Beer Industry Essay

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CASE STUDY OF GLOBAL FORCES AND THE EUROPEAN BREWING INDUSTRY Team name : Madagascar Team mottos : Keep moving forward Team member: 1. Doan Le Yen Vy 2. Tran Doan Phi Yen 3. Tang Thi Phuong Thao 4. Pham Van Binh A PESTEL ANALYSIS Political The tax burden on beer has rose in 2009 by 30% in some countries. The increased tax includes VAT, excise tax, cooperate tax, packaging tax, fuel tax, etc. Higher taxes lead to higher price of beers. Besides, the governments change the structures of alcohol taxation. European countries differ in their levels rate of excise, so a change in European policy will affect some countries more than others. Moreover, there are large differences in taxation between different kinds of alcoholic beverages. Beer is much stronger taxed than wine. (Wine has a zero excise rate). That is one of the reasons why wine becomes more popular in Northern Europe market. Economic The economic downturn has the effect on brewing industry. The accelerating decline in beer sales is a clear sign of a worsening economy, worried household and weakening spending. Two leaders of the beer market, SAB Miller and Heineken have informed that the consumption power has been influent by the worldwide economic downtrend. Sociolcultural The European lifestyles have changed. There are also some autonomous effects leading to decreased beer consumption in Europe. In many countries, people prefer drink wine instead of beer. New generations of young people also seem to have switched their preferences in favor of pre-mixed drinks and spirits at the cost of beer. In addition, more and more Europeans have consciousness of the influence of alcohol on health and fitness. On the other hand, there are trend toward the premium and specialty products imported from overseas. Technological Technology has played important role in brewing industry. Beer distributors are using
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