Competitors Analysis

& Implement
a New Beer Brand
Table of Contents
Introduction:..................................................................................................................3
Key Competitors In the Beer Industry:.........................................................................4
Strengths and Weaknesses of The competitors:.........................................................5
1. Anheuser-Busch InBev:...................................................................................5
2. Heineken:........................................................................................................5
3. Carlsberg.........................................................................................................6
Stats on their Market Share:.........................................................................................7
USP (Unique Selling Point), Reson for Purchase and Different from competitors:.....8
A New Beer brand may do to Gain Market Share/Competitive Advantage Over
These Large Brands...................................................................................................10
References:................................................................................................................11
Introduction:
The report is going to be described the Beer industry and analyse its competitors. In
detail, the report will be covered establishing the key competitors in the beer
industry, strengths, and weaknesses, market share, info on USP, reasons for
purchase, differences between competitors, and what a new beer brand may do to
gain market share/competitive advantage over these large brands. The average
industry growth 2015–2020 is 0.4%. Beer sales in the United Kingdom (UK)
experienced fluctuations between 2014 and 2019. During 2015 and 2016, sales
declined compared to a year earlier. In the following three years, sales rose by
varying degrees. In 2019, sales increased by 1.1 percent compared to 2018's sales.  
Key Competitors In the Beer Industry:
Beer is currently the highest consumed alcoholic beverage and one of the most
commonly consumed beverages in the world. As the global beer market is brewing
up a burgeoning industry, the top 10 largest beer companies in the world continue to
dominate the market in 2020. And they are the competitors in the Beer industry. Of
them, the report is going to describe 3 beer brands as the competitors.  The key
competitors are given below:

1. Anheuser-Busch InBev

The company is building a company to last, brewing beer and building brands that
will continue to bring people together for the next 100 years and beyond. With
centuries of brewing history, It has seen countless new friendships, connections, and
experiences built on a shared love of beer. The driving force behind its culture is its
10 Principles. Each is built on ownership, informality, candor, transparency, and
meritocracy. It sets its selves stretch targets and is never completely satisfied with its
results.

2. Heineken

It builds true human connections and breaks down barriers because It believes great
moments shared are the best in life. The Heineken® brand defines and unites the
people while many local, regional, and global brands make our range of beers and
ciders diverse and unique. People are at the heart of its company. It sees its strength
in trust, diversity, and progress. It stands by its values: the passion for quality,
enjoyment of life, respect for people and the planet.

3. Carlsberg

Founded in 1847 by J.C. Jacobsen, Carlsberg is one of the leading international

brewery groups in the world today, with a vast portfolio of beer and other beverage
brands. Since the 1990s, Carlsberg has been achieving steady but modest growth in
sales and profits, despite an intensely competitive beer market. In March 2016, the
Carlsberg Group introduced its new strategy, SAIL’22, to set a new direction for the
Group with a significant focus on its core beer business and distinct areas for future
progress.
Strengths and Weaknesses of The competitors:

1. Anheuser-Busch InBev:
Strengths:

Market popularity across the globe: Anheuser Busch sells around 100 different
brands of liquor across the globe and some of their popular brands are Budweiser,
Bud Lite, Busch Beer, Stella Artois, Natural Ice, and so on.

Top-selling brands: After Anheuser Busch acquired Grupo Modelo, the company
expanded its portfolio to include five of the world’s top-10 selling brands of beer, and
has 17 brands with retail sales of over $1 billion.

Strong beliefs: The success of Anheuser is due to their conviction in their belief.

Some of the beliefs that make up the company are the focus on cost-cutting, passion
for winning, focus on customer satisfaction, creation of percolative work culture, and
dedication to values.

Weaknesses:

Rise of the dollar: Anheuser Busch depends on foreign countries for more than 70
%of its revenues and owing to this the rise of the dollar against other foreign
currencies will affect the top-line growth of the business.

Poor organic growth: Anheuser Busch is focused on developed markets and the

growth of the beer segment is slowing down and the market is mature. Thus they
can no longer depend on organic growth from this market.

Integration: Anheuser Busch in a master move purchased its biggest rival Sab

Miller. However, after the process, the company has been struggling to integrate the
companies primarily because of a huge difference in work culture.

2. Heineken:
Strengths:

Differentiated Products for various markets: Though Heineken owns 250 brands,

not every brand is sold in every market and the company has different products for
different markets.
Variants: Heineken beers are known for their numerous variants. For eg Amstel’s is
sold in several variants such as Amstel Lager, Amstel Light, Amstel Bright, and
Amstel Premium Pilsener.

Focus on Heineken: Though the company sells several different beer brands, they
have only one international brand which is Heineken.

Weaknesses:

Currency Fluctuations: Heineken looks up to foreign countries for more than 70

%of its revenues and currency fluctuations such as the Euro crisis, Brexit and the
rise of the dollar have affected the margins of the business.

