Indian Beverage Industry Report

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

The soft drink industry is one of the most highly profitable industries in the USA. Also, the competitive market is a very large market. Americans consumed about 53 gallons of soft drinks per person a year in 2000 by $ 60.3 billion!! Comparing with the market in 1990, since it was 47 gallons. In recent years, the market growth has slowed.

With the only access to alcohol being through gangster organisations and speakeasies, many people turned to soft drinks as a new social drink. Consequently this lead to a boom in the soft drink industry with companies

The threat of substitutes is high for the beer industry, and specifically for this strategic group. According to the trade group Beverage Industry, alcohol beverage consumption per capita has risen since 2000 at around one percent per year, which suggests that consumers on average are not substituting non-alcoholic beverages for the alcohol they currently consume[6]. Since 1994, consumption per capita has increased for the three major substitutes – premium beers, wine, and spirits.[7] Although beer holds a majority

Sales in the United States are declining due to the public concern over sugar. Sales in Europe and Japan are flat, while markets in China and India offer up strong completion for Coca-Cola. Africa’s middle class population is growing at a steady rate, so the disposable income is increasing. This creates an opportunity for Coca-Cola to tap into growth opportunities (Natalia Cheverri 2012).

As mention before, Coca-cola has 47.3 percent market share in the country’s cola market versus Pepsi which hold 44.5 percent. Coca-cola is also the brand known around the worlds, which are the largest producer and distributor of ark colas in the world. Even in the current monetary crisis, the company continues to expand and the financial position shows that Coca-cola has a strong cash position in compare to PepsiCo which the long term debt of PepsiCo is so high.

The Coca Cola Company is a multinational company with more than 140,000 employees, the company is in beverage business and its flagship product Coca Cola is considered one of the best soft drink. Coca Cola soft drink is the real revenue generator of the Coca Cola Company. The company was found in 1892 and by 2010 it was reported that the company has the serving of 1.7 billion per day so the company has only grown since its inception. The company is serving its product in more than 200 countries, and the Coca Cola Company owns more than 500 brands, this shows that the graphs of the company is moving upwards and the Coca Cola Company is growing at an immense rate.

India is a major manufacturer as well as a major importer of soft drink beverages. The 50 Billion soft drink market is at an annual rate of 28-30% for

other soft drinks, juice, Soda and Water for several regions within the Uttar Pardesh Market, India.

Who would have known that Coca-Cola debut to the world was all because of a pharmacist? And just a touch of carbonation has truly made it a refreshing and an enjoyable carbonated soft drink. It is within “arms reach of desire” as former CEO Robert Woodruff notes. The Coca-Cola Company ultimately cares about its customers and prides itself into providing good citizenship. One of Coca-Cola’s largest international investors was India, from 1993 up until 2003, Coca-Cola invested more than US$1 billion into the country. In August of 2003, CEO of Coca-Cola India, Sanjiv Gupta came to a standstill where he had to further anticipate his next move for the company. The company faced a crisis where the Center for Science and Environment (CSE) issued a press release affirming that three samples of the 12 cold drink brands sold in and around Delhi containing pesticide residues were of Coca-Cola and PepsiCo brands.

The change in the consumers' taste is another key trend in the industry. Many substitutes to carbonated soft drinks gained more popularity among consumers. Exhibit 5 shows an increase in the consumption of bottled water from 11.8 in 1998 to 13.2 gallons/capita in 2000, and that of juices from 10 to 10.4 gallons/capita at the expense of

PepsiCo has the potential to encourage consumers into drinking water and eating healthier snacks that they promote. Bottled water is rising and it is a healthy substitute to sugared drinks. Restaurants, clubs and venues are using their beverage to make special drinks. This is where alcohol industries gains more profit to their company. However, with the ability to adjust customer’s demands with new and appealing products it can dominate to success.

Table of ContentExecutive summary3Corporate Background4Which industry or industries is the firm operating in?4Who are the customers?4Where does the company serve?5What needs are being satisfied by the company´s goods or services?5What are the company's distinctive competencies?6Which generic strategy in currently used by the company?7Country analysis and attractiveness assessment7Brazil PEST analysis7India PEST analysis12South Korea PEST analysis15Industry and Competitive Analysis-18Porter's Five Forces Analysis of Beer Industry in Thailand (as Consolidated Industry)18Beer industry in Brazil19Beer industry in India19Beer industry in South Korea20Company Situation22Problem/Key Issue22References24Executive summaryBoon Rawd Brewery is an

Indian food industry, with a net market value of around US$ 300 billion, is one of the major food markets in the world. Looking at the contribution of the beverage sector in these statistics, we have soft drink (carbonated and juices) market estimated at US$ 1 billion a year and health beverages estimated at US$ 230 million, which is on a continuous verge of exponential growth.

2011 proved to be a good year for beer, with a 7% total growth volume, amounting to 108 million litres. The demand for beer products continue to grow steadily with the escalating trend of social drinking in Singapore. Previously restricted to venues such as clubs and bars, beer products are increasingly being consumed at local coffee shops or hawker centres or being purchased off the shelf. (EuroMonitor International 2011, Beer in Singapore)