Trends and Issues in Beer Industry Essay Example for Free

Trends and Issues in Beer Industry Essay 1. News Article Title: Modern trends and issues in the world beer industry (2 Points) Name of media presenting article: TATA CONSULTANCY SERVICES (2 Points) URL to news article: http://www. tcs. com/SiteCollectionDocuments/White%20Papers/CPG-Whitepaper-Brewery-Industry-Transition-0313-1. pdf (2 Points) 1) Question 1: Are demographic changes included in main trends of the beer industry? Answer 1: True 2) Question 2 : Do retailers have impact in the beer industry? Answer 2:. True 3) Question 3: Does Retail industry have a deep understanding of consumer behaviour? Answer 3:True 4) Question 4: Are consumers from emerging markets for alcoholic drinks in the 15 to 34 age group? Answer 4: False 5) Question 5: Do retailers demand long-term delivery? Answer 5: False. ATTACHMENT OF COMPLETE ARTICLE MUST ACCOMPANY THIS! (3 Points) Correct format used (Times New Roman, Font Size 12): (1 Point) Paste here. Everybody knows that competition in the brewery industry is always high, especially between private labels, which have a big impact on the environment. So they need a balance between strong presence on developed markets with high profit as well as developing markets with huge perspective and volume growth in the future. As every field, beer industry has its own trends and issues. Let’s start from trends. 1. Impact of retail industry Retail industry has a deep understanding of consumer behaviour due to their everyday close relations. It is a big advantage for manufacturers, who provide maximum sales volume, in terms of price settings. In the same time, retailers demand shorter delivery-terms and better service. 2. Demographic changes. Consumers for alcoholic drinks in the 15 to 34 age group in developed countries have witnessed a decline in consumption of beer; a trend that contrasts with the observations in emerging nations. Additionally, due to changes in taste and growth of income, consumers chose quality rather than quantity and it is a challenge for breweries. 3. Consolidation Beer manufacturers use mergers and acquisitions to increase their growth. The major players have been looking for the scale to: A)Gain competitive advantage in terms of offsetting retailer power, B) Establish a strong position within the distribution chain, C) Gain shelf space. Issues The conflicting interests of manufacturers, distributors and retailers coupled with government regulations force manufacturers to reevaluate their supply chain systems to address some of the following challenges: A)Price volatility for goods B)Manage expanding range of different products and eliminate non-profitable variants C)Provide higher service levels demanded by distributors and retailers D)Comply with government regulations in batch management and traceability requirements E) Accurately understand the complexities of work in emerging markets and the high cost to serve a variation between urban and rural markets. It is time for the industry to take a fresh look at its operations. Subsequent integration processes, in addition to compliance to multiple regulatory norms, has indeed created a significant shift in the way the industry operates. Beer companies would need to re-evaluate their supply chain practices such that they keep pace with quickening product innovations and launch processes. The retailer influence is also increasingly adding pressure to their already tight margins, making optimization efforts the most necessary.