Corona Beer Essay

762 Words4 Pages
Corona Beer Glennis Bogard Dr. Elizabeth Delone Strategic Management – BUS 599 August 2, 2011 Identify and discuss the trends in the global beer markets. The beer industry has in the past been mostly a local industry. Within the last couple of decades there has been consolidation of the industry. Initially this consolidation was occurring in Western Europe and North America however brewing companies in Eastern Europe, Latin America and Asia have began to consolidate. Global consolidation has picked up the pace in the past ten years. “The top ten brewers accounted for 34% of the global beer market in 1998. In 2008, this figure had grown to 59%” (Trends in Global Beer Market, 2009). Major acquisitions occurred in 2008 in the global beer market: Carlsberg and Heineken acquired Scottish and Newcastle and InBev acquired Anheuser-Busch. There has been a sturdy growth increase in the beer industry. This growth has been attributed to emerging and developing markets, economic and societal developments and transformative improvements in the quality and appeal of beer brands. Developed markets have also undergone change as brewers have responded to controlled or declining beer consumption trends. “The four largest brewers – Anheuser-Busch InBev, SABMiller, Heineken and Carlsberg – produce almost half of all industry volume and generate up to 70% of industry profits” (see exhibit1 )(Investors-Global beer market trends, 2011). Beer industry consolidation has continued during the last twelve months, with smaller transactions in Asia, Africa and Latin America. Discuss how Modelo’s international expansion was made possible through strategic partnerships with experienced distributors in local markets. Modelo expanded internationally in the beginning by contracting with companies that was familiar with their local market. While Modelo gave the

More about Corona Beer Essay

Open Document