Beer industry Essay Example for Free

Beer industry Essay 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 c/osures within the industry. This has resulted in the growth of the brewers reliance upon super brands. ln 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 per cent annual growth, had become the largest single market by volume, while Brazilian volumes had overtaken Germany in 2005 (Euromonitor, 2006). Table 1 details the overall decline of European beer consumption. Decline in traditional to several factors. Governments key markets is due such as Tesco or Carrefour, which often use eut-priee offers on beer in order to lure people into their shops. are campaigning strongly against drunken driving, affecting the More th an one-fifth of beer volume is now sold propensity through supermarkets. to drink beer in restaurants, pubs and German retailers such as bars. There is increasing awareness of the effects of Aldi and Lidl have had considerable alcohol on health and fitness. Particularly ln the United their own private-Iabel Kingdom, there is growing hostility towards so-called beers. However, although on-trade volumes are fallin_ binge drinking, in Europe, the sales values are rising, as brewers excessive alcohol consumption in pubs and clubs. Wines have also become increasingly introduce higher-priced success with (rather th an brewery-branded premium products such popular in Northern European markets. However, as extra-cold beer consumption other hand, a good deal of this increasing demand per capita varies wic;lely between lagers or fruit-flavoured beers. On the countries, being four times higher in Germany than for premium products is being satisfied by the in Italy, for example. Some traditionally import of apparently exotic beers from overseas consumption low- European markets have been (see Table 2). showing good growth. Brewers main purchasing The drive against drunken driving and binge (accounting costs are packaging for around half of non-labour costs), ra drinking has helped shift sales from the on-trade material such as barley, and energy. The European (beer consumed on the premises, as in pubs or packaging restaurants) to the off-trade (retail). Worldwide, the industry is highly concentrated, by international companies off-trade increased from 63 per cent of volume in and Owens-Illinois 2000 to 66 per cent in 2005. The off-trade is Dutch brewer Heineken complained increasingly dominated by large supermarket chains dominat such as Crown in cans in glass bottles. During 2006, rise in packaging costs. of an 11 per c GLOBAL FORCES AND THE EUROPEAN BREWIN (JY European beer consumption by country and year (000 hectolitres) 1980 2001 2000 2002 2003 \~ 2004 7651 8627 8734 8979 8881 8970 12945 10064 5452 4024 9703 5202 4136 20629 100385 4247 5536 9935 5181 4179 21420 103105 4288 5594 9986 5282 4085 21331 100904 4181 5625 9901. NIA NIA NIA NIA 4174 9539 417 8762 16289 472 16694 445 16340 440 12213 7651 3534 20065 3935 13129 2327 6453 29151 5011 4194 57007 12922 2290 6276 31126 4932 11985 2420 5948 30715 4998 4127 59384 6698 2738 23745 89820 land =-ance 3ennanyt NIA 3reece ay* :::ortugal ::Jain : eden : vitzerland 4433 65490 -~ n-EU countries; t1980 excludes 4141 58234 4862 4370 20200 95639 21168 97107 3905 5315 17452 94994 NIA NIA NIA 5~6 17194 17340 NIA NIA 12687 2490 6266 373 12771. 2270 6008 33451 4969 4334 60302 12747 NIA 6224 NIA NIA 4635 4262 59195 4566 NIA NIA GOR. Figures adjusted. rce: www. Brewersofeurope. org. able 2 Imports of beer by country Acquisition, tria = =elf1ce 3ennany .. 5reece _and Imports 2004 (% of consumption or production » =algium ~:; mark and Imports 2002 (% of consumption untry or production) 5. 1 4. 74 2. 6 2. 3 23 3. 1 4. 1 NIA 27. 15 NIA 3. 2 5. 4 :oain 1. 1 11. 7 : eden NIA : 15. 4 10. 9 titzerland 3 licensing and strategie alliances have ail occurred as the leading brewers battle ta control the market. There are global pressures for consolidation due ta overcapacity within the industry, the need ta contain costs and benefits of leveraging 6. 4 strong brands. For example, Belgian brewer Interbrew 10. 2 NIA purchased parts of the old Bass Empire, Becks and 7. 3 31 Whitbread in 2001 and in 2004 announced a merger with Am Bev, the Brazilian brewery group, ta create 4 the largest brewer in the world, InBev. The second NIA NIA largest brewer, the American Anheuser-Busch, 37 38. 4 14. 4 2002, South African Breweries acquired the Miller has been investing in China, Mexico and Europe. ln Group (USA) and Pilsner Urquell in the Czech NIA NIA NIA Republic, becoming fast-growing SABMilier. Sm aller players in Chinese and South American markets are being snapped up by the large international 18 15. 6 12. 