Corona Beer – from a Local Mexican Player to a Global Brand
QUESTION 1
1. The global beer industry is an attractive industry where most large brewing companies produce different type and taste of beers to suit different class of people all around the world. Many countries were having or in the midst to negotiate Free Trade Agreement around the world, it makes the cost of import beer cheaper and affordable. In the year 2010 Thailand has abolishes import tariffs on beer, hence it make beer brand like Carlsberg, Budweiser and Tsingtao more cheaper to their rival Chang Beer and Singha Beer. (Brewers fear end to beer import tax – Published 26/05/2009)
Most international brewing companies are facing huge challenges from some countries that are imposing higher tax and stricter rule to deter beer consumption. However on the contradictory side, the beer industry is an extremely huge industry that has an impact on the country, contributing mainly to the economy and the society. In the US region, nearly 1.7 million people are employing related to beer industry. The beer industry also generates 190 billion US dollars annually into the US economy. (Beer Institute, Beer Tax Fact, 2008)
1.2 Many brewing companies are started to export their beer brand globally, as they understand that their local market has reach saturated point. Over the year, joint venturing, expanding oversea brewing plant and cooperation with other brewing company have been their strategic movement to extend their market share globally. Heineken have successfully establishing joint venture in various countries include Australia, Germany, Indian and more to introduce their beer. (Lion Nathan and Heineken in joint venture, 18/5/2004) Another key factor of the activeness of the beer industry is the profit margin. Base one the calculation of one keg of beer will produce a net profit of $340 then how about of 1,000 kegs sold, it will produce $340,000 (Draft Beer Profitability)
1.3 The key success factors for global beer industry is to continue
1. The global beer industry is an attractive industry where most large brewing companies produce different type and taste of beers to suit different class of people all around the world. Many countries were having or in the midst to negotiate Free Trade Agreement around the world, it makes the cost of import beer cheaper and affordable. In the year 2010 Thailand has abolishes import tariffs on beer, hence it make beer brand like Carlsberg, Budweiser and Tsingtao more cheaper to their rival Chang Beer and Singha Beer. (Brewers fear end to beer import tax – Published 26/05/2009)
Most international brewing companies are facing huge challenges from some countries that are imposing higher tax and stricter rule to deter beer consumption. However on the contradictory side, the beer industry is an extremely huge industry that has an impact on the country, contributing mainly to the economy and the society. In the US region, nearly 1.7 million people are employing related to beer industry. The beer industry also generates 190 billion US dollars annually into the US economy. (Beer Institute, Beer Tax Fact, 2008)
1.2 Many brewing companies are started to export their beer brand globally, as they understand that their local market has reach saturated point. Over the year, joint venturing, expanding oversea brewing plant and cooperation with other brewing company have been their strategic movement to extend their market share globally. Heineken have successfully establishing joint venture in various countries include Australia, Germany, Indian and more to introduce their beer. (Lion Nathan and Heineken in joint venture, 18/5/2004) Another key factor of the activeness of the beer industry is the profit margin. Base one the calculation of one keg of beer will produce a net profit of $340 then how about of 1,000 kegs sold, it will produce $340,000 (Draft Beer Profitability)
1.3 The key success factors for global beer industry is to continue
References: 1. http://www.bangkokpost.com/business/economics/144372/ Brewers fear end to beer import tax Published: 26/05/2009 (Assessed on 22 July 2010) 2 3. http://www.ferret.com.au/n/Lion-Nathan-and-Heineken-in-joint-venture-n719623 Lion Nathan and Heineken in joint venture, 18.05/2004 (Assessed on 22 July 2010) 4 6. http://www2.potsdam.edu/hansondj/AlcoholFactsAndFiction.html Alcohol problems and solutions, fact and figure (Assessed on 22 July 2010) 7 10.http://www.bootsnall.com/articles/08-08/best-selling-beers-around-the-world.html Best Selling Beers Around the World, By Roger Wade , August 19th, 2008 (Assessed on 22 July 2010) 11 14. http://en.wikipedia.org/wiki/FEMSA FEMSA (Assess on 22 July 2010) 15 19. http://www.gmodelo.com.mx/index-2_en.asp (Assessed on 23 July 2010) 20 21. http://en.wikipedia.org/wiki/InBev In Bev (Assessed on 23 July 2010) 22