The Beer Industry Insights Essay Example for Free

The Beer Industry Insights EssayCarlsberg Group is the fourth largest create from raw stuffer in the cosmos. Our extensive port- folio of beer scrapes provides a beer for every occasion and palate. Our flagship notice, Carlsberg, is integrity of the best- kno(prenominal)n beer brands in the world, and Baltika, Carlsberg, Tuborg and Kr superstarn- bourg are among the biggest brands in europium. In addition, we postulate a wide range of confidential information(a) beer brands in local anaesthetic merchandises. Our fear is pore in horse opera Europe, eastern Europe and Asia, where we have watertight securities industryplace positions. The rest of the world is chiefly serv crosspatchd by export or license agreements.Western Europe Carlsberg is the second largest brewer in Western Europe, and in 2012 they had a 40bp trade gain in this bowl. Eastern Europe Carlsberg think ofs a unfaltering no. 1 position in the regions main merchandise, Russia, and very strong positions in the separate markets in the region. In 2012 they had a 38,2% market share in the sports stadium. Asia Carlsbergs Asian portfolio of tradees consists of mature markets such(prenominal) as Malaysia, Hong Kong and Sin infractore as well as investments in growing beer markets such as China, India and Vietnam. In 2012 their organic beer volume crop was 9%. China is the worlds largest beer market.Carlsberg and the Market For more than tree decades, Carlsberg has been one of the largest commercialised sponsors of professional football, and Carlsberg beer and football are al about inseparable. * Since 2008, stadium beer sales has gone up 40% * there has been 6. 6 million visitors to fan parks * There has been 1 million cups of beer sold during half- period at the final. *Carlsbergs accent concerning the macro environment see corporate social responsibility report COMPETITORS Heineken Heineken is the 3rd largest brewer in the world. HEINEKEN is a proud, independent glob al brewer come outted to surprise and excite consumers everywhere.Four primeval attributes make the accompany different Heineken is the prototypal and only truly global beer brand, enjoyed in 178 countries around the world a unique, worldwide footprint with trading achievements in 71 countries, ensuring a broader reach for our brands than any opposite brewer an internationally diverse, dynamic, committed and entrepreneurial team of around 70,000 employees and the passion of the Heineken family remains as strong today as it was in 1864 when we first started brewing beer. Western Europe HEINEKEN is Europes leading brewer.We have operating companies in 10 countries and an Export and Duty Free business. Revenue 7,785 million, 42,3% Central and Eastern Europe HEINEKEN has a rich yield portfolio of leading brands.? We have operating companies in 14 countries and we take in and operate more than 50 breweries across the region. Revenue 3,280 million, 17,8% the Statess We operate 2 0 majority-owned breweries and seven joint gamble breweries in a region characterised by attractive, growing and profitable markets. Revenue 4,523 million, 24,6% Africa and the Middle East HEINEKEN first imported beer into Africa in 1900.Today we have operating companies? in 20 countries in the region and brew a number of blockbuster brands. Revenue 2,639 million, 14,4% Asia The acquisition of Asia Pacific Breweries means we now have? a presence in 19 countries in the region and operate 25 breweries. In India our joint casualty follow is UBL. It is the market leader and has 18 breweries. Revenue 527 million, 2,9%. Organizarion goal and objectives Heinekens five business priorities Each one servings us to achieve our goal of winning in all markets with Heineken and with a full brand portfolio in markets where we choose.* Aims for sustainable growth as a broad market leader and segment lead * hit the roof and optimize brand portfolio * Embraced innovation as a pick up component of their strategy in areas of production, marketing, chat and packaging * Goal is to grow the business in a sustainable and consistent manner, while frameatically improving profitability SWOT Heineken Strengths1. Heinekens leading brand portfolio includes more than 170 international bounteousness, regional, local and specialty beers. 2. The go with has undertaken various advertize and promotional initiatives, which has improved its brand equity.3. Strong brand portfolio helps the connection to create a favorable impression in the market and ensures stable revenues.? 4. Heineken has a large engagement of breweries. It owns over 125 breweries in more than 70 countries. 5. Since the breweries are located close to their end markets, the company is in a position to serve fresh beer to customers. 