The Global Branding Of Stella Artois Brewing Company

941 words - 4 pages

The Global Branding of Stella ArtoisAssignment 11)The international beer market is a large and growing one with consumption levels at 1.3 billion hectoliters (hls) annually. Surprisingly, the top 4 breweries account for only 22 percent of the total beer market. This means that the profit margin for these breweries is significantly smaller than that of top companies in the tobacco, soft drink, and spirits industry which are far less fragmented. With this in mind there is great potential if Interbrew were to establish a global brand that could reach outside its borders to a larger consumer base. Interbrew has already expanded into 23 countries on four continents with its various products and this could be used as a platform to expand one global brand as an ambassador for Interbrew. Although the international beer markets are fragmented there have been many analysts that have suggested that this is due to change so that beer companies could achieve economies of scale like tobacco, soft drink, and spirits companies have done.With today's world shrinking by advancements in technology, many markets are no longer as isolated as they were in the past. This means that a single beer brand has the potential to be successful globally like that of Coca-Cola or Marlboro. By shifting attention to a single brand across the world it would cut down on advertising and manufacturing costs and increase profits. In addition, the premium beer market is expanding tremendously which is where Interbrew's products are placed. Having a globally recognized beer that is produced in this growing field would be very profitable.2)When it was decided by Interbrew Brewing Company to develop a global beer it was no surprise that they chose their best selling local beer, Stella Artois. Stella Artois is their oldest beer and was a local leader in Interbrew's home market in Belgium.The most conclusive way to establish Stella Artois as Interbrew's global brand is to simply compare the numbers to their other top brand, Labatt. For starters, the three Labatt brands have 85 percent of their sales in Canada and the United States. Labatt was introduced to France, Belgium and Italy but sales were very minimal which suggests that Labatt was not being accepted by markets outside its home market in North America. In 1998 Labatt's total volume of sales worldwide was 450,000 hls which was trumped by Stella Artois with 2.8 million hls in the United Kingdom alone. One year later Stella Artois increased its UK volume by 25 percent which proved its growth potential but it was not just the UK that was taking to Stella.In other markets around the world Stella was also experiencing an increase in sales volume. This was in part due to its placement as a premium beer when the demand for premium beers was on the rise. Interbrew began a...

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