Foreign Market and Diversity

In: Business and Management

Submitted By ruthann08
Words 1406
Pages 6
Case Study – Corona Beer (Modelo)
Foreign Market Entry and Diversification

BUS599 – Strategic Management

Identify and discuss the trends in the global beer markets. Beer markets have been primarily a local industry, with only a few of the companies having international presence. “Beer was first brewed in the 14th century in Europe and developed different in every country in order to address local tastes and specific recipes” (Thompson, Strickland, & Gamble, 2010). There was an increase in industry consolidation, a development that took off in North America and Western Europe. “The consolidation began to include brewing companies in the growth markets of Eastern Europe, Asia and Latin America” (carlsberggroup.com). “The United States had the largest beer market in the world until China surpassed in 2003” (Thompson et al, 2010). In the past ten years, global consolidation has accelerated. Due to lack of transportation networks made exportation impossible and brewing remained a local industry. Other countries like Italy and France, they preferred wine over beer for consumption and then you had Germany and Ireland, who both have a few national beer brands. The trend of consolidation by national leaders started expanding in the 1990’s; “Interbrew acquired several breweries in 20 countries and expanded its sales to 110 counters, leaving local managers to control the local brands” (Thompson et al, 2010). The top 10 brewers accounted for 34% of the global market in 1998 and by 2008 it had grown by 25%. According to Carlsberg Group; in 2008, two major acquisitions took place: • Scottish & Newcastle was acquired by Carlsberg and Heineken

• Anheuser-Busch was acquired by InBev

“Beer volumes globally have been growing by the growth of disposable income, the improved quality of beer, increased marketing and advertising, and the…...

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