Chapter 4

• Medieval Beer Quality Test: In medieval times, people in

the Czech lands believed that stickier beer was better quality. They even had a
bizarre test where members of the city council sat on beer spread on a bench. If
the beer didn't stick to them, it was considered bad, although this test wasn't
very reliable.
• Pilsen's Brewing Tradition: Pilsen, a city in the Czech
Republic, has a rich history of brewing. Back in 1295, King Wenceslaus II granted
260 citizens the right to brew and sell beer within a nine-kilometer radius of the
city center. This tradition was passed down through generations.
• Protest for Quality: In 1838, there was a significant
protest in Pilsen due to the inconsistent quality of the top-fermented beers, which
were the norm at the time. Frustrated pub-goers stole and dumped 36 barrels of beer
in front of the city hall.
• Adoption of Lagering: Following the protest, several town
brewers decided to adopt the Bavarian lagering method, which involved storing beer
in cold conditions for a longer fermentation period. To do this, they dug a massive
underground cellar near the Radbuza River with tunnels for storage.
• Bavarian Expertise: These brewers sought the help of Josef
Groll, a Bavarian brewer, to develop a recipe for a new kind of beer using the
lagering method. This marked a significant turning point in the history of beer
brewing.
• Creation of Pilsner Urquell: In 1842, Josef Groll brewed
the first batch of clear, light-colored, bottom-fermented beer using the lagering
method. It was different from the dark Bavarian lagers, thanks to advanced
techniques like toasting barley without burning it and using a special yeast.This
recipe remains largely unchanged since 1842.
• Pilsner's Popularity: The fame of this new beer style
spread quickly, even reaching Prague. People were eager to try this "Pilsner" beer,
which became a widely recognized and sought-after style.
• Impact on Brewing History: Pilsner-style beer, often
referred to as "pils," had a significant impact on the brewing industry. It marked
a shift from traditional brewing to modern, industrial production, paving the way
for large-scale and consistent beer manufacturing.

• Weihenstephan Benedictine Monastery: Weihenstephan, known

for its beers today, started as a monastery in 1040. The monks initially brewed
beer there.
• Secularization in 1803: In 1803, the monastery was
secularized due to negotiations with Napoleon's forces. This marked the shift of
monastic breweries from knowledge centers to places that contributed to the
scientific revolution.
• Scientific Revolution in Brewing: The scientific revolution
brought about an interest in understanding the science of beer. Scientists like
Antoine Lavoisier studied the fermentation process, revealing how sugars turned
into alcohol and carbon dioxide.
• Louis Pasteur and Pasteurization: Louis Pasteur, famous for
pasteurization, initially conducted experiments on wine and proposed that yeast
cells were responsible for fermentation.
• Yeast Manipulation: Traditional Bavarian brewing involved
lagering beer in cold environments, but not all lagered beer is bottom-fermented.
Scientists like Gabriel Sedimar experimented with different yeast strains to
achieve desired results.
• Emil Christian Hansen and Yeast Isolation: Danish scientist
Emil Christian Hansen isolated yeast for the first time, allowing breweries to
consistently produce lager beer with preferred yeast strains.
• Carl von Linde's Refrigeration Technology: In 1876, Carl
von Linde, a lecturer at TU Munich, developed refrigeration technology for brewing.
This innovation eliminated the need for caves and made large-scale brewing more
profitable.
• Industrialization of Brewing: The insights from these
scientist-brewers were critical in transitioning brewing from a craft to an
industrialized process. Highy Standardized production became a priority for the
brewing industry.

• Technological Advancements in the Industrial Revolution:

The industrial revolution brought significant technological advancements to the
brewing industry. One notable innovation was the improved Watt's steam engine,
which allowed for the use of steam-operated machinery during brewing and reduced
transportation costs.
• Export Opportunities: With the advent of trains and
steamboats, it became much cheaper to export beer throughout Europe and even as far
as the US, Canada, and Australia. Pilsner Urquell was among the first to benefit
from these opportunities.
• Pils-Style Beer in America: Pilsner-style beer also gained
popularity in America during this time, primarily due to German immigrants brewing
their native style of beer in new American cities. Eberhard Anheuser founded the
Bavarian Brewing Company in St. Louis, which later became Anheuser-Busch, brewing
Budweiser beer, named after the Bohemian city of Budweis.
• Invention of Glass Bottles: In the seventeenth century,
glass beer bottles were handblown and expensive. The invention of the chilled iron
mold in the 1890s made it possible to produce glass bottles more affordably and in
larger quantities.
• Bottle Closures: New methods to seal beer bottles were
invented, such as the screw stopper by Henry Barrett in 1882 and the crown cork
patent twenty years later. These inventions enabled the development of automated
bottling machines.
• Metal Beer Cans: In the first half of the twentieth
century, metal beer cans were introduced in the US, becoming popular. However,
their widespread use in Europe took longer to materialize.
• Brewing Industry Consolidation: The innovations of the
nineteenth century, such as bottom-fermented pils-style beer, favored larger
breweries with the capital to invest in upgrades. In Munich, seven famous
brauhauses dominated the market, offering a relatively inexpensive and standardized
product that became popular among urbanizing populations.
• Consolidation in the Twentieth Century: The industrial
revolution set the stage for a massive consolidation in the global beer industry
during the early twentieth century. The number of breweries declined significantly,
with small breweries closing or merging into larger ones. This led to a substantial
increase in the size of breweries.

