Global Forces and the European Brewing Industry

2 Global Forces and the European Brewing Industry Introduction The contemporary society dynamics are changing over time. The consumer needs and preferences are changing constantly keeping firms on their toes. Firms are profit-oriented entities and their sole aim is to maximize their levels of revenues by ensuring they align themselves well to the market demands. Consumer demands vary between different age groups. For example, the youthful consumers’ tastes are skewed towards the production of flavored drinks. Therefore, to satisfy such a demand brewing companies need to be haste in developing a unique brand. It has been observed overtime that firms that adapt to market changes at remarkable speeds have been able to stay ahead of market competition. It is therefore prudent to align the objectives of firms with market demands. Global market is playing a paramount role in the brewing industry through imports and exports. Heineken for example is a big mover and a beneficiary of international trade. Heineken is a dynamic brewing firm whose trading and market share is ranked the biggest in the brewing industry in Europe. The company is moving a considerable amount i.e. 5% to Asia pacific and has harnessed 17% of its revenue from the United States of America market (Hartmann 2003, p. 9). From the figures, it can be observed that the firm is accruing most of its benefits from its international ventures. The company has distinguished brands, Heineken and Amstel. Family members control the operations of this business giant. The limited control has helped cushion the firm by making its independent and stable in its quest for international presence. Furthermore, experts observe that the rapid growth Heineken is largely aligned to its management and family controls (Preedy 2008, p. 721).

Pestle Analysis of the European brewery market