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Chief Economic Traits of the Beer Industry

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Chief Economic Traits of the Beer Industry
Industry & Competitive Analysis CHIEF ECONOMIC TRAITS OF THE BEER INDUSTRY The market size of the beer industry is incredible. The wholesale volume in the beer industry is approxiametly $13.7 billion. The industry employes almost 40,000 people. The average worker is paid about $18.27 an hour. As you can see, this is a very large industry which provides many jobs to the american workforce. The market consists of many competitors, some being very large and some operating on a very small scale. The competitive rivalry is broken up into three segments, Natiional, Regional , and Microbrewers. National competitors have a wide market coverage and generally a large company. Regional competitors are smaller than National in the fact that they only distribute in certain regions. Microbrewers are the smallest of the three because their size and capacity limit them to only distribute to small geographic areas. The market growth rate of the beer industry is perplexing. In domestic brands, from 1983 to 1984 there has been a decline in consumption of -1.2%. In the imported section there has been an increase of 14.3%. The total industry as a whole declined .7% from 1983 to 1984. As a result of the decline in consumption of beer a similar result in production occurred with a decline of 1.2% The estimated forecast for 1985 will continue along the same trend as did 1984. The long term outlook for the industry is that sales will remain flat for the next 10 to 20 years. There are many companies in the industry. Through the years the industry has slimmed down quite a bit. The National market consists of ten major competitors. The Competitors in this market are Anheuser-Busch, Miller, Stroh, G. Heileman, Adolphs Coors, Pabst, Genesee, C. Schmidt, Falstaff, and Pittsburgh. The National companies have 51 plant locations across the United States. Market share in the Domestic market ranges from a low of .5% to a high of 34%. The Import market consists mainly of ten major brands also. They


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