• Late 19th Century Growth: Beer production experienced

strong growth in the late 19th century, driven by declining grain prices and
improved industrial production methods.Beer markets of Germany, the UK, and US were
the largest in the world.
• Emergence of Competitive Beverages: Carbonated beverages
like Coca-Cola and soda water posed new competition to beer during the early 20th
century. They offered refreshing alternatives, challenging beer's dominance. Beer
now had to be a drink people wanted to drink.
• World War I Impact: World War I severely impacted the
brewing industry in Europe. Beer production dropped by 70%, and the war caused the
closure of many breweries, particularly in occupied countries.
• Resource Scarcity: The war led to scarcity of resources
like copper, vehicles, and draft animals, affecting the brewing industry's ability
to operate.
 • Recovery and Substitutes: After the war, some countries saw
strong recovery in beer production, but breweries often had to use substitutes for
traditional ingredients due to raw material shortages.
• World War II and Rationing: World War II brought food
rationing and shortages, leading breweries to use alternatives in their brewing
ingredients.
• US Prohibition: The US experienced prohibition from 1919 to
1933, resulting in a legal ban on alcoholic beverages with more than 0.5% alcohol.
This greatly impacted American breweries, and many closed down.
• Post-Prohibition Challenges: After the repeal of
prohibition, American brewers faced the challenges of the Dust Bowl and the Great
Depression. High grain prices led to the use of cheaper grains like corn and rice
in brewing.
• Light Lager Emerges: The use of adjunct grains gave rise to
the "light lager" style popularized by brands like Budweiser, Miller, and Coors.
• Post-World War II Consolidation: After World War II, the
popularity of Czech and German-style pilsner beer, along with light lagers, led to
further consolidation in the brewing industry.
• New Technology Impact: The closure of many local and
regional breweries began in the 1950s, driven by the arrival of new brewing
technology.

Chapter 6
◦ Introduction:
The passage introduces Julie MacIntosh, a speaker at a family firms conference in
Brussels, known for her anecdotes about August Busch III, the ex CEO of Anheuser
Busch.
◦ Anecdote Illustration:
MacIntosh shares a humorous anecdote about a Super Bowl commercial featuring Busch
discussing beer history, contrasting it with a more successful one featuring a
lizard And dihor singing. The anecdote emphasizes the challenges faced by a
messenger delivering unfavorable news to a powerful CEO.
◦ Conference Setting:
MacIntosh shares the conference with Wolfgang Riepl, a reporter who wrote about the
families behind Interbrew, the Belgian part of AB InBev. The conference audience,
mostly Belgian family business owners, reacts differently to anecdotes about the
Busch family, reflecting cultural differences.
◦ Dethroning the King:
MacIntosh's book, "Dethroning the King," explores the volatile relationship between
August Busch III and August Busch IV, leading to the decline of Anheuser Busch.
Themes include intrigue, drama, family dynamics, and the impact of the forced
retirement of Busch III.Bush 3 wasn’t ready to lose control and bush 4 wasn’t ready
to take control(didn’t have board backing)
◦ Interbrew's Story:
Riepl's presentation focuses on Interbrew, which started as a family business in
Belgium through the merger of Jupiler and Stella Artois in 1987.
Unlike the Busch family's direct involvement in management, Belgian families
stepped back, guiding the company from a distance while numind CEOs.
◦ Mergers and Acquisitions:
Interbrew's strategy involves mergers and acquisitions, appointing new CEOs after
each acquisition, leading to significant growth over two decades.
By 2008, InBev, formed through mergers, attempted a hostile takeover of Anheuser
Busch, surprising the dominant firm in the U.S. beer market.
◦ Globalization Impact:
The passage suggests that Anheuser Busch's focus on domestic power-play for control
and neglected to notice that the game had changed : they were no longer competing
on a national playing field, but on a global one. The hostile takeover is portrayed
as a consequence of globalization rather than Budweiser's loss of dominance in the
U.S.
 ◦ Historical Context:
The consolidation of the American beer market post-World War II is discussed, with
Budweiser, Miller, and Coors becoming dominant brands.
The passage highlights the role of broadcast television in promoting brand
expansion over mergers and acquisitions.
◦ Anheuser Busch, under the leadership of August Busch III, secured the
top position in the American beer market. The Big Three (Anheuser Busch, Miller,
and Coors) claimed over 90 percent of the world's largest beer market.
◦ Despite aggressive domestic growth, Anheuser Busch executives failed to
recognize fundamental changes in beer markets during the 1980s.
◦ The popularity of light lagers (Bud Light, Miller Lite) gave way to a
demand for greater variety and higher-end beers, leading to market fragmentation.
The American market for cheap domestic lagers, where Budweiser thrived, faced
challenges due to changing consumer preferences
◦ The passage concludes by suggesting that by 1990 the once-dominant
Budweiser brand struggled to adapt to evolving consumer tastes and market dynamics,
leading to a decline in its market share.

◦ Introduction of Wolfgang Riepl: Wolfgang Riepl, a business journalist,

is introduced as having large knowledge of global beer market trends, and his
insights are documented in the book "The Belgian Beer Barons”
◦ The origin of Interbrew is explored, unofficially dating back to the
1970s, on paper 1987z
◦ dominance of competing brands: Stella Artois and Jupiler.
◦ Artois Brewery and Piedboeuf Brewery colluded to maximize profit,
(employees at Artois had no idea that they were actually brewing
Jupiler ),officially forming Interbrew in 1987. They are strategy was to market
juplier to Belgians while positioning Artois as a premium export brand. Belgiums
answer to a long, popular Heineken brewed in nearby Amsterdam.
◦ Interbrew diversified its portfolio by acquiring traditional breweries
producing lambic, kriek, white beer, and abbey-style ales.
◦ This move was a response to the growth of craft brewers in Belgium in
the late 1980s.
◦ Foreign Acquisitions and Cost-Cutting Strategy: Every four or five
years, Interbrew acquired a foreign brewery with a high market share in a nation
with a duopoly or triopoly. After each acquisition, a new CEO was appointed to
implement cost-cutting measures, including firing
◦ The acquisition of Labatt in Canada proved highly profitable due to
legally mandated minimum prices for alcohol. Labatt allowed Interbrew to cut costs
and maintain high prices.
◦ By 2004, Interbrew became the world's third-largest beer firm.
◦ Strategic mergers, including the one with AmBev in 2004, made InBev the
top of the global beer market, surpassing Anheuser Busch and Miller.
◦ Carlos Brito's Leadership and Cost-Cutting:
◦ After the merger with AmBev, Carlos Brito became the CEO, intensifying
cost-cutting efforts. In 2008, InBev announced the intention to acquire Anheuser
Busch, shocking the American beer industry.
◦ The financial crisis and internal conflicts within the Busch family
weakened Anheuser Busch.
◦ InBev, having the financial resources, successfully acquired Anheuser
Busch, revealing that the Busch family controlled less than 7 percent of the firm.
Warren Buffett's agreed to sell his shares to InBev , other major shareholders
followed.

