This document provides an overview of the global beer market and Porter's Five Forces analysis of the beer brewing industry. It notes that the beer market generates over $688 billion annually and discusses the major players. A Porter's Five Forces analysis is then presented, analyzing the threat of new entrants (medium risk due to barriers), rivalry among existing competitors (neutral level except intense among top 4-5 brewers), bargaining power of buyers (distributors have most power, consumers have least), bargaining power of suppliers (low due to many options and low switching costs), and threat of substitutes (wine, liquor, and malt beverages posing a serious threat).
The Porter 5 Forces model summarizes the beer manufacturing industry as having:
1) Low threats of new entrants due to high capital costs required and government regulations.
2) High bargaining power of buyers as disposable income affects preferences for premium vs. lower priced brands.
3) Low threat of substitutes due to customer loyalty, though advertising restrictions make loyalty harder to achieve.
4) Low bargaining power of suppliers as products are inexpensive and numerous alternatives exist.
5) High intensity of rivalry among competitors despite Kingfisher being a large supplier.
This document provides a summary and analysis of the Adolph Coors brewing company case study. It discusses Coors' history and performance through the 1970s-1980s. It then performs a PEST analysis and Porter's Five Forces analysis of the US brewing industry and Coors' position. It analyzes Coors' value chain and use of vertical integration strategies, including owning suppliers and distributors.
This document provides an analysis of the beer industry and a case study of Adolph Coors and the Coors brewing company. It begins with an introduction and overview of the brewing market evolution since World War II and the history of Coors. It then analyzes the political, economic, social and technological environment. Following this, it discusses market segmentation, targeting and positioning for Coors. It also analyzes Porter's Five Forces and provides a SWOT analysis for both Coors and Anheuser-Busch. The document concludes with a recommended strategy section.
Natural Light has built its brand on affordability compared to competitors. Research found 80% were familiar with the brand but 67% described it negatively, mainly due to poor flavor. Opportunities include social media advertising to broaden the audience and potentially improve flavor, though this may be challenging given Natural Light's position in the low-cost market. The document provides an analysis of Natural Light's brand and competition within the alcoholic beverage industry.
The document discusses different market structures: perfect competition, monopolistic competition, oligopoly, and monopoly. It focuses on defining oligopoly, which features a few large firms, similar products, interdependent competition based on products rather than price, high barriers to entry and exit, and imperfect information for consumers. It provides examples of concentration ratios in various US industries and notes that as the number of firms in an oligopoly increases, the market begins to resemble perfect competition with price approaching marginal cost.
Kroger is the largest supermarket chain in the US with a 15.4% market share. The document discusses Kroger's acquisition of Harris Teeter and Vitacost.com, which provides opportunities to expand into fast-growing online, southeast, and Mid-Atlantic markets. Successful expansion through Harris Teeter's locations and brand will result in additional market share and revenue diversification. The analyst recommends Kroger as an "Outperform" investment due to proven management, geographic diversification, clear growth strategies, and limited downside risk.
Retail apocolypse and pension fund culpabilitythomas paulson
1) The retail apocalypse was caused by a combination of factors including adverse demographics, income bifurcation, student loan debt, supply-demand imbalance from overexpansion by retailers, more efficient business models like Amazon, and changes in consumer behavior toward e-commerce and mobile shopping.
2) E-commerce growth was significantly underappreciated as statistics undercounted sales on marketplaces and overcounted the retail sector by including categories like auto sales. This led to retailers being unprepared for the large shift to online shopping.
3) Private equity ownership of retailers exacerbated problems as high debt levels limited their ability to adapt to changes and led to market share losses and bankruptcies for some retailers.
- eSkye.com was a startup company that aimed to create an online ordering solution to improve the inefficient alcohol beverage supply chain. It had completed successful pilot programs with retailers in Indiana, Illinois, and Michigan.
- The document discusses the challenges in the alcohol beverage industry, including a lack of information sharing across the supply chain due to regulations. eSkye aimed to address this with its online ordering system.
- It provides background on eSkye's founders and their prior experience at National Wine & Spirits, which inspired the idea for eSkye. It details eSkye's creation and pilot programs to test its technology.
The Porter 5 Forces model summarizes the beer manufacturing industry as having:
1) Low threats of new entrants due to high capital costs required and government regulations.
2) High bargaining power of buyers as disposable income affects preferences for premium vs. lower priced brands.
3) Low threat of substitutes due to customer loyalty, though advertising restrictions make loyalty harder to achieve.
4) Low bargaining power of suppliers as products are inexpensive and numerous alternatives exist.
5) High intensity of rivalry among competitors despite Kingfisher being a large supplier.
This document provides a summary and analysis of the Adolph Coors brewing company case study. It discusses Coors' history and performance through the 1970s-1980s. It then performs a PEST analysis and Porter's Five Forces analysis of the US brewing industry and Coors' position. It analyzes Coors' value chain and use of vertical integration strategies, including owning suppliers and distributors.
This document provides an analysis of the beer industry and a case study of Adolph Coors and the Coors brewing company. It begins with an introduction and overview of the brewing market evolution since World War II and the history of Coors. It then analyzes the political, economic, social and technological environment. Following this, it discusses market segmentation, targeting and positioning for Coors. It also analyzes Porter's Five Forces and provides a SWOT analysis for both Coors and Anheuser-Busch. The document concludes with a recommended strategy section.
Natural Light has built its brand on affordability compared to competitors. Research found 80% were familiar with the brand but 67% described it negatively, mainly due to poor flavor. Opportunities include social media advertising to broaden the audience and potentially improve flavor, though this may be challenging given Natural Light's position in the low-cost market. The document provides an analysis of Natural Light's brand and competition within the alcoholic beverage industry.
The document discusses different market structures: perfect competition, monopolistic competition, oligopoly, and monopoly. It focuses on defining oligopoly, which features a few large firms, similar products, interdependent competition based on products rather than price, high barriers to entry and exit, and imperfect information for consumers. It provides examples of concentration ratios in various US industries and notes that as the number of firms in an oligopoly increases, the market begins to resemble perfect competition with price approaching marginal cost.
