Canadian Brewing Industry: Trends, Threats and Opportunities
Exploratory Research Assignment
Individual Assignment
Prepared for: Brewers Association of Canada
Prepared by: Elena Van 500190936
Professor: Charles Janthur
Course Code: CMKT500
Section Number: DA0
June 1, 2013
Introduction
Canadian’s first choice for an alcoholic beverage? Beer. Not only is beer a refreshing beverage on a hot, sunny day, it plays a big part in the Canadian heritage. The overall beer consumption over the years has been steady, however with increased competition, it is becoming harder for Canadian breweries to keep up with market trends. Hence, all the major Canadian breweries have been merged with or acquired by the international giants. The competition is rising not only between beer brands, but also within beverage types. Wine consumption in Canada has been increasing substantially. Consumers are always looking for something new and exciting, but at the same time, something they can relate to. “A key point for success is to bring differentiation while still retaining a recognizable and familiar aspect”(t). Another obstacle the brewing industry is facing is the wrong perception consumers have about beer and its effect on weight and overall health. “Beer belly”, for example is just a myth. It is vital for companies to educate consumers about the true nutritional value of beer to avoid wrong perceptions and lose consumers to other beverages that seem more calories cautious.
Research Objective
This report outlines current trends as well as opportunities and threats to the Canadian Brewing Industry. The results were interpreted based on the research conducted on the three major brewing companies: Heineken N.V., Sleeman Brewery Ltd., and Molson Coors Brewing Co. We identified and compared these breweries in terms of the background, consumer’s opinions and strategic issues the companies are currently facing. Finally, the recommendations provided outline the possibilities for improvement and growth of the industry if the
Individual Assignment
Prepared for: Brewers Association of Canada
Prepared by: Elena Van 500190936
Professor: Charles Janthur
Course Code: CMKT500
Section Number: DA0
June 1, 2013
Introduction
Canadian’s first choice for an alcoholic beverage? Beer. Not only is beer a refreshing beverage on a hot, sunny day, it plays a big part in the Canadian heritage. The overall beer consumption over the years has been steady, however with increased competition, it is becoming harder for Canadian breweries to keep up with market trends. Hence, all the major Canadian breweries have been merged with or acquired by the international giants. The competition is rising not only between beer brands, but also within beverage types. Wine consumption in Canada has been increasing substantially. Consumers are always looking for something new and exciting, but at the same time, something they can relate to. “A key point for success is to bring differentiation while still retaining a recognizable and familiar aspect”(t). Another obstacle the brewing industry is facing is the wrong perception consumers have about beer and its effect on weight and overall health. “Beer belly”, for example is just a myth. It is vital for companies to educate consumers about the true nutritional value of beer to avoid wrong perceptions and lose consumers to other beverages that seem more calories cautious.
Research Objective
This report outlines current trends as well as opportunities and threats to the Canadian Brewing Industry. The results were interpreted based on the research conducted on the three major brewing companies: Heineken N.V., Sleeman Brewery Ltd., and Molson Coors Brewing Co. We identified and compared these breweries in terms of the background, consumer’s opinions and strategic issues the companies are currently facing. Finally, the recommendations provided outline the possibilities for improvement and growth of the industry if the
References: Sleeman. 2013. Retrieved from http://www.sleeman.com/ Heineken. 2013. Retrieved from http://www.heineken.com/ca/heineken/heineken-story.aspx Molson Canadian. 2013. Retrieved from http://www.molsoncanadian.ca/en/Index.aspx Reuters. (2010). Top four brewers account for over half world’s beer. Retrieved from http://www.reuters.com/article/2010/02/08/beer-idUSLDE61723K20100208 Sapporo Holdings Ltd. (2013). Management plan. Retrieved from http://www.sapporoholdings.jp/english/company/management/plan.html (a)Molson Coors Brewing Company Blackwell, R. (2011). Brewing a recipe for success. The Globe and Mail. Wed. Retrieved from http://www.theglobeandmail.com/report-on-business/careers/careers-leadership/brewing-a-recipe-for-success/article573391/(e)