October 3, 2011
MGMT 80- International Business
Written Assignment: The World Beer Industry
Beer Around the World
Approximately, 100 billion liters of beer are consumed around the world every year (Olfir, 2007). The worldwide growth rate of beer consumption has been recorded for the past 19 years (Kirin Holdings, 2005). This, however, is not to say that the beer consumption around the world is alike. The alcoholic beverage consumption levels around the world and the rates at which these increase vary from one country to another. For example, in India the annual consumption of beer is .5 litters per capita (Gupta, 2007), where as in Czech Republic, the consumption of beer is 156.9 liters per capita per year (Olfir, 2007). There are many factors that contribute to the difference in beer consumption levels amongst different countries. Some of these factors include the stability of the country’s economy, laws and regulations, religion, and culture.
I believe that the economy of a nation plays an important role in the levels of beer consumption in different parts of the world. The demand for beer is rapidly increasing in nations whose economy is on the rise. Some of these economies include Asia, particularly China, Eastern Europe, and Africa (Access Capital, 2010). For example, In 1966 China only consumed about half a bottle of beer. As the average per capita income has increased so has the consumption of beer, reaching 103 beers per person in 2007 (Appebaum, 2011).
Laws and Regulations
Laws and regulations on alcoholic beverages also have an effect on the consumption of beer. In most cases, if not all, laws have the ability to hinder the increasing rates consumption of alcohol. For example, the principle of prohibition is intensely recommended by the Indian constitution and Indian law prohibits the advertisement of alcoholic beverage (Ranganathan, 1994). This is one of the reasons why their per capita consumption is so...