Global Competitiveness in the Beer Industry: A Case Study

Three companies (Anheuser-Busch, Miller, and Coors) in the brewing industry accounted for 78 percent of the U.S. market in 1992. Among these three, Anheuser-Busch is the apparent leader with 46.2 percent of the market. Although Anheuser-Busch produces and markets a number of brands, the Budweiser brand has been the top selling beer with 24.1 percent market share in 1992. Lately, light beers have been gaining ground, a trend likely to continue in the future. Foreign beer brands account for about eight percent of the U.S. market. The foreign brands are popular in certain niches of the market. While the imported brands are likely to remain popular, they are no threat to the domestic competitors. A new trend in the market is the emergence of the specialty beers as a significant factor. Specialty beers cater to the needs of specific segments in the market, providing an opportunity for small brewers to survive. Even major firms in the industry have introduced their own specialty beers. U.S. Brewers have failed to make an impact in the foreign markets. Although all major firms have formed alliances to seek expansion overseas, their business outside the United States remain slim. Foreign brewers, particularly Heineken are ahead of U.S. brewers in securing markets abroad.