3 brewers tao. Medium-sized is withdrawing Australian brewer Fosters from direct participation in many international . port figures do not include beers brewed under licence in home ntry; countries vary in measuring 3ource: www. brewersofeurope. org. % of production or consumption. markets, for example selling its European brand-rights ta Scottish Newcastle. Table 3 lists the worlds top 10 brewing companies, accounted which for around half of world beer volumes. There remain many small specialist and regionalca ~ CH APTER 2 THE ENVIRONMENT Table 3 The worlds top 10 brewery companies by volume: 2005 Company Share global Country of origin volume (%) sales in 2005 of â‚ ¬313m, it is less than a twentieth of the size of Heineken. Its key products include Grolsch premium lager and new flavoured beers (Grolsch lemon and Grolsch pink grapefruit). ln The Netherlands InBev 10. 8 Brazil-Belgium Anheuser-Busch 9. 4 USA SABMilier. 7. 3 South Africa (relocated to UK) Grolsch holds the rights for the sale and distribution of the valued US Miller brand. About half its sales are obtained overseas, either through export or licensing of production: the United Kingdom is its Heineken 5. 7 Netherlands second largest market. ln 2005, Grolsch centralised Morelo 2. 9 Mexico its own production Carlsberg 2. 9 Oenmark to increase efficiency and volume, and opened a Coors 2. 6 USA sm ail additional TsingTao. 2. 4 China Baltic Brewery Holdings 2. 2 Oenmark/UK Asahi 2. 1 Japan on a single new Dutch brewery trial brewery in order to support innovation. Innovation and branding are core to the companys strategy. The company believes that its strong and Source: Euromonitor International, The World Brewing Industry. distinctive beers can succeed in a market of increased homogenisation. Brewers, such as the Dutch company Grolsch (see below) or the British Cobra Beer, originating in the Indian restaurant market. Its brand is reinforced by its striking green bottles and its unique swing-tops. InBev (Belgium/Brazil) InBev was created in 2004 from the merger of Belgian InterBrew and Brazilian AmBev. With a turnover of Four brewing companies â‚ ¬13. 3bn in 2006, it is the largest brewer in the world, Heineken (The Netherlands) different countries. Heineken is the biggest of the European brewery include Becks and Stella Artois. Through a series of businesses, and has three-quarters acquisitions, holding number one or number two positions in 20 of its sales in the region. Total sales in 2006 were â‚ ¬11. 8bn (EBbn). About 5 per cent of sales are in Asia-Pacific and Its well-known international brands InBev has become the second largest brewer in China. The company is frank about its strategy: to 17 per cent of sales are in the Americas. The transform companys the world to the best. It aims to do this by building biggest brands are Heineken itself and Amstel. The company remains a family-controlled itself from the biggest brewing company in strong global brands and increasing efficiency. business, which it claims gives it the stability and Efficiency gains will come from more central independence coordination to pursue steady growth internationally. Heinekens strategy overseas is to use locally acquired comparues as a means of introducing of purchasing, from the optimisation the including media and IT; of its inherited network of breweries; and from the sharing of best practice Heineken brand to new markets. It aims to strengthen across sites internationally. local companies continue, InBev is now emphasising technology. by transferring expertise and The result is to create economies of scale Although acquisitions organic growth and improved margins from its existing businesses. for both the local beers and K~ineken. Heinekens four priorities for action are to accelerate revenue growth, Scottish and Newcastle (UK) to improve efficiency and cost reduction, to speed Scottish and Newcastle is a European-focused up strategy implementation and to focus on those markets where the company believes it can win. brewing group based in Edinburgh. ln 2005, its turnover was f:3. 9bn (â‚ ¬5. 5bn). Its key brands include John Smiths, Kronenbourg, Grolsch (The Netherlands) Royal Grolsch NV is a medium-size brewing group, established Kanterbrau, Baltika and (in Europe) Fosters. It is the fourth largest brewer in international in 1615. With overall Europe in volume terms, and market leader in the UK, France and Russia. The company has made many GLOBAL FORCES AND THE EUROPEAN BREWING INDUSTRY . ions in the UK (including Bulmers eider), . Greece and Finland. The groups 50 per cent ent in Baltic Beverages has given it exposure fast-growing ic countries. markets of Russia, Ukraine and ln China, Scottish and Newcastle a 20 per cent stake in CBC, the countrys brewery. ln India, the companys les is the countrys fifth United largest brewer, with the _- her brand. ln the USA, Scottish and Newcastle second largest importer of foreign beers. The , -r-,ny emphasises the development of innovative emium beers, and is closing down its more rent breweries. Questions 1 Using the data from the case (and any other sources available), carry out for the European brewing industry (i) a PESTEL analysis and (ii) a five forces analysis. What do you conclude? 2 For the four breweries outlined above (or breweries of your own choice) explain: (a) how these trends will impact differently on these different companies; and (b) the relative strengths and weaknesses of each company.

