Beer Industry Marketing Analysis
CUTIVE SUMMARY
This paper discusses the potential profitability of the beer industry.
II. INTRODUCTION
The Beer makes up most of the alcoholic beverage industry, with a 74% volume in 2002 (Alcoholic Beverages, 2005). The production of beer around the world has increased from 36.85 billions gallons in 2000 to 38.78 billion gallons in 2003 (Alcoholic Beverages, 2005). Beer production has been a part of society close to the beginning of civilization. A Mesopotamian tablet dating back to 7000 B.C. contains a beer recipe named ¡§wine of the grain¡¨ (Alcoholic Beverages, 2005). In 1292, a Czech Republic town produced its first pilsner beer. A prominent beer brand, Pilsner Urquell, brewing dates back to the early thirteenth century.
Beer is produced with a mixture of mashed barley, malt, and rice or corn. U.S. brewers use filtration systems as well as add additives to stabilize the foam and allow long lasting freshness. Bottled or canned beer is almost always pasteurized in the container in prevent the yeast from further fermentation.
After 1996, the U.S. beer industry had consistent growth with about 3,500 brands on the market in 2002 (Alcoholic Beverages, 2005). The U.S. exported beer to almost one hundred countries worldwide. The beer industry peaked production with 6.2 billion gallons in 2003 (Alcoholic Beverages, 2005). The U.S. beer industry haws over 300 breweries. However, this industry is dominated by three companies: Anheuser Bush (45% of the industry), Miller Brewing (23% of the industry), and Adolph Coors (10% of the industry) (Overview of the U.S. Beer Industry, 2005).
MARKETS BASIC PRODUCT/SERVICE OFFERINGS
There are several different types of commercial beer, consisting of pilsner, lager, ale, stout, light, low-carb, malt liquor, dry, ice-brewed, bottled, draft, and non-alcoholic. Further, the U.S. market has been divided in to three categories: super premium, premium, and...
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