The beer industry in the UK currently finds itself in an increasingly tightening situation.Already suffering a decline in revenues prior to the economic downturn, the breweries and pubs that comprise the industry have also experienced the effects of tightening legislation in the form of taxation and other general and industry-specific regulatory measures…
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Added to this is the slowly eroding public perception of beer due to rising incidents of binge drinking among the young. Above all, the industry which hitherto had been dominated by many small and medium scale breweries and family-run community pubs appears to be undergoing consolidation, with the small businesses facing closure or acquisition by larger, more efficient beer companies and multinationals. From all indications, the beer industry appears to be undergoing a paradigm shift.
The problem with this scenario is that the British pub and small breweries are widely regarded as part of British cultural heritage going back by more than a millennium. While other commercial ventures may pass into oblivion because they have ceased to be relevant or useful, what appears to be the inevitable disappearance of the community pub and local brewer is lamented by many Britons as the death of a vital part of the nation’s identity, and must not be allowed to happen. ...
From all indications, the beer industry appears to be undergoing a paradigm shift. The problem with this scenario is that the British pub and small breweries are widely regarded as part of British cultural heritage going back by more than a millennium. While other commercial ventures may pass into oblivion because they have ceased to be relevant or useful, what appears to be the inevitable disappearance of the community pub and local brewer is lamented by many Britons as the death of a vital part of the nation’s identity, and must not be allowed to happen. More than its sociological significance, the traditional beer industry is a valuable contributor to the country’s coffers, its gross domestic product, and is the source of livelihood of many small business owners, their employees, and their respective households. Because of its importance, a study of the industry with the use of PESTEL and Porter’s Five Forces models was conducted by this dissertation, in order to assess the external environment and internal competitive industry structure in which the traditional brewery and pub industry operates, in the aftermath of the recent economic crisis. Chapter 1: Introduction 1.1 Background of the Research Topic For over a thousand years, beer has been a staple item in British consumption pattern and an indispensable feature in this country’s social milieu (Watson, 2010). The beer industry is a very important contributor to the UK economy since the national drink of UK is beer with a market worth of 53 billion (Pavey, 2011).The beer industry has undergone a lot of changes in UK since the early 1960s when the brewing industry had a difficult time to the globalized era which saw
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