Case Study : Mystic

ARMYRA MARIA ELENOGLOU STELLA SALAVATI VASILIKI

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INTERNATIONAL BEER MARKET

210 beer markets worldwide (according to Euromonitor). Beer market characterised by a distinct shift towards consolidation in recent years. Global beer market fragmented with top 10 producers accounting for over 50% of total volume sales. Over past five years, beer category maintained compound annual growth rate of 4,8% globally. Growth from increased consumption in developing countries. China, which overtook US as largest beer market in the world. More established beer markets volume growth slow due to increasing saturation.

BEER SEGMENTS
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Beer industry sees consumers trading up to more expensive beers. Premium beer gained, over the past years, more than 40 bps, constitutes 17,9% of total beer sales. For mainstream consumers, specifically in emerging markets, most common trade-up to attractive, local, premium brands. In recent economic downturn, deceleration towards premium beer consumption, even being limited.

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MAIN PLAYERS IN INTERNATIONAL BEER MARKET

A r m y r a E l e n o g l o u S a l a v a t i World's four biggest brewers account for over half the global market for beer. Belgium-based Anheuser-Busch InBev, London-listed SABMiller, Heineken, and Denmark's Carlsberg have moved ahead of the rest of the pack led by China's Tsingtao Brewery in fifth place. In 2008: A-B InBev becoming the market leader based on sales of $21,727m, followed by Heineken ($16,854m), pushing SABMiller ($15,751m) down to third rank. In 2009: Budweiser-brewer AB-InBev: beer volumes of around 350 million hectoliters Miller-brewer SABMiller: just under 250 million Heineken: just over 200 million Carlsberg: around 125 million Tsingtao: just over 50 million hectoliters/year. Sixth place North American Molson-Coors Brewing Co. Mexico's Grupo Modelo. China's Beijing Yanjing Brewery Co Ltd Japanese brewers Kirin Holdings Co Ltd Asahi Breweries Ltd made up the rest of the top 10.

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Main players in the beer market

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SUCCESSFUL INTERNATIONAL BRANDS

        

Corona Extra made in Mexico Heineken originally made in Germany but now in the US Carlsberg- Bunch made in Denmark Amstel Light from the makers of Heineken Strong brand quality Constant innovation Sensitivity to the consumer Efficient and extensive distribution networks Intensive promotional strategies Increase of the market share Great success!

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COMPETITION IN FOREIGN MARKETS

Many beer companies want to attract consumers by lancing new, innovative products and flavors apart from the classic ones Competition does exists in an international level. BUT Mystic can achieve a good position in foreign markets if quality, consumer needs as well as innovation are taken into account.

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COMPETITION IN FOREIGN MARKETS

There is a great variety of fruit flavoured beers internationally.More precisely: GERMANY Cherry Beer Kirchenbier Sloe Beer Schehenbier Rasberry Beer Himbeerbier Lemon Beer Citronenbier

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COMPETITION IN FOREIGN MARKETS

BELGIUM
Boon Kriek Cherry Lambiek Floris Apple Floris Chocolate Floris Mango Floris Honey Floris Fraise Floris Framboise Newton Witterkerke Rose,which is the best belgium wheat beer known for its fruity aroma and taste with the purest rasberry fruit

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COMPETITION IN FOREIGN MARKETS

FRANCE Framboise,which has a magnificent aroma,a delicate palate of rasberries with undertones of fruity acidity Adlescott,which is made with peat smoked malt US Founders Cerise,with the taste of peach Great divide Wild Rasberry Ale Pyramid Apricot Ale High Watermelon Wheat Beer Blue Point Blueberry Ale

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COMPETITION IN FOREIGN MARKETS

RUSSIA Russian River Watermelon Funk,which is crisp and clean with lots of watermelon aroma with a whole bunch of barnyard funk CHINA Yanjing Lemon Beer Yanjing Pineapple Beer Guangzhon San Miguel Brewery Company

International potential markets

A r m y r a E l e n o g l o u S a l a v a t i In terms of Population/Consumer base Employment

Business Environment Taxes, Consumer Tastes & preferences Governmental and cultural factors

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Environmental factors & Growth Strategies

The markets with growth potential for large-scale brewers are China, India, South Africa, Russia and Latin America.

International potential markets

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International Potential Markets

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China :

population 1.3 billion

4% urban unemployment steady growth in recent years Continued Growth Potential

India : population 1.1 billion

7.2% unemployment annual growth rate of 17.2% Favorable agricultural climate & network

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South Africa : one of the fastest growing market

easy changing consumer tastes ( preferable western lifestyle) Favorable Long-run Potential

Russia & Latin America : steady growth in recent years The early 2000 s
saw booming beer consumption rates in Russia Latin America :an active beer market with high growth potential Favorable farming climate, great levels of consumption, developing economies ( Mexico & Brazil)

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Non-consumer-related forces
China: Challenging Logistics, complex regulatory controlinstability India :Regional and logistical challenges, political instability-terrorism South Africa : slower population growth, socio-economic issues Target on the segment of the market which focuses on taste Avoid countries in which alcohol is not permitted or the consumption of beer in general is low .

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Other markets
Haacht Brewery could induce Mystic in more similar markets with the belgium one such as : Holand England France North America

But it is important to take into account that the above are blase to a great extent and the competition is very high

Foreign operation plan

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Changing consumer tastes and practices linked to cultural values and traditions is not simple! Firms competing in domestic markets lack significant growth opportunities.

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It is preferable for Haacht to make a FDI creating joint in both developed and emerging markets.

Foreign operation plan

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The chief strategy for growth : mergers and acquisitions Buy out an important stake hold of companies with key position in emerging markets. Found a subsidiary with a local partner

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References
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The global alcohol industry: an overview, David H. Jernigan. Strategic Management: Competitiveness and globalization, Michael A. Hitt. David Jones, Reuter Report. The global beer industry, Haven Harris & Brad Hillwig. Trends and Opportunities in Developing Economies, Aginsky Consulting Group

References
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http://www.marketresearchworld.net/ind ex.php?option=com_content&task=view &id=304&Itemid=77 http://www.beveragemarketing.com/repo rtcatalog4b.html www.beersofeurope.co.uk www.thebeerexperience.co.uk www.internationalbeershop.com.au www.associatedcontent.com www.articlecity.com

References
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www.beersofeurope.co.uk www.thebeerexperience.co.uk www.internationalbeershop.com.au www.associatedcontent.com www.articlecity.com http://www.sabmiller.com/ http://www.marketresearchworld.net/ http://www.euromonitor.com/Beer http://uk.reuters.com/