Japanese Beer Market Is the World's Fourth Largest Market After

     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

Boston Beer Company (BBC) has enjoyed much success with their craft beers with Samuel Adams as their main focus. Being the leader of this segment, overtopping five of their competitors combined (Exhibit 1), the company now must decide how to take advantage of the light beer market. Boston Lightship, their current light beer, had been a small contributor in BBC’s product line. Currently, it is facing dwindling sales with product volumes down from 12 000 cases per month to 3000 cases per month.

Per capita beer consumption in the country had been stable for many years. In order to find new opportunities

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

(6) Briefly summarize your opinion on the short-term and long-term current outlook for America’s brewing industry, especially with respect to its international

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

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

Beer has a long history. In 2000 B.C.E., Sumerians had prepared eight different beer types, ranging from “strong,” “red brown,” and “good dark” (Mauk, 2013). Breweries have created their own recipes, brewed their own beers—some with alcohol, some without. Over the past few years, craft beer gained steady market share away from the national and international breweries (Murray & O 'Neill, 2012). Separating one beer from the next is the product itself, and what the product has to offer. Competition is ferocious due to more informed, sophisticated consumers, as well as globalization and the spread of technology (Murray & O 'Neill, 2012).

In order to stay competitive in the beer market, MMBC can introduce a new product under the same brand. As MMBC has been producing only one beer, MM Lager, which is more appealing to older consumers, MMBC can introduce MM Light to target new market segmentation, the younger consumers. “Over the past six years, light beer sales in the U.S. had been growing at a compound annual rate of 4%” (Adelli, 2007). The light beer is equally popular among men and women, especially in their 20’s. These consumers are mostly first-time drinkers who have no brand loyalty yet. They will keep on trying any beer to find the best one, and MM Light might be the one. This younger consumer segment is accounted for more than 27% beer consumption and is still growing; they also spent twice on alcoholic beverage than consumers aged above 35. MM Light can increase MMBC total sales as it appeals to more consumers, MMBC beers can serve consumers across all age groups with these two beers, MM Lager and MM Light. As the target market for the light beer, younger consumers and women, frequently visit on-premise location, MM Light can help MMBC gain recognition in on-premise locations. Besides that, producing a new product under the same brand will help in reducing the cost and as more people begin to know the MM Light, MMBC can get more recognition and results in boosting MM Lager popularity and sales.

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.

This report will examine the external environment of the brewing industry using a PESTEL analysis and the internal capabilities of ABInBev using a value chain analysis in order to determine how the firm appears to compete. Following this, strategies for improving the competitive position of the company will be outlined.

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. |

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