◦ Industry Concentration:
Ina Verstl - book Beer monopoly.
Over the past fifteen years, the global beer market has become more concentrated,
meaning a smaller number of big companies control a larger share of the market.
In 2001, the top four beer companies had 21.7% of the global market share.
By 2014, major players like AB InBev, SABMiller, Heineken claimed 45.7% of the
global market share.
◦ Mergers and Acquisitions:
Companies like AB InBev have played a significant role in this concentration
through strategies involving mergers and acquisitions. Historic family-run
breweries, with companies like Heineken adopting similar acquisition strategies.
Heineken invested heavily in becoming a global brand and acquiring local brands in
emerging markets, following a strategy similar to AB InBev.
◦ Global Influence of AB InBev:
The acquisition of Anheuser Busch by AB InBev influenced the strategies of other
major players in the industry.
Heineken and SABMiller, in response, made substantial acquisitions to strengthen
their positions and protect against potential takeovers -unsuccessful maneuver
In 2016, AB InBev merged with SABMiller, creating a corporate entity that earned
half of the total global beer profits and produced a very big portion of the
world's beer.

Chapter 8
◦ This passage tells the story of the Belgian white beer, particularly
focusing on the town of Hoegaarden
◦ Legend of Klaas: Young King of the Franks (Charlemagne) orders an
abandoned orphan, Klaas, to be raised by monks and taught the art of brewing.
◦ Klaas becomes the iconic brewmaster of Hoegaarden, crediting his long
life to wheat beer. A statue of Klaas commemorates the brewing tradition.
◦ Pierre Celis and the Resurrection: Pierre Celis, a Hoegaarden milkman,
remakes Belgian white ale after the last brewery in Hoegaarden closed in the 1950s.
◦ Celis is celebrated as the "father of Hoegaarden beer," but the white
beer recipe predates him by at least 1,000 years.Belgien White beer witbier or
bière blanche is a top fermented wheat and barley spiced with hops , coriander,
bitter citrus
◦ Hoegaarden, with a special tax exemption, becomes a major beer exporter
for centuries with successful breweries->good price because small tax
◦ The town's seal symbolizes the shared power of the Holy Roman Empire
and the Hoegaarden brewers' brotherhood
◦ Leuven attempts commercial attacks on Hoegaarden, leading to the
decline of small breweries, including Tomsin Brewery.
◦ Transformation and Challenges: Scientific and industrial revolutions
weaken Hoegaarden's brewing economy over the centuries. By the end of World War II,
German style lagers had come to dominate Belgium’s beer market at trend that began
with Germany’s occupation of Belgium during World War I.
◦ The decline continued, and by 1957, the last remaining brewery, Tomsin
Brewery, closed its doors.
◦ Pierre Celis, saddened by the closure of Tomsin Brewery, wanted to
rescue Hoegaarden's brewing legacy. He launched Brouwerij De Kluis in 1965,
gaining popularity with publicity (hoegarden beer is forever).
◦ In 1985, Brouwerij De Kluis is destroyed by fire, and Celis turns to
Artois Brewery for help.
◦ Artois rebuilds the brewery in exchange for 45 ownership, leading to
unexpected consequences.
◦ Interbrew, formed in 1987 through a merger gained controlling shares in
Celis company
◦ Hoegaarden's white beer, once produced by small breweries, became a
product of a single industrial brewery owned by the global brewing giant AB InBev.
◦ Celis' Departure: In 1985, Pierre Celis sold his remaining shares to
Interbrew and moved to Austin, Texas, pursuing his dream of entering the American
market.

◦ Shift in Consumer Preferences:

In the 1990s, there was a notable shift in the American beer market as consumers
began favoring imported and craft beers over traditional domestic lagers. Imported
beers were perceived as higher-end substitutes for popular premium brands .
◦ Craft Beer Movement:
Craft beers, exemplified by Celis White from Celis Brewery, challenged the
dominance of industrial lagers.
Recognizing the potential for craft beer in the American market, Pierre Celis
emigrated to Austin, in 1992, bringing with him the traditional Hoegaarden white
ale recipe.
◦ Celis White received critical acclaim and gold medals at the Great
American Beer Festival in the "herbs and spices" category. The beer's unique style
initially confused judges, leading to the establishment of a separate category for
Belgian whites.
◦ Miller's Involvement:
Miller Brewing Co. invested in Celis Brewery in 1995, providing modern facilities
and access to its distribution network to expand Celis White's reach.
However, it soon became clear to Miller that the beer’s critical acclaim did not
necessarily translate into profit. With Belgian white beer slow to catch on, Miller
grew increasingly unhappy with its investment in the Austin brewery. Miller's cost-
cutting strategies impacted the quality of Celis White.
Miller abandoned Celis Brewery in 1997, auctioning it to Michigan Brewing Company
due to challenges in translating critical acclaim into profit.
◦ Coors' Belgian White Experiment:
Coors initiated its Belgian white beer experiment before its merger with Miller in
2007. Coors hired college student Keith Villa in the early 1990s and sent him to
Belgium, the birthplace of white beer, for formal training. He returned to Coors
with a PhD in brewing biochemistry from the University of Brussels teamed up with
Coors marketing specialist Jim Sabia to create Blue Moon.
Marketing Strategies:
Coors adopted a unique strategy, emphasizing creative control for Villa and minimal
investment capital.
Blue Moon adapted the original recipe by using a sweeter orange peel and oats to
appeal to American tastes.In 1995 ,the same year Coors took control over Celia
brewery, Coors brought Blue Moon to market.
◦ Legal Challenge and Rebranding: The Belgian Brewers Association
challenged Blue Moon's labeling, leading to a lawsuit and the rebranding of the
beer as "Belgian-style white ale" in 2000.
◦ Success of Blue Moon and Belgian White Beers: Despite initial
challenges, Blue Moon gained quick popularity. By 2010, Belgian and Belgian-style
white beers became staples in America's expanding craft beer market, with
Hoegaarden's recipe firmly established.