Kroger is the largest supermarket chain in the US with a 15.4% market share. The document discusses Kroger's acquisition of Harris Teeter and Vitacost.com, which provides opportunities to expand into fast-growing online, southeast, and Mid-Atlantic markets. Successful expansion through Harris Teeter's locations and brand will result in additional market share and revenue diversification. The analyst recommends Kroger as an "Outperform" investment due to proven management, geographic diversification, clear growth strategies, and limited downside risk.
Retail apocolypse and pension fund culpabilitythomas paulson
1) The retail apocalypse was caused by a combination of factors including adverse demographics, income bifurcation, student loan debt, supply-demand imbalance from overexpansion by retailers, more efficient business models like Amazon, and changes in consumer behavior toward e-commerce and mobile shopping.
2) E-commerce growth was significantly underappreciated as statistics undercounted sales on marketplaces and overcounted the retail sector by including categories like auto sales. This led to retailers being unprepared for the large shift to online shopping.
3) Private equity ownership of retailers exacerbated problems as high debt levels limited their ability to adapt to changes and led to market share losses and bankruptcies for some retailers.
- eSkye.com was a startup company that aimed to create an online ordering solution to improve the inefficient alcohol beverage supply chain. It had completed successful pilot programs with retailers in Indiana, Illinois, and Michigan.
- The document discusses the challenges in the alcohol beverage industry, including a lack of information sharing across the supply chain due to regulations. eSkye aimed to address this with its online ordering system.
- It provides background on eSkye's founders and their prior experience at National Wine & Spirits, which inspired the idea for eSkye. It details eSkye's creation and pilot programs to test its technology.
Our attempt was to pitch and acquisition of Nordstrom to Macy's to form a retail conglomerate. Emphasizing consumer trends and synergies between the two companies. Data provided from multiple sources mainly Deloitte's, "The Great Retail Bifurcation".
AMCON Distributing Co. is undervalued based on various valuation methodologies. It has reduced debt significantly over the past four years through paying down its credit facility. AMCON has a strong market presence distributing products to over 4,300 retail outlets across 18 states. The company is led by an experienced management team that has improved operations and financial position. However, AMCON operates on thin margins in a competitive industry and remains dependent on its credit facility.
Global e-commerce sales are increasing 25% in 2015, fueled by Asia-Pacific growth. U.S. retailers cite growth and expansion as risks to their business. Shrinkage and errors cost retailers 1.4% of sales in 2014. The number of purchases made globally via digital devices will reach 125 billion annually by 2018. Sixty percent of consumers often add items to qualify for free shipping. Numerous retailers have announced store closings and bankruptcies in 2015 due to financial strain from unprofitable physical locations and a new consumer motivated by changing tastes and technology.
Brazil 2012 Global Report NAMM - Musical Instruments Market South AmericaMúsica & Mercado
Música & Mercado Publication is proud to be a NAMM Member. We are also happy to cooperate with NAMM to develop the NAMM Global Report.
Música & Mercado is the main publication that involve the B2B channels in Brazil and all Latin America. Be part of Música & Mercado. Conquer new markets!
The three market structures are perfect competition, monopolistic competition, and oligopoly. They seem to depend on the number of firms in the industry and level of product differentiation. Oligopoly is characterized by having a few large firms, similar but not identical products, and interdependent decision making. The concentration ratio measures the percentage of total market output produced by the top four firms, with higher ratios indicating less competition. Several US industries have very high concentration ratios, including video game consoles at 100% and credit cards at 99%.
US retail sales rose 0.8% in October 2016, marking the strongest back-to-back growth since 2014. Retail sales excluding autos, gas, and restaurants rose 0.9% in October. Ecommerce sales grew 12% year-to-date in October 2016 compared to the previous year. A strong housing market has boosted sales of home building materials. However, department store sales declined 7.3% in 2016 as more shopping moves online.
Demographic Conditions prompt a Gloomy Canadian Beer Outlook: Ken ResearchKen Research Pvt ltd.
Canada Beer Market Insights 2016 Report provides a complete overview of the Canada beer industry structure offering a comprehensive insight into historical background trends, 2015 performance and 2016 outlook.
The document provides an overview of key trends in the food and beverage industry in 2011. It discusses rising commodity and retail food prices, the popularity of healthier and private label brands, the increasing role of social media in marketing, and focus on sustainability. It also summarizes M&A activity, noting increased deal volumes but lower values and multiples. Finally, it outlines plans by major companies like Sara Lee, Ralcorp, and Kraft to split into separate entities focused on specific business areas.
This document provides a summary of an economics quiz containing 30 multiple choice questions related to concepts like monopoly, perfect competition, demand and supply. Some key details include:
- Questions cover topics such as competitive market structures, costs of production, demand curves faced by firms, and profit maximization strategies of monopolies.
- Multiple questions involve interpreting graphs showing demand, marginal revenue and marginal cost curves.
- The quiz questions assess understanding of how prices and quantities produced are determined under different market conditions.
The CSD (carbonated soft drink) industry is dominated by two major players, Coca-Cola and Pepsi, which have high brand identity and reputation. The industry has high barriers to entry due to large capital requirements and faces strong competition between the major brands. Threats of substitution are moderate as customers have many beverage options but low inclination to switch brands. Supplier power is weak due to many ingredient providers, while some large buyers have bargaining power over the brands. The bottling industry serving CSD brands also has high concentration among a few players and high costs of entry.
Young drinkers fuelling development of new alcoholic beverage categories and ...Thomas Wu
Young drinkers are fueling the development of new categories and brands in the alcoholic beverage industry. Traditional categories like beer are seeing slower growth while imported premium beers and new low-proof alcopops focused on occasions with friends and families are emerging. Young consumers prefer products that are personalized, convenient, and associated with social experiences. This is transforming alcohol consumption to be more innovative, diverse, and tailored to individual needs.
Product Brochure: Europe Cross-Border B2C E-Commerce 2018yStats.com
Product Brochure with summarized information of our publication "Europe Cross-Border B2C E-Commerce 2018".