6. A geographically widespread plant lucre take downs transportation costs as well. 7. Strong electronic ne bothrk of breweries helps the company boost customer satisfaction and redu ce costs8.Excellent branding and top of the mind recall owing to advertising and sponsorship initiatives Weaknesses1. Beer markets in Western Europe faced a challenging year referable(p) to the combined impact of the financial crisis, mixed weather, consume bans and unprecedented increases in excise duties? 2. Maintaining corporate values, image and quality standards in various countries is a challenge3. creation a leader susceptible to fake imitation products Opportunities1. Heinekens acquisition of other breweries and brands2. Expand product line for new areas and to accommodate changes in taste and preference.?3. Innovations contribute to the top-line growth and to the strength of the Heineken brand in particular. 4. Integration forwards and posteriorward. 5. Driving top-line growth by winning customers at the point of purchase has been the chance on rationale behind the roll-out of Heinekens extra Cold program. 6. Falling slyness and ownership regulations in outside cou ntries. Threats1. Tax regulations on the beer industry2. An increasingly negative perception in society towards intoxicantic drink could prompt legislators to repressing measures. 3.Slowed industry growth rate. 4. Legal issues dealing with underage drinking retailers license may be revoked or suspended. 5. Heineken has many operations in mature beer markets where the attractiveness of the beer family is being challenged by other swallow categories. 6. Changing buyer taste and preference. 7. Input costs (including transportation and energy) have accelerate to unprecedented levels in the past few years. AB-InBev Anheuser-Busch InBev is the leading global brewer and one of the worlds top five consumer products companies.Our conceive of, dual-lane by 118 000 mickle around the globe, is to be the Best Beer Company in a Better World. That means brewing beers with a heritage of quality and craftsmanship dating back to 1366, while maintaining an unwavering commitment to responsi ble drinking, environmental stewardship and the betterment of the communities in which we operate. A true consumer-centric, sales- dictated organization, we have a strong, equilibrize brand portfolio, including half a dozen of the 10 most precious beer brands in the world*, and we hold the No. 1 or No.2 position in many of the? worlds leading beer markets. In 2012, our hit revenues were 39. 8 billion USD. Our portfolio consists of over 200 beer brands, including three global brands, Budweiser, Stella Artois and Becks fast-growing multi- country brands Leffe and Hoegaarden and strong local champions, such as Bud Light, Skol, Brahma, Antarctica, Quilmes, Michelob Ultra, Harbin, Sedrin, Klinskoye, Sibirskaya Korona, Chernigivske, Hasseroder and Jupiler, among others. Head shited in Leuven, Belgium, Anheuser-Busch InBev operates?in 23 countries worldwide and works through six geographic Zones northerly America, Latin America North, Latin America South, Western Europe, Central Eas tern Europe and Asia Pacific enabling consumers around the world to enjoy our products. outline the words we live by Our dream inspires us to be the Best Beer Company in a Better World our People and our polish make it happen. Dream Our divided dream energizes everyone to work in the same direction to be the Best Beer Company in a Better World. Everything we achieve begins with our shared dream to be the Best Beer Company in a Better World.This dream has inspired us not only to build and grow one of the leading global consumer products companies but also to commit ourselves to improving the world around us by promoting responsible drinking, environmental stewardship and involvement in our communities. Our dream is ambitious but credible, and we know that by stretching to achieve great things, we allow for capture the size of our dream. People Great muckle, allowed to grow at the pace of their talent and compensated accordingly, are the most valuable assets of our company.W e know that great pot are the key to transforming a great dream into reality. Our dream is shared by 118 000 AB InBev colleagues around the world, who represent our greatest asset and our only sustainable competitive advantage. It is because of our people and their talent, engagement, motor and sense of purpose that we have been able to deliver on our commitments to our customers, our shareholders, our communities and one another. Great people, prompt by leaders who clear the way for them to perform at their best, attract more great people to our company.And we believe that great people are attracted by an atmosphere of meritocracy, informality and candor. Our approach is to hire people with the potential to be better than we are, to ensure that leaders engage them fully and to provide challenging experiences to help them develop. We invest heavily in attracting the best people, developing their potential and enriching their opportunities through a range of programs and initiat ives. Culture * We are never completely satisfied with our results, which are the fuel of our company.Focus and zero complacency indorsement outliveing competitive advantage. * The consumer is the Boss. We connect with our consumers through meaningful brand experiences, balancing heritage and innovation, and always in a responsible way. * We are a company of owners. Owners take results personally. * We believe common sense and ease are usually better guidelines than unnecessary sophistication? and complexity. * We manage our costs tightly, to free up resources that volition support top-line growth. * Leadership by personal example is the best guide to our culture. We do what we say.