Beer Industry Austlia Market Mix Essay

Investors for Craft Brewery Start Ups _______________________________________________ 24 Craft Beer in a Tin initiative:_______________________________________________________ 25 Corporate Social Responsibility ____________________________________________________ 26 Economics of Beer: _______________________________________________________________ 28 Building a Craft beer brand: _______________________________________________________ 29

Molson Coors is a thriving international brewing company that has nine Signature Brew drinks and 123 Special Brew drinks that ranges from non-alcoholic to alcoholic (Molson Coors Brewing Company, 2016b). They have multiple markets around the world which contributes to the success of the company in the brewing industry. This report analyzes Molson Coors’ internal and external environments which determines their position in the brewing industry. It also discusses strategies the company uses in order to be successful in their industry. Molson Coors shares the industry with its main competitors but has its own uniqueness that makes its business stand out. Molson Coors is a successful business that presents opportunities for economic growth.

Brisbane Brewing Co has had a huge impact on the Australian population as well as the population in other countries in which it operates because it is a large employer and retailer of breweries such as alcoholic and non-alcoholic drinks. Due to its size and business scope it affects the lifestyles and lives of the people in the areas it operates. On the other hand beers are turning of and wines are becoming more popular, awareness on the effect of alcohol, decline of consumption on- trade in bars and restaurants and increase of off- trade.

Over the last twenty years, there has been a craft beer revolution and the New Belgium Brewing Company has been at the forefront of this evolution within the beer industry. Throughout the history of business, there has been “Blue Oceans” created within the larger established “Red Oceans”. “Blue oceans denote all the industries not in existence today—the unknown market space, untainted by competition” (Kim & Mauborgne, 2004). The craft beer market is considered a blue ocean because it was an untapped sector of the beer industry, which has created a new market space within the beer industry.

PESTEL will be used to examine Cobra beer’s macro environment. PESTEL allows organisations to be attentive to what is occurring in the world in their specific industry (Grant, 2016). PESTEL involves looking at the political, economical, social, technological, legal and environmental factors (PESTEL Analysis, 2013).

ABL recently acquired several coffee bean businesses to capitalise on the growth of the coffee market in Australia. (Exploring a new product idea Ready to drink chilled coffee)

Lager beer has traditionally been the product of choice for most of the pre and post WWII era consumers, mainly competitor Kirin’s customer base, but that segment has diminished resulting in a younger generation of beer drinkers preferring a variety of products including draft and dry beers. This has been proven through consumer research and taste tasting trials. It should not to be presumed that lager beer is obsolete has demonstrated by Kirin’s dominance of that market segment from the 1988

The brewing industry is interesting to examine due to its relatively unique structure. Up until November 2015, the market was dominated by four main players, known informally as the “Big Four”. AB InBev was the largest, followed by SABMiller, Heineken and Carlsberg. In November 2015, however, ABInBev and SABMiller agreed a formal $107 billion takeover deal, combining the brewers into a company which industry experts claim would control around half of the industry’s profits (Mickle, 2015). As a result of the sheer size and complexity of the merger, it is anticipated that the deal will not be finalised until the second half of 2016 as ABInBev must negotiate with anti-trust regulators around the world with respect to their potential monopolistic position. As the deal is yet to be completed, this report will analyse ABInBev independent of SABMiller.

Around the late 1800’s the birth of modern beer took place in response to commercial refrigeration, pasteurization, automatic bottling and railroad transportation. Before the “Modern Era” the average person only had access to beer through taverns because it would have been too costly to individually bottle. They were stored in large barrels for the tavern and had a finite shelf life. Transportation was also an issue before railroads because the large barrels were burdensome to transport. Due to the hassle and cost of transportation, it was rare to see beer outside town limits. In the modern era, beer could be bottled cheaper and pasteurized so it could survive a longer rail journey in less than ideal temperatures. Beer was

The Michigan Future Business Index has pointed out the optimism business owners in Michigan feel in regards to the state’s future business climate. Nearly two-thirds of business owners feel that Michigan’s market is in a good place for products and services. The report indicated Northern Michigan is strongest for hiring and keeping talent for their employees. Nearly two-thirds or 63 percent believe sales in Michigan will increase in the course of the next six months.

The market that is dominating the brewing industry is the micro brewers. This group has found a niche market in the beer industry and has steadily driven the market share upwards. These companies normally target the smaller market segments and do not try to compete with the large industry brands. To achieve such successful profit margins, the micro brewers have the production process under contract with a regional brewer (Overview of the U.S. Beer Industry, 2005).

As markets depend on customers and customers may differ in one way or another, they may differ in their needs, wants, their resources, locations, buying practice and attitudes (Kotler, et al., 2008, pg410).The business can find who their customers are in each market segment, by drawing a customer profile that can be performed by market research.

In recent decades the brewing sector, despite its long tradition as local industry, has start to follow the increasing internationalization of economic activities and the globalization of markets, becoming now a global market governed by cross border takeovers and growth through acquisitions.

Unfamiliar cultures/language: Although both Heineken and Carlsberg are considered foreign multinational companies, there are still differences in corporate governance and culture between the two firms, which might create barriers for a successful partnership. Moreover, the difference in culture between the two local JV company (Alliance Brewery Company and Golden Star Group) will make the alliance more complicated. The difference in language used for these 4 parties (English or Dutch for Heineken, Danish/English for Carlsberg, and Burmese for Alliance Brewery Company and Golden Star Group) will create additional trust barrier during the negotiation process.

As markets depend on customers and customers may differ in their needs, wants, their resources, locations, buying practice and attitudes (Kotler, et al., 2008, p. 410). The business can find who their customers are in each market segment, by drawing a customer profile that can be performed by market research.