Find more here: https://www.ystats.com/market-reports/europe-cross-border-b2c-e-commerce-market-2018/
This document provides an overview of premiumization trends in the global spirits market. It discusses how consumption of "branded" spirits is rising while "local" spirits decline. Vodka, gin, tequila, and rum are analyzed in terms of premiumization trends, with vodka experiencing the most growth. The case study of Svedka vodka highlights how it positioned itself as a premium, value-priced vodka through strategic production, pricing, distribution, and marketing decisions.
IRI's Weekly News Update - w/c 20th March 2017Rūta Misiūnaitė
• Retail footfall decline continued in February
• Arla brand records biggest growth among UK’s biggest 100 grocery brands
• Which? reveals biggest supermarket substitution fails
• Automated ordering system driving improved product availability at Morrisons
• Shoppers seeking new technology to help with grocery shopping
• Majority of consumers frustrated by inconsistent retail experience
• Study by Mars reveals that emotions data can identify what impact ads will have on sales
• Lidl backs British farming
• Mother’s Day spending set to hit retail record
• Sainsbury's shutters in-store phone shops
• Tesco starts charging for same day click and collect
• Retail sales data suggests higher prices are starting to impact spending
• Direct-to-Consumer channel set for take-off in manufacturing
• Study finds that supermarkets can control shoppers' walking speed down aisles
In addition to a general industry overview, each Beverage InView discusses recent happenings in the following categories:
• Carbonated Soft Drinks
• Milk
• Beer/Wine/Liquor
• Coffee/Tea
• Functional Beverages (Sports/Energy/Nutritional Drinks)
• Fruit Juice/Drinks
• Bottled Water (Plain and Enhanced)
If you would like the most recent issue, visit http://marcresearch.com/inview.php
Online sales of consumer packaged goods are growing rapidly across international markets, especially in emerging economies. Internet penetration and the middle class are expanding in BRIC countries and elsewhere in Asia and Africa. This growth is fueling a global ecommerce boom that will transform the consumer packaged goods sector in the coming years. Statistics show online retail growing the fastest in countries like China, India, Brazil, and across the Middle East and Africa. This presents major opportunities for consumer brands to reach new customers online internationally.
Alcoholic beverages in Poland by NielsenAgataLorenc1
This document provides an overview of the alcoholic beverages industry in Poland in 2017-2018. Some key points:
- Alcoholic beverages accounted for 1/5 of total FMCG sales in Poland in 2017. Beer and vodka were the largest categories by value.
- Sales were predominantly in small grocery stores. Wine & liqueurs sold best in discounters and large grocery stores.
- Most categories grew in both value and shelf space from 2016-2017. Wine & liqueurs was the fastest growing industry group.
- Sales and shelf space were seasonal. Spirits peaked in winter, while light alcoholic beverages peaked in summer. Some categories like liqueur and brandy had additional peaks around Easter.
The document provides updates on several trends in the UK grocery market:
- Brexit is expected to reinforce existing consumer trends of price consciousness and value-seeking rather than dramatically change behavior. Retailers already focused on deals and discounts will be best positioned.
- Ocado reported higher profits and order volumes but disappointed investors by failing to announce an international partnership. The CEO warned Brexit could increase inflation from a weaker pound.
- Market share of Aldi and Lidl hit a new high of 10.5% as their discount model appeals to price-focused consumers. Sales declined across the Big Four supermarkets, with Asda the worst performer.
- John Lewis saw a sales boost from starting a clearance
SABMiller is the second largest beer company globally behind AB InBev. It faces intense competition from InBev as well as Heineken and Carlsberg. The beer industry is also impacted by consumer preferences, excise taxes, regulations, and health organizations. SABMiller has a history of acquisitions that has led to operations in 80 countries. Porter's Five Forces analysis identifies high competition and bargaining power of buyers as major issues. Recommendations include launching a new premium beer, offering local craft beers globally, and partnering with governments in developing markets to support infrastructure. These aim to attract customers with distinctive brands, expand margins, and ensure sustainable growth.
An industry analysis by Porters Five Forces reveals that the soft dr.pdfalokkesh1
An industry analysis by Porters Five Forces reveals that the soft drink industry has historically
been favorable for positive profitability, as exemplified by Pepsi and Cokes financial outcomes.
Soft drink industry is very profitable, more so for the concentrate producers than the bottler\'s.
This is surprising considering the fact that product sold is a commodity which can even be
produced easily. There are several reasons for this, using the five forces analysis we can clearly
demonstrate how each force contributes the profitability of the industry.
Threat of new entrants
Entering bottling, meanwhile, would require substantial capital investment, which would deter
entry.
although the CP industry is not very capital intensive, other barriers would prevent entry.
Through their DSD practices, these companies had intimate relationships with their retail
channels and would be able to defend their positions effectively through discounting or other
tactics.
It would be nearly impossible for either a new CP or a new bottler to enter the industry. New CPs
would need to overcome the tremendous marketing muscle and market presence of Coke, Pepsi,
and a few others, who had established brand names that were as much as a century old.
Companies that have a door to door distribution channel in place like snack companies could
choose to diversify into soda industry
Switching costs are low for consumers who risk very little by trying new brands or
Beverages
Barriers to entry are relatively high, though, with large advertising budgets and competitive
brand loyalty to big players like Coca-Cola and Pepsi
The drinks with high growth and high hype are non-carbonated beverages such as juice drinks,
sports drinks, tea-based drinks, dairy-based drinks, and especially bottled water
Bargaining power of buyers
through five principal channels: food stores, convenience and gas, fountain, vending, and mass
merchandisers (primary part of \"Other\" in \"Cola Wars…\" case)
Bottlers own a manufacturing and sales operation in an exclusive geographic territory, with
rights granted in perpetuity by the franchiser, subject to termination only in the event of default
by the bottler
1980 Soft Drink Interbrand Competition Act preserved the right of CPs to grant exclusive
territories to their bottlers, giving less bargaining power to Bottler\'s buyers because there is no
alternative supplier
Bottlers are locked into contracts that grant CPs the right to set prices and other terms of sale
Bottlers are allowed to handle the non-cola brands of other Cps at their discretion
Bottlers are also given freedom in choosing whether or not to carry new beverages introduced by
the CPs but cannot carry directly competitive brands
Competition for brand shelf space in retail channels gives some bargaining power back to buyers
Threat of substitute products
Through the early 1960s, soft drinks were synonymous with \"colas\" in the mind of consumers.