* We dont take shortcuts. Integrity, hard work, quality and consistency are keys to building our company. North America fare volumes change magnitude 0. 6% in 2012 AB InBevs shipment volumes in the United States and selling-day adjusted sales-to- retailers (STRs) grew 0. 7% and 0. 4%, respectively. The company estimates it keep to make good progress on market share in the U. S. , with market share down less than 20 bps in 2012, due to solid improvements in the bountifulness-plus category following the roll-out of Bud Light Platinum and Bud Light Lime Lime-A-Rita.These innovations helped the company to grow the market share of the Bud Light Family by approximately 70 bps in 2012 Michelob Ultra, Shock Top, Stella Artois and AB InBevs other high-end brands also grew share, while companys share remained under pressure as a result of woolyness in Budweiser and the companys pricing strategy of closing the gap between sub- premium and premium brands within its portfolio. In Canada, beer volumes increased by 0. 1% in 2012 broadly speaking contain by a tough comparison in terms of industry, poor weather and the ice hockey lock-out.Latin America North volumes grew 3. 0%, with beer volume growth of 2. 7% and soft drinks up 3. 7%. In Brazil, beer volumes increased 2. 5%, benefiting from an estimated industry growth of 3. 2%, a strong 2012 carnival execution, the positive effect of higher(prenominal) consumer disposable income in 2012 additional price promotions in the fourth quarter of 2012 following the partial postponement of the tax increase announced on September 2012 as well as strong execution of commercial initiatives. Premium brands continued to grow ahead of the rest of the companys portfolio.The company estimates that Budweiser, which has been in the market over a year, became the largest international premium brand in Brazil during the fourth quarter of 2012 Stella Artois is also growing quickly with over 45% volume growth during 2012 The company estimates that its market share was down by 50 bps during 2012 reaching an average of 68. 5%, primarily due to price increases in the third quarter of 2012 Latin America South total volumes change magnituded 0. 8%, with beer volumes up 0. 1% and non-beer volumes down 2. 2%, respectively. In Argentina bee r volumes declined 0.4%, determined by an uncertain consumer environment and a weak industry. However, a strong performance from Quilmes and Stella Artois led to continued strong market share performance. Western Europe own beer volumes declined 3. 5%, while total volumes declined 4. 2%. Total own products, including cider, declined by 3. 0% in 2012. Own beer volumes in Belgium declined 4. 1%, driven by a weak, weather-related industry performance in the first half of the year. In Germany, own beer volumes fell 1. 4%.The company estimates that its market share was ahead during 2012 driven by a strong performance of its center brands Becks and Hasseroder. In the United Kingdom, own product volumes decreased by 8. 2%, mainly driven by a weak industry and market share pressure due to competitive occupation in the off-trade channel. Central and Eastern Europe volumes decreased 11. 3%. In Russia, beer volumes fell 12. 0%, driven by industry weakness following regulatory changes. Marke t share loss was driven by the implementation of tax-related and other selective price increases ahead of competitors, and promotional pressure in key count channels.However, the company continued to make progress with the optimization of its brand portfolio, with its premium and superpremium brands, including Sibirskaya Korona, Bud, Stella Artois, Hoegaarden and Lowenbrau gaining share, and now representing 35% of total volumes. Bud reached an estimated market share of 1. 4%. In Ukraine, beer volumes decreased 10. 3% in 2012 driven by a weak industry and market share loss. However, Bud achieved an estimated market share of 1% during the nine-spot months since launch. Asia Pacific beer volumes grew 1.9%. In China, beer volumes grew 1. 9% as industry volumes in our footprint declined by almost12% during the last quarter of 2012 due to severe cold and wet weather. Nevertheless, the company estimates it gained market share in China. The boil down brands Budweiser, Harbin and Sedrin grew 8. 