ANHEUSER BUSCH AND HEINEKEN BREWERIES: A COMPARISON
The beer industry is one of the most competitive in the world, and the competition is seen best in America. It is estimated that some 700 companies that once manufactured beer have gone out of business in the last 50 year. Those companies that are surviving are doing so by a combination of innovation, cost control, marketing, developing new strategies and utilizing technological advancements in every step of the manufacturing process from ingredient purchasing through brewing, bottling, and distribution. The industry statistics for the American beer industry include:
Number of On Premise Outlets 258.526
Number of Off Premise Outlets 201,477
Source: Statistical Abstract of the United States
The American beer market today is typified by a combination of heavy discounting of famous name beers and the introduction into various distribution channels of high priced specialty beers. This suggests that the big brands such as those produced by Anheuser Busch (Budweiser, Bud Light, Busch and Michelob) are having to fight harder to maintain their competitive lead. Budweiser, which accounts for more than half Anheuser Busch's $11 billion a year in revenues, has seen its share of the market drop to some 45 percent, still substantial enough to make it the number 1 brand in America. With big brand images in trouble beer manufacturing and sales executives are cutting prices to lure consumers even as they scramble desperately to develop or buy the types of beer that American drinkers will pay more for imports and microbrews.
The beer industry provides the most popular alcoholic beverage in America, involving more than 80 million Americans, and it is estimated that about 87 percent of total U.S. alcohol beverage consumption is beer. Americans drink approximately 23 gallons of beer per year. The United States Department of Commerce estimates there are approximately two doz...