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Global beer

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Masashi Miyazumi
Masashi Miyazumi

This document summarizes the business strategies being considered by Global Beer, a Belgian beer importer, for expanding their business in Japan. The document outlines Global Beer's history and industry background. It then discusses two potential entry strategies for the Japanese market: selling directly with vertically integrated sales and services, or through a Japanese trading company. Three future business opportunities are presented for Japan: opening microbreweries, developing a regional Japanese beer brand, or launching an international brewpub franchise. Marketing strategies and financial projections are provided for each opportunity. The document concludes with a recommendation for Global Beer to focus on the brewpub franchise strategy, which shows the highest potential returns based on the analysis. An executive summary of the full business

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Global Beer Matthieu Lecuyer-Masashi Miyazumi- Michael Kiefer-Tiphanie Guembes
Summary I Company and Industry Background II Sales Strategy III Futur Business Meriting Consideration IV Analysis company V - Conclusion
I Company and Industry Background History of the company : - Creation of the company : 1994 - Slogan : Born in Belgium, enjoyed in America - Exportation : Exclusive U.S. importer, in 47 states, and in more country as Italia, Nederland, Spain - Numbers : - nearly 60 Belgian beer labels - 35% of the production is exported - Legislation : The U.S. Department of Justice generally considers HHI levels of 1,500-2,500 to be consistent with moderately concentrated markets, and levels above 2,500 signifying high concentration
History of the company : Collaborations: BROUWERIJ VAN STEENBERGE Video presentation : https://www.youtube.com/watch?v=zr5fkMry6NE&list=PL3245F421C9A27CA7 I Company and Industry Background
Industry Background and Trends: 1994: "BOOM" of import beer The strength of "yen" and the importation of live sales at Japanese. 1995: The market failed to absorb a rapid influx of imported beer, it causes a resale 4 million box. The two largest U.S. brewers: - They were not required to go through the Japanese distribution circuit - They missed their arrival on the Japanese market as a bad image emerged from their past actions. Industry Background and trends :
II Sales strategy Trends Entry strategy for Japan Redefining sales strategy
The Global Beer Industry Has Consolidated Over The Last 10 Years Global Beer has gone through substantial consolidation in the last 10 years is the global beer industry. Ten years ago the global beer industry was highly fragmented with Anheuser-Buschs 8.5% market share enough to make it the global leader. Since then, a steady process of consolidation via M&A has taken place often focused around cost-cutting opportunities Geared towards acquiring attractive emerging market assets (e.g. Heinekens $24 bn acquisition of Asia Pacific Breweries completed in 2012). Global Beer measures as considerably more fragmented than the other industries in our study. Todays an estimation says 21% market share, has been the driving force behind much of this consolidation.
Interbrews acquisition of AmBev in 2004 created a new global leader, InBev, with 11% share and the subsequent Anheuser-Busch/InBev merger in 2008 again created a global leader, AB InBev, with 20% market share. Todays top 5 companies represent more than 50% of the global market (versus 32% for the top 5 players in 2003), and the industrys HHI has risen to 725 in 2013E from just 276 in 2003. The score is calculated as the sum of the squares of the market shares of an industrys competitors."
Global Beer Consumption Statistics and Trends Infographic
Evolution of beer market
Beer Consumption in the world
Entry Strategy for Japan
Entry Strategy for Japan 2 entry strategies into the Japanese microbrewery market: -selling directly, with vertically integrated sales & service -selling through a Japanese trading company
selling directly requires vertically integrating of sales & services Global Beer became able to maintain managerial control selling directly & vertically integrating enabled to own after-service businesses Entry Strategy for Japan - selling directly -
Price of brewing systems were extreme the Global Beer founders saw the opportunity to capture more value from Japanese trade companies Entry Strategy for Japan -selling through a Japanese company-
III- Futur Business Meriting Consideration Microbrewery in Japan Regional Japanese brand International brewpub franchise Japanese webpage
Marketing Strategies Resellers Profit Margin was low Lumped together with other cheap foreign beers Not much differentiation Sold for home consumption Initial Investment Cash Flow/ Year Npv (discount rate) IRR 1,550,000 $ 216,816$ 256, 841$ 402 %
Marketing Strategies Regional Beer Brand Long development time Not ready for launch Skilled person available to make a good tasting beer Initial Investment Cash Flow/ Year Npv (discount rate) IRR 23,667$ 117,391$ 954,659$ 902 %
Marketing Strategies Brewpub Franchise Trending in Japan Wide Customer range from 20-50 Huge potential cash flow Initial Investment Cash Flow/ Year Npv (discount rate) IRR 1,500,000 $ 634,000$ 3,750,604$ 239% 706,000$ 591,425$ 4,222,536$ 520%
Marketing Strategies Japanese Webpage Low cost Low amount of work needed Low competition Could provide information for Resellers and Pub locations Behind paywall; uncertain if Japanese Reseller would pay the fee Initial Investmen t Cash Flow/ Year Npv (discount rate) IRR 50,000$ 150- 200,000$ 1,339,420$ 278%
Global Beer Production by Country in 2011. Production volume in Japan is a combination of beer, low-malt beer, and no-malt beer. Japan rank
IV - Analysis company Time for decision Focus on marketing strategy
V - Conclusion Recommand another strategy Summary
Thanks for you attention

