2. Summary
I – Company and Industry Background
II – Sales Strategy
III – Futur Business Meriting Consideration
IV – Analysis company
V - Conclusion
3. I – Company and Industry Background
History of the company :
- Creation of the company : 1994
- Slogan : Born in Belgium, enjoyed in America
- Exportation : Exclusive U.S. importer, in 47
states, and in more country as Italia, Nederland,
Spain …
- Numbers : - nearly 60 Belgian beer labels
- 35% of the production is exported
- Legislation : The U.S. Department of Justice
generally considers HHI levels of 1,500-2,500 to be
consistent with moderately concentrated markets,
and levels above 2,500 signifying high
concentration
4. History of the company :
Collaborations:
BROUWERIJ VAN STEENBERGE
Video presentation :
https://www.youtube.com/watch?v=zr5fkMry6NE&list=PL3245F421C9A27CA7
I – Company and Industry Background
5. Industry Background and Trends:
1994: "BOOM" of import beer The strength of
"yen" and the importation of live sales at
Japanese.
1995: The market failed to absorb a rapid
influx of imported beer, it causes a resale 4
million box.
The two largest U.S. brewers:
- They were not required to go through the
Japanese distribution circuit
- They missed their arrival on the Japanese
market as a bad image emerged from their
past actions.
Industry Background and trends :
6. II – Sales strategy
Trends
Entry strategy for Japan
Redefining sales strategy
7. The Global Beer Industry Has Consolidated Over
The Last 10 Years
Global Beer has gone through substantial consolidation in the
last 10 years is the global beer industry.
Ten years ago the global beer industry was highly fragmented
with Anheuser-Busch’s 8.5% market share enough to make it
the global leader.
Since then, a steady process of consolidation via M&A has
taken place – often focused around cost-cutting opportunities
Geared towards acquiring attractive emerging market assets
(e.g. Heineken’s $24 bn acquisition of Asia Pacific Breweries
completed in 2012).
Global Beer measures as considerably more fragmented than
the other industries in our study. Today’s an estimation says
21% market share, has been the driving force behind much of
this consolidation.
8. Interbrew’s acquisition of AmBev in 2004 created a new global leader, InBev,
with 11% share and the subsequent Anheuser-Busch/InBev merger in 2008
again created a global leader, AB InBev, with 20% market share.
Today’s top 5 companies represent more than 50% of the global market (versus
32% for the top 5 players in 2003), and the industry’s HHI has risen to 725 in
2013E from just 276 in 2003.
The score is
calculated as the
sum of the squares
of the market shares
of an industry’s
competitors."
13. Entry Strategy for Japan
2 entry strategies into
the Japanese microbrewery market:
-selling directly, with
vertically integrated sales & service
-selling through
a Japanese trading company
14. selling directly requires vertically
integrating of sales & services
→Global Beer became able to
maintain managerial control
selling directly & vertically
integrating enabled to
own after-service businesses
Entry Strategy for Japan - selling directly
-
15. Price of brewing systems were extreme
→ the Global Beer founders saw the
opportunity to capture more value
from Japanese trade companies
Entry Strategy for Japan
-selling through a Japanese company-
16. III- Futur Business Meriting
Consideration
Microbrewery in Japan
Regional Japanese brand
International brewpub franchise
Japanese webpage
17. Marketing Strategies
Resellers
• Profit Margin was low
• Lumped together with other cheap foreign beers
• Not much differentiation
• Sold for home consumption
Initial
Investment
Cash Flow/
Year
Npv
(discount
rate)
IRR
1,550,000
$
216,816$ 256, 841$ 402 %
18. Marketing Strategies
Regional Beer Brand
• Long development time
• Not ready for launch
• Skilled person available to make a good tasting beer
Initial
Investment
Cash Flow/
Year
Npv
(discount
rate)
IRR
23,667$ 117,391$ 954,659$ 902 %
19. Marketing Strategies
Brewpub Franchise
• Trending in Japan
• Wide Customer range from 20-50
• Huge potential cash flow
Initial
Investment
Cash Flow/
Year
Npv
(discount rate)
IRR
1,500,000
$
634,000$ 3,750,604$ 239%
706,000$ 591,425$ 4,222,536$ 520%
20. Marketing Strategies
Japanese Webpage
• Low cost
• Low amount of work needed
• Low competition
• Could provide information for Resellers and Pub locations
• Behind paywall; uncertain if Japanese Reseller would pay the
fee
Initial
Investmen
t
Cash
Flow/ Year
Npv
(discount
rate)
IRR
50,000$ 150-
200,000$
1,339,420$ 278%
21. Global Beer
Production by
Country in 2011.
Production volume
in Japan is a
combination of beer,
low-malt beer, and
no-malt beer.
Japan rank
22. IV - Analysis company
Time for decision
Focus on marketing strategy