In the 1980s and 1990s Coffee, tea, water, juices.
This document analyzes the soft drink industry, specifically Coca-Cola and PepsiCo, and discusses factors that contribute to the profitability of concentrate producers over bottlers. It examines Porter's five forces and determines that suppliers, buyers, substitutes and potential entrants do not greatly threaten the industry's profitability. While internal rivalry is intense between Coke and Pepsi, they primarily compete through advertising rather than lowering prices. The document concludes that vertical integration of concentrate producers into bottling may not be necessary, as bottlers already have incentives to cooperate, and contract amendments could ensure efficient investment in bottling infrastructure.
Our attempt was to pitch and acquisition of Nordstrom to Macy's to form a retail conglomerate. Emphasizing consumer trends and synergies between the two companies. Data provided from multiple sources mainly Deloitte's, "The Great Retail Bifurcation".
AMCON Distributing Co. is undervalued based on various valuation methodologies. It has reduced debt significantly over the past four years through paying down its credit facility. AMCON has a strong market presence distributing products to over 4,300 retail outlets across 18 states. The company is led by an experienced management team that has improved operations and financial position. However, AMCON operates on thin margins in a competitive industry and remains dependent on its credit facility.
Global e-commerce sales are increasing 25% in 2015, fueled by Asia-Pacific growth. U.S. retailers cite growth and expansion as risks to their business. Shrinkage and errors cost retailers 1.4% of sales in 2014. The number of purchases made globally via digital devices will reach 125 billion annually by 2018. Sixty percent of consumers often add items to qualify for free shipping. Numerous retailers have announced store closings and bankruptcies in 2015 due to financial strain from unprofitable physical locations and a new consumer motivated by changing tastes and technology.
Brazil 2012 Global Report NAMM - Musical Instruments Market South AmericaMúsica & Mercado
Música & Mercado Publication is proud to be a NAMM Member. We are also happy to cooperate with NAMM to develop the NAMM Global Report.
Música & Mercado is the main publication that involve the B2B channels in Brazil and all Latin America. Be part of Música & Mercado. Conquer new markets!
The three market structures are perfect competition, monopolistic competition, and oligopoly. They seem to depend on the number of firms in the industry and level of product differentiation. Oligopoly is characterized by having a few large firms, similar but not identical products, and interdependent decision making. The concentration ratio measures the percentage of total market output produced by the top four firms, with higher ratios indicating less competition. Several US industries have very high concentration ratios, including video game consoles at 100% and credit cards at 99%.
US retail sales rose 0.8% in October 2016, marking the strongest back-to-back growth since 2014. Retail sales excluding autos, gas, and restaurants rose 0.9% in October. Ecommerce sales grew 12% year-to-date in October 2016 compared to the previous year. A strong housing market has boosted sales of home building materials. However, department store sales declined 7.3% in 2016 as more shopping moves online.
Demographic Conditions prompt a Gloomy Canadian Beer Outlook: Ken ResearchKen Research Pvt ltd.
Canada Beer Market Insights 2016 Report provides a complete overview of the Canada beer industry structure offering a comprehensive insight into historical background trends, 2015 performance and 2016 outlook.
The document provides an overview of key trends in the food and beverage industry in 2011. It discusses rising commodity and retail food prices, the popularity of healthier and private label brands, the increasing role of social media in marketing, and focus on sustainability. It also summarizes M&A activity, noting increased deal volumes but lower values and multiples. Finally, it outlines plans by major companies like Sara Lee, Ralcorp, and Kraft to split into separate entities focused on specific business areas.
This document provides a summary of an economics quiz containing 30 multiple choice questions related to concepts like monopoly, perfect competition, demand and supply. Some key details include:
- Questions cover topics such as competitive market structures, costs of production, demand curves faced by firms, and profit maximization strategies of monopolies.
- Multiple questions involve interpreting graphs showing demand, marginal revenue and marginal cost curves.
- The quiz questions assess understanding of how prices and quantities produced are determined under different market conditions.
The CSD (carbonated soft drink) industry is dominated by two major players, Coca-Cola and Pepsi, which have high brand identity and reputation. The industry has high barriers to entry due to large capital requirements and faces strong competition between the major brands. Threats of substitution are moderate as customers have many beverage options but low inclination to switch brands. Supplier power is weak due to many ingredient providers, while some large buyers have bargaining power over the brands. The bottling industry serving CSD brands also has high concentration among a few players and high costs of entry.
Young drinkers fuelling development of new alcoholic beverage categories and ...Thomas Wu
Young drinkers are fueling the development of new categories and brands in the alcoholic beverage industry. Traditional categories like beer are seeing slower growth while imported premium beers and new low-proof alcopops focused on occasions with friends and families are emerging. Young consumers prefer products that are personalized, convenient, and associated with social experiences. This is transforming alcohol consumption to be more innovative, diverse, and tailored to individual needs.
Product Brochure: Europe Cross-Border B2C E-Commerce 2018yStats.com
Product Brochure with summarized information of our publication "Europe Cross-Border B2C E-Commerce 2018".
Find more here: https://www.ystats.com/market-reports/europe-cross-border-b2c-e-commerce-market-2018/
This document provides an overview of premiumization trends in the global spirits market. It discusses how consumption of "branded" spirits is rising while "local" spirits decline. Vodka, gin, tequila, and rum are analyzed in terms of premiumization trends, with vodka experiencing the most growth. The case study of Svedka vodka highlights how it positioned itself as a premium, value-priced vodka through strategic production, pricing, distribution, and marketing decisions.
