Macro environment and beer industry

Some of the leading players quenching the thirst of beer consumers around the world are Heineken N. Rise in disposable income, changes in lifestyle, and wide acceptance of beer as a refreshment beverage drive the growth of the global beer market. By type, lager and ale dominate the global beer market; however, there is an observed increase in the consumption of malt among the consumers. This is accredited to inclination of the consumers toward exploration of different flavors of beer.

Macro environment and beer industry

However, since its establishment in the mid seventeenth century, the beer industry has been subject to various political machinations and legal regulations, such as the legislative amendments that effected the thirteen-year prohibition in producing and distributing beer in Today, the beer industry continues to be subject to constantly changing alcohol consumption and taxation policies, political lobbying for divergent market classification and anti-trust issues.

Alcohol Policies Irresponsible consumption of alcohol can have detrimental effects on society, so there are numerous social policies that exist to regulate the alcohol industry in general and the beer industry in particular.

Macro environment and beer industry

Beer is unlike other consumer goods because it cannot be freely advertised, sold or consumed. The beer industry players have to adhere to advertising norms that generally prescribe the content and hours when beer advertisements can air to minimize instances of underage drinking.

Beer Industry Legal & Political Factors |

America also has a three-tier alcohol control system that distinctly separates industry players into manufacturers, wholesalers and retailers, and the former are not allowed to sell directly to the public.

There are also regulations on the days and time when alcohol can be sold, which affects the beer industry. For example, most states limit Sunday sales of alcohol for consumption off-premises. Taxation The beer industry is a significant tax contributor because of its revenue-generating capacity in the market.

The tax code classifies brewers according to their size, defining those that produce up to two million barrels per year as small brewers and any amount above that as a large brewer, although taxes are paid on every barrel they produce.

Macro environment and beer industry

There have been initiatives to expand the classification of small brewers to a ceiling of six million barrels per year and calls for the reduction of excise tax per barrel, pitting large brewers against small brewers. Political Lobbying Since there are various policy and legislative concerns relating to the beer industry, political lobbying is an integral part of the industry business.

Inpolitical pressure groups that were against the consumption of alcohol managed to lobby for and pass the 18th Amendment to the Constitution and the Volstead Act, which prohibited the production and distribution of beverages with more than one-and-a-half percent alcohol.

Although the prohibition was repealed 13 years later through the 21st Amendment, the situation is not much better today, and beer industry players still have to engage in intense lobbying to get Congress to pass favorable legislation.

For example, small brewers expend time and considerable financial resources lobbying for the passage of legislation to qualify them for the excise tax discounts that are available to big brewers. Anti-Trust Issues The proliferation of craft beer that is not mass-produced has intensified competition in the beer industry and brought about market shifts that Congress and regulatory agencies have to constantly monitor in order to prevent the creation of monopolistic enterprises.

Big brewers such as Anheuser-Busch and MillerCoors largely dominate the American beer industry, while craft beers are just beginning to take hold. However, declining sales numbers have led the large brewers to acquire smaller brands which raises anti-trust concerns in the political debate, according to The New York Times.The macro environment of the Western European brewing industry was analyse using the PESTEL framework to understand and assess the impact of the various external factors namely political, economic, social, technological, environmental, and legal.

Macroenvironmental Forces That Affect the Beer Industry by Robert Shaftoe - Updated September 26, Macroenvironmental forces refer to the broad set of socio-economic factors that affect the market for an industry’s goods – the global beer industry, for example.

The macro environment of the Western European brewing industry was analyse using the PESTEL framework to understand and assess the impact of the various external factors namely political, economic, social, technological, environmental, and legal. - industry and competitive environment in which the company operates: external environment - resources and organizational capabilities: internal environment used to assess the strategic relevance of the six principal components of the macro-environment: political, .

The industry environment Industry segments: Beer in Quebec and throughout Canada is mostly segmented in two segments, Premium and Super Premium. For Molson Coors this the premium segment is made up of Coors Light, Canadian, Ex and Dry for Quebec or Pilsner out west for example.

The purpose of the Macro Environment Analysis is to identify possible opportunities and threats to your industry as a whole that are outside the control of your industry. There are many factors in the macro - environment that will affect the decisions of the organisation.

Macro Environment Definition | Investopedia