The beer market is now undergoing major changes. The alcoholic beverages market is growing; alcohol-based products increased from 182.084 million liters in 2000 to 204,361,000 liters in 2005, by volume growth of 2.7%. These figures seem to favor the brewers. However, if there is an increase in sales, it can be largely attributed to the emergence of new markets. Western markets, which are mature markets, post very poor figures in comparison with markets such as Russia, China, Latin America and Africa, which show very high growth rates.
Between 2004 and 2008, the European market growth slowed down. Worse, the growth forecast over the next five years include a decline in the European market. Between 2004 and 2008, the European market for beer increased 1.5%. During this period, while the German market remained stable, the British market declined by 0.8%. Over the same period, consumption volume increased 1.5%.
However, by 2013, it is assumed that consumption (in volume) will decline by 1%. The expected market performance between 2008 and 2013 is 0.50%. The UK market alone should show a decline of 3.7% over this period.
Evolution of "the culture of drinking": Lifestyles in developed countries have evolved. From the traditional consumption during long family meals, beer drinking has now moved on to become more of a festive pastime for a relatively younger segment of the population.
Different expectations: Consumers will naturally look for other products.They are gradually abandoning the traditional beer to focus on other products. Health and social unrest related to alcohol: Western governments are propagating awareness campaigns regarding alcohol related health problems and psychological disorders. Governments are proposing "drink in moderation" policies and ways to prevent alcoholism. Public studies highlight the risks of diseases, especially cancer, due to excessive drinking behavior.
Tobacco legislation: Most European countries as well as the United States have tightened their policy on tobacco. Manufacturers of liquor opine that this law negatively impacts the sale of alcohol (The ban on smoking in public places would reduce attendance at bars and restaurants or other places where alcohol is served).Using taxes to regulate alcohol consumption: taxes can be levied to counteract the money spent on treating alcoholism related diseases.
If countries want to restrict or discourage the consumption of alcohol, they can resort to imposition of increased taxes on alcoholic drinks thereby leading to a decline in consumption. The current trend is upward.
Road safety: the developed countries are campaigning against drunken driving which causes grievous damage/loss to both life and property. Awareness campaigns and preventive behavior programs have been implemented to combat this deadly phenomenon; this has led to a decline in consumption as well.
Consequence of the global economic crisis on consumer behavior.
In a crisis-ridden context, the big names in the beer world are struggling to develop and foster the interests of consumers with their innovations.The beer industry is only too aware that financial strength is essential for its operations to thrive."The groups have multiplied in recent months as the sector was highly fragmented far, far more than the spirits sector where these movements have taken place for ten years," says Le Figaro Gilbert Delos, a journalist of Beer magazine.
Tags: beer market in Europe, restructuring, cost reduction and acquisition
[...] An unprecedented restructuring of the beer market: In a crisis-ridden context, the big names in the beer world are struggling to develop and foster the interests of consumers with their innovations.The beer industry is only too aware that financial strength is essential for its operations to thrive. "The groups have multiplied in recent months as the sector was highly fragmented far, far more than the spirits sector where these movements have taken place for ten years," says Le Figaro Gilbert Delos, a journalist of Beer magazine. [...]
[...] Environmental issues: There are so many different beer brands on the European market with Heineken currently reigning as the leader. France is the 5th largest producer of beer in Europe million hectoliters, of which 10% exported. The distribution takes place mainly via supermarkets. Legal issues: The legal framework of the European market in terms of sales and consumption of alcohol is becoming increasingly rigid. Alcohol related advertisements are now regulated by the Act of July This law prohibits advertising in stadiums, sports fields, facilities for young people etc. [...]
[...] that the most important market in Europe is Germany with market share volume (stagnation), followed by England with market share in volume Different beer companies in the European market European market share in volume Company Volume in% Heineken NV Carlsberg A / S Anheuser-Busch InBev Other Total There is a multitude of brands on the European market. Nevertheless, in our study, we will consider only the three biggest European brands: Heineken NV, Carlsberg A/S and Anheuser-Busch InBev, which represent of the market by volume. [...]
[...] - The restriction on the consumption of alcoholic beverages in some European countries is also a barrier to entry. Substitutes - Other alcoholic beverages such as spirits or wine. - The main substitutes for beer are other alcoholic beverages such as spirits or wine.However, soft drinks can also be considered as substitutes for beers with little or non-alcoholic content. - From a perspective of a beverage retailer, switching costs are very low and the prices of other drinks are generally lower. [...]
[...] owns of the European beer market by volume.The three largest producers of beer holds market share in terms of volume produced. Strengths - Heineken, the leading international brand of beer, is sold in over 170 countries. Number 1 in Spain, the Netherlands, Italy. Number 2 in France, Ireland, Switzerland. Well positioned in Eastern and Central Europe (first in Poland, Bulgaria, Croatia etc). - Large network - Strong brand portfolio - Strategic alliance with UEFA Weaknesses - Margin decline - High debt Restructuring, cost reduction and acquisition Heineken, following dismal results in 2008, embarked on a major restructuring scheme. [...]
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