The Beer Market in Spain

In the United States the beer industries are regulated by the state and the federal governments. The state and the federal government pass their opinions in term of production, advertisement, distribution,

The beer industry can be considered a monopoly since large national brewers maintain economies of scale in brewing, better distribution tactics, spend heavily on advertisement, and create barriers of entry for other smaller brands.

     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

In regards to business-level strategies and overall cost leadership, Anheuser-Busch is the undeniable industry leader when it comes to beer sales. Even if Anheuser-Busch beers aren 't the cheapest, they still are bought for their quality and Anheuser-Busch has gained tremendous market share for this. As for their focus, Anheuser-Busch focuses on a broad segment of customers producing a variety of beers for a variety of budgets to suit all personalities ' needs. Their differentiation factor is that even though Anheuser-Busch produces such cheaper beers as Budweiser and Bud Light, they also produce premium, more expensive beers like Bare Knuckle Stout and Shock Top Belgian White. Anheuser-Busch produces over 100 different brands of beer and

On the other words, niche marketing is to concentrate all marketing efforts on a small but specific and profitable defined segment of the market. While niche markets are focus, they are not necessary small. Many niche brands already represent

First, there are seventy percent of college students, who consumed alcohol beverages in the last thirty days. Also, there are half of the college students, who are binge drinkers on campus. They attend to drink a lot in a short time period. The students imply drinking is part of campus culture and traditions, which resembles of rite of passage and independence.

“The great beer abandonment: America’s young drinkers are drinking wine and hard alcohol instead”. In recent years, many young adults’ ages 18-29 years old are not drinking as much beer as the same age group twenty years ago. In 1992 over seventy percent of this age said that beer was their beverage of choice. That number has now drop to forty percent. The percentage of hard alcohol preference has risen from thirteen percent to thirty percent. While wine preference has also increased from fifteen percent to twenty three percent. Young adult are not the only one whose preference has changed. The United States, has been drinking less and less beer for the past decade. Nationwide, beer consumption fell by nearly 9 percent between 2002 and 2012. Majority of decline is due to the preference of young drinker. People ages 30-49 only decline about three percent, while people ages 50 plus have remain the same. It is odd to see a decline in beer with the emergence of craft beer. For years it has gaining market share but many believe that it has hit its peak. "While we 're not there yet, we 're definitely approaching bubble territory," said Spiros Malandrakis, Alcoholic Drinks Analyst at Euromonitor International. What could be the reason for the decline?

Power of buyers: The soft drink industry sold to consumers through five principal channels: food stores,

Buyer power: The consumers have a high decision power which can drastically affect the performances of Brita. Depending what type of drink

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).

The brewing industry is interesting to examine due to its relatively unique structure. Up until November 2015, the market was dominated by four main players, known informally as the “Big Four”. AB InBev was the largest, followed by SABMiller, Heineken and Carlsberg. In November 2015, however, ABInBev and SABMiller agreed a formal $107 billion takeover deal, combining the brewers into a company which industry experts claim would control around half of the industry’s profits (Mickle, 2015). As a result of the sheer size and complexity of the merger, it is anticipated that the deal will not be finalised until the second half of 2016 as ABInBev must negotiate with anti-trust regulators around the world with respect to their potential monopolistic position. As the deal is yet to be completed, this report will analyse ABInBev independent of SABMiller.

Buyers have more power when they are large-volume buyers, the product is a significant aspect of the buyer's costs or purchases, the products are standard within an industry, there are few switching costs, the buyers earn low profits, potential for backward integration of the buyer group exists, the product is not essential to the buyer's product, and the buyer has full disclosure about supply, demand, prices, and

The power of buyers is high because this company depends of the businesses and consumers’ demand. This is because they can decide where to buy

|The global beer industry is dominated by large corporations who have merged with rivals to increase their global and domestic market share. |