EC 499 (Industry Paper) 97

EC 499(Industry - The traditional brewing economy that Europe has profited in for many years would begin to reach its seemingly maximum potential

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The traditional brewing economy that Europe has profited in for many years would begin to reach its seemingly maximum potential in the 21 st century. The unfortunate relatively stagnant growth rates have forced the leading brewing companies to seek alternative sources of revenue. With the slow growth rates in beer consumption while other industries flourished it would lead to the inevitable path towards market globalization. Brewers have engaged in globalization as a method for exploiting higher profitable areas. The rate of mergers and acquisitions in the industry has been increasingly high because these methods allow for a rapid and successful entrance into the international markets and increases the firm’s overall market share. Our interests concerning the current brewing industry in Europe was initiated by the recognition of the eliminating American breweries. The two largest American breweries were sold, with the Miller brewing company in 2002 taken over by SABMiller and Anheuser-Busch in 2008 who was taken over by today’s Anheuser-Busch InBev. Aggressive expansion by European brewers has become a new phenomenon. Anheuser- Busch InBev has implemented a recent aggressive strategy by acquiring foreign competitors and has ultimately transformed itself from a medium-sized brewer to the leader in beer production in a matter of a few years. The method of increasing internationalization activities has lead to the
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This note was uploaded on 07/29/2009 for the course ECON 499 taught by Professor Boyer during the Spring '08 term at Michigan State University.

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EC 499(Industry - The traditional brewing economy that Europe has profited in for many years would begin to reach its seemingly maximum potential

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