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Identify and discuss the trends in the global beer markets.

There are many trends in the global beer markets that effect how companies do business. One trend is that each country has different local taste and specific recipes to achieve their beer. China now has the largest beer market, surpassing the United States in 2003. The United States has six times a higher consumption of beer than China. The top three breweries of beer controlled almost 80 percent of the U.S. market. Vertical integration and economies of scales were the main drives to operating margins. “The fact that Anheuser-Bush could capture 75 percent of the industry’s total operating profits emphasized the volume effect in the industry” (Thompson, Strickland, & Gamble, 2010, p. C-251).
Mexico was one of the world’s largest beer markets. Even though brewing has historically been a local industry, the last couple of decades have been increasing consolidation within the industry. The consolidation began to include breweries in the growth markets of Eastern Europe, Asia, and Latin America. The top 10 breweries account for 59% of the market in 2008. Beer consumption varies across the world. “In mature Western European markets volumes are broadly stable or declining modestly” (“Trends,”2008, p.14). In less mature markets in Asia and Eastern Europe are growing, and some at a rapid rate. Volume drivers have primarily been driven by growing disposable income, improvements in the quality of beer, marketing and advertising activities, and a steadily growing beer-consuming population base. There is also an emerging market in the substitution of beer in place of traditional, local spirits. “This trend is driven by rising incomes and increasing responsiveness towards brands and marketing” (“Trends”, 2008, p. 14). Urbanization and increasing westernization of tastes among younger generations have...

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