The Macro Environment of the Western European Brewing Industry Was Analyse Using the Pestel Framework and Five Forces Analysis

Topics: Beer, Alcoholic beverage, Europe Pages: 3 (764 words) Published: February 6, 2013
The macro environment of the Western European brewing industry was analyse using the PESTEL framework to understand and assess the impact of the various external factors namely political, economic, social, technological, environmental, and legal. Political

At the beginning of the 21st century the European governments forbear dynamic participation in the beer industry, which was considered as an important part of government revenues, moreover all this government started big campaigns against alcoholism, binge drinking and drunk driving. The campaigns against drunk driving have proven its effectiveness by a very large decline in beer sales in Western Europe, which was considered as best-selling items. For instant, 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.

Economic

As we have said, the Western European markets were the main beer market in the world. But in recent years, the industry faced a dramatic retraction in this market. The European governments’ campaigns that aim to help combat excessive alcohol consumption and drink driving, and higher taxes intended for the industry that led to increasing the price for that industry products. This procedure did not allow the cheapest offerings to access the market. However, because of the price inelasticity of demand of beer, the beer industry had the best performance compared to other industries in the European Union, especially in the face of the global financial crisis that hit the global economy.

Social
* The health risks associated with alcohol is now becoming a major concern among consumers. Binge drinking in pubs and clubs is also being discouraged. * Increasing in acceptance of low or alcohol free substitute drinks * Importance of supermarkets in distribution and growth of...
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