Ikea into chile
Case Study: Unibrew in the Belarus Market
1. Introduction
Royal Unibrew (“Unibrew”) is the second largest brewery group in Denmark with foreign operations in selected Western and Eastern European countries as well as export activities to more distant locations, such as the Middle East and Africa. The company is listed on NASDAQ OMX and currently has more than 16,000 shareholders1. Furthermore, they have a broad product range which includes beer, soft drinks, soda water, mineral water, and fruit juices. In this paper, I will exclusively focus on them as a brewery, i.e. their operations within the beer market.
2. History and Changes in Corporate Strategy
In 1989 the two Danish breweries Faxe Bryggeri A/S and Jyske Bryggerier A/S merged into Bryggerierne Faxe Jyske A/S, which later changed its name to Royal Unibrew. The merger was driven by a common goal of becoming more dominant in the Danish market and by the hopes of gaining market shares abroad. In the following years, Unibrew cemented its position as a strong player in the domestic market, and steps were also taken towards internationalising; local breweries were acquired in the Baltic countries in 1999 and in Poland in 2005 (which they sold in 2011)2. Simultaneously, exporting beer products was successful in Italy, the Caribbean, and Germany.
The successful entries into new markets and consolidation in the current ones led to a more ambitious business strategy, namely the “Double Up”-strategy which was implemented in 2008. It consisted of bold goals, such as doubling the profit and loss account and increasing the annual turnover by 500 million DKK, both by 20103. However, the market conditions soon changed due to the Financial Crisis of 2007/8. For Unibrew, this meant abandoning the ambitious Double Up-strategy, and a rationalization of operations and productiveness was initiated in its place in the hopes of adjusting to the rapid deterioration of market conditions. In line with the philosophy of the
1. Introduction
Royal Unibrew (“Unibrew”) is the second largest brewery group in Denmark with foreign operations in selected Western and Eastern European countries as well as export activities to more distant locations, such as the Middle East and Africa. The company is listed on NASDAQ OMX and currently has more than 16,000 shareholders1. Furthermore, they have a broad product range which includes beer, soft drinks, soda water, mineral water, and fruit juices. In this paper, I will exclusively focus on them as a brewery, i.e. their operations within the beer market.
2. History and Changes in Corporate Strategy
In 1989 the two Danish breweries Faxe Bryggeri A/S and Jyske Bryggerier A/S merged into Bryggerierne Faxe Jyske A/S, which later changed its name to Royal Unibrew. The merger was driven by a common goal of becoming more dominant in the Danish market and by the hopes of gaining market shares abroad. In the following years, Unibrew cemented its position as a strong player in the domestic market, and steps were also taken towards internationalising; local breweries were acquired in the Baltic countries in 1999 and in Poland in 2005 (which they sold in 2011)2. Simultaneously, exporting beer products was successful in Italy, the Caribbean, and Germany.
The successful entries into new markets and consolidation in the current ones led to a more ambitious business strategy, namely the “Double Up”-strategy which was implemented in 2008. It consisted of bold goals, such as doubling the profit and loss account and increasing the annual turnover by 500 million DKK, both by 20103. However, the market conditions soon changed due to the Financial Crisis of 2007/8. For Unibrew, this meant abandoning the ambitious Double Up-strategy, and a rationalization of operations and productiveness was initiated in its place in the hopes of adjusting to the rapid deterioration of market conditions. In line with the philosophy of the