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Global beer

  • 2. Summary I Company and Industry Background II Sales Strategy III Futur Business Meriting Consideration IV Analysis company V - Conclusion
  • 3. I Company and Industry Background History of the company : - Creation of the company : 1994 - Slogan : Born in Belgium, enjoyed in America - Exportation : Exclusive U.S. importer, in 47 states, and in more country as Italia, Nederland, Spain - Numbers : - nearly 60 Belgian beer labels - 35% of the production is exported - Legislation : The U.S. Department of Justice generally considers HHI levels of 1,500-2,500 to be consistent with moderately concentrated markets, and levels above 2,500 signifying high concentration
  • 4. History of the company : Collaborations: BROUWERIJ VAN STEENBERGE Video presentation : https://www.youtube.com/watch?v=zr5fkMry6NE&list=PL3245F421C9A27CA7 I Company and Industry Background
  • 5. Industry Background and Trends: 1994: "BOOM" of import beer The strength of "yen" and the importation of live sales at Japanese. 1995: The market failed to absorb a rapid influx of imported beer, it causes a resale 4 million box. The two largest U.S. brewers: - They were not required to go through the Japanese distribution circuit - They missed their arrival on the Japanese market as a bad image emerged from their past actions. Industry Background and trends :
  • 6. II Sales strategy Trends Entry strategy for Japan Redefining sales strategy
  • 7. The Global Beer Industry Has Consolidated Over The Last 10 Years Global Beer has gone through substantial consolidation in the last 10 years is the global beer industry. Ten years ago the global beer industry was highly fragmented with Anheuser-Buschs 8.5% market share enough to make it the global leader. Since then, a steady process of consolidation via M&A has taken place often focused around cost-cutting opportunities Geared towards acquiring attractive emerging market assets (e.g. Heinekens $24 bn acquisition of Asia Pacific Breweries completed in 2012). Global Beer measures as considerably more fragmented than the other industries in our study. Todays an estimation says 21% market share, has been the driving force behind much of this consolidation.
  • 8. Interbrews acquisition of AmBev in 2004 created a new global leader, InBev, with 11% share and the subsequent Anheuser-Busch/InBev merger in 2008 again created a global leader, AB InBev, with 20% market share. Todays top 5 companies represent more than 50% of the global market (versus 32% for the top 5 players in 2003), and the industrys HHI has risen to 725 in 2013E from just 276 in 2003. The score is calculated as the sum of the squares of the market shares of an industrys competitors."
  • 11. Beer Consumption in the world
  • 13. Entry Strategy for Japan 2 entry strategies into the Japanese microbrewery market: -selling directly, with vertically integrated sales & service -selling through a Japanese trading company
  • 14. selling directly requires vertically integrating of sales & services Global Beer became able to maintain managerial control selling directly & vertically integrating enabled to own after-service businesses Entry Strategy for Japan - selling directly -
  • 15. Price of brewing systems were extreme the Global Beer founders saw the opportunity to capture more value from Japanese trade companies Entry Strategy for Japan -selling through a Japanese company-
  • 16. III- Futur Business Meriting Consideration Microbrewery in Japan Regional Japanese brand International brewpub franchise Japanese webpage
  • 17. Marketing Strategies Resellers Profit Margin was low Lumped together with other cheap foreign beers Not much differentiation Sold for home consumption Initial Investment Cash Flow/ Year Npv (discount rate) IRR 1,550,000 $ 216,816$ 256, 841$ 402 %
  • 18. Marketing Strategies Regional Beer Brand Long development time Not ready for launch Skilled person available to make a good tasting beer Initial Investment Cash Flow/ Year Npv (discount rate) IRR 23,667$ 117,391$ 954,659$ 902 %
  • 19. Marketing Strategies Brewpub Franchise Trending in Japan Wide Customer range from 20-50 Huge potential cash flow Initial Investment Cash Flow/ Year Npv (discount rate) IRR 1,500,000 $ 634,000$ 3,750,604$ 239% 706,000$ 591,425$ 4,222,536$ 520%
  • 20. Marketing Strategies Japanese Webpage Low cost Low amount of work needed Low competition Could provide information for Resellers and Pub locations Behind paywall; uncertain if Japanese Reseller would pay the fee Initial Investmen t Cash Flow/ Year Npv (discount rate) IRR 50,000$ 150- 200,000$ 1,339,420$ 278%
  • 21. Global Beer Production by Country in 2011. Production volume in Japan is a combination of beer, low-malt beer, and no-malt beer. Japan rank
  • 22. IV - Analysis company Time for decision Focus on marketing strategy
  • 23. V - Conclusion Recommand another strategy Summary
  • 24. Thanks for you attention