IRI's Weekly News Update - w/c 20th March 2017Rūta Misiūnaitė
• Retail footfall decline continued in February
• Arla brand records biggest growth among UK’s biggest 100 grocery brands
• Which? reveals biggest supermarket substitution fails
• Automated ordering system driving improved product availability at Morrisons
• Shoppers seeking new technology to help with grocery shopping
• Majority of consumers frustrated by inconsistent retail experience
• Study by Mars reveals that emotions data can identify what impact ads will have on sales
• Lidl backs British farming
• Mother’s Day spending set to hit retail record
• Sainsbury's shutters in-store phone shops
• Tesco starts charging for same day click and collect
• Retail sales data suggests higher prices are starting to impact spending
• Direct-to-Consumer channel set for take-off in manufacturing
• Study finds that supermarkets can control shoppers' walking speed down aisles
In addition to a general industry overview, each Beverage InView discusses recent happenings in the following categories:
• Carbonated Soft Drinks
• Milk
• Beer/Wine/Liquor
• Coffee/Tea
• Functional Beverages (Sports/Energy/Nutritional Drinks)
• Fruit Juice/Drinks
• Bottled Water (Plain and Enhanced)
If you would like the most recent issue, visit http://marcresearch.com/inview.php
Online sales of consumer packaged goods are growing rapidly across international markets, especially in emerging economies. Internet penetration and the middle class are expanding in BRIC countries and elsewhere in Asia and Africa. This growth is fueling a global ecommerce boom that will transform the consumer packaged goods sector in the coming years. Statistics show online retail growing the fastest in countries like China, India, Brazil, and across the Middle East and Africa. This presents major opportunities for consumer brands to reach new customers online internationally.
Alcoholic beverages in Poland by NielsenAgataLorenc1
This document provides an overview of the alcoholic beverages industry in Poland in 2017-2018. Some key points:
- Alcoholic beverages accounted for 1/5 of total FMCG sales in Poland in 2017. Beer and vodka were the largest categories by value.
- Sales were predominantly in small grocery stores. Wine & liqueurs sold best in discounters and large grocery stores.
- Most categories grew in both value and shelf space from 2016-2017. Wine & liqueurs was the fastest growing industry group.
- Sales and shelf space were seasonal. Spirits peaked in winter, while light alcoholic beverages peaked in summer. Some categories like liqueur and brandy had additional peaks around Easter.
The document provides updates on several trends in the UK grocery market:
- Brexit is expected to reinforce existing consumer trends of price consciousness and value-seeking rather than dramatically change behavior. Retailers already focused on deals and discounts will be best positioned.
- Ocado reported higher profits and order volumes but disappointed investors by failing to announce an international partnership. The CEO warned Brexit could increase inflation from a weaker pound.
- Market share of Aldi and Lidl hit a new high of 10.5% as their discount model appeals to price-focused consumers. Sales declined across the Big Four supermarkets, with Asda the worst performer.
- John Lewis saw a sales boost from starting a clearance
SABMiller is the second largest beer company globally behind AB InBev. It faces intense competition from InBev as well as Heineken and Carlsberg. The beer industry is also impacted by consumer preferences, excise taxes, regulations, and health organizations. SABMiller has a history of acquisitions that has led to operations in 80 countries. Porter's Five Forces analysis identifies high competition and bargaining power of buyers as major issues. Recommendations include launching a new premium beer, offering local craft beers globally, and partnering with governments in developing markets to support infrastructure. These aim to attract customers with distinctive brands, expand margins, and ensure sustainable growth.
An industry analysis by Porters Five Forces reveals that the soft dr.pdfalokkesh1
An industry analysis by Porters Five Forces reveals that the soft drink industry has historically
been favorable for positive profitability, as exemplified by Pepsi and Cokes financial outcomes.
Soft drink industry is very profitable, more so for the concentrate producers than the bottler\'s.
This is surprising considering the fact that product sold is a commodity which can even be
produced easily. There are several reasons for this, using the five forces analysis we can clearly
demonstrate how each force contributes the profitability of the industry.
Threat of new entrants
Entering bottling, meanwhile, would require substantial capital investment, which would deter
entry.
although the CP industry is not very capital intensive, other barriers would prevent entry.
Through their DSD practices, these companies had intimate relationships with their retail
channels and would be able to defend their positions effectively through discounting or other
tactics.
It would be nearly impossible for either a new CP or a new bottler to enter the industry. New CPs
would need to overcome the tremendous marketing muscle and market presence of Coke, Pepsi,
and a few others, who had established brand names that were as much as a century old.
Companies that have a door to door distribution channel in place like snack companies could
choose to diversify into soda industry
Switching costs are low for consumers who risk very little by trying new brands or
Beverages
Barriers to entry are relatively high, though, with large advertising budgets and competitive
brand loyalty to big players like Coca-Cola and Pepsi
The drinks with high growth and high hype are non-carbonated beverages such as juice drinks,
sports drinks, tea-based drinks, dairy-based drinks, and especially bottled water
Bargaining power of buyers
through five principal channels: food stores, convenience and gas, fountain, vending, and mass
merchandisers (primary part of \"Other\" in \"Cola Wars…\" case)
Bottlers own a manufacturing and sales operation in an exclusive geographic territory, with
rights granted in perpetuity by the franchiser, subject to termination only in the event of default
by the bottler
1980 Soft Drink Interbrand Competition Act preserved the right of CPs to grant exclusive
territories to their bottlers, giving less bargaining power to Bottler\'s buyers because there is no
alternative supplier
Bottlers are locked into contracts that grant CPs the right to set prices and other terms of sale
Bottlers are allowed to handle the non-cola brands of other Cps at their discretion
Bottlers are also given freedom in choosing whether or not to carry new beverages introduced by
the CPs but cannot carry directly competitive brands
Competition for brand shelf space in retail channels gives some bargaining power back to buyers
Threat of substitute products
Through the early 1960s, soft drinks were synonymous with \"colas\" in the mind of consumers.
In the 1980s and 1990s Coffee, tea, water, juices.
This document analyzes the soft drink industry, specifically Coca-Cola and PepsiCo, and discusses factors that contribute to the profitability of concentrate producers over bottlers. It examines Porter's five forces and determines that suppliers, buyers, substitutes and potential entrants do not greatly threaten the industry's profitability. While internal rivalry is intense between Coke and Pepsi, they primarily compete through advertising rather than lowering prices. The document concludes that vertical integration of concentrate producers into bottling may not be necessary, as bottlers already have incentives to cooperate, and contract amendments could ensure efficient investment in bottling infrastructure.