1% in 2012 SWOT AB InBev Strengths * They have a leading position in the market, due to which they are now an international company. * Their production line is very strong, and this is the reason why their brand is cognise all over the world.* They are much concerned about the devising of their brands. These capabilities make them one of the leading brands around the globe. * They came up in the market when there was no such other beverage making industry in the country. Weaknesses * Their concentration in the market is low. And this is the only reason why their customers are wretched to other brands. * The trust on wholesalers is one of the major negative point about the company. * Anheuser Busch is having a puzzle in making the sufficient amount of beverages needed.* People have taken on the truth that due to some reasons this company is producing an imperfect amount of beer or beverages when it is needed the most. Opportunities * By growing beer consumption in China , they will do more business. As China is one of the emerging countries and is a well named IT country, this will definitely help their business to expand internationally. * Joining hands with other companies and setting up the business in other countries, will led them to have strong sponsor ship and life time agreements.* By focusing on other drinks, they will increase their brand and in doing so their market shares will increase. * They can also run their business directly through the computers. So that the clients can be connected with them. Threats * If some other beer Brewer Companies unites to micturateher, than this will be really challenging for Anheuser Busch to survive in the market. * The rise in the prices of the raw materials, which are used in the manufacturing, will result in the decrease of their production. * The change in the preferences is also another big risk for the company.* If they ever drop their real image in the market than it is going to be real hard fo r them to keep up the position in the present market. SAB moth miller SABMiller is the 2nd largest brewer in the world, with more than 200 beer brands and some 70,000 employees in over 75 countries. We also have growing businesses in soft drinks and we are one of the worlds largest bottlers of Coca-Cola products. SABMiller has become a global leader by doing business locally, pursuing operational excellence and offering high-quality products okay by innovation and a commitment? to sustainability.Our success is built on a clear strategic direction, a shared vision and mission and a common set of values. Latin America 32% Contribution to group EBITA 2012. 17 breweries, 14 bottling plants. * Our primary brewing and beverage operations cover six countries across South and Central America (Colombia, Ecuador, El Salvador, Honduras, Panama, and Peru). * In each of these countries, we are the number one brewer by market share. * We are also the third largest brewer in Argentina. * We bott le soft drinks for The Coca-Cola Company in El Salvador and Honduras, and for Pepsico International in Panama.* Regional office Bogota, Colombia. Strategic focus area * Drive strong top-line growth by expanding consumer occasions and entering adjacent categories * Increase share of alcohol and capitalise on differentiated and expanded brand and package portfolios * Optimise and extend distribution network and sales reach * Protect our licence to trade and business sustainability * Pursue operational excellence and cogency in our businesses, optimising resources? and costs Europe 14% Contribution to group EBITA 2012, 17 breweries. Our primary brewing operations cover eight countries the Czech Republic, Hungary, Italy, Poland, Romania, Slovakia, Spain (Canary Islands) and the Netherlands. In the majority of these countries,? we are the number one or two brewer by market share. A further 16 countries including Russia, Turkey and the Ukraine are covered in a strategic alliance with Anadolu Efes through either brewing, soft drinks or export operations. We export significant volumes to a further eight European markets, of which the largest are the UK and Germany. Regional office Zug, Switzerland. Strategic focus area* Drive superior organic revenue growth and margin elaboration through growing sensed category benefits and value per serving * Structure and shape the category by driving our full brand portfolios in growth segments in key markets through innovative 360 degree marketing programmes * Continue to drive differentiation through innovating in product, packaging and dispense systems * Design for scale, cost advantage and focus North America 13% Contribution to group EBITA 2012. 8 breweries. MillerCoors is a joint venture with Molson Coors Brewing Company, make in 2008 by bringing together the US and Puerto Rican operations of both groups. Headquartered in Chicago, MillerCoors is the second largest brewer in the USA, with 29% of the beer market. Our wholly owned Miller Brewing International business is based in Milwaukee, USA and exports our brands to Canada and Mexico and throughout the Americas. Regional office Chicago, USA. Strategic focus area * Win in premium lights with strengthened positioning of Coors Light, Miller Lite and Miller 64 * Through Tenth and Blake Brewing Company extend and grow MillerCoors import and craft portfolio * have value through strong revenue management.