An Analysis of the International Alcohol Beverage Industry

Pages: 20 (6476 words) Published: September 26, 2012
* Chapter 1 – Analyzing international & national markets * Chapter 2 – USL Company history and background
* Chapter 3 – USL brands & their Growth strategy analysis * Chapter 4 – Competition analysis and their growth story * Chapter 5 – Consumer behavior analysis and luxury products preference * Chapter 6 – Luxury Channels and the proposition

* Chapter 7 – Action plans and conclusion

The global alcoholic drinks industry is expected to exceed $1 trillion in 2014, according to Market Line. Market volume is predicted to reach almost 210 billion liters in 2014, a 10% increase in five years. Beer, cider and flavored alcoholic beverages represent the leading market segment with over half of the overall market value. The global alcohol industry is seeing a major move towards premium alcohol. The term premiumization of alcohol means having consumers pay more money for the same volume of alcohol. The key consumer-level factors that drive premiumization in alcohol are the desire to improve social status, the desire to improve taste experience, and the desire to have a better understanding of the products that are being consumed. Alcohol consumption is declining in developed countries, and rising in many of the developing countries and the countries of Central and Eastern Europe. Alcohol premiumization is driven by economic, social and psychological factors: consumers need to be able to afford the products they want, they are motivated by the consumption patterns of their peers, and as basic needs are met, they desire products that offer status, reward, and indulgence. With consumers less willing to spend money on alcohol outside of the home, alcohol manufacturers are increasingly looking at ways to add value to their products. Manufacturers have been looking at ways to enhance the premium aspects of their brand as well to help attract recession-affected consumers.  Factors Driving Premiumization of Alcohol

1. Economic Growth
2. Growing Budget of the ‘Middle Class’ in Emerging Economies 3. Availability of Luxury Products to Mass Consumers
4. ‘New Consumerism’ Driving Sales of Premium Alcohol
5. Rising Affordability of Premium Products

Using celebrity endorsement and social networking can help elevate the status of a brand, but manufacturers have no control over factors such as negative publicity generated by the endorser or public misrepresentation by a group of consumers. Premium alcohol brands achieve the greatest success when the brand strategy is not only well formed, but also effectively integrates the drivers of growth. Within the spirits business, the trend towards premium products has further helped the industry in terms of value. Spirit markets have been premiumizing across the regions as premium consumers have more and more access to more sophisticated products and are aggressively willing to pay premium prices for higher quality brands. The industry has realized that branding and marketing plays an important role in the global alcohol industry, manufacturers can use branding as a means of achieving premiumization of alcohol brands. The industry trends and factors that are driving premiumization of alcohol are economic growth, the rise of the 'middle class' the concept of new consumerism; the role technology has to play and the “on premise activities” that have taken a major role in the premiumization arena.   Industry Trends :

1.RisingVolume & Value
2 Growth within Premium Segments
3 Premiumization of Alcohol and On-premise Activities

India is considered as a lucrative unexplored destination for alcoholic drinks market by several international companies operating in saturated alcoholic beverages markets of Europe and the US. India’s alcoholic beverage market has grown steadily in the last 5 years. The industry reached the 500 million cases consumption...
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