◦ In 2005, InBev announced plans to move Hoegaarden's production out of

Hoegaarden to reduce costs, leading to protests and consumer dissatisfaction.
◦ Public Pressure and Reversal:
Persistent public pressure, visible protests, and consumer dissatisfaction forced
InBev to move production back to Hoegaarden. InBev’s reputa- tion in Belgium never
recovered but Hoegaarden white beer is again brewed in Hoegaarden.
◦ Legacy and Celis Brewery Revival:
Pierre Celis, until his death in 2011, contributed his brewing expertise. Christine
Celis, Pierre Celis's daughter, bought the rights to Celis Brewery in 2012 and
reestablished it in Austin.
Christine collaborates with global brewmasters, contributing to the expanding craft
beer market in the US.

Chapter 11:

The Great Convergence:The fall of the beer drinking nation and the rise of the beer
drinking world
 ◦ Beer historically linked to political power, was produced in
monasteries and funded British imperialist conquests through taxation .
◦ Traditional beer-drinking nations often had temperate weather, favoring
beer over wine due to geographic and climatic conditions. Geography, ancestry,
culture, religion, and economic trends influenced alcohol production and
consumption.
◦ Shift in Global Beer Consumption: In 1960, the top beer-drinking
nations were the United States, Britain, and Germany. By 2010, China, Russia, and
Brazil surpassed them.Despite china being the largest bear market ,per capita
consumption remains lower than traditional beer loving nations.
◦ Over the years, traditional beer-drinking nations experienced a decline
in per capita beer consumption, while emerging economies saw an increase. Total
beer consumption in traditional beer countries has declined but an exception is USA
.Because of immigration, beer consumption has not fallen, despite the fact that per
capita consumption has declined significantly.
◦ Maybe :The shift from communism to capitalism influenced beer
consumption in China and Russia. For sure: Economic growth(income), globalization
◦ The relationship between income and beer consumption changes as
countries get richer.
◦ Research suggests that beer consumption in rich drinking
nations( inverted U)initially increases with rising incomes (like in poor
countries)but declines after reaching a certain point(21000)
◦ Possible explanations for declining beer consumption with higher
incomes include saturation(enjoyment does not increase with more beer)and increased
awareness of health risks. Rich drinking nations drink less and more expensive
beer.
◦ Globalization and Changing Tastes: As traditional beer-drinking nations
become richer, there is a shift towards consuming exotic, imported beverages like
wine and spirits. They travel more as income increases and are exposed to different
tastes.
◦ Conversely, traditionally wine and spirits drinking nations have seen
an increase in beer consumption as incomes rise ( they didn’t have it before)
◦ Globalization has led to a convergence of alcohol consumption patterns.
This change is dramatic.
“beer-drinking nations “(Ireland, the UK, and Belgium)
“wine-drinking nations” (Spain, Italy, and Argentina)
◦ In the 1960s, the share of beer in the beer countries is around 80
percent and less than 10 percent in the wine countries. By now, there is little
difference between beer and wine consumption in these categories. In fact, some of
the traditional wine countries have even overtaken some of the traditional beer
countries. Meanwhile, the opposite has occurred in countries like Spain, Italy,
Greece, and Argentina. Beer is their new favorite drink, while wine is on its way
out. In Spain, the share of wine in alcohol consumption fell from 65 to 38 percent
between 1960 and 2010, and Greece experienced a similar fall in wine consumption .
In all these countries, the share of beer increased sharply. A similar trend
appears to be at work in traditional spirits- drinking nations. Russia and Poland
have seen a sharp fall in vodka and a rise in beer.
◦ Breweries focusing on global markets, such as Heineken, Guinness,
Corona, and Stella Artois, have thrived in this changed landscape.
◦ Belgium's Adaptation: Belgian breweries adapted well to changing market
conditions by increasing production and exporting to traditionally wine- and
spirits-
◦ Convergence of Tastes:
A global "convergence of tastes" has emerged, challenging traditional notions of
beer, wine, and spirits preferences based on geographic factors. Nations that have
long consumed a majority of their alcohol as one traditional drink are now
consuming non-traditional beverages in higher quantities. Today’s drinkers are not
taking their examples from geography and history when determining their drink of
choice.
Chapter 13

The changing nature of Beer Trade:

