Case Study : Brisbane Brewing Company

In 1844, the Empire Brewery was founded by Jacob Best and his sons in Milwaukee, WI. In 1860, Jacob’s son Phillip took over and renamed the brewery the Phillip Best Company. Phillip’s daughter, Maria married a steamship captain, Frederick Pabst. Captain Pabst sold his shipping interest and bought a partnership stake in the brewery. In 1872, Captain Pabst became President of the company. In 1889, he renamed the business the Pabst Brewing Company.

     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 a world where large, corporate breweries rule the market, craft beer is created to please an audience that applauds the styles, techniques and flavors. Though craft beer can be purchased through several different outlets, the best place to thoroughly enjoy the entire experience of the specially made beer is in the brewery where it was made. The article titled, “In Lean Times, a Stout Dream” in The Wall Street Journal1 states that, despite the hard economic times and consequent consumer cutbacks, sales of craft beer, the industry 's fastest-growing segment, rose

Lazy Magnolia Brewing Company, located in Kiln, MS, is the first microbrewery in the state and specializes in manufacturing and distributing beers with distinct southern flavors. The brewing company, established in 2003, has found success within its home state and also within restaurants and retailers situated in eighteen more states including the surrounding southern states and states as far north as New York and Illinois according to its website, Lazymagnolia.com. The following SWOT analysis will evaluate the internal strengths and weaknesses of the company as well as the external opportunities and threats experienced within the market and business environment.

Beer is the number one most popular alcoholic beverage in the world, dating back to 2050bc beer was first brewed in a Sumerian city of Iraq, this was called “Alulueer” meaning best beer. In the current times we live in not too many don’t know the main Australian beers such as fosters, victoria bitter and 4X gold, these bring upon the stereotypes of Australians being loud and heavy drinkers. Australians have had beer in trade and for personal use since the moment the settlers turned up in Australia in 1788. Captain cook brought beer on his ship “The Endeavor” as a matter of preserving drinking water. Modern Australian beer is typically lager, lager wasn’t produced in Australia until 1885.

Lazy Magnolia Brewing Company, located in Kiln, MS, is the first microbrewery in the state and specializes in manufacturing and distributing beers with distinct southern flavors. The brewing company, established in 2003, has found success within its home state and within restaurants and retailers situated in eighteen more states. These locations include the surrounding southern states and states as far north as New York and Illinois according to its website, Lazymagnolia.com. The following SWOT analysis will evaluate the internal strengths and weaknesses of the company as well as the external opportunities and threats experienced within the market and business environment.

For many years, beer companies had faced many economic challenges. In economic sphere, the beer company has reached a maturity stage and the growth has been moderate. In this maturity stage it is very hard for any one company to takeover the market form its competitors because of the tremendous competition. Expanding into foreign market is also one of the concerns for Canadian companies in this era. But apart from this there are some facts, which reflect the bright side of the beer economy in the Canadian industry and those are

Drinking underage has only recently increased in the last two decades as the media and alcohol manufactures and companies have portrayed it as “fashionable”. These negative impacts from the consumption of alcohol also have many health impacts on the young drinkers. These young drinkers have been influenced to drink from the older generations. Australia’s younger generations should be waking up sober. As well as not being influenced by society to binge drink. Because its becoming a large hangover for there

Foster’s is an iconic internationally distributed Australian brand of lager that has an honor of being "Australia 's Original Lager”. However, it is not an Australian beer – the amber nectar is in fact made in Manchester. It is the world’s third most widely distributed brand of a light color lager, bottom-fermented with a smooth flavor and easy-drinking quality. It is owned by the British brewing group SABMiller, and is brewed under license in 9 countries at over 20 plants The unique flavor of Foster 's Lager, Often known as the Australia 's best beer, is the result of the choicest of malt, sugar, hops and brewing yeast. It is in fact the largest selling Australian beer. The product is 4% ABV in Europe, 4.9% ABV in Australia, and 5% in the US. This beer is developed using innovative process of ultra-high gravity brewing. Fantastic Value, Extending tastes, Geographical signatures, easily accessible and innovation, new styles and varieties allows the product to have an edge over other competitor in the industry.

Belgium is home of the finest ales and have been known to brew for centuries. So when Jeff Lebesch, an electrical engineer from Fort Collins, Colorado took a bicycle trip through Belgium it made him realize there may be a market back home to sell Belgian-style ale. Jeff returned home with hopes to experiment and brew his own beer in his basement from the various ingredients he received on his trip. When his friends approved of the ales he started marketing them to the local town. He later opened New Belgium Brewing Company in 1991. His wife, Kim Jordan was the company’s marketing director. They named their first brew “Fat Tire Amber Ale” after Jeff’s

As the world’s largest brewer, AB Inbev has the ability to compete in new and foreign markets as a strong threat. Due to their enormous capital and expansion-based strategy, they can enter any market as a challenger and shutdown competition to become the leading brewer in this market. As an aggregated note we can also see this in domestic or already dominated markets because due to economics of scale they can achieve differentiated products at a low cost.

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.

Although sales of premium brands have fallen in a steady response to the growing popularity of the craft beer. The industry revenue has been stable over the past 5 years. As a result, from 2011 to 2016 the industry revenue is expected an increase and growth annually at 6.7 percent over the five years,with a total of $39.5 billion . (IBISWorld iExpert) In the long-term, these numbers are expected that grow 0.9 percent annually within the next five years. The potential growth will be seen in the traditional and premium beer sector. As a response, the giant companies in the industry Anheuser-Busch InBev and MillerCoors look forward into the merges and acquisitions as a strategy to maintain market dominance. The strategy is based on the

|The global beer industry is dominated by large corporations who have merged with rivals to increase their global and domestic market share. |

Recently, there have been increasing trends of younger customers consuming alcoholic beverages. With improvements in economies, education and technology, younger