Brewing Industry Pestle Analysis

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POLITICAL1.Government campaigning against drinking and drivingHard-hitting campaigns and stiffer penalties have helped to reduce the number of roads accidents, deaths, injuries and damage. Campaigns have aimed to raise awareness of the legal situation and the dangers of driving while intoxicated. In most international jurisdictions, anyone who is convicted of injuring or killing someone while under the influence of alcohol or drugs can be heavily fined, as in France, in addition to being given a lengthy prison sentence.

Sometimes those campaigns make the brewery industry looking very bad since usually the blame is laid exclusively on them for making alcohol so easily available.

Threat, with the government heavily expending money in such campaigns the consumption of alcohol tends to decrease with people scare of the consequences.

Threat, any further reduction in the limit would stop people visiting rural pubs altogether if having one drink meant their licence2. World Health Organization policies on drinking. Alcohol policyThis Alcohol Policy is designed for use by Companies to highlight the dangers of alcohol abuse and to make it clear that it will not be tolerated at work, or allowed to affect performance.

WHO focuses on a combination of targeted measures aimed at limiting the availability of alcohol especially to young people and at reducing their exposure to commercial communications, drink-driving countermeasures as well as improving education and information.

The goal is to reduce alcohol consumption and alcohol-related harm and give advice on implementing an alcohol and drug policy in Member States.

Threat, another policy with the main goal to reduce alcohol consumption.

3. EU rules on excise taxesTaxation is levied irrespective of distribution and excise duties have not increased very quickly recently. This is due partly to the need to move towards in Europe, the UK's taxes on alcohol are much higher than most countries. The European Commission proposed that the minimum excise duty rates for alcoholic beverages should be increased in line with the rise in the EU-wide consumer price index. The minimum duty rate on wine would remain at zero, as would that for other fermented beverages except for beer.

The main reason for this kind of proposal was to approximate the excise duties in different countries to tackle problems like cross border shopping and smuggling.

Threat, because it will produce an increase in the price of the beer in many EU countries and a study by the Oxford Economics highlighted that this measure will undermine legitimate business and encouraging criminal activity in the high tax countries.

4. EU policies for responsible use of alcoholThe EU alcohol strategy is set to address, among others, drink-driving, aiming to a substantial reduction of alcohol-related road fatalities and injuries by the end of the year 2010, and under-age drinking, aiming to reduce high risk drinking among children and adolescents and postponing the age they start to drinkThese are policies mainly focuses on the saving lives of young Europeans, improving health in the EU, shrinking the social costs of alcohol and limit alcohol consumptionThreat, main objective of these policies is the reduction of alcohol consumption meaning fewer sales for the brewery industry.

5. Government linking crime and drinkGordon Brown's advisers have suggested that alcohol should be made more expensive to cut down on violent crime, they have also advised that increasing taxes on drinks would curb domestic violence and reduce traffic accidents and injuries in the workplace.

A report by the Home Office in drinking and violence says that 60% of binge drinkers admitted involvement in criminal and/or disorderly behaviour during or after drinking. The link between drinking and offending was particularly strong for violent crimes.

Threat, once again the brewery industry is blamed for problems caused by the excessive...
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