◦ Some popular beer brands marketed with a specific national identity

were later revealed to be brewed in different countries. For example, Foster's,
marketed as an Australian beer, was brewed in Canada
◦ Despite the challenges, beer exports rose from 2 percent to 7 percent
of the global beer market from 1990 to 2014.This growth is due to the fact that
multinational brewers buy foreign breweries and their marketing systems to grow
their business globally. By taking over these companies and using their established
networks, the big brewers can benefit from cost savings and increase the reach of
their premium beer exports.Also the shift in consumer preferences for specialty
beers.
◦ Beer Market in the U.S.: In the 1970s, Heineken and Löwenbräu (Munich
Pilsner) dominated the U.S. import market. Miller's attempt to market Löwenbräu as
an imported beer was a failure and lead to a decline in sales. Löwenbräu could have
been Miller’s ticket to the top, but it had already lost its advantage as an
“imported” brand .Löwenbräu did leave America with one lasting legacy: the FTC
precedent- setting ruling that foreign brands are not legally allowed to call their
beer imported if it’s brewed in the United States.
◦ The high-end beer sector in the U.S. saw a rise in market share, with
imported beers surpassing domestic super-premiums in 1985.
◦ Consumer preferences for imported and craft beers seen as luxury goods
increased with rising incomes. The market share of imported beers in the U.S. rose
from 2 percent to 14 percent from 1980 to 2014.
◦ Affluent consumers were willing to pay more for imported beers, raising
questions about the reasons behind this willingness. my secret is that people are
willing to pay more for more options, demand for variety.
◦ Global Branding and Marketing: Freddy Heineken played a significant
role in establishing Heineken as the first truly global brand by marketing a
product to young consumers. At the same time he never lost sight of its domestic
market.Another company did also this: Guinness
Stella Artois it’s easily the most popular Belgian beer in every nation, with the
exception of one: Belgium. At home, Stella is trumped by Jupiler, but this is part
of the strategy. Stella and Jupiler were domestic competitors for decades, until
they merged in 1987 to form Interbrew. Jupiler had been more successful in the
domestic market, so Interbrew developed another branding fate for Stella: a premium
export brand with a global reach. Other newcomers to the global branding game tend
to follow this model rather than the Heineken and Guinness models. Australia
exports Foster’s while Australians drink Victoria Bitter…
◦ Successful global export brands need to justify higher prices resulting
from transportation costs, with exclusivity playing a crucial role. But with the
profitability of global brands comes the necessary tension between branding
country-of-origin and actually brewing there. The most profitable option is to not
import and say that you did. Or just heavily imply it, as was the strategy of
Japanese Kirin and Australian Foster’s.
◦ Successful advertising campaigns, such as Dos Equis' "Most Interesting
Man," have contributed to the success of imported beer brands in the American
market.
◦ Imported brands often emphasize country-of-origin, cater to women and
non-sports fans, and diverge from the blue-collar image of domestic beers.
◦ While high prices of imported beer can allow individuals to show their
status, it's crucial for brands to ensure that their product quality and branding
go with the expectations set by the premium pricing. If not, consumers may tell
that the branding is misleading or inauthentic, potentially harming the brand's
success in the market. Branding can go wrong Ex Stella Artois
 ◦ Despite early branding efforts positioning Stella Artois as a high-end
lager, it acquired a negative image in the UK, associated with rowdy behavior and
even violence, earning the nickname "wife-beater."
◦ Growing Beer Trade in the 21st Century: The beer trade, historically
local, experienced rapid growth in the 21st century due to multinational brewers
expanding through takeovers of foreign brewers to sell their premium exports and
due to the shift in consumer preferences toward craft and specialty beers.
"terroir”(sense of place)contributed to the export opportunities for smaller
brewers.
◦ Terroir and Craft Beer:
Craft and specialty beers, linking quality to geographic roots and "terroir,"
played a crucial role in changing the dynamics of the beer trade.

Article 1
◦ Historical Background: The cultivation of wine grapes began around 6000
BCE in the South Caucasus region, reaching Europe by 400 CE.
◦ First Globalization Wave (up to ww1)(1830s–1913): During this period,
the top three wine-producing countries (France, Italy, and Spain) dominated the
global market, accounting for over three-quarters of the world's wine. Despite
significant per capita income growth and reductions in international trade costs,
the share of global wine production exported remained low, at 5%.
◦ Phylloxera Outbreak: The outbreak of phylloxera in the late 19th
(1880s) century disrupted European vineyards, leading to increased wine imports
from other European countries and colonies.
◦ Limited Impact on Global Wine Markets: The first globalization wave had
less impact on global wine markets compared to other products.Algeria, a French
colony, became a significant wine exporter, but the majority of its exports went to
France.