The document is a research paper that analyzes factors influencing the growth of craft breweries in the United States from 2004 to 2011. It hypothesizes that income growth drives increased demand for craft beer. The paper establishes an empirical model using percentage changes in number of breweries, average income, excise taxes, population over age 21, retirees, and wine consumption as variables. It controls for state laws regarding beer sales and production licenses to determine their impact on brewery growth. Regression analysis finds that the relationship between income growth and brewery growth has an inverse U-shape, increasing then decreasing at higher income levels.
The soft drink concentrate business is highly profitable due to low costs of production and barriers to entry. Concentrate producers require only $25-50 million for a plant that can serve the entire US market. They face little threat from new entrants due to patented formulas and brand equity built over decades of marketing. In contrast, bottlers face higher costs, more competition, and lower profits of around 35% due to factors like needing large capital investments for plants. However, Coke and Pepsi have been able to sustain profits through brand loyalty, expanding into new markets like juices, and leveraging their brand equity globally despite slowing carbonated drink demand.
Elysian Brewing Company operates in a highly competitive craft brewing industry with low barriers to entry. Their main competitors are Deschutes Brewery, Pike Brewing Company, and New Belgium Brewing Company. Deschutes is a larger, privately owned brewery known for sustainability and community involvement in the Pacific Northwest. Pike Brewing Company is based in Seattle and leverages its iconic location in Pike Place Market to drive customers. Both competitors have strong brand loyalty in the region.
This document analyzes Pepsi's strategy in the carbonated soft drink market. It was prepared by five students for a management class project. The document first provides an overview of the carbonated soft drink industry, noting that it is an oligopoly dominated by Pepsi and Coke. It then examines the five forces affecting the industry - threat of new entrants, bargaining power of buyers and suppliers, availability of substitutes, and rivalry. Next, it analyzes Pepsi's pricing strategies, including direct and indirect price discrimination. Finally, it briefly discusses opportunities for Pepsi to provide complements to its products through cooperation with Frito-Lay and with Coke.
This document provides a summary of Pepsi's strategy in the carbonated soft drink market. It analyzes the industry forces, including the threat of new entrants, bargaining power of buyers and suppliers, availability of substitutes, and rivalry between existing competitors. It discusses Pepsi's pricing strategies, opportunities for developing complements, efforts at product differentiation, and potential areas for cooperation with chief rival Coca-Cola. The document recommends that Pepsi focus on developing complements through its Frito Lay and Quaker brands, make a bigger push in the fountain drink segment, and jointly with Coke de-escalate new product introductions and advertising attacks in developing overseas markets.
The document summarizes Michael Porter's five forces model for analyzing industry competition. The five competitive forces that shape every industry are: 1) threat of new entrants, 2) power of suppliers, 3) power of buyers, 4) availability of substitute products, and 5) competitive rivalry between existing competitors. An example analysis of the beverage industry using the five forces model is also provided.
Profitable addictions- Sin stocks mainSonia Khalsa
The document analyzes the profitable alcohol industry in Canada. It discusses factors that may contribute to the industry's forecasted growth between 2013-2018, such as changes to provincial policies allowing alcohol sales in grocery stores. However, it also notes risks like predicted decreases in per capita alcohol consumption due to growing health concerns. The industry is dominated by Anheuser-Busch InBev, which reported revenue growth and profit increases in Q1 despite higher costs of sales, demonstrating the success of its "Focus Brands" strategy of prioritizing brands popular in each market.
British American Tobacco, PLC - EQUITY REPORT 2.0Teddy Krejci
British American Tobacco is a major tobacco company headquartered in London. This report analyzes BAT's stock to estimate a fair price. Financial data from the past 5 years was collected and ratios were calculated. A forecast for the next 3 years was made. Using a discounted dividend model, the actual stock value was estimated at £45.75, 22% higher than the current price of £37.465. Therefore, the report recommends buying BAT shares.
The document analyzes the soft drink industry using Porter's Five Forces model. It finds the industry is very profitable due to its oligopolistic structure with high barriers to entry. Concentrate producers (CPs) earn higher profits than bottlers. This is because CPs have more added value from their branded products and strategic capabilities, while bottlers have less value from operational effectiveness alone. Contracts between CPs and bottlers strategically favor the CPs through territorial exclusivity and pricing flexibility. The document concludes CPs should not vertically integrate into bottling given their current high profitability in concentrates versus bottlers' declining profits.
Michael Porter's 5 Forces model identifies 5 competitive forces that shape every industry: (1) the threat of new entrants, (2) the power of suppliers, (3) the power of buyers, (4) the threat of substitutes, and (5) competitive rivalry. The document provides an overview of each force and examples of factors that determine the level of competition from each. It then analyzes the beverage industry specifically using Porter's 5 Forces framework.
The CSD (carbonated soft drink) industry is dominated by two major players, Coca-Cola and Pepsi, which have high brand identity and reputation. The industry has high barriers to entry due to large capital requirements and faces strong competition between the major brands. Threats of substitution are moderate as customers have many beverage options but low inclination to switch brands. Supplier power is weak due to many ingredient providers, while some large buyers have bargaining power over the brands. The bottling industry serving CSD brands also has high barriers to entry, concentration among a few major players, and threats of substitution from alternative packaging types. Both industries have potential challenges from market saturation and competitive strategies of the major brands.
- Altria Inc. is the largest tobacco company in the US, with 49.8% of the market, but cigarette sales volumes have been declining 3-4% annually due to health concerns, regulations, and social factors.
- Altria operates efficiently through restructuring and has strong cash flows, but faces risks from increased taxes, regulations, and potential bans on menthol cigarettes or e-cigarettes.
- The report recommends selling Altria stock with a $44.64 price target based on stagnant earnings growth forecasts and concerns about sustaining dividend growth given debt levels and revenue declines.
