Introduction
Company background
Interbrew was located in Leuven, Leuven is situated outskates of Brussels. The brewery changes its name to Artois, when the master brewer Sebastian Artois purchased it in 1717. The firm growth was skyrocketed because the firm started to expand when he purchases major shares of some other brewery from different countries like Belgium, Netherlands, and France.
Interbrew used different modes to entry in foreign markets like acquisition and merger, joint venture etc. Interbrew’s entrance to the new countries market helped them to become a global brand and they grab more market share in different countries. In 1991 the company acquired a brewery in Hungary and also purchased breweries from Croatia and Romania in 1994. The actual growth time of the company started when the company acquired the largest Canadian brewer called Labatt, Labatt was already operating in United States in that time it was a great advantage for the interbrew and also the Labatt hold a substantial share of a largest Mexican brewer “ Femsa Cervesa ” . After this acquisition Interbrew also purchased brewery in Ukraine, China , Russia and Korea.
The interbrew expand there operation in most of the countries and it became one of the largest beer producing company in the world. The company expanded globally and holding approximately 90 % of its volume from markets outside Belgium. The headquarter of Interbrew situated in Belgium and operating more than 23 countries with subsidiaries and joint ventures (Beamish, 2014)
Stella Artois was the global brand of the interbrew and the modern version of this beer was launched in 1920 as a Christmas beer and in 1970’s Stella Artois became the market leader in Belgium but by the 1990’s Stel...
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...their sales but at the same time its competitors only achieved 16%. The success story also happened in the United States because the annual sale volume increasing by 9%.The sales volume of Interbrew’s global brand Stella Artois is grown by 19.7%, the Whitbread helped Interbrew to achieve this .
Apart from this the Interbrew products generated high margin in Europe, Asia Pacific and Africa from 31% in 1997 to 33% 1998.
Through this increased sales volume the Interbrew earn more profit than its previous years , in Belgium the interbrew operating profit rose to 7.9% . This increasing sale volume remained in 1999 as well, in United states the sales volume further rose to 10% .All of this growth brought the Interbrew product to higher global position. The interbrew met the customers demand in each time that’s why they got higher sales volume in every where they working.
Civilization View: Due to Anheuser-Busch's global distribution, the company itself cannot represent only one single civilization. If fact, the company is made up of many different civilizations, including the United Kingdom, Japan, Canada, and Spain. One of the main reasons that these particular countries have a distribution center may be due to their culture. The people there view beer as a favorable product that everyone should be able to enjoy, and one of the reasons the product is popular may be because of that belief. This provides an enormous market for the beer industry.
Belgium is known for a culture of high-quality beer and this concept was formulated by an electrical engineer from Fort Collins, Colorado. The electrical engineer, Jeff Lebesch, was traveling through Belgium on his fat-tired mountain bike when he envisioned the same high-quality beer in Colorado. Lebesch acquired the special strain of yeast used in Belgium and took it back to his basement in Colorado and the experimentation process was initiated. His friends were the samplers and when they approved the beer it was marketed. In 1991, Lebesch opened the New Belgium Brewing Company (NBB) with his wife, Kim Jordan, as the marketing director. The first beer and continued bestseller, Fat Tire Amber Ale, was named after the bike ride in Belgium. The operation went from a basement to an old railroad depot and then expanded into a custom-built facility in 1995. The custom-built facility included an automatic brew house, quality-assurance labs and technological innovations. NBB offers permanent, seasonal and one-time only beers with a mission to be a lucrative brewery while making their love and talent visible. In the cases presented by the noted authors (Ferrell & Simpson, 2008), discusses the inception, marketing strategy, brand personality, ethics and social responsibility that New Belgium Brewing Company has demonstrated. The key facts with New Belgium Brewing Company are the marketing strategy, promotion, internal environment and social responsibility with the critical issues of the public, brand slogan, growth and competition.
This report addresses the issue of whether Amsterdam Brewery should invest and promote new products or continue to focus on current products. And, whether Jeff Carefoote should pay attention to whole brands or spent expense to increase brewing capacity. The report describes a strategic plan to ensure Amsterdam Brewery’s competitiveness in the market.
Research and development incur high costs, which minimizes profitability. New beers are more difficult to implement due to changes in equipment, process of brewing various batches, but since this method is already in process at Amsterdam, they are practiced in overcoming these issues. Cost incurred would be high due to research and development, and changes in equipment. New products would also limit brewing capacity as they would not be able to make vast amounts of one kind, and the speciality beers required a longer brewing time.
The productivity of the equipment for the company is comparable to that of their key competitors. It is a little different of a process than that of the larger domestic beer companies, it still is able to maintain a comparable system with the other brewing companies.