◦ Second Globalization Wave (From Mid-1980s Onward): From 1980 ,wine

exports from former New World colonies experienced significant growth during the
second globalization wave.
◦ The share of global wine production crossing national borders increased
from around 5% in 1960 to 45% by 2017.
◦ Current Trends: Premiumization and Quality Improvement: Despite
concerns about homogenization, the recent globalization of wine has led to improved
quality and diversity, benefiting consumers globally.The Volume of wine today is
similar to 1960.
◦ Global Consumption Patterns: Wine consumption per capita has decreased
in traditional wine-producing countries since 1960 ,but has risen in new wine
markets. Beverage consumption mixes have been converging across countries, with
wine markets emerging in countries where beer or spirits previously dominated—and
vice versa. In the 1960s, all three beverages had a similar share of the global
recorded alcohol market . In the next three decades, the share of wine halved, and
is now just one-third of the shares of beer and spirits which are each a little
over 40%. In total terms, wine consumption has changed little while beer and
spirits have nearly tripled.
◦ Impact on Consumers: The globalization of wine has benefited consumers
in an expanding number of countries, providing them with more and better wine at
affordable prices. Premiumization has led to increased prices for iconic wines,
benefiting owners of the best wine assets.
◦ First Wave of Globalization (1830s–1913): Major Players: Britain was
the major importer of wine in value terms.France and Spain were the world's biggest
wine exporters. Britain, France, and Spain, with their colonies, played significant
roles in wine trades.
◦ British Wine Trade: Imports came from various countries, with
fluctuations based on trade restrictions, taxes, wars. France was the main trading
partner initially, but Portugal and Spain became dominant suppliers for over 150
years.
 ◦ Factors Influencing Growth: The second half of the 19th century saw
significant growth in the wine trade due to increased demand for high quality
wines, transatlantic migration of Europeans from traditional wine producing
countries , colonial expansion, liberalized trade policies, and reduced trade
costs. The phylloxera, affecting European vineyards, led to intra-industry trade in
wine for the first time.
◦ Until the Second World War , France was the world's main importer of
wine. It needed these imports to blend with the wines it obtained from the vine-
yards, in order to improve their alcohol content and color. France thus was nr1
importer of low- quality wine while simultaneously continuing to be the leading
exporter of high-quality wine
◦ Factors Leading to Stagnation: From the end of the 19th century, world
trade in wine stagnated due to limited globalization of wine consumption. Policies
in new wine-producing countries restrained trade.
◦ External Shocks: World War I, the rise of the Soviet Union, and
Prohibition in the U.S. during the 1920s, followed by the Great Depression,
severely impacted wine trade.
◦ Colonial ties played a crucial role in the globalization of wine during
the first wave, with migrations of winemakers to colonies such as Algeria and
production increases in colonies. French winemakers, facing troubles at home due to
a plant disease, went to places like Algeria. The French government supported this
and, as North African wine production increased, France raised taxes on wine from
other countries, especially Spain. This made wines from other places much less
popular in France. So, the ties with colonies and protective tariffs helped
France's wine industry grow. Also, imperial preferences boosted wine trade between
countries with colonial ties. Australia started selling wine to Britain, especially
stronger wines. The British government helped by reducing taxes on Australian wines
in 1919 and 1927. Australia also got extra support from its government for
exporting stronger wines from 1924 to 1947. But when Britain raised taxes on these
wines in 1947, the trade almost stopped.
◦ The French market was Spain's main destination, accounting for around
75% of its exports at the end of the 19th century.
◦ Algerian wine was used as a raw material to enhance the strength or
color of French wine. However, this ended in the 1930s when Algerian wine began to
compete in the French market as a final product
◦ Second Globalization Wave: Changes in Exporters: Algeria, the leading
trader in the 1950s, disappeared from the market after independence, with Italy
replacing it as a principal supplier.
Spain and Portugal caught up with France and Italy after joining the European
Community in 1986.
◦ Shift in Import Markets: Asian countries' share in world wine imports
increased significantly, led by China.
◦ Since 1980, more defined changes: The strong growth in consumption from
1985 in developed countries and some emerging nations, the significant drop in the
consumption in countries where it was the principal alcoholic drink, and the strong
entry of New World countries as wine exporters have been crucial.
◦ Of the traditional exporters, France is the country whose weight in the
global wine trade has decreased the most in terms of both volume and price. The
volume exported by Italy fell significantly too although the price has remained
stable, while Spain has had strong growth exports in terms of volume with only a
small increase in terms of price.
◦ Australia experienced remarkable growth in wine exports to China since
2015. By 2019, its trade intensity doubled. However, unexpectedly, China imposed a
high tariff on bottled still wine imports from Australia starting in 2020. This
decision came from petty political reasons and caused a significant and surprising
setback to Australia's wine trade with China.
◦ Unlike the first wave, wine consumption extended geographically as
incomes of wine-importing countries grew rapidly from the 1980s.
 ◦ Transport costs, tariffs, price increases, real exchange rates, and
regional trade agreements continue to influence wine trade patterns.

◦ The text speculates that cooler areas with currently low vine
intensities may develop a stronger comparative advantage in wine production if the
world's climate continues to warm.
◦ China, is expected to become more significant in wine imports as its
economies grow.
There is potential for further convergence in wine consumption per capita and its
share of national alcohol consumption across countries.
◦ Future Projections: The volume of both fine wines and premium wines is
projected to increase, while the volume of non-premium wine is expected to be
slightly lower.

Article 2

The provided text emphasizes a shift in globalization around 1990 due to

revolutionary changes in information and communication technology (ICT).

