Us Beer Industry Overview

Market Structure The beer industry is widely known for been an oligopoly. However, in our approach, we leave explore the possibility of analyzing microbreweries in particular from a monopolistic competition market structure perspective. The beer market oligopoly is composed by three declamatory players: Anheuser-Busch which holds 48 % of the market share, Miller create from raw stuff Co., with 18% and Coors Brewing Co. with 11%. Please refer to the under graph and table for information regarding the market share held by the remaining companies. (Market shares are shown based on shipments of 205.6 million cases in 2005 and 210 in 2006) Based on the above market shares, we work out the concentration ratio of the three big players and the Herfindahl Hirshman Index for the industry. both(prenominal) measures confirm that the Beer Industry is indeed a highly unvoiced one as the concentration of the big three players is virtually 80% and the HHI is well above the 1,800 threshold. Market Analysis The demand in the beer market is characterized by flat consumption drives although we shtup presently identity two growing markets: First, a domestic box market for microbreweries, and second, the international market that is currently been targeted by our big national brands.

Another very strong market trend is the consolidation of many national brewers. This consolidation has been driven by the increased regulatory burdens and taxation in the industry as well as by changes in demographics: greater alcoholic beverage awareness, slow population growth, aging population, etc. Through consolidation, brewers can accomplish economies of scale and other supply chain synergies. jibe to this trend, there has also been an expansion of specialty brewers (microbreweries) that target much sophisticated and knowledgeable beer drinkers. The players in this market focus on differentiation and therefore can afford to charge exchange premium prices for their products. This is actually the niche... If you want to get a full essay, set it on our website: Ordercustompaper.com

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