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Branding and Performance in the Global Beer Market

Author

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  • Erik Strøjer Madsen

    (Department of Economics and Business Economics, Aarhus University, Denmark)

Abstract

The mass market for beers is served by a few global breweries in an oligopoly structure covering most of the world market. The homogeneity of their main lager beers are very high and produced at large scaled plants at low costs. However, the breweries spend large amounts of money to promote some of the lager beers as premium beers and at a high and increasing price premium. Based on a database with prices for standard and premium lager, the paper study the development in the consumption of different types of beers on the global market in recent years. We estimate the price premium on premium beers and relate it to the rapid change in the oligopoly structure of the market through the merger and acquisition activities.

Suggested Citation

  • Erik Strøjer Madsen, 2017. "Branding and Performance in the Global Beer Market," Economics Working Papers 2017-11, Department of Economics and Business Economics, Aarhus University.
    • Handle: RePEc:aah:aarhec:2017-11
    as

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    File URL: https://repec.econ.au.dk/repec/afn/wp/17/wp17_11.pdf
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    References listed on IDEAS

    as
    1. Johan F.M.Swinnen & Liesbeth Colen, 2010. "Beer Drinking Nations. The Determinants of Global Beer Consumption," LICOS Discussion Papers 27010, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    2. Madsen, Erik S. & Pedersen, Kurt & Lund-Thomsen, Lars, 2012. "Effects of the M&A Wave in the Global Brewing Industry 2000-2010," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 61(04), pages 1-9, November.
    3. Madsen, Erik S. & Pedersen, Kurt & Lund-Thomsen, Lars, 2012. "Effects of the M&A Wave in the Global Brewing Industry 2000-2010," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 61(4).
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    Cited by:

    1. Atsuho Nakayama & Daniel Baier, 2020. "Predicting brand confusion in imagery markets based on deep learning of visual advertisement content," Advances in Data Analysis and Classification, Springer;German Classification Society - Gesellschaft für Klassifikation (GfKl);Japanese Classification Society (JCS);Classification and Data Analysis Group of the Italian Statistical Society (CLADAG);International Federation of Classification Societies (IFCS), vol. 14(4), pages 927-945, December.

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    More about this item

    Keywords

    Branding; brewing industry; income elasticities of beer;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising

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