The Global Brewing Industry

Paper Summary:

The paper discusses how the global brewing industry has taken a significant hit over the last twenty years as a result of new specialty micro-brews becoming exceedingly popular. The paper analyzes this industry utilizing Porter's five forces model to determine the present state of the market and to provide a view of the potential growth of the future. The paper looks at recognized industry leaders InBev, Anheuser-Busch, SAB-Miller and Heineken.

Outline:
Introduction
Threat of New Entrants
Suppliers
Buyers
Substitute Products
Rivalry

From the Paper:

"The global beer market is a numbers game with relatively high cost production, ease of only small market players to enter the market. In the domestic beer market the threat of small companies entering the game is greater as the investment in production is intense for large scale producers such as the four leaders mentioned above. For this reason the four leaders have been very active in seeking to partner with and acquire small international markets, (Ali, 2004, p.40) ("International Brewing Giants Prepare," 2006, p. 9) with a great deal of the activity taking place in the African countries, as well as Australia."

Sample of Sources Used:

• Ali, A. (2004, August/September). Coke Plant Heralds New Beginning in Somalia: The Long-Drawn out Civil War in Somalia Has Devastated the Country's Business Climate but Things May Be about to Change. A New Bottling Plant for Coca Cola Could Be the Start of Better Days to Come. Abdi Ali Reports from Mogadishu. African Business 40.
• Bank Shares Surge amid Merger Fever. (2006, February 18). The Daily Mail (London, England), p. 109.
• Benson-Armer, R., Leibowitz, J., & Ramachandran, D. (1999). Global Beer: What's on Tap?. The McKinsey Quarterly, (1), 3.
• Goldberg, J. (2000, September 25). Buds for Life: A Man and His Beer. National Review, 52.
• International Brewing Giants Prepare to Swallow Foster's. (2006, August 30). Western Mail (Cardiff, Wales), p. 9.

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