Strategic Management at Brewery Industries

1471 Words Jan 8th, 2011 6 Pages
Global forces and the European brewing industry
This case is centred on the European brewing industry and examines how the increasingly competitive pressure of operating within global markets is causing consolidation through acquisitions, alliances and closures within the industry. This has resulted in the growth of the brewers’ reliance upon super brands.
In the first decade of the twenty-first century, European brewers faced a surprising paradox. The traditional centre of the beer industry worldwide, and still the largest regional market, Europe, was turning off beer. Beer consumption was falling in the largest markets of Germany and the United
Kingdom, while burgeoning in emerging markets around the world. China, with 7
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Table 3 The World’s Top Ten Breweries by Volume (2005)
Company Share of Global Volume(%) Country of Origin
InBev 10.8% Brazil-Belgium
Anhauser-Busch 9.4 USA
Saab-Miller 7.3 South Africa [relocated to UK]
Heineken 5.7 Netherlands
Morelo 2.9 Mexico
Carlsberg 2.9 Denmark
Coors 2.6 USA
Tsingtao 2.4 China
Baltic Brewery 2.2 Denmark-UK
Asahi 2.1 JapanFour brewing companies
Heineken (The Netherlands)
Heineken is the biggest of the European brewery businesses, and has three-quarters of its sales in the region. Total sales in 2006 11.8bn euro (£8bn). About 5 per cent of sales are in Asia-Pacific and 17 per cent of sales are in the Americas. The company’s biggest brands are Heineken itself and Amstel. The company remains a family-controlled business, which it claims gives it the stability and independence to pursue steady growth internationally.
Heineken’s strategy overseas is to use locally acquired
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