Western European Brewing Industry Essay

Western European Brewing Industry Essay The European beer market has matured over time, and one would expect the brewers here to be making comfortable profits. However, various global and local factors continue having negative impacts on the market, and on brewers themselves. Big players in the industry have had to adopt new strategies to keep afloat. This paper presents a PESTEL analysis of the Western European beer market, and also includes a Porter’s five point analysis of the business forces affecting it. It also looks at the effect these emerging trends in Western Europe’s beer industry have had on three selected beer manufacturers. European brewers have in the recent past had to contend with falling margins in their sales in the Western Europe market for a variety of reasons. This trend has been has been witnessed even in their traditionally large markets such as Germany, while sales have been on the increase in emerging world markets such as China. Government activities have been a large contributor to this trend (Cohen, 2008). In the UK, Netherlands and other Western European countries, there has been a widespread and extensive government campaign to turn people off excessive consumption of alcohol, or what they referred to as â€Å"binge drinking†. This is in response to the increasing number of fatal accidents resulting from drunk driving. Governments in countries like the UK and Netherlands have also been concerned with the rising cases of antisocial behavior for example public drunken brawls, and the rise in alcohol abuse among teenagers and young adults (Brat, 2011). In response, there have been considerations to enact legislations to contain this problem, and to raise the minimum drinking age from 16 to 18years. Sale of beer in pubs and bars has suffered as a result, and consumers now prefer buying from retail outlets such as supermarkets, and drink at home (David, 2005). The reduction in consumption of beer has also been as a result of increased health consciousness among Europeans and other consumers. Consumers’ drinking habits have been influenced by reports linking various health conditions with beer consumption, and many have either become teetotalers, or prefer drinking wine instead. The sluggish economic growth in most European countries has also been a cause of the decline in demand for beer, as consumers concentrate more on meeting their basic needs and reduce on non-essentials. Studies have shown that beer consumption is viewed as trendy among youngsters, who constitute the largest beer drinking group in Europe. However, high unemployment rates facing this group have led to a decreasing demand for alcohol (Kia,2006). Beer in the Western Europe market faces high competition from substitute drinks such as soft drinks, energy drinks and non alcoholic beers or fruit flavored beers. Health concerns related to consumption of beer has led consumers who still want to retain a trendy look when they go to pubs, to prefer ordering non-alcoholic beer. They reject sodas for their high sugar content, but still want to prevent health risks associated with beer. The threat of substitutes is however, not a very big issue for Europe’s beer manufacturers, as they adopted the production of non-alcoholic beers that are fast becoming a favorite among drinkers in many parts of Europe. Rivalry among beer manufacturers is probably one of the main causes of shrinking profit margins, as they wage costly media campaigns to protect their market shares and hopefully acquire more. Supplier power is also strong in the industry, reflected by the ever increasing prices of barley, which beer manufacturers have little influence or control over (Mercer, 2011).They face a dilemma on the most viable option, whether to increase prices of beer in the face of a shrinking market, while at the same time trying to cut costs and venture into new and more profitable markets (Opus, 2005). Even as they try to cut costs, beer manufacturers have to facilitate expensive ventures in their expansion bids in markets such as China, which are highly unprofitable due to a high concentration in the beer industry there. The rationale of venturing into a highly crowded and less profitable market is to benefit from consolidation in the future, since beer consumption is set to keep rising. New entrants into the industry do not constitute much of a threat to the already existing players who have entrenched their influence and power in the sector. The trend has been consolidation and the big players have shifted their focus to acquiring new firms or smaller, already existing ones and consolidating their hold in the market. This is what they hope to achieve in China and other emerging markets, by buying off local manufacturers. Consolidation has been accompanied by the promotion of premium brands, and this often involves killing the smaller, insignificant ones that do not do so well. Many of the factors considered in the PESTEL model of analysis affect the decisions taken by managers of companies, as a response to whatever is happening in the market. However, in this case, not all of them have far reaching effects on the beer market. Beer manufacturers in the West European market are mainly affected by political factors such as government policy to discourage excessive alcohol consumption, economic factors such as unemployment and economic growth rates, technological advancements and the society’s health consciousness. Competition in the industry is mainly driven by rivalry among the firms for market share and the threat from substitutes. The emerging trends in the brewing industry in Western Europe will undoubtedly have different impacts on the various brewing companies in the industry. A-B InBev (Belgium) for example is set to gain from the promotion of its premium brands that are brand leaders across the globe. It is also likely to leap huge profits from increased sales of soft drinks by venturing into the soft drinks market, since consumers are increasingly shunning alcoholic drinks. The company may however suffer from the loss of a part of market share, which it is losing by selling off some of its subsidiaries, and its strategy’s weaknesses also lie in the failure to recognize the high potential of non alcoholic beers and venturing into that branch of production. The consumers’ move from consuming beer in pubs and restaurants to buying it from retail outlets such as supermarkets may have a negative impact on Greene Kings sales, as they operate a huge chain of pubs across Europe. Its concentration on super brands will post positive sales reports, as these brands do not seem to suffer much when sales go down, probably as a result of brand royalty from consumers. Though the company’s consolidation strategy to consolidate its market share by acquisitions and mergers may pay off in the long run, its image could suffer if it is seen as very greedy, and such negativity from the public may make its brands suffer in the market. The Tsingtao brewery in China has its strength in its exportation strategy. There are benefits to this, reason being that profit margins from beer sold in China are small due to over population in the industry.

