Global Forces and the European Brewing Industry

This case study focuses on the brewing industry which developed in Europe. Because of the growing pressure in the global market, this industry is currently rethinking its strategy in order to strengthen the brand images and ensure the development of major firms. Consumer needs are changing and the companies have to adapt their strategies. For example, the Youth market is now asking for flavored beer. Imports and exports of beers have been flourishing and are playing an important role. For instance, Heineken, the biggest European brewery businesses, is ranked first in the top exported lager brands. Moreover, keen global competition leads to a wealth of acquisitions throughout the world such as Heineken/BBAG. Additionally, brands are looking at reinforcing their image worldwide. Large global brewers aim at economies of scale. Indeed, they control a series of key brands so that volume sales help to contain costs. Efficiency is also the rule. Relocation means concentration and consequently costs control as well as increasing volume capacity.

[...] Here are two reasons: The Asian market is a piece of cake’, meaning that it will cost a huge amount of money to establish there. Now, it is true that, given the number of potential consumers in Asian countries, the benefits could be high but it may take time to establish. On the cultural side, adapting to the Asian needs and expectations may endanger the brand image. However, not doing it and keeping a ‘European way of life’ image may cause the failure of the strategy. Consequently, some studies [...]

[...] in the top exported lager brands. Moreover, keen global competition leads to a means of acquisitions throughout the world such as Heineken/BBAG. Additionally, brands are on the lookout for reinforcing their image worldwide. Large global brewers aim at economies of high scale. Indeed, they control a series of key brands so that the volume in sales helps to control costs. Efficiency is also a rule. Relocation means concentration and consequently costs control as well as increasing volume capacity. [...]