Foreign Market Entry and Diversification

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Assignment #3: Foreign Market Entry and Diversification NAME Professor BUS 499, (5/13/2012) 1. Identify and discuss the trends in the global beer markets. In markets where beer consumption is often tied to disposable income, there has been significant growth in the global beer market that is comparable to the overall economic recovery in that region. “The international beer market staged something of a recovery in 2010 with global beer consumption increasing by 2.4%. This marks a dramatic improvement on the 0.5% growth seen in 2009, but is still well below the 5%+ growth rates seen earlier in the decade” ("Global Beer Trends Report 2011", 2011). Specifically in areas such India and China, there has been more growth than in areas in Europe. Europe is more of a mature market than Asia. A 2008 study by Carlsberg identifies where new growth markets in India, China and Vietnam have begun to emerge as well as areas where their more mature markets exist. According to "Trends In The Global Beer Markets" (2008), (Consumption patterns). In the countries experiencing the most beer growth there is also evidence that beer has been gaining a larger portion of the overall commercial alcohol market in the area. Beer consumption had an increase of 6% from 2000 to 2010 from 34% of the commercial alcohol market to 40%. The global beer market is expected to continue to grow especially in Asia, Africa and Latin America. Forecasts beyond 2012 predict the fastest growth in China but anticipate growth in Vietnam, Brazil, Ukraine, Nigeria, India and Peru. In contrast, beer consumption Europe, there has been a decline in the beer market due to the unemployment and the downtown economy. With regard to specific companies, the top five beer sales by volume in 2010 were from just four companies: AB-InBev (18%), SABMiller (14%), Heineken (9%), Carlsberg (5%). These

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