the outsiders :: essays research papers

"The Outsiders" is a story that deals with a conflict between two gangs, the "Greasers" from the East Side of town and the "Socs" from the West-side of town. This is a story that is told in the first person. This book took place in the early 1960’s.The mood of the story, in my point of view, was pretty misfortunate and is a tragedy, because when you think that it couldn’t get worse, it just did. Ponyboy Curtis is the one telling the story. The novel starts off, one day, as Ponyboy is walking home from a movie, he was about to get jumped and beaten by a gang of Socs, but at the last minute, his gang of greasers that includes his brothers Darry and Sodapop, who raise Ponyboy now that their parents have past away, the big tuff Dally Winston, innocent Johnny, and the loud and wise-cracking Two-Bit, show up to save him. The night after Jonny and Ponyboy went to the movies with Dally. They sat behind a pair of attractive Soc girls, whom Dally hits on very obnoxiously. After Johnny tells him to stop, Johnny and Ponyboy sit with the girls, Cherry and Marcia, and Ponyboy and Cherry finds out that they both have a lot in common. Ponyboy and Jonny sees Two-Bit there so they all sat together. As they are walking back to Two-Bit’s house so he could drive the girls home, they run into the girls’ drunk boyfriends. Cherry and Marcia agree to leave and go home with their boyfriends to prevent a big fight. Ponyboy got home very late, which made Darry very angry, but most of all worried. So sick and tired of having his brother critisizing and inspecting every little thing that he does, Ponyboy yells at Darry, which caused them to get in a bad argument. Being so furious Darry slaps Ponyboy across the face! In shock that his brother had slapped him, he ran out the door and meet up with Jonny, they left for the park. At the park Ponyboy and Jonny sees Bob and Randy, Cherry and Marcia’s boyfriends, with some of their Soc friends. One of the Socs held Ponyboy's head under the water of the fountain, and Ponyboy blacks out. When Ponyboy finally woke up he was lying next to Jonny. He looks to the side and sees a bloody corpse, it was Bob. To save Ponyboy, Johnny had to killed Bob. In the second third of the novel, so terrified, the only person that they thought that could help them was Dallas Winston.

A Movie Review

This film has a compelling story that has various characters that come from different races and background whose lives are intertwined with each other and set in the city of Los Angeles.It shows the racial disrespect and contempt in the city as well as the drug culture. It is a contemporary film that characterizes a group of racially diverse individuals where one will see whites, blacks, Asians and Hispanics. Each character is portrayed in different racial discrimination situations as an offender at one point in the story and a victim in another.A movie so full of strong racist language and intense confrontations where everyone seems angry and scared of being blatantly discriminated because of their color, yet at the same time each has their own narrow-mindedness that moves them to do the same.The utterances of uncouth words were seemingly done recklessly, inconsiderately or deliberately which somehow leads to violence and crimes.   Anyone, in whichever part of the world, who will watch this movie, can somehow relate to at least one character wherein one shares the same fears, hopes and at times feels impelled to retaliate when pushed to a corner.In one scene, the character named Ria, the Latina detective, had a vehicular mishap with an Asian woman (who mispronounced the word brake as blake) whom she told sarcastically, â€Å"†¦you don’t see my blake lights. See, I stop when I see a long line of cars stopped in front of me. Maybe you see over the steering wheel, you’ll blake too†.   That coming from Ria’s mouth who was also racially discriminated by his own black boyfriend.Several movie reviews has rated this movie with four stars or more.   These movie reviews influence the in some ways help in the success or the failure of a particular movie.   It aids the moviegoers decide whether it is worthy of our time and money to watch or not.   There are reviews that are either made objectively and subjectively.According to Am ber Deggans, who writes for the reel reviews, watching the film is like watching a documentary. The rawness of the emotions of the characters touches us deeply.The portrayal of the abusive and racist cop named Officer John Ryan impels us to hate him for his attitude towards the black community yet seeing him comforting his sick father is so contradictory which just shows us that there is always a good side to people. Film makers usually do their utmost to reach the audience and impart to them that there is a need to stop the anger among us but not many were successful in doing this except for this movie.The characterization of each role was ultimately conveyed to the audience.   The performance of the actors was exceptionally done resulting for the film’s message to be thoroughly communicated. Scenes were sometimes so poignant that it becomes hard for the viewer not to be moved especially if at some point in our lives, we may have encountered a relatively similar if not the exact situation as shown in the movie.  Roger Ebert, who is a Pulitzer Prize-winning American film critic and screen writer rated this movie with four stars. As conclusion to his review, Ebert mentioned, â€Å"I don't expect â€Å"Crash† to work any miracles, but I believe anyone seeing it is likely to be moved to have a little more sympathy for people not like themselves. The movie contains hurt, coldness and cruelty, but is it without hope? Not at all.†Some scenes from this movie give us surprisingly unexpected but realistic glimpses of certain inequities that real people also come across. For a movie that didn’t have ample budget for its production, parts of the movie were quite represented realistically and naturally. Crash strongly depicts a reality that none of us can refute and forces us to face the truth, that each of us carry our own prejudice regardless of which race we belong to.   The social impact of this movie would hopefully lead to a realiza tion of a racist-free community.WORKS CITEDCrash. Dir. Paul Haggis. Perfs. Sandra Bullock, Don Cheadle, Matt Dillon, Jennifer Esposito,Brendan Fraser, Thandie Newton, Terence Howard, Ryan Philippe. DVD. Lions Gate Production. 2005.Deggans, Amber. â€Å"MovieReview†. Frank’s Reel Reviews. 2005.4 December 2007.

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