch currently owns over 50% of the market in the United States, with Miller trailing behind at 20% and Coors at about 11% with the rest of the market occupied by imports and craft breweries. When analyzing any industry, how easy it is for newcomers to enter the market is a great importance. If there are high barriers to entry

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

Our strategy is to have the best and necessary brands - Guinness Director. Vanguard, 2013. Vanguard News. [ONLINE] Available at: http://www.vanguardngr.com/2013/01/our-strategy-is-to-have-the-best-and-necessary-brands-guinness-director/

It is believed the amount of wines imported into Nigeria annually is in hundreds of millions of dollars, however, effort to gather the exact statistic has not been possible because wine import is grouped along with food and beverages. Liquor houses and bars are open year round. From an economic standpoint demand for wine and other western alcoholic beverages continue to rise as the standard of living improves.

With the poorer communities having so many liquor stores within their areas, many store owners are able to take advantage of the fact that can are able to sell alcohol at cheaper prices. If their alcoholic products have a very low price, then of course it would draw in a numerous amount of people. Having access to inexpensive alcohol is what people who live in impoverished communities tend to go for. Low prices are what drives people to come back into these stores to buy alcohol. In the article “Alcohol more available in poor, black areas” by Tana deLuzuriaga, she explains how malt liquor is being sold more in poorer, African-American communities. If businesses know the areas that are in poor condition and have a lot of people located there, then it makes it easier for store owners to put their establishments in those

distributors, brewers and retailers. A change suggested in Grolsch’s historic strategy is not to adapt the market completely in this case because it is an industry that gives importance to the country-of-origin. Markets Targeted: South Africa: Monopoly Market, No.1 SABMiller (Market Share: 98%) Brazil: Occupied by major Brewery Groups. China: Competitive Market. How to Compete: South Africa Brazil China Additional Line with SABMiller Co-Promotion with SABMiller

SABMiller and Diageo are two largest beer producer in Africa. ”SABMiller, if combined with its partnership with France's Castel Group, sells roughly 60% Africa’s beer by volume. Diageo’s also expands its operation successfully that Senator Keg, its supercheap beer, is also now number two most popular beers in Kenya. As these giant brewers monopolized Africa’s beer market, it can be said that the market has an oligopoly market structure, and both pursue identic operations, so the market can be labeled as competitive. The interdependence that is happening between both brewers makes the competition happens. As SABMiller produces Impala that is half price from its previous beer Manica, Diageo produces Senator Keg to balance it. Diageo

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 Irish whiskey industry in particular has suffered tremendously in the 20th century. in 1779, Ireland had 1,200 distilleries that accounted for nearly 60% of the world market. However, into the 80s, there were only two remaining distilleries. At its lowest point, Irish whiskey sales accounted for only 2% of scotch whiskey sales, and seemed that it would inevitably be obsolete. However, there was a

The management in Premier Drinks reports a recent substantial increase in competition in the local market by multinational companies. According to the report two foreign companies, one from Germany and one from Poland, have recently established operations. The report discusses the suspicions that local officials have accepted payment by the competitors in exchange for permission to sell their products in government buildings and sport events; many of these establishments have been previously inaccessible to Premier Drinks. The arrangements between local officials and the competitors correlate to the drop in sales.

iii. Import beer companies: These companies include Beck’s(Germany), Heineken (Holland) and Corona (Mexico). They control about 12% of the region’s market. However, these companies are seen to operate at disadvantage due to higher shipping costs, weaker distribution networks and an inability to control product freshness

Beer has a long history. In 2000 B.C.E., Sumerians had prepared eight different beer types, ranging from “strong,” “red brown,” and “good dark” (Mauk, 2013). Breweries have created their own recipes, brewed their own beers—some with alcohol, some without. Over the past few years, craft beer gained steady market share away from the national and international breweries (Murray & O 'Neill, 2012). Separating one beer from the next is the product itself, and what the product has to offer. Competition is ferocious due to more informed, sophisticated consumers, as well as globalization and the spread of technology (Murray & O 'Neill, 2012).

USL is the leading players in the liquor industry and is not only the best in India but it is known as one of the best in the world. With more than 140 brands of liquors, the company is known globally for McDowell’s No.1, Royal Challenge, Black Dog, and Signature Antiquity. The company has 59% market share.