Sales history industrywide
Other key players in the global beer market include AB Inbev, Heineken, Kirin Holdings, Asahi Group Holdings and SABMiller. In 2013, AB Inbev ranked highest for global sales reaching 43.2 billion U.S. dollars.
The newest merging of two global giants is bound to impact the market for all beer giants as well as craft breweries. AB Inbev is the world’s largest beer company. In October this year, they announced the purchase of their main competitor, SABMiller. This mega-merger has been dubbed MEGABREW