SAB MILLER'S STRATEGY

Green Mountain Coffee Roaster’s Keurig Single Brew system is dominating the U.S. market with an overwhelming market share. Analysts expect sales of single-cup brewing systems to continue to grow in the U.S. and competitors are eyeing a piece of the pie. An analysis of Keurig’s current position, based on Michael E. Porters 5-Forces, highlights a number of key areas of opportunity and risk for the company. Handled correctly, the Keurig product line should continue its growth, however, a number of significant pitfalls threaten its dominance.

Interbrew had developed into the world's fourth largest brewer by acquiring and managing a large portfolio of national and regional beer brands in markets around the world. More recently, senior management had decided to develop one of their premium beers, Stella Artois, as a global brand. This case examines the early stages of Interbrew's global branding strategy and tactics, enabling students to consider these concepts in the context of a fragmented but consolidating industry.

     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

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.

When a certain point is reached regarding a company’s success, a set of different opportunities arise and partnerships may unfold. However, with every possible strategy available, risks and benefits also come into play; without discarding any of them beforehand, every option is a strong candidate until a final decision is made. In this case study we will analyze the current business strategy pertaining

I believe that the fundamentals and criteria of my strategic approach were pointing in the right direction. I assumed that the high growth potential market was for

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.

To develop such strategy mix of strategic options will be applied including Integration to deal with competition and Intensive + Diversification strategies for product and market development.

Strategy formulation has been acknowledged as one of the most crucial factors of ensuring the long-term growth of the business. However, the manner in which strategy is formulated, and most importantly, the nature of the strategy chosen for the company determines its future position in the marketplace (Grant, 2005).

The Adolph Coors Case Study proved the dedication and self-reliance Coors brings to the beer industry. Having overcome great adversity by surviving the prohibition years, Coors durability and sustainability are also complimentary points on the structure of the company. Coors is a family owned company that had humble beginnings in Colorado and within 100 years grew into a multimillion-dollar company. Coors’ controlled manufacturing process is a sign of their individuality in the beer industry, this was not an unknown fact, however, as they were receiving orders to ship Coors beer all across the nation as of 1972. The case study allowed an internal and external point of view, which was highly beneficial to properly analyze their upcoming problem within the company.

The Company must revisit objectives and goals and look into available resources (partnerships). At an external level, facing competition from other types of craft brew products. The Company needs to assess competitor’s strength and weaknesses, gathering data which in turn may provide a “loophole” for New Belgium to target the competitor’s market share. The Company will gather information of potential new customers. Figuring out why do customers select competitor’s product over theirs or what customers want, as tastes and trends are always changing. There will always be regulatory laws and social propaganda of “drink responsibility.”

Volume decreased for the first time in over twenty years in 1975 by four percent, during that same time Coors started to push out further in an attempt to become a national brand. 1985 marked a major year for the company as it set records in volume sold and revenues from the brewing division. Between 1975 and 1985 there were major changes in the company that eventually led to the company possibly opening its second brewing facility in history in Virginia. Through these years there were many new strategies implemented to foster this growth. In this paper I will diagnose key decisions, analyze potential solutions and show the actions needed to achieve the suggested changes.

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

Molson Coors ability to create loyal customers contributes to the company being one of the worlds largest brewery companies bringing in $5.6 billion a year in sales. The company employs 11,000 employees with 10 breweries in 3 different countries. Although the company only produces 40 brands of beer, two of them, Coors and Coors Light, were appointed top beer brands form the national customer loyalty study for three consecutive years. SABMiller, who acquired the Miller Brewing Company in 2002, produces over 200 beer brands and brews in over 60 countries. The company decided to specialize in premium brands of beer and were compensated in 2006 with a 19% increase in revenue. The company prides its self on emphasizng the fewer carbohydrates and better taste its line of beers has compared to its competitors. The company proves this with winning the Miller Light Taste Challeng, a point-of-sale taste test. Another competitor of Anheuser-Busch is Heineken NV. Heineken produces 170 beer brands and owns 115 breweries in 65 different countries with 65,648 employees. The company specializes in lagers, speciality beers, light beers, alcoholic-free beers, and soft drinks. Although competition with these companies is combative, Anheuser-Busch (ABI) continues to be the leader in brewery with higher revenues and net income. The company employs over 30,183 in 27 breweries compared to the industries average of 480

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.