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American Beer Market - Case Study Example

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The beer market in the United States is dominated by three major three companies which hold nearly 80 percent. These are Anheuser-Busch based in St. Louis, Missouri, Milson Coors Brewing Company bases in Golden, Colorado and Miller Brewing Company in Milwaukee, Wisconsin…
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American Beer Market
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Bud Light has seen a 2% growth in 2008 which is greater than other light beer competitor. The brand still remains as the top-selling beer in global terms. Growth drivers include rising market share in Mexico which went up 27% in 2008 and made the brand Mexico's No.1 light beer brand. This was due to the equity investment made by the company to the Grupo Modelo S.A.B. de C.V. which has 56% of the Mexico beer market. In Canada, sales volume went up by 30% due to innovative marketing strategies and sponsorships of popular teams in the National Hockey League like the Toronto Blue Jays. Anheuser-Busch has also set its eyes in China's emerging and burgeoning market. A production facility has already been established in the country where the main product to be made was Bud Lite. The company has also teamed up with China's oldest and largest brewery, Tsingtao.
In October of 2007, owners of Miller and Coors announced a joint venture to try to unsettle the behemoth Anheuser-Busch which had 51% of the total beer market. Miller commands 18% while Coors has 11%. The said merger entitled Miller to a 52% economic interest while the rest is to Coors. The joint-venture, MillerCoors, was expected to benefit from an estimated $500 million from the integration of its distribution system and market shares. ...Download file to see next pagesRead More
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