The document analyzes Porter's five forces model for the concentrate industry. It finds that there is high rivalry between major concentrate producers like Coca-Cola due to balanced competition and low barriers to entry. This high competition leads to increased marketing costs and lower overall profit potential for firms in the industry. The profitability of concentrate producers is also impacted by having few suppliers and substitutes, strong buyer power of major retailers, and threat from new innovations like Red Bull entering the market.
The document discusses Porter's five forces model as it applies to the concentrate industry. It finds that there is high rivalry between existing concentrate firms due to balanced competitors and low growth in the industry. This high competition leads to increased marketing costs and lower overall profit potential. The document also compares the concentrate business to the bottling business, finding that profitability differs between the two.
2. 2
Introduction/Executive Summary:
Beer is a yeast – fermented alcoholic drink prepared from malt, and flavored by adding
hops. According to business insights, there are 85 total companies under NAICS code: 312120.
Allied market research came out with a report regarding certain data in the beer industry, more
than 800,000 employees and an annual revenue of over $224 billion dollars highlight the
economic impact of the industry. The beer market has registered significant growth in the world
marketplace due to various promotional activities, strong marketing strategies, social acceptance
of beer as a drink, and increasing number of the beer-consuming population.
The global beer market is expected to generate about $688 billion dollars in sales by
2020.
However, the global beer market also faces some constraints, such as high taxes in certain
regions, seasonality and climatic conditions, government rules and regulations, health
regulations, and a host of substitute products that offer alternatives to the beer market. The other
big impediment for the global beer market is the high investment it demands for both
manufacturing and selling.
Some of the key players in the beer market are Anheuser-Busch (InBev), Grupo Modelo,
Carlsberg Breweries, Heineken N.V. and Molson Coors Brewing Company.
Porters five forces discussed throughout the semester are very applicable to the beer
industry. A short summary of each force: 1) risk of new potential competitors would be a
company(s) with the capabilities and resources to enter the industry 2) rivalry among established
companies is the intensity of competition amongst the top players in the industry 3) bargaining
power of suppliers is where suppliers are consolidated, no substitutes and high switching costs 4)
bargaining power of buyers is where suppliers are fragmented, vertical integration and low
3. 3
switching costs 5) threat of substitutes is the instance when a product from a different company
can satisfy the customers needs.
I found it very interesting that when doing the t-test and comparing the results, my
hypothesis of 2015 being more profitable than 2014 was incorrect when all the research is
showing that there will be a clear profit increase in the beer industry.
Porter’s Five Forces Model:
The goal over the next several pages is to provide an informative essay of Porter’s five
forces model and how the model relates to the beer brewing industry.
The first force is threat of entry by new potential competitors. The beer industry has seen
an increase of brewers enter the marketplace over the last several years. According to an article
published in 2015 by the Brewers Association, the US brewery count has grown significantly
and saw an almost 18% increase from 2014 to 2015. Entering into this market as craft breweries
is very attractive as growth in the beer industry is continuing to rise and to be more profitable.
However, the barriers to entry still remain fairly high. The top beer brewing companies
such as Anheuser Busch, SABMiller, Molson and Boston Brewing have many advantages that
deter potential new entrants from entering the market. For mature companies, economies of scale
provide them great leverage due to large production quantity, which increases their overall
margins. Large amounts of capital gives them the ability to spend more on branding, marketing
and promotions. In addition, they have a hold on the limited shelf space from the retailer as well
as a hold on the distribution channel. Lastly, the alcohol beverage industry is highly government
regulated and taxed on a federal, state and local level. Hoover as well as in an article published
by Market Watch (Notte, 2015) mentions how the top eleven brewing companies in the US own
4. 4
a 90% share of the market, very likely another reason why the potential risk level of new
competitors remains at a medium level.
On a positive note for those thinking about entering the world of beer, while there are
strong barriers mentioned above such as economies of scale and government regulation they do
have some advantages in their favor. The beer industry lacks brand loyalty and has low switching
costs. To go from one beer to another beer, is roughly the same price and the consumer doe not
lose any data collected (ex: to switch from a company like Netflix to another media streaming
provider). Beer prices from one company are not going to be much lower or higher than it is
from another company as reported by wineaccess which releases the price list for beers. With
regards to brand loyalty, the typical beer drinker will try more than just one brand of beer
throughout his or her lifetime giving new entrants some hope for success.
The second of the five forces is rivalry amongst competition. According to a recent
article, published by Business Insider (Richter, 2012), although people preferences for beer have
dropped over the years, the brewing industry is hotter then ever. The amount of breweries in the
U.S now tops over 4,000. One may think the rivalry is fierce then, however, it is at a neutral
level. There are several reasons for this but the main one is that the rivalry is really only amongst
the top four or five brewing companies. These other breweries all exist but on a much smaller
level. Outside of the top few, the other breweries cannot compete. Within the beer industry, price
battles are not the determining factors as most beers are priced at a similar cost. The determine
factor within this industry and what separates the top breweries from the smaller one and limits
their potential growth to be a fierce competitor, is capital constraints.
The brewing industry is focused on using their capital to increase brand image and brand
awareness. CNN (O’Neill, 2016) reported that Anheuser-Busch bought a spot for Super Bowl
5. 5
2015 for three minutes. Every thirty seconds cost was $4.5million dollars. Another top player in
the market, Miller Lite, in a span of thirty days has over 2,000 national airings and is ranked
number 195 amongst all companies in spending. These factors may it extremely difficult for a
new brewery to compete with these top players. However, this intensity among the top
competitors limits potential profitability in this industry.
The third force that Porter discusses is the bargaining power of buyers. The buyer side in
the beer industry is broken down into three tiers. Weiss in an article he wrote for Fermentarium
describes the tiers as follows; the distributors, retailers and the end buyer, which is the consumer.
Respectively, that is their ranking in terms of significance as well.
Neither breweries nor distributors sell directly to the consumer. The consumers spending
on beer is so minimal it is unlikely they have an impact on the pricing strategy. Hence, the
bargaining power of the buyer in this case, being the consumer, is weak.
Next on the tier working our way from bottom to top are the retailers. In this case,
breweries do not sell to retailers for the most part but the distributors sell to the retailers.