Symptoms And Treatment Of Sandhoff Disease - 1401 Words

Sandhoff Disease is a rare inherited autosomal recessive (one copy of the abnormal gene from each parent must be passed to the fetus in order for the disorder to be present, in total two abnormal genes are needed for the syndrome to be present) lipids (fats), storage disorder that progressively destroys the nerve cells in the brain and spinal cord (Sandhoff Disease, WEB). Genetically, in humans the defected gene is HEXB, it doesn’t allow the routine production of ÃŽ ²-hexosaminidase A and or B. In infants, the physical effects start to take place between 3-6 months their development slows and their muscles weaken (Sandhoff Disease, WEB). Infants will lose their motor skills (turning, sitting, and crawling), hearing, vision, an exaggerated†¦show more content†¦A fragment of DNA was then amplified using Polymerase Chain Reaction (PCR) with a forward primer and a reverse primer. PCR is a technique used to make as many copies as possible of a specific section of the DNA e xtracted. The five necessities for PCR to be successful is the DNA template that one wants to copy, a buffer, nucleotides (ATCG), polymerase, and primers. PCR occurs in 3 stages: (1) Denaturing, (2) Annealing, and (3) Extending. During the Denaturing stage, the stand containing the DNA template (in this case the fetus’) is heated to separate the double stranded DNA. Next during the Annealing stage, the stand is then cooled to allow the primers to attach to a specific location on the single stranded DNA template (primers are usually 20 to 30 bases long). Lastly during the Extending stage, the stand’s temperature is increased to permit the making of new DNA by a specific DNA polymerase. The result is multiple new strands of DNA that has been successfully copied (What is PCR, WEB), followed by electrophoresis in 1% agarose gel. Electrophoresis is a technique commonly used to separate DNA, RNA, and proteins according to their sizes. The result was then purified with a P CR purification kit (removing any remaining DNTPs, or nucleotides that could result in contamination). The products wereShow MoreRelatedEssay about Sandhoff’s Disease Tay Sachs604 Words   |  3 PagesTay-Sachs in the general population is 1/600† (OMIM). Sandhoff Disease is a rare genetic disorder, and it is a severe form of Tay-Sachs that progressively destroys cells in the brain and spinal cord. Since its discovery and analysis of inheritance, there have been advancements of its diagnosis, treatment, research, and its support resources for affected families. Those affected individuals lose motor skills and function of other body parts. As the disease progresses they experience seizures, vision/hearingRead MoreGene Therapy Of Tay Sachs Using A Modified Adenovirus3724 Words   |  15 PagesGene Therapy of Tay-Sachs Using a Modified Adenovirus Akash J. Patel Abstract: Tay Sach’s disease results in an accumulation of lipids in the brain’s nerve cells. The underlying cause of Tay-Sachs disease is a mutation in a gene that codes for a lytic enzyme known as Hexosaminidase A (Hex A). Tay-Sachs as well as other lipid storage diseases are incurable, but we believe that gene therapy has the potential for widespread correction of the lipid storage defect in humans by means of the cross-correction