Poor margins: The primary markets of Heineken are developed countries where the

beer market is mature and the only selling point is pricing. 

3. Carlsberg
Strengths:

Brand Loyalty: Beer is something that people rarely change. They get accustomed

to certain flavors and the strength of the drink. 

Financials: Net Revenue is 62.6 DKK billion. They have an operating profit of 8.2
DKK billion and a free cash flow of 8.6 DKK billion. Strong financials put them in a
very good position.

Geographical Coverage: They are present in more than 140 countries worldwide.

They are not dependent on any particular market.

Weaknesses:

New Products: Even though they have a strong loyal customer base but they are
very dependent on their two international beers Tuborg and Carlsberg. They need to
make their other products big as well.

Market Penetration: They still need to increase their market share and revenue

from emerging markets. They are entirely present in developed countries.
Stats on their Market Share:
The statistic shows the global market share of the leading companies in 2019, based
on volume sales. In that year, Anheuser-Busch InBev had the largest beer market
share in the world, controlling about 30 percent of the beer volume sales. Second
and third placers, Heineken and SABMiller accounted for 17.7 and 15 percent of the
beer market share, respectively. And Carlsberg is 8.1 percent.

Figure: Market Share

Source: (https://images.app.goo.gl/8m8C6AjpZJ2L5apG6)
USP (Unique Selling Point), Reson for Purchase and Different from
competitors:
USP, Reson for Purchase and Different from
Categories competitors
.
 Crafting a delicious beer is half art, half science —
it takes meticulously sourced ingredients to brew
the complex and sophisticated flavors of
customers' favorite beers. That’s where its
brewmasters shine.
Anheuser-Busch InBev
 They preserve time-honored recipes and invent
new favorites. This devotion allows customers to
brew beers that are loved around the world and it’s
why it’ll continue to brew for generations to come.

 Reducing road safety risks is one of our top

priorities: its employees, its families, and its
consumers travel the world’s roadways every day.

 Four simple ingredients that offer endless

possibilities
 Consolidated Beer volumes by region (2020)

 As consumer tastes and preferences evolve, how it

innovates and expands our brewing evolve as well.
Heineken

 Demand for its cider is growing globally

 From strengthening its position in more developed

cider markets such as South Africa and Ireland to
shaping entirely new markets in places such as
 Spain, Vietnam, and Mexico, its six cider brands
are already available in 50 countries.

 Carlsberg launches glass bottles with up to 90%

lower carbon impact

 To make its multipacks more sustainable, it has

introduced its new Snap Pack, which reduces
Carlsberg plastic usage through innovative glue technology.

 Greener Green is the ink on our Carlsberg pilsner

bottle labels as well as some of our carton boxes,
which are modified to meet Cradle to Cradle Silver
Certified™ standards for better recyclability.
A New Beer brand may do to Gain Market Share/Competitive
Advantage Over These Large Brands.
Step 1: Identify the top 10 global beer brands and analyse them:

New brands should identify the top 10 global beer brands as indicated both by the
revenue, volume generated across multiple markets, and the intent to be global (i.e.,
advertisement on global media platforms of Heineken)

Step 2: Identify the unique proposition and build a business model to support
it

As new brands analysed hundreds of beer brands, it was striking to see that for
those that had made the transition from local to global, there was no common reason
for their success. What unites the eight global beer brands is that they have a unique
customer value proposition and/or have an advantaged business model.

Step 3: Make space for the brand by repositioning the portfolio and build a
detailed strategic plan

It discovered that companies that build global brands can reposition their portfolios
effectively to foster new growth. This involves being clear on the value proposition of
each brand, understanding where the new global brand fits in the local portfolio, and
then creating a clear space in the consumers' mind for it by repositioning existing
brands.

Step 4: Build sustained success through long-term management

 New brands take a long time to build, so organisations need to take a long-
term perspective, which requires vision, belief, and commitment.
 New brands need consistency, so organisations need to be firm and clear that
packaging, advertising, positioning, and image are aligned across consumer
maps and geographies at the same time
 New brands require sustained investment but not at the expense of smart
business decisions, so there should be a balance between finance, brand,
strategy, and local accountability to ensure the right resource allocation
decisions are made
References:
https://www.marakon.com/insights/how-to-build-a-global-beer-brand/
https://blog.technavio.com/blog/top-companies-global-beer-market

https://www.carlsberggroup.com/#who-we-are

https://www.theheinekencompany.com/our-company/who-we-are

https://www.ab-inbev.com/who-we-are/

https://www.marketing91.com/swot-analysis-anheuser-busch/

https://www.marketing91.com/swot-analysis-of-heineken/

https://www.marketing91.com/swot-analysis-carlsberg/

https://pt.slideshare.net/cdanh94/heineken-international-marketing-presentation/12?
smtNoRedir=1