East African Breweries : Company Profile Essay

Dutch Bros. Coffee objectives are to generate a steady stream of revenue through the business to Consumer (B2C) coffee services industry. The goal is achieved by maintaining a low cost to develop & maintain their business through small franchise establishments that service a massive volume of customers.

     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

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

The Coors Brewing Company was founded back in 1873 by two German immigrants Adolph Coors and Jacob Schueler. The two combined invested $20,000, $18,000 of which came from Schueler and the other $2,000 from Coors. The location of the brewery was in the mining town of Golden, Colorado. This location was picked because Mr. Coors believed the key ingredient in beer was the water source. The river that flowed through this mining town was perfect for his beer. The two investors worked together for seven years until Coors bought out Schueler and became the sole owner of the brewery in 1880. When prohibition finally hit Colorado in the year 1916, Mr. Coors was forced to find other means of making money. The brewery was converted to produce malted milk which he would then sell to candy companies. Four years after Adolph Coors passing, in 1929, prohibition is ended and his son, Adolph Coors Jr., takes over the family business. The distribution range of the company quickly expands and by 1948, it stretches across 11 states. It would remain this way for almost 30 years before they start to expand to try and reach a nationwide audience. In 2005, now in its fourth generation of Coors family management, the Coors Brewing Company votes to merge with Molson Brewing Company in Canada to form the Molson Coors Brewing Company. Together they are the world’s seventh largest brewer. Two years later

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.

New Belgium brewery has increasingly grew throughout the years since their development in 1991. Despite the dominance of the “Big Three” (Budweiser, Miller, and Coors), NBB needs to be aggressive and strive to invest in the attractive beer industry in able to grow more. If positioned correctly, NBB and its main brand, Fat Tire, can continually grow. An evaluation of the industry, the business itself, its brands, and the customers and competitors is needed in order to be continuously successful.

Anheuser-Busch Inbev is one of the largest breweries in the world. “Currently, Anheuser-Busch InBev has a product list of more than 200 beers, including global best-sellers Budweiser, Stella Artois, Beck’s, multi-country brands like Leffe and Hoegaarden, and strong “local jewels” such as Bud Light, Skol, Brahma, Quilmes, Michelob, Harbin, Sedrin, Cass, Klinskoye, Sibirskaya Korona, Chernigivske, and Jupiler, among others that have helped to make the company so successful. In addition,

ABInBev is a multinational beverage and brewing company based in Belgium. It is the largest brewer in the world with a 20.8% market share (Statista, 2016) and is also one of the world’s top five consumer goods companies.

ABI is one of the main soda pop organisations in the universal SAB Miller plc gathering of organisation and stays one of the biggest creators and suppliers of the Coca-Cola company brands in the southern side of the equator. Moreover ABI is committed to being a coordinated non-alcohol refreshment organization and persistently looks for chances to assemble stunningly better associations with clients, customers and the more extensive

Despite the dominance of Carlsberg, in its annual report BGD could lay claim to being the largest Scandinavian beer exporter. This was because Carlsberg placed emphasis on licensing agreements or local production for its foreign markets, while BGD’s strategy was export led: ‘Eighty-three out of every hundred bottles of beer that we produce are sold in foreign markets.’ By 1995 the percentage of export sales by region of the world was as follows: western Europe 63 per cent, the Americas 10 per cent, eastern Europe 22 per cent, others 5 per cent. The development of BGD’s operations in some of these markets is now reviewed.

W’UP Bottlery is one of the four bottling company which produces and distributes Coca- Cola and

Diageo is the world’s leading premium drinks company. It has more category leading brands than any other drinks company and market leadership in many of the major growth markets around the world. Diageo’s unique STP strategy has allowed it develop into a globally renowned brand with an operating profit of over £2 billion in 2005. With its headquarters in London, Diageo has experienced rapid expansion with over 80 offices worldwide employing around 20,000 workers. The firm’s recent success can be largely attributed to its efficient market segmentation and product diversification that have allowed it to meet the specific demands of its global consumer base.

Diageo plc is a British multinational firm that owns some of the most popular alcoholic drinks in the world. The firm boosts a reputation of not only being the largest spirits producer in the world, but also being the world 's leading premium drinks company. The company has an extensive portfolio and their most popular drinks include Smirnoff vodka, Baileys, Pimms, Blossom Hill and Guinness. The company owns 312,120 Breweries, 312,130 Wineries and 312,140 Distilleries in the world and trade in near 180 markets, and employs more than 200,000 people in about 80 countries; of which include Great Britain, Canada, United States, Ireland, Spain, Italy, Africa, Latin America,

|What do you see as the key success factors for firms in the global beer industry? |