Beer consumption in the US is growing at 1-2% a year according to the National Brewing Association, I know I’m doing my job of contributing to this growth, but apparently many of you are not!
In Brazil the growth rate is over 10%! So no surprise that Kirin is acquiring a stake in Schincariol the #2 player. Anheuser Busch long ago figured out that finding growing markets beyond the US was a better recipe for them than trying to get into products they really didn’t know, for example Eagle Snacks. Many US companies today are struggling with no or low growth markets and struggling with how to expand. Often they resort to product extensions which can be very successful, but still serving the same slow growth market. Other times I see them try marketing gimmicks to attract attention. Unfortunately, this often leads to downward price spirals leaving them in a slow growth market…. with lower margins. I think you have to take a step back and really look at your market – globally – to identify the growth you should target.
I’ll bet you a beer Kirin will like the Brazilian market.