* Create leading capability and superior growth in retail sales * Support the three-tier distribution system to drive effectiveness and value Arfica 13% Contribution to group EBITA 2012. 32 breweries, 19 bottling plants. * Our brewing and beverage operations? in Africa cover 15 countries. A further? 21 are covered through a strategic alliance with the Castel group and we also have? an associated undertaking in Zimbabwe. * In most of these countries we are the number one brewer by market share. * We bottle soft drinks for The Coca-Cola Company in 2 0 of our African markets (in alliance with Castel in 14 of these markets).* Regional office Johannesburg, South Africa. Strategic focus area * Drive growth in beer and soft drinks through full brand portfolios, wider price ranges and expansion into adjacent categories * Step up investment behind our mainstream brands and differentiated premium portfolio * Increase share of alcohol through accessible brand and package offerings * Further develop sales and distribution to enhance our result presence and extend our geographic coverage * Mitigate high imported input costs through innovation and local supply chains.Asia Pasific 6% Contribution to group EBITA 2012. 23 breweries, 2 bottling plants. CR Snow, our alliance with China Resources Enterprise, Limited, is the largest brewer in China. With the acquisition of Fosters in December 2011, we have a major business in Australia. CUB4 only contributed to our results from mid-December 2011. We are the second largest brewer in India. We have an operation in Vietnam and we export to various markets including South Korea and Cambodia. Regional office Hong Kong. Strategic focus area* immix the Fosters acquisition and deliver the commercial and operational targets * Further build market leadership in China and enhance profitability * Continue to drive Snow, the largest beer brand in China, with additional premium variants to increase revenue * Pursue market liberalisation in India and focus investment on growth and profitability in selected states South Africa 22% Contribution to group EBITA 2012. 7 breweries, 6 bottling plants. The South African Breweries (Pty) Ltd. (SAB) is South Africas leading producer and distributor of lager and soft drinks.It also exports brands for distribution across Namibia. Our soft drinks division is South Africas leading bottler of products for? The Coca-Cola Company. We have hotel and gaming interests through our associate Tsogo solarize Holdings Ltd, the largest hotel and gaming gro up in South Africa. Regionaloffice Johannesburg, SouthAfrica. Strategic focus area * Leverage scale to drive productivity and reinvest savings in market-facing activities * Engage the competition in all alcohol categories * Ensure that key brands resonate.* Shape a culture of partnership and superior ?service offering in all classes of trade * Ensure societal leadership Four strategic priorities Financial goal To deliver a higher return to our shareholders than our peer group over the longer term Strategic priority * Creating a balanced and attractive global spread of businesses * Developing strong, relevant brand portfolios that win? in the local market * Constantly raising the profitability of local businesses, sustainably * Leveraging our skills and global scale SWOT SABMiller Strengths1. A strong portfolio of brands? 2. Strong sales and distribution network? 3. Presence in 75 countries across 6 continents?4. SAB Miller also owns over 150 market-leading local brands5. Excellent marketing and branding have made the brand top of the mind6. Nearly 70,000 people form a part of the workforce Weaknesses1. Have been unable to get a momentum in emerging markets? 2. Intense competition means market growth is hold Opportunities1. Partnering the local breweries in particular countries can yield a bigger market share ? 2. entering successful brands which have a strong following and brand equity in the newer markets3. More advertising and sponsorship would increase brand recall Threats1.A strong competition from other brands? 2. Laws and regulations on advertising and establishing the business? 3. Slumping economy all over the world has been the greatest concern as disposable income of consumers in saturnine * Who are the key players in the industry and their relevant size? AB-InBev, Heineken, SABMiller * What are their objectives and strategies? * What are their strengths and weaknesses? * What are their market shares, the performance of the competitors in revenues , profits, and shareholder value? * What are the competitors capabilities, its organization, and its strategic alliances?