Team 3 mason mitchell randy greinert sarah yelverton alec cooper
Download
1 / 29

Industry and Competitive Situation Analysis: BEER INDUSTRY - PowerPoint PPT Presentation


  • 402 Views
  • Uploaded on

Team 3 Mason Mitchell Randy Greinert Sarah Yelverton Alec Cooper. Industry and Competitive Situation Analysis: BEER INDUSTRY. The Beginning. 3, 000 B.C. -mainly starches and sugars Modern day Iraq 2 Flavors Malt dried over open flame Hydrometer Invention Better quality malt

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Industry and Competitive Situation Analysis: BEER INDUSTRY' - Audrey


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Team 3 mason mitchell randy greinert sarah yelverton alec cooper

Team 3

Mason Mitchell

Randy Greinert

Sarah Yelverton

Alec Cooper

Industry and Competitive Situation Analysis:BEER INDUSTRY


The beginning
The Beginning

  • 3, 000 B.C. -mainly starches and sugars

  • Modern day Iraq

  • 2 Flavors

  • Malt dried over open flame

  • Hydrometer Invention

  • Better quality malt

  • Colonists/Corn


Coors
Coors

  • 1880

  • Adolf Coors

  • Golden, Co

  • Prohibition

  • “Silver Bullet”-Bill Coors



Product life cycle
Product Life Cycle

  • Intro- uncertainty

  • Growth- intense competition and climb

  • Mature- stagnant

  • Decline

  • Blue Moon, Bud Light Lime- growth stage (helped super premium segment advance 27.3%)


Imports on the decline
Imports on the Decline

  • Corona Extra and Heineken biggest imports

  • Corona Extra down 4.6%

  • Heineken down 5.5%

  • Both account for over half of imports in United States

  • Our spin: Bud Light Lime has stolen customers due to growth stage


Modelo
Modelo

  • Mexican beers dominate import category (4 of top 6)

  • S&P relates this growth to rise in Mexican population, especially in CA.

  • Will continue to grow


Microbrew
MicroBrew

  • Also Called Craft Beer

  • Make limited amount of beer out of small breweries

  • MicroBrew category has grown consecutively for 25 years

  • Grew 5% in 2008

  • Limited edition seasonal beers and differentiation attribute to their success

  • Samuel Adams of Boston Beer Company is category leader


Market dominaton
Market Dominaton

  • Rule of three and four: 78% of US beer market owned by MillerCoors and Anheuser-Busch


Us sales 2008
US sales 2008

  • Anheuser-Busch- 48.6% market share

  • MillerCoors owned 29.4% of the volume


Top 20 beer brands us
Top 20 Beer Brands US

  • 1) Bud Light

  • 2) Budweiser

  • 3) Coors Light

  • 4) Miller Light

  • 5) Natural Light

  • Only recognizable beer that was non big two was Pabst Blue Ribbon at 18


Light beer
Light Beer

  • 51.8% share of beer consumption

  • Increase of 2.2% in 2008

  • Bud Light is now the leading brand in the world


S p on millercoors
S&P on MillerCoors

  • Sold 64.5 million barrels of beer in 2008

  • Up 0.4% from 2007

  • Sold 64.3 million barrels in 2007

  • Up 4.8% from 2006

  • Own and operate 8 US breweries


Consolidating global beer market
Consolidating Global Beer Market

  • US beer companies are trying to establish presence in potentially lucrative markets in Asia, Eastern Europe, and Latin America.

  • Doing this through exports, joint ventures with local brewers and distributors, and purchases of equity interests in local brewers.

  • In 2005, world’s top ten brewers accounted for 61% of international sales volume.


Molson coors global
Molson Coors global

  • Acquired Carling from Bass Brewers, which made them a player in the United Kingdom.

  • Also export products to Australia, Japan, and Caribbean Islands


Increasing target market
Increasing Target Market

  • Age range 21-24 increased in population for the first time in two decades


Advertising
Advertising

  • $975 million dollars spent in 2007

  • Molson Coors spent $151 million dollars

  • SAB-Miller spent $175 million dollars

  • Anheuser-Busch spent $378 million dollars

  • Mainly target men with commercials on television during sporting events


Competition
Competition

  • Not only from other beers, but wine and spirits

  • With spirits you can create a variety of flavors with mixers

  • Expanded spirit marketing

  • Health-Conscious people shifting to wine and spirits in moderation

  • People are more time efficient than ever


Company analysis

Overview of the Company:

2005 Molson and Coors merged to

form Molson Coors

Fifth largest brewer in the world

Molson Coors has the 2nd highest sales within the industry behind Anheuser-Busch

Company Analysis


Industry and competitive situation analysis beer industry 1260204

Performance Indicators:

  • Following the merger in 2005 Net Income and operating revenues for Molson Coors increased until 2007

  • From 2007 to 2008 the company experienced a decrease in net income and operating revenues as a result of a change in economic conditions and the joint venture with Modelo which was not consolidated yet on the financial statements

    Net Income Operating Revenues


Industry and competitive situation analysis beer industry 1260204

  • The companies current ratio has increased from .08 to 1.1 which shows the firm is becoming more liquid

  • The return on assets ratio has increased in recent years showing Molson Coors increase in efficiency in generating income from invested capital

  • Molson Coors earnings per share have varied over recent years due to the 2005 merger and the current recession


Industry and competitive situation analysis beer industry 1260204
SWOT which shows the firm is becoming more liquid

  • Strengths:

  • Strong industry position

  • Portfolio of strong brands

  • Strong financial performance

  • Weaknesses:

  • Dependence on few products

  • Reliance on third party service providers


Industry and competitive situation analysis beer industry 1260204

  • Opportunities: which shows the firm is becoming more liquid

    - Strategic Agreements

  • Growing Hispanic population in the US

  • Growing beer consumption in Asia

  • Threats:

  • Government regulations

  • Changing consumer preferences

  • Industry consolidation


Strategy
Strategy which shows the firm is becoming more liquid

  • Performance improvement strategy to build and strengthen capabilities

  • Reduce general and administrative expenses by business process outsourcing

  • Standardize business processes in finance, IT services, and HR

  • Strong brand recognition to obtain a competitive position

  • Increase in advertising and marketing expenditures


Industry and competitive situation analysis beer industry 1260204

Industry change which shows the firm is becoming more liquid

Rise of wine, spirits, and craft beer

34% wine

40%beer

22% spirits

In 1995 beer was 46% now 40%

People are becoming more health

conscious

Increase in Mergers and acquisitions


Strong and weak companies
Strong and Weak Companies which shows the firm is becoming more liquid

  • Anheuser-Bush

  • Molson Coors

  • Pats Blue Ribbon

    • Decreasing market share 2007 5.9% 2008 2.7%

    • Beer ranked 18 out of 20 top beers


Competitive moves
Competitive Moves which shows the firm is becoming more liquid

  • Mergers and Acquisitions

    • Pats Blue Ribbon

    • Boston Beer Company

  • Add craft brewers to product mix

    • 312

    • ESB


Completive success
Completive success which shows the firm is becoming more liquid

  • Advertising

  • Product differentiation

  • Synergy and cost reduction


Industry attractiveness
Industry attractiveness which shows the firm is becoming more liquid

  • $99.3 billion industry

  • Industry growing during recession

  • Over 21 population is growing