Retailers as opposed to consumers do have bargaining power since shelf space is limited and
there are close to 3000 distributors. With the distributor channel being fragmented, this gives the
retailers increased bargaining power.
On top of the chain, are the distributors who have the most power. All breweries are
required to go through an independent distributor, who then sell to the retailers and then
ultimately the consumer. As mentioned previously, the breweries, although controlled by the
elite few, there are many making the supplier side fragmented which increases buyer power.
Additionally, switching costs to the distributor from one brewery as opposed to another is very
low if there is any at all. The risk of distributors vertically integrating is minimal but they
6. 6
ultimately control the product reaching retailers and the end consumer, which increases their
power and their control of pricing. This control puts a dent in the overall profitability of the
brewing industry.
The fourth force discussed is the bargaining power of the suppliers. In the beer industry,
the suppliers are those that provide the brewery with the raw ingredients to produce the actual
product; beer. Although the ingredients are the key element and affect the overall product,
“supplier” power in the alcohol industry is fairly low. There are three main reasons for this. One
is that the suppliers market is fairly fragmented, meaning breweries have several options of
which to purchase the raw ingredients from. Secondly, switching costs are low. For a brewery to
switch purchasing raw ingredients from one supplier as opposed to another is fairly inexpensive.
Lastly, the chance of the suppliers vertically integrating into the industry to act as a brewery is
also fairly low, as they do not possess knowledge of the production portion of the business. On
the other hand, the chance of one the large breweries’ deciding to buy a piece of land and grow
the ingredients and thereby eliminating the middleman is much higher due to their vast amount
of extra capital.
The fifth and final force that Porter discusses is threat of substitutes. Beer is in the
category of being an alcohol beverage and we will stick with the substitutes within that category.
Wine/spirits, liquor such as whiskey and malt beverages are all making a strong move in the
industry and all act as a key substitute to beer. Fortune published an article in February of 2015
written by Kell, provides data of how serious of a threat substitutes are in the alcohol industry
and how they are making a serious move to replace beer as the primary product of choice.
Overall, retail sales of distilled spirits in the U.S. is nearly $70 billion dollars. The spirits
industry’s market share stood at 35.2% in 2014, up from 34.7% a year ago, while beer’s
7. 7
market share for the alcohol business stood at 56% in 1999, but slipped below the 50%
threshold in 2010 and now stands at 47.8%. Total whiskey volume has also been on the
rise now over the past several years and according to trends that growth will keep rising.
It is evident from the data that while beer is still the leader in the alcohol business,
there are viable threats that can act as a substitute for it.
t-Test:
For the t-test my goal is to analyze the performance of the beer industry market between
the years of 2014 and 2015. My initial conjecture was that 2015 performed better than 2014.
Hence, my hypothesis is the following: Ho: Miu2015=Miu2014
Ha: Miu2015>Miu2014.
In my initial conjecture I stated that 2015 performed better than 2014. I defined
performance with regards to ROE % (net). The industry was defined by the NAICS code,
312120 which is the beer brewing industry. The database used to collect the data was Mergent
Online. This tool spit back 146 companies located in the US that play a role under this NAICS
code. Additionally, I decide to disregard outliers since only a few powerhouses control the
industry and including outliers would skew the data in my opinion.
The P-Value given for the t-test without outliers is 0.15497. In the sample mean 2014 has
higher mean than 2015 therefore, making my hypothesis incorrect. So we take the P-Value and
subtract 1 from it. The equation looks like this: 1-0.15497=0.84503, 0.84503 is great then .05 so
we cannot reject Ho and did not find strong evidence that 2015 is better than 2014.
8. 8
T-Test Without Outliers
t-Test: Paired Two Sample for Means
ROE % (Net) - 2015 ROE % (Net) - 2014
Mean 9.5836 10.176
Variance 57.38936567 91.52681667
Observations 25 25
Pearson Correlation 0.971101458
Hypothesized Mean Difference 0
df 24
t Stat -1.037257939
P(T<=t) one-tail 0.154977015
t Critical one-tail 1.71088208
P(T<=t) two-tail 0.30995403
t Critical two-tail 2.063898562
T-Test With Outliers
t-Test: Paired Two Sample for Means
ROE % (Net) - 2015 ROE % (Net) - 2014
Mean 4.616785714 7.4725
Variance 498.0623263 335.0729083
Observations 28 28
Pearson Correlation 0.833857652
Hypothesized Mean Difference 0
df 27
t Stat -1.22629889
P(T<=t) one-tail 0.115337003
t Critical one-tail 1.703288446
P(T<=t) two-tail 0.230674007
t Critical two-tail 2.051830516
9. 9
References:
https://www.alliedmarketresearch.com/beer-market
http://0-bi.galegroup.com.liucat.lib.liu.edu/essentials/industry/312120?u=nysl_li_liu
https://www.brewersassociation.org/statistics/number-of-breweries/
Jason Notte (2015, July 28). “These 11 brewers make over 90% of all U.S. beer”. Retrieved
from http://www.marketwatch.com/story/these-11-brewers-make-over-90-of-all-us-
beer-2015-07-27
http://0subscriber.hoovers.com.liucat.lib.liu.edu/H/search/simpleSearchResults.html?sea
rchValue=+312120+&&updateSimpleSearchResults=true&modName=addrcountryid&mod
Value=76
http://www.wineaccess.com/file/store/totalwine/beer-corridorwine.pdf
Wolf Richter (2012, March 29). “The American Beer Industry By The Numbers”. Retrieved
from http://www.businessinsider.com/the-beer-war-on-american-soil-2012-3
Maggie O’Neill (2016, February 5). “Anheuser-Busch: King of the Super Bowl”. Retrieved
from http://money.cnn.com/2016/02/05/news/anheuser-busch-super-bowl-advertising/
http://www.ispot.tv/brands/dN1/miller-lite
DJ Speiss. “How the three-tiered beer distribution system works”. Retrieved from
http://www.fermentarium.com/industry/how-the-three-tiered-beer-distribution-system-
works/
John Kell. (2015, February 3). “Spirits stole more market share from the beer industry last
year”. Retrieved from http://fortune.com/2015/02/03/whiskey-tequila-spirits-2014/