³RECENT TRENDS IN THE ALCOHOLIC

BEVERAGES INDUSTRY: REVIEW FROM A GLOBAL PERSPECTIVE, ´
Derrick Vijayan

HOW ATTRACTIVE ARE THE CUSTOMERS OF EACH MARKET?

MARKET SIZE BY VALUE
½ billion
700 690 680 670 660 650 640 630 620 610 2005 2006 2007 2008 2009 640.6 655.5 ½ billion 672.4 684.1 694.8

SEGMENTATION OF PRODUCTS
´

Beer, cider & flavoured alcoholic beverages

´

Wine Distilled Spirits

´

THE OTHER PRODUCT!!! UNRECORDED& TRADITIONAL ALCOHOL

Smuggled, home made or traditionally made beverage. ´ Prevalent in developing countries, e.g. East African countries and former Soviet Republics ´ 12L in Moldova, 10.7L in Uganda, 9L in Zimbabwe etc. per capita consumption ´ 2/3, ½ & 1/3 of all alcohol consumption in the India, Africa, and in Eastern Europe respectively.
´

PERCENTAGE SHARE BY VALUE 2009: PRODUCTS
% share

22.1% 50.5% 27.4%

Beer, cider & FAB Wine Spirits

REGIONAL PREFERENCES

PER CAPITA ALCOHOL C0NSUMPTION

PERCENTAGE SHARE BY VALUE 2009: REGION
R st, 1. Asia-Pacific , 1 .4 Eur Am ricas, 27.8 , 50.

REGIONAL TRENDS: 1990-2005

PORTER¶S 5-FORCE ANALYSIS OF THE INDUSTY
Buyer Power 5 4 3 Supplier Power 2 1 0 Degree of Rivalry

Substitutes

T reat of New Entrants
Source: Data Monitor

MAJOR PLAYERS
Anheuser-Busch InBev (AB InBev) ´ SABMiller ´ Heineken .V. ´ Diageo plc. ´ Carlsberg. A/s ´ Pernod Ricard SA
´

MARKET SHARE OF MAJOR PLAYERS
Sales
AnheuserBusch InBev 21% Others 61%

SABMiller 10%

Heineken .V. 8%

COMMON TRENDS«
Merger, Acquisition and Joint Ventures. ´ Buying brands that can exploit major market and selling off plants that are in small markets ´ Major markets have Saturated=> Diversification. ´ BRIC economies will remain a critical growth driver in the coming decades ´ Wider opportunity in emerging economies
´

MERGER, ACQUISITION AND JOINT VENTURES 1960s: Involved Brewers and Wine makers of UK ´ 1970s: Happened in Continental Europe ´ 1980s:Motivated by the globalization of markets=> Acquire distribution channels ´ 2000s: Consolidation of Beer, Spirit and Wine Industries
´

DIVERSIFICATION
SABMiller engaged in the hotel and gaming sector ´ Carlton & United Breweries diversified into soft drinks. ´ Many Brewers moved into wine industry ´ SAB Miller does bottling for Pepsi-co
´

BRIC ECONOMY DRIVEN GROWTH
More than 40% of world population. ´ All deemed to be at a similar stage of newly advanced economic development. ´ Rapid Expansion of huge middle class with high purchasing power ´ Customers who favored traditional beverages becoming brand conscious.
´

SUMMARY
Considerable changes in last few years ´ Changes in population of commercial versus non-branded products ´ Internationalization of brands
´

Yet most of the alcoholic beverages that are produced continues to largely unrecorded.

THE END! QUESTIONS?

THANK YOU!

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