◦ Two Leaps in Globalization: The first leap occurred in the early 1800s
with steam power, reducing the costs of moving goods. The second leap occurred
around 1990 when ICT drastically lowered the cost of moving ideas.
◦ The Old Globalization (1820–1990) led to the rise of today's rich
nations (G7)and the "Great Divergence," concentrating economic, political, and
cultural power."Great Divergence" means that a long time ago, some places became
rich and advanced while others stayed poor. This happened because some countries
embraced new technologies and industries, like during the Industrial Revolution.
G7=( United States, Germany, Japan, France, Britain, Canada ,Italy)
◦ The New Globalization (post-1990) reversed the G7's rise, marking a
"Great Convergence," with their share of world income returning to 1914 levels.
"Great Convergence" is more recent. It's about how the income gap between rich and
poor countries is getting smaller. Some countries, especially in Asia, are catching
up and becoming richer, so the world is getting more balanced.
◦ Manufacturing Shift: From 1990, the decline in the G7's share of world
manufacturing accelerated, dropping below 50%. The decline in the G7's share
happened because of the rise of manufacturing in six developing countries: China,
Korea, India, Poland, Indonesia, and Thailand. (Industrializing Six - I6) ,with
China notably increasing its share of world manufacturing.
◦ Three Cascading Constraints: 3 cost of moving goods, cost of moving
ideas, cost of moving people are the three costs shaping globalization.
◦ First Unbundling (1820):Falling shipping costs initiated the first
unbundling, separating production and consumption.
◦ Industries began to stick together in certain regions. The
concentration of industries in certain regions fostered innovation and growth in
those regions. Ideas and innovations, however, remained localized due to the high
cost of moving them globally.
◦ This period triggered what historians call the "Great Divergence,"
marked by significant economic gaps between the more industrialized nations (the
North) and the rest of the world (the South). Northern industrialization and
innovation led to the "Great Divergence" due to low trade costs and high
communication costs.
◦ Second Unbundling (post-1990): ICT revolution lowered the cost of
moving ideas, initiating the second unbundling.
◦ Offshoring (ability to move part of a production process to different
locations) of production stages to low-salary countries reshaped industrial
competitiveness, creating global value chains.
◦ Second unbundling involves the international separation of factories
and massive North-to-South flows of know-how. it is exactly this new knowledge
flows that make the new globalization so different from the old globalization.
 ◦ G7 countries weren't sharing knowledge altruistically. It was a
strategic move by their firms to cut costs and stay competitive.
◦ G7 companies tightly controlled the offshored knowledge within their
production networks.
◦ Concentration of Knowledge (1990): The spread of this offshoring-driven
knowledge transfer wasn't uniform. It happened mainly in a few developing nations
(like the "Industrializing Six" - I6) .China stood out, significantly increasing
its share of world manufacturing.
◦ Why move team to so few countries? (1990): The concentration was due to
the high cost of moving people. Offshoring firms tended to cluster production in a
few locations, often close to G7 industrial powerhouses (Germany, Japan, and the
United States) to minimize the cost of moving people.
ICT revolutionized globalization from being primarily about moving goods across
borders to also facilitating the cross-border movement of knowledge.
◦ A 3 unbundling may take place if face to face costs. Two technological
developments may produce this: telepresence (for sharing "brain services" remotely)
and telerobotics (involving people in one place operating robots in another place).
These technologies, while existing, are currently expensive and not widely
accessible.
◦ Virtual Immigration and Unbundling: The author anticipates that these
technologies may lead to "virtual immigration," allowing workers from one nation to
perform services in another nation without physically being present.
◦ Impact on Jobs and Competition:The potential outcome is an expansion of
job opportunities.
◦ New Globalization Dynamics:The changed nature of globalization is
characterized by a finer degree of resolution.
◦ The winners and losers are no longer grouped by sectors and skill
groups, leading to "kaleidoscopic globalization."No matter what job you have and no
matter what sector you work in, you cannot really be sure that your job won’t be
the next to suffer or benefit from globalization.
◦ The New Globalization happened very sudden due to the rapid
advancements in information and communication technology (ICT). National
governments have less control over the New Globalization because of how fast
technology works.
◦ Denationalization of Comparative Advantage: G7 firms sharing know-how
globally, reshape competitiveness. Big companies from rich countries are using
their special knowledge to work with cheap labor from other countries. This means
it's not just about what a whole country is good at anymore; it's more about what
each company is good at.
◦ The link between wage and technology differences is changed. The New
Globalization allows firms to benefit from technological advances by combining them
with labor from different nations.
Simple Explanation: In the past, when a country's technology improved, the wages
(or salaries) of its workers also went up. Now, with the new way things are
happening globally, the improvement in technology doesn't necessarily mean higher
wages for workers in that country. Companies can use technology from one place and
combine it with workers from another place.
◦ Role of Distance in the New Globalization: While long distances affect
the cost of moving goods, ideas, and people differently, the Internet has made the
cost of moving ideas almost zero. But when it comes to people, it's still easier if
they're not too far away. So, some countries might find it harder to become big
manufacturing hubs if they're far from other big industrial places.
◦ Policy Implications: The new way things are happening globally means
these old rules might not work as well. For example, instead of making everything
at home, some countries might now join hands with others to make things together
and be competitive. So, the rules (policies) need to change to fit this new way of
doing things.

Article 2
 ◦ Francis Potter, the president of Hathersage Technologies, needed
skilled workers for a project. Instead of hiring locally in the U.S., he turned to
Upwork, an online platform connecting freelancers worldwide. Potter found talented
engineers from Lahore, Pakistan, who were willing to work for less than the usual
wage.
◦ Telemigration - a New Global Phase: This way of working, called
telemigration or telecommuting, introduces a new phase of globalization. Skilled
workers from different countries can now collaborate online, bringing both benefits
and challenges.
◦ Telemigrants and International Competition: Telemigrants and Their
Impact: Telemigrants, individuals working remotely from various parts of the world,
are changing the game. They are especially impacting professional, white-collar,
and service jobs in the U.S. and Europe. Things are different now in 2 ways
◦ 1)Talent Tsunami and Machine Translation: Machine translation has
created a talent tsunami. Machine translation is a big deal because it allows
people from different language backgrounds to work together, meaning professionals
from countries with lower wages can now collaborate with those from high-wage
countries
Changing Job Market: The rise of telemigrants and machine translation is making it
easier for individuals worldwide to contribute to projects leading to international
competition for jobs.
◦ 2)Telecom breakthroughs: Telecom breakthroughs, like telepresence and
augmented reality, make distant workers seem less distant .
RI-"remote intelligence" -It's not people working remotely, it's smart computer
systems doing work from afar. So, people who do certain jobs not only have to
compete with other people working far away but also with smart computers.
◦ White-Collar Robots and Automation: Introduction of "white-collar
robots" like Amelia, capable of handling tasks traditionally performed by humans.
She can work in various locations simultaneously , speak multiple languages. Amelia
and her kind are not quite as good as real workers but they are a whole lot
cheaper. These robots are designed to replace workers and represent a new phase of
automation in the service sector.
◦ Globotics - Fusion of Globalization and Robotics: It affects service-
sector jobs, unlike previous phases that primarily impacted manufacturing and
agriculture.
◦ Globotics is advancing at Unprecedented Speed. The mismatch between job
displacement(losing jobs) and replacement(creating new jobs) is a significant
challenge.
◦ Unlike past waves of globalization and automation that focused on
goods, the current trend is centered on information (electrons and photons) in the
service sector.
◦ the speed of information flows can double every couple of years.
Telemigrants (foreign workers in offices) and white-collar robots are viewed as
unfair competitors, as they can accept lower pay and avoid various costs like
taxes, vacation for robots etc. The potential for lower wages, reduced benefits,
and changes in labor laws is a major concern.
◦ Job Displacement and reaction: The author estimates that a significant
number of jobs, particularly in the service sector, will be replaced by automation
and globalization. The reaction from affected workers may lead to social and
political revolts, similar to the trends observed in the 2016 Trump and Brexit
votes.
◦ Populist Responses and Political Dynamics: Populist movements may take
place as workers from diverse backgrounds unite against the threats of automation
and globalization.
◦ Need for Preparation and Policy Changes: Governments are urged to
prepare for the upcoming reaction by making policies that support workers'
adjustment to job displacement(retraining programs income support and relocation
support), ecourage job replacement, and slowing down the pace of change if
necessary. What is needed are policies like in Denmark. The government allows firms
to hire and fire freely but then commits to doing whatever it takes to help the
displaced workers find new jobs.
◦ The Future of Jobs: Despite the challenges, the author expresses
optimism about the long-term future, anticipating an increase in more local and
human jobs. The most human skills will be sheltered from AI competition for many
years. Humanity will be important in most of the jobs of the future.
◦ Four-Step Progression: The author speaks about a four-step progression
in the globotics transformation: transformation, upheaval, backlash, and
resolution.

