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Competitive Environment: One Clear Leader in A Concentrated Beer Market

AB-InBev is by far the largest brewer globally, holding a 19% market share in 2010, almost double that of the second largest brewer, SABMiller. The top 10 brewers represent 61% of the total beer market. Consolidation in the beer industry has led to acquisitions like Anheuser Bush being acquired by InBev in 2008. While the global beer market remains local, it is facing stagnation, causing brewers to look to diversify into new products and markets to sustain growth. Brewers are facing different challenges in different markets, from declining populations to changing consumer preferences. As a result, brewers must diversify their business through new product categories and geographic expansion to

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70 views2 pages

Competitive Environment: One Clear Leader in A Concentrated Beer Market

AB-InBev is by far the largest brewer globally, holding a 19% market share in 2010, almost double that of the second largest brewer, SABMiller. The top 10 brewers represent 61% of the total beer market. Consolidation in the beer industry has led to acquisitions like Anheuser Bush being acquired by InBev in 2008. While the global beer market remains local, it is facing stagnation, causing brewers to look to diversify into new products and markets to sustain growth. Brewers are facing different challenges in different markets, from declining populations to changing consumer preferences. As a result, brewers must diversify their business through new product categories and geographic expansion to

Uploaded by

Murat Can
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Competitive Environment

One clear leader in a concentrated beer market


AB-InBev is by far the largest brewer globally, with a 19% volume share in 2010: almost double that of the second biggest brewer, SABMiller, which held a 10% share. Beer is very concentrated, with the top 10 brewers representing about 61% of total beer volumes in 2010, compared to wine, where the top 10 wineries only hold a 13% share. Also, the wine rankings have remained unchanged since 2005, unlike beer, where consolidation has been going on for several years, with the acquisition of Anheuser Bush in 2008 by InBev, and Heineken buying FEMSA in 2010. Heinekens acquisition of Femsa has made it the fastest growing company in the rankings with its volumes increasing by 30% in 2010, closing the gap to number two brewer SABMiller.

Opportunities for brewers: diversification is essential


The global beer market remains highly localised, with brewers constantly looking for new ventures and opportunities to sustain growth in what is a relatively stagnant market overall. From China to Germany, brewers are facing challenging market conditions, which vary by market and range from factors such as ageing and declining populations to changing consumers preferences for other alcoholic drinks categories, such as wine, spirits, cider and RTDs, to ongoing global economic uncertainty. Despite the different challenges currently faced in different markets, local and international brewers are all facing an increasingly saturated market. As such, they will need to look to diversify, be it in the short, medium or long term. In Germany, the beer market is saturated, with consumers increasingly preferring lighter and healthier beers over traditional varieties, thus many brewers have already e xpanded into the more lucrative malt-based RTDs category. Malt-based variants boast a perceived healthier positioning and lower alcohol content, while consumers associating such products with beer can provide a new direction for brewers. Similarly, in Russia, with increased pressure on the national beer market, due to a 200% excise tax increase, leading to an almost 10% decline in 2010, brewers are looking to be less dependent on beer and find new growth areas.

Even in relatively high growth markets, such as China, brewers are looking further afield, with strategies to diversify further their gradually maturing urban consumer base. Femaletargeted products represent one option, as does further expansion into underserved provincial and rural areas.

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