Selling Beer in Spain

In: Business and Management

Submitted By gamurray
Words 1741
Pages 7
Selling Beer in Spain
George A. Murray
MG352 International Business
July 16, 2010

Abstract
This paper explores the possibility of Red Drive Brewery expanding its operations into an overseas market. The country of Spain has been identified as the initial target market for Red Drive’s expansion. Research into this plan has been accomplished using the internet and the Business Source Premier database (BSP). Some of the areas explored in this paper deal with the economics of doing business in Spain, the attitudes of people in Europe generally and Spain in particular toward adult beverages, and an analysis of the overall market for adult beverages complete with specific information concerning beer. Facts and figures are used in an effort to validate a decision rendered as to whether or not to pursue the expansion of Red Drive Brewery operations in overseas markets. Keywords: Alcohol market in Spain, economy of Spain

Selling Beer in Spain Spain is located in the extreme southwest portion of Europe. The country shares a border with France to its northeast and Portugal to its west, is bounded by Bay of Biscay to the north, and the Mediterranean Sea to the east and south (See Figure 1). In 1975, the government of Spain moved from a dictatorship to a democracy and began to experience an economy which was both dynamic and rapid in growth [ (CIA - The World Factbook, 2010) ]. The economy of Spain began a period of recession in 2008 with the collapse of its housing market [ (Catan, 2008) ] and is currently showing signs of ending the recession with an improvement in Gross Domestic Product (GDP). Over three-fourths of the population is classified as urban [ (Spain Business USA: Country Profile, 2008) ]. The legal age to purchase and consume alcohol in Spain is 18 except in the province of Asturias where the legal age to buy and consume alcohol is sixteen…...

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