disintegration of yer maw

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

This means there is economic opportunity present in the craft brew industry and that it could be a profitable place to do business.

Strives to be the leader in micro brewing while maintaining the core values it started with and had employee buy in even before it went” 100 % employee owned in2013” (Gorski, 2013).

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.

Rip Van Waffles was started by two Brown University students in 2010, today Rip van Wafels sells its breakfast wafels online, in coffee shops and in specialty retailers throughout America. The case study revolves around the decision regarding a growth strategy for Rip Van Wafels. The company is currently working on a controlled expansion strategy involving expansion to other regions, expanded sales to coffee shops, and expanded sales to corporations. However, besides from this controlled growth strategy two other opportunities for expansion have arisen. In this paper I will explore the two alternatives and make a recommendation on how should the company expand. Certainly, a slow and steady expansion strategy would continue to succeed but the two proposals are opportunities for global expansion that would speed the business’s development. The question is, should Rip Van Waffles pace itself or pursue a risky and ambitious growth strategy.

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.”

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 situation can even explode for Export Brands International, as large beers conglomerates with tremendous power, are targeting the same segment and are creating similar beers. We have the real example of Anheuser-Busch new Bud Light Lime which was selling extremely well in the United States attacking Corona position and following the traces of the

Anheuser-Busch Inbev is one of the largest breweries in the world. “Currently, Anheuser-Busch InBev has a product list of more than 200 beers, including global best-sellers Budweiser, Stella Artois, Beck’s, multi-country brands like Leffe and Hoegaarden, and strong “local jewels” such as Bud Light, Skol, Brahma, Quilmes, Michelob, Harbin, Sedrin, Cass, Klinskoye, Sibirskaya Korona, Chernigivske, and Jupiler, among others that have helped to make the company so successful. In addition,

the product delivered to various markets nationwide, as well as help reduce the costs of moving

2》 Beer is popular for a long time period and is less affected by seasonal factors

Meanwhile, since Grolsch used other brewers for distribution while importing beer into foreign countries, the ongoing industry consolidation often led to a need for changing distributors. In several of their markets Grolsch was already on its third or fourth distributor in the span of 15 years. Besides the political, economic, and logistical issues Grolsch had to adapt to, they also were adapting to cultural differences. Their marketing campaigns would vary significantly from market-to-market. While their ability to be nimble, change strategies, and adapt where necessary has been a benefit, it has also been limiting in that Grolsch has struggled to build a consistent brand image and market position in several of its key markets. For example, even though the UK accounted for 25% of Grolsch’s volume, they still only held 1.5% of the UK market. Further, operations have been impacted by the consistent turnover of distributors in several important markets. Grolsch’s adaptation strategy has kept them nimble but has prevented any large scale and stability in certain countries outside the Netherlands.

More importantly, it is projected to grow more than 12% annually in the next 3-5 years. Moreover, from Exhibit 3, GDP per capita in UK is $35,900, which is $5,800 higher than Italy’s. This shows big market potential for premium coffee products in UK. With mature consumers generally capable of appreciating premium quality coffee, Illy can differentiate itself by selling its core competencies such as Italian-style, and top quality product. In addition, UK has small cultural and geographic distance to Italy, and is ranked 7 in terms of ease of doing business. All of the 4 factors from CAGE analysis indicate a favorable condition for Illy to do business in the UK market. The best market entry mode in UK is direct franchising as it preserves the authenticity of Illy’s brand by providing supplies and expertise directly from Italy. Under RAT analysis, UK also seems to be a good choice due to the similarity of the two markets. Illy’s high quality coffee is highly relevant to consumer’s taste in UK, and Illy will be able to transfer and appropriate its expertise in the UK market. Furthermore, under CAT analysis, the new capabilities and expertise derived from the UK market can in turn enhance Illy’s domestic business in Italy due to the small cultural distance between these two countries.

Despite the dominance of Carlsberg, in its annual report BGD could lay claim to being the largest Scandinavian beer exporter. This was because Carlsberg placed emphasis on licensing agreements or local production for its foreign markets, while BGD’s strategy was export led: ‘Eighty-three out of every hundred bottles of beer that we produce are sold in foreign markets.’ By 1995 the percentage of export sales by region of the world was as follows: western Europe 63 per cent, the Americas 10 per cent, eastern Europe 22 per cent, others 5 per cent. The development of BGD’s operations in some of these markets is now reviewed.