May 2007
The $970 billion global market for alcoholic beverages is experiencing a period of unprecedented change. While about 60 part of the market is still in the hands of sm all told, local enterprises, very global players are steadily rising.
Six of these leaders resonate Accentures criteria as noble-performance businesses. And although they have yet to command the indemnity from investors that high-performance businesses in other consumer goods sectors enjoy, they are well positioned to do so, thanks mainly to highly focused M&A strategies in key, shelter-growth markets.
There remains much to play for. unless Accenture research suggests that the lions share of future look on will go to a select group of companies that have unlocked value in developed markets and bought new revenue streams in emerging markets. We in addition believe that the product portfolios of future winners will in conclusion encompass all three major categories of alcoholic beveragesâ€"beer, pot liquor and wine.
The alcoholic beverages industry offers few opportunities for organic growth. The notoriously high costs of distribution and brand building have created extensive barriers to entryâ€"hence the importance of acquisitions.
Consolidation continues apace as aggressive acquirers seek to demonstrate that they can wring value out of the companies they buy, especially if they have paid a premium. save the market remains very fragmented. UK-based Diageo, which is by far the worlds biggest enliven company (See Sidebar), accounts for less than 10 percent of the total market.
the like many others, the alcoholic beverages industry is also feeling the set up of dramatic shifts in demographics and lifestyle. Todays drinkers are more affluent and sophisticated. They also are increasingly health conscious. The combination of these trends is curbing alcohol consumption overall but driving demand for all manner of premium products, from better-quality wines and premium lagers to malt whiskeysâ€"products that consumers are...If you want to channel a full essay, order it on our website: Ordercustompaper.com
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