Deutsche Brauerei has been a family owned and operated corporation for 12 generations, which has created a high level of focus and control. Each generation has kept the management and operations processes relatively simple, centered on brewing practices and quality. Deutsche Brauerei’s rapid growth in recent years can be attributed to several factors. First and foremost, the company’s success is centered on the product itself, which has won numerous quality awards and is quite popular in Germany. Another contributing factor to the recent growth may have been a bit inadvertent. The purchase of new equipment in 1994, which was necessary as a result of a fire that destroyed the old equipment, allowed the company to increase brewing capacity and efficiency. Finally, Deutsche Brauerei’s decision to enter the Ukranian market in 1998 contributed significantly to the rapid growth. The collapse of the U.S.S.R. brought market reforms, and Deutsche Brauerei jumped on the opportunity to enter the fragmented beer industry, capture the large population and capitalize on the prime location in Europe. Lukas Schweitzer was savvy enough to hire local expert Oleg Pinchuk away from a competitor as the marketing manager, and Oleg was instrumental in building the business in Ukraine by securing accounts and implementing the field warehousing to support distributors. Deutsche’s beer was hugely popular in the Ukraine almost immediately, and volume sales more than offset the depreciation of the Ukrainian currency. Sales in Ukraine accounted for 28% of Deutsche’s total sales, and skyrocketed from 4,262 euros in 1998 to 25,847 euros in 2001.
Heineken was established in the United States in 1863 and in a short time it became the world’s largest brewer with 116.8 million barrels of beer sold.
... them. The expansion into other areas in the world is something that the company is constantly considering. Expanding their advertising and marketing to reach those individuals in the United States that have not “experienced” the craft beer industry is a constant tactic the company considers. There are also potential environmental threats that the company realizes and considers while making their business decisions.
And we will purchase capacities when plant utilisation above 90%. This will expand the business size and have a positive impact on economies of scale. Composed with High End and Size products transfer into Traditional and Low End, we have multiproduct in targeted segments. “Higher firm-level ability raises a firm 's productivity across all products, which induces a positive correlation to a firm’s intensive and extensive margin” (Bernard, Redding and Schott 2006). This means with an effective business strategy and management, businesses can boost sales of all products within the segment. With a larger product profile for Traditional and Low End, it works to generate larger market shares. Refer to Graph 4 and 5, Digby sold twice units of products than its core competitor-Baldwin by having Daze and Dixie in its Traditional segment, which drives its segment market share to double Baldwin’s. The boost in sales and market share prove the correct implication of the
Heineken is brewery with a long history and tradition of superior quality and taste. The brand is very well suited to increase it’s global sales and presence through its many strengths. (Table Below). Conversely there are several weaknesses which need to be addressed to bring the company to global market it desires.
After 1996, the U.S. beer industry had consistent growth with about 3,500 brands on the market in 2002 (Alcoholic Beverages, 2005). The U.S. exported beer to almost one hundred countries worldwide. The beer industry peaked production with 6.2 billion gallons in 2003 (Alcoholic Beverages, 2005). The U.S. beer industry haws over 300 breweries. However, this industry is dominated by three companies: Anheuser Bush (45% of the industry), Miller Brewing (23% of the industry), and Adolph Coors (10% of the industry) (Overview of the U.S. Beer Industry, 2005).
Heineken N. V. was founded in 1592 in Amsterdam. The Netherlands Nowadays Heineken N. V. is currently the world's second largest brewer, trailing only U.S. based Anheuser-Busch. It leads the European market with a 60% market share and it is the second imported beer in the United States, following Grupo Modelo's Corona beer, since 1998. Fierce competition from the imported segment contributed to the decline in Heineken sales and as a result of it, Heineken N. V. bought back the distribution rights and established a wholly owned subsidiary in White Plains, N.Y.; in order to achieve a new market push in the United States (Roberts, 1999).
The beverage industry is highly competitive and presents many alternative products to satisfy a need from within. The principal areas of competition are in pricing, packaging, product innovation, the development of new products and flavours as well as promotional and marketing strategies. Companies can be grouped into two categories: global operations such as PepsiCo, Coca-Cola Company, Monster Beverage Corp. and Red Bull and regional operations such as Ro...
The brewing industry was once held to competition among many breweries in small geographic areas. That was almost a century ago. The U.S. brewing industry today is characterized by the dominance of three brewers, which I will talk about in this paper. There are many factors today that make the beer industry an oligopoly. Such factors include various advancements in technology (packaging, shipping and production), takeovers and mergers, economies of scale, barriers to entry, high concentration, and many other factors that I will cover in this paper. Over the course of the paper I will try to define an oligopoly, give a brief history of the brewing industry, and finally to show how the brewing industry today is an oligopoly.
Business Environment – The firm is considered a coffee giant company that is a big brand in the business being able to expand aggressively in the market worldwide before it entered in New Zealand. But the business environment of this country is quite unimaginable for a US based company for it to venture without having a thorough marketing analysis covering all the risks in the venture considering the distance and the traditions which differs a lot in many countries thus making it very unique and incomparable. It is only when the company is able to come up with the correct strategy in entering the business that will make it thriving. Starbucks New Zealand entered the Kiwi market by way of franchise and joint ventures. They partnered with a very stable local business partner called The Restaurant Brands New Zealand Ltd. In this case, the company is able to hurdle the market barriers including business laws, taxation, physical set up, traditional and cultural differences that may come along the way. (Starbucks, 2012)