The global beer industry: Sell foam like soap | The Economist   Leave a comment

What is brewing in the brewery business…

“Meanwhile, the biggest brewers are consolidating. The combined market share of the top four grew from 22% by volume in 1998 to nearly 50% in 2010 from which they pocket two-thirds of combined global revenues. But that is nothing compared with the dominance of the big two soft-drinks makers: Coca-Cola and PepsiCo together have three-quarters of their market. So investors in breweries are licking their lips as they contemplate a fresh round of takeovers.SABMiller has been talked of as a potential buyer for Molson Coors, Australia’s Fosters, Efes, Turkey’s largest brewer—though it might find itself in competition with Heineken. ABI, it is said, may seek to take full control of Groupo Modelo, Mexico’s number-one beermaker, of which it already owns half.At the other end of the scale, microbreweries are bubbling. Mikkel Borg Bjergso, the proprietor of a bar in Copenhagen, makes a wonderfully light and floral pilsener, and markets it through word of mouth. He has helped to pioneer a crafty new business model. “Gypsy brewers” produce tiny quantities of inventive and flavoursome beers by hiring or borrowing other people’s breweries.These little brewers are so tasty that big ones are lining up to swallow them. In March ABI bought Goose Island, one of the larger American microbrewers, for $39m. Molson Coors recently bought Sharps, a British brewer of stupendous real ales. But such microdeals make little impact on the bottom line. America’s 1,800 craft brewers account for a mere 5% of the domestic market.”

 

via The global beer industry: Sell foam like soap | The Economist.

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Posted June 29, 2011 by arnoneumann in beer, Brewery

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