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Case Studies on Dyson
Global forces and the Western European brewing industry
Mike Blee and Richard Whittington

This case is centred on the European brewing industry in Western Europe and examines how the increasingly competitive pressure of operating through within global markets acquisitions, alliances This has resulted in the is causing consolidation

and closures within the industry.

growth of the brewers' reliance upon super-brands.

In the early years of the 21st century, European brewers faced a surprising paradox. The traditional centre of the beer industry worldwide and home to the world's largest brewing companies, Europe, was turning off beer. Beer consumption was falling in the largest markets of Germany and the United Kingdom, while burgeoning in emerging markets around the world. In 2008, Europe's largest market, Germany, ranked only 5th in the world, behind China, the United States, Brazil and Russia. China, with 12% annual growth between 2003 and 2008, had become the largest single market by volume, alone accounting for 23% of world consumption [Euromonitor, 2010J. Table 1 details the overall decline of European beer consumption. Decline in traditional key markets is due to several factors. Governments are campaigning strongly against drunken driving, affecting the propensity to drink

Source: Alamy Images/Picturesbyrob.

Table 1 European beer consumption year [000 hectolitresl Country Austria Belgium Denmark Finland France
Gerrnanyf

by country and 2003 8979 9935 5181 4179 21168 97107 3905 5315 17452 373 12771 2270 6008 33451 4969 4334 60302 2007 9100 9137 4840 4073 18781 91000 4600 5193 17766 429 12910 2670 6200 35658 4900 4489 51300

1980 7651 12945 6698 2738 23745 89820 N/A 4174 9539 417 12213 7651 3534 20065 3935 4433 65490 t

2000 8762 10064 5452 4024 21420 103105 4288 5594 16289 472 13129 2327 6453 29151 5011 4194 57007

Greece Ireland Italy Luxembourg Netherlands Norway" Portugal Spain Sweden Switzerland" UK
• Non-EU countries:

1980

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