Snow in August free essay sample

Snow In August by Pete Hamlin In the year 1 947, the war veterans have come home, Jackie Robinson is about to become a dodger and in one closed minded neighborhood, an eleven year old Irish catholic boy named Michael Devoid has just made friends with a lonely rabbi from Prague. For Michael, the rabbi opens up a window to ancient learning and a new life style that he is not used to. For Judas, Michael helps educate the mysteries of America, including the language of baseball. But like their hero, Jackie Robinson, neither can escape the prejudices of their mime. Pete Hamlin expresses human nature through his novel by representing racism, pressure and friendship through his characters. Snow in August deals with one of the main characters who is racist towards Jews. Frankie McCarthy was one of the older guys, at least seventeen, and the leader of the gang called the Falcons. While trying to persuade Michael into buying him cigarettes Mister G, the Jewish owner of the candy store tells him to leave the kid alone.As a result Frankie responds to Mister G by telling Michael, l wan show you how to deal with a Jew prick like this. (Snow In August, 36). Therefore, Frankie starts beating Mister G to death to show Michael how to deal with Jews when theyre not cooperating. Readers can relate to this situation in the novel because in todays society it is human nature to be racist towards others. Racism is every. Inhere and effects everybody even if it isnt subjected directly to someone it can still hurt. Pete Hamlin expresses pressure through his story with an eleven year old American Irish boy named Michael Devoid.Throughout the novel, Michael deals with the pressure of having a friendship with a lonely rabbi who is not easily accepted in the Brooklyn community. In addition, the all American-Irish boy has to deal with Frankie, the leader of the Falcons because he was the only witness to the hate crime he committed towards Mister G. Above all Michael mainly has to deal with the pressure of whether or not to tell the cops about what Frankie did because if he decided to rat on him the result would cost his life and his mothers.Unfortunately, Michael doesnt know how to deal with the amount of pressure he is going through so he decides to talk to the rabbi about it. While discussion Judas advises that, Michael, you are a very good boy, you are kind. You are a worker, I can see. But you are young. You have not already learn some of the hard things in life. One very hard thing? You can keep quiet about some crime, its just as bad as the crime. (Snow in August, 156). Through his exchanging of words Michael has still yet to figure what he can do to help him and his family without getting hurt.On the contrary, what Michael is feeling can be related to the readers of this story. In todays society there is a lot of pressure we all have to deal with throughout life, whether it involves work, relationships or even school. Its normal to feel pressure and meeting others standards that are hard to obtain can be a challenge but with he help of people that care about you it can make life more easily lived. Thirdly, Pete Hamlin expresses friendship through his story with a Jewish Rabbi and an Irish Catholic.Michael Devoid is on his way through the treacherous, deserted, streets of his working-class Brooklyn neighborhood to serve as Altar boy at Mass. He is battling his way through fierce snow drifts when he hears a small accented voice asking for help. It is the voice of Rabbi Judas Hirsch. He wants Michael to enter the Synagogue and turn on the light switch. It is Shabby and therefore the Rabbi is not permitted to turn on the eight himself. From that one simple act, Michael enters the Rabbis world. It is a world full of mystery, magic and true friendship.After meeting the Rabbi for the first time Michael was curious to know more about this lonesome man and his story. Making a deal the Rabbi teaches Michael all about Jewish history and Yiddish, while Michael teaches the Rabbi to speak better English. As their friendship grows, Michaels friendship with his two childhood friends, Sonny and jimmy start to fall. Throughout the story Sonny and Jimmy constantly banter to Michael about how he needs to steal the Rabbis jewels denied away in his secret room. As Michael gets to know more about Judas he starts to realize what true friendship is all about.Readers can connect to Michaels relationship with the Rabbi because they were both true to each other throughout their whole journey of the prejudices of Brooklyn. Many people can connect to their relationship because in todays society we have people who we can trust and who wont judge you based on your nationality, religion or your appearance. In conclusion, Snow in August is about a boy named Michael Devoid that is eleven years old and is growing up in an Irish Catholic neighborhood in Brooklyn, 1947. While looking for a place to get out of the weather in the midst Of a freak snowstorm, Michael meets Judas Hirsch, a rabbi from Czechoslovakia, and the two become unlikely friends. Judas fascinates Michael with tales from Jewish folklore, and Michael gives Judas a crash course in the finer points of baseball. But not everyone in Michaels neighborhood is as open-minded as he is, and Judas is attacked by a gang filled with delinquents. Throughout the whole novel Michael and Judas go on a journey that contains a prejudice community, pressure and a beautiful friendship.