Foreing Market Diversification: Corona Beer
Foreign Market Entry and Diversification: Corona Beer
Foreign Market Entry and Diversification: Corona Beer
Grupo Modelo is the number one beer producer in Mexico and the producer of Corona, one of the leading import beer brands sold in the United States. This paper will highlight the trends in the global beer market and how Grupo Modelo’s international expansion was achieved through strategic partnerships. It will also discuss Grupo Modelo’s strategies to enter new markets and their challenges from competitors. Finally it will discuss the diversification strategies for Corona Beer (Modelo). Trends in the Global Beer Market
Brewing has historically been a local industry with only a few companies having a substantial international presence. However the last couple of decades have seen an increasing consolidation within the industry, a development that initially took off in Western Europe and North America. More recently the consolidation began to include brewing companies in growth markets of Eastern Europe, Asia, and Latin America ("Grupo Modelo," 2010). The global consolidation process has accelerated in the past ten years. The top ten brewers accounted for 34% of the global beer market in 1998. In 2008, this figure grew to 59%. In 2008, two major acquisitions took place in the global brewing industry: the acquisition of Scottish and Newcastle by Carlsberg and Heineken and the acquisition of Anheuser-Busch by InBev. Global beer volumes are primarily being driven by growing disposable income, improvements in the quality of beer, marketing and advertising activities, and a steadily growing beer consuming population base.
Modelo’s Strategic Partnerships
Grupo Modelo since its formation has been a family operated business focused on becoming a leader in the Mexican beer production and distribution markets. However, over the past several years the company has evolved their strategy to include export markets such as the United States and Canada. In 1979,
Foreign Market Entry and Diversification: Corona Beer
Grupo Modelo is the number one beer producer in Mexico and the producer of Corona, one of the leading import beer brands sold in the United States. This paper will highlight the trends in the global beer market and how Grupo Modelo’s international expansion was achieved through strategic partnerships. It will also discuss Grupo Modelo’s strategies to enter new markets and their challenges from competitors. Finally it will discuss the diversification strategies for Corona Beer (Modelo). Trends in the Global Beer Market
Brewing has historically been a local industry with only a few companies having a substantial international presence. However the last couple of decades have seen an increasing consolidation within the industry, a development that initially took off in Western Europe and North America. More recently the consolidation began to include brewing companies in growth markets of Eastern Europe, Asia, and Latin America ("Grupo Modelo," 2010). The global consolidation process has accelerated in the past ten years. The top ten brewers accounted for 34% of the global beer market in 1998. In 2008, this figure grew to 59%. In 2008, two major acquisitions took place in the global brewing industry: the acquisition of Scottish and Newcastle by Carlsberg and Heineken and the acquisition of Anheuser-Busch by InBev. Global beer volumes are primarily being driven by growing disposable income, improvements in the quality of beer, marketing and advertising activities, and a steadily growing beer consuming population base.
Modelo’s Strategic Partnerships
Grupo Modelo since its formation has been a family operated business focused on becoming a leader in the Mexican beer production and distribution markets. However, over the past several years the company has evolved their strategy to include export markets such as the United States and Canada. In 1979,
References: (2008, June 11). InBev Proposes Combination with Anheuser-Busch. Retrieved November 7, 2010, from http://www.ab-inbev.com (2010, November 7). Grupo Modelo. Retrieved November 7, 2010, from Grupo Modelo Web site: http://www.gmodelo.com Thompson, A., Strickland, A. J., & Gamble, J. (2010). Crafting and Executing Strategy: The Quest for Competitive Advantage Concepts and Cases (2009 Custom ed.). Boston: McGraw-Hill Learning Solutions.