Article 3(Bullshit jobs)

◦ The concept of "bullshit jobs" was introduced by David Graeber in his

essay for the magazine Strike! in 2013. The term refers to jobs that, from an
outsider's perspective, seem pointless or do not contribute very much to society.
Examples include HR consultant, PR researchers ,corporate lawyers…
◦ People rarely openly express discontent with their jobs on platforms
like television news, creating a lack of discourse on the topic.
◦ Keynes predicted in 1930 that technological advancements would lead to
a fifteen-hour workweek by the year 2000. Contrary to this prediction, technology
has been used to create more jobs, some of which may be pointless.
◦ Over the last century, there has been a dramatic decline in jobs
related to industry and agriculture and a rise of jobs in the "service" sector with
administrative roles, including new industries like financial services,
telemarketing or a very big increase of sectors like corporate law, public
realatios.
◦ Graeber introduces the term "bullshit jobs" to describe jobs that seem
to be created for the sake of keeping people employed. He questions the logic
behind creating jobs that may not be necessary for the functioning of the firm and
paying them. Yet, this happenes.
◦ The answer clearly isn’t economic: it’s moral and political. The ruling
people has figured out that a happy and productive population with free time on
their hands is a big danger. And, on the other hand, the feeling that work is a
moral value in itself, and that anyone not willing to do some kind of work for most
of their waking hours deserves nothing, is extraordinarily convenient for them.
◦ He says that hell is a group of individuals who are spending the most
of their time working on a task they don’t like and are not especially good at.
◦ The author explores the psychological impact of holding a job that one
considers meaningless. He raises questions about the demoralizing effects and the
societal taboos surrounding discussions about the purpose and value. There’s a lot
of questions one could ask here, starting with, What does it say about our society
that it seems to generate limited demand for talented poets, musicians but an
infinite demand for specialists in corporate law? (Answer: If 1 percent of the
population controls most of the wealth, “the market” reflects their preferences ,
not what majority might find valuable.) Even more, it shows that most people in
pointless jobs are aware of it. In fact, I’m not sure I’ve ever met a corporate
lawyer who didn’t think their job was bullshit. The same goes for almost all the
new industries outlined above. There is a whole class of salaried professionals
that, should you meet them at parties and admit that you do something that might be
considered interesting ,they will want to avoid even discussing their work . Give
them a few drinks, and they will tell about how pointless and stupid their job
really is.
◦ It can be psychologically challenging to find dignity in a job that one
secretly believes is unnecessary. Society often directs resentment toward those who
do meaningful work, and there's a paradox where jobs benefiting others may be paid
less
◦ The essay on bullshit jobs went viral and received international
attention. Polls conducted later suggested that a significant portion of the
workers considered their jobs meaningless.

Article 4

◦ The author argues that many jobs in the current system ar meaningless
or "bullshit." UBI(universal basic income) is presented as a solution that
challenges the need for these jobs by providing individuals with a basic income for
necesities regardless of their employment status. UBI Could reduce the size and
involvement of the government
◦ Leslie is a benefit advisor. Leslie's job involves dealing with
inefficiencies in a system designed to limit caregiving intentionally, having a
vast apparatus to make it difficult for people to access financial support. UBI is
suggested as a way to eliminate the need for such bureaucratic processes, reducing
the inefficiencies and complexities associated with the current welfare system.
◦ Empowerment and Freedom: UBI empowers individuals by providing them
with financial security and the freedom to choose how to spend their time. The
basic income would allow people to do meaningful activities, including caregiving,
without the constraints imposed by the current system.
◦ UBI is presented as a simpler and more inclusive alternative that
avoids the complexities associated with means testing(with UBI everyone gets a
basic amount of money regularly no matter if they have a job or not . This way you
don’t have to prove you need help everyone gets it).UBI is seen as a mechanism for
redistributing wealth and addressing economic inequalities.
◦ Avoidance of putting a price on Care:. The text suggests that putting a
dollar value to care could lead to negative consequences, such as reducing the
genuine and qualitative aspects of caregiving. The concern is that treating care as
a commodity with a specific financial worth might dehumanize these activities and
diminish their true value. UBI is suggested as an alternative that avoids putting a
dollar value on different forms of care.
◦ Men and women are not treated equally in terms of pay for work. With
UBI, everyone gets a basic amount of money regularly. UBI is seen as a potential
solution to the gendered division in labor and the wage difference . This could
help balance things out between men and women because everyone gets the same basic
income, no matter their gender.

The text the discusses the potential benefits of a Basic Income program,
particularly drawing insights from a pilot study in India.
◦ Reduction in Domestic Violence: The passage suggests that the
implementation of Basic Income led to a significant decrease in domestic violence,
because 80% of domestic fights that lead to violence turn out to be about money.
◦ Equality : Basic Income can dissolve social inequalities. When everyone
receives the same amount of money, regardless of gender, age it forms a more
inclusive society. Basic Income to be effective, it needs to be provided to
everyone without any conditions. Every individual deserves a basic standard of
living as a human
◦ By providing individuals with the means to meet their basic needs, it
allows for greater freedom in choosing the type of work that makes them happy . The
text suggests that many existing "bullshit jobs" may disappear, and people might
focus on more meaningful and socially beneficial activities.