Brazil Beer Industry Essay

• There is a change in consumers’ preferences in terms of drinking beer in stead of drinking wine, i.e. in Latin America.

Anheuser-Busch “is among the global company’s largest and most technologically capable breweries” (About, n.d.). On Anheuser-busch.com, you can find a lot of information about the company and their products. The headquarters of Anheuser Busch is located at One Busch Place St. Louis, MO 63118 (About, n.d.). The most known beer families that they produce are the Budweiser and bud light Family. There are numerous brands that Anheuser-Busch produces aside from Budweiser and Bud light. Initial searching for Bud Light Company because most of my family is enthralled by this beer, and upon further researching the beer brand, it was surprising to find that it was actually owned and manufactured by another company, Anheuser-Busch, that also manufactured

     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

In terms of quality, the company created a premium beer by its selective use of ingredients and less water. Boston Beer has won honors such as being the first American beer sold in Germany due to its use of only barley, yeast, hops, and water as its ingredients. With the increase in health consciousness among beer drinkers and the rise in more distinctive and flavorful brews, the Boston Beer Company has been able

Cerjugo SA is the largest manufacturer and distributor of beer in a country in Latin America.* Started in 1960, Cerjugo currently sells 360 million bottles of beer annually with revenues last year in excess of $200 million. Cerjugo employs 2500 employees and its four beer brands account for 98 percent of the market share. The beer manufacturer has been growing steadily with the GDP of the country thanks to little competition and no new entrants in the market. Cerjugo has its own distribution fleet and manufacturing facility, its entire customer base is local, and customers are loyal to the flagship brand.

AB executives sent a letter to Czech officials offering to invest capital on the Budejovicky brewery, but the response that AB got back was not positive. One of the things that contributed to this response was that Czechs considered that the name Budweiser meant more than just a brand name or trademark, they believe that it denotes a geographic area and subsequently indicates were the products is from.

You probably heard of Brazil but, do you know much about it? Brazil is a beautiful place or country, in South America. It’s great for tourists’ sites; it has amazing land features, and especially cool culture and history. Brazil has a tremendous amount of nature and folktale. Brazil was found actually, over 8,000 years ago. The Portuguese were the first European settlers to arrive there. The journey was led by Pedro Cabral who began in the 1500s. When they finally got there they found Native Americans living there. They were around the seven millions.

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.

Budweiser and Bud Light are the No.1 and No. 2 best-selling beers in the world. Miller, their closest rival maintains 22.1% of the market share. The following chart illustrates market share in 1999 for the nation’s leading breweries.

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

• There were more than 3500 brands of soft drink in Brazil, manufactured in more than 700 plants in 2004. From 1986 to 2003 nonalcoholic drink consumption lead to 11.6 billion liters with average year to year growth of 13.92%.

the product delivered to various markets nationwide, as well as help reduce the costs of moving

The Republic of Poland, also known by its shortened name of Poland, has strong ties to the United States. America has been a very powerful ally to Poland for many years. The spirits sector of Poland’s alcohol market is quickly growing with the vodka segment as one of the country’s largest sources of income. As a lucrative business already established in the US and attempting to enter Polish markets, we will enter a joint venture with Pernod Ricard, a very successful alcohol and spirits company with operations here in America and abroad in Poland. Through an in-depth look at Poland’s spirits market we will provide support for why we are choosing to enter Poland through a joint venture and how we plan to control our abroad operations. A strategic plan detailing how we will use our joint venture and then market, position, price, and promote our products are also included..

When looking at the economic aspects affecting the industry and Diageo the main concern is the market saturation reached in many of the developed economies worldwide. With demand remaining constant and competition increasing it is important for firms to identify new markets to invest in, with particular focus placed on Emerging markets. Another important development is the growth patterns in the alcoholic beverage market with the demand for beer increasing by 2.7% with particularly strong growth in the premium brands market. In contrast there has been a decline in demand for wine and spirits which are the industries that Diageo has a large market share. There has also been a recent reduction in operating profit of Diageo in Europe, which can largely be explained by the higher taxes imposed by governments who are striving to reduce alcohol consumption.

India is the second largest producer of tea in the world whereas Brazil is the number one country in terms of production of coffee. So, both the nations hold major stake in the beverage industry