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Beer Industry Analysis

Essay by athvitha  •  November 14, 2016  •  Coursework  •  1,668 Words (7 Pages)  •  487 Views

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BRIEF HISTORY OVERVIEW

Beer was first introduced to Canada by European settlers in the early 17th century. There were a few commercial brewers set up here in Canada, but were doing extremely well, until 1918 when the government put a ban on beer. This time was called prohibition and it lasted until 1920. Although it was short lived, not many brewers survived. The first commercial brewery build was by Jean Talon in Quebec. Soon John Molson who founded a brewery in Montreal in 1786, Alexander Keith in Halifax in the year 1820 and Thomas Carling in 1840 in London followed. The first patent that the Canadian Government issued was on July 6th

Opportunity or Threat

DEMOGRAPHIC by • (O)30% of beer drinkers say beer tastes great( Advertising Age, Oct-06-13,paragraph 13)

• In the past 7 days 26% of adults 21+ drank beer in the past7 days and 4% bought beer, wine or liquor in a stadium arena in the past month( Scarborough, Oct-06-13,page 8)

• 10 million Canadians drink beer(Agriculture and Agri-Food Canada, Oct-06-13, paragraph 2)

• (O)BAC-80% of beer consumption in Canada takes place in the home, the rest is consumed at licensed premises( Agriculture and Agri-Food Canada, Oct-06-13, paragraph 18

• Beer is the number 1 alcoholic beverage in Canada in terms of production and consumption(Agriculture and Agri-Food Canada, Oct-06-13, paragraph 2)

• 37% of millennial(coming of beer drinking age after 2000) say beer choice of drink, 41% of gen x say beer(Beverage Media Group, Oct-06-13, Paragraph 2)

• (O)those who were of legal drinking age in 2012 most likely increased beer consumption (by 14%)(Craft Brewing Business, Oct-06-13, Paragraph 3)

• 58% of Hispanics aged 21+ drinking domestic beer, 55% drink imported beer(Craft Brewing Business, Oct-06-13,Paragraph 6)

• 48% of males say beer is favourite drink, 22% of females say beer is choice(Authentic Wine & Spirits Merchants, Oct-06-13, Graph2)

• 10-34 year olds 39%(Authentic Wine & Spirits Merchants, Oct-06-13, Graph2)

• 35-54 year olds 41%(Authentic Wine & Spirits Merchants, Oct-06-13, Graph2)

• 55+ year olds 27%(Authentic Wine & Spirits Merchants, Oct-06-13, Graph2)

• Income $75 000- 30%(Authentic Wine & Spirits Merchants, Oct-06-13, Graph2)

• $30- $74000- 33%(Authentic Wine & Spirits Merchants, Oct-06-13, Graph2)

• less than $30000- 51%(Authentic Wine & Spirits Merchants, Oct-06-13, Graph2)

• Education- college graduate 29%(Authentic Wine & Spirits Merchants, Oct-06-13, Graph2)

• some college 33% (Authentic Wine & Spirits Merchants, Oct-06-13, Graph2)

• high school or less 44%(Authentic Wine & Spirits Merchants, Oct-06-13, Graph2)

SOCIO-CULTURAL • (T)There is a challenge in terms of an aging and slow-growing population which is more concerned about health(The Canadian Brewery Industry, July 24, 2013, Challenges and Opportunities para. 1)

• (T)There is a lot of diversity in Canada and some cultures may not drink beer(The Canadian Brewery Industry, July 24, 2013, Challenges and Opportunities para. 1)

• (O)Exports may be what we rely on to support the industry(The Canadian Brewery Industry, July 24, 2013, Challenges and Opportunities para. 1)

• (T)People don’t want to drink as much today because of the negative effects it has been proven to have on the human body (Environmental Scan: The Global Beer Industry pg. 19 para. 1)

• (T)People feel that the government is using sin taxes (taxes that are usually on tobacco and alcohol) to profit from the sales of alcohol (Environmental Scan: The Global Beer Industry pg. 19 para. 1)

ECONOMIC • (O)The beer manufactured is valued at $4,671.2 million (The Canadian Brewery Industry, July 24, 2013, para. 5)

• (O)$4,431.0 million are consumed a year in Canada (The Canadian Brewery Industry, July 24, 2013, para. 5)

• (O)The Canadian exports were values at 240.2 million (The Canadian Brewery Industry, July 24, 2013, para. 5)

• (T)There are no longer import duties on foreign beers making more competition for Canadian breweries (The Canadian Brewery Industry, July 24, 2013, Challenges and Opportunities para. 2)

• (T)When the Canadian dollar fluctuates it makes it difficult for the Canadian industry to be competitive (The Canadian Brewery Industry, July 24, 2013, Challenges and Opportunities para. 4)

• (O)Tariff rate quotas for barley products is 19,131 tones this means if the limit is reached (which hasn’t happened yet) there will be a much higher tariff rate on the product (The Canadian Brewery Industry, July 24, 2013, Challenges and Opportunities para. 3)

• (O)It is estimated that there are 209 breweries in Canada (The Canadian Brewery Industry, July 24, 2013, Industry Structure para. 3)

• (O)Every year the beer industry contributes over $14 billion to the Canadian economy (Brewers Association of Canada, 2013, para. 1)

• (O)Beer earns 3 times the amount of revenue hard liquor and wine combined (Brewers Association of Canada, 2013, para. 1)

• (O) 12% of the GDP generated by the entire food manufacturing industry (Brewers Association of Canada, 2013, para. 1)

• (O)Canada is one of the top ten beer exporters in the world (Brewers Association of Canada, 2013, para. 2)

• (O)17% of beer is exported a majority of that goes to the U.S. (Brewers Association of Canada, 2013, para. 2)

• (O)The beer industry has given Canadians around 205,000 jobs across the country(Brewers Association of Canada, 2013, para. 4)

• (O)Two times as many people get support by employees supporting their hometowns threw economic activities (Brewers Association of Canada, 2013, para. 4)

• (O)Around 152,000 work in jobs that supply the brewery (farming barley, making bottles, making labels and all sellers of the beer) (Brewers Association of Canada, 2013, para. 4)

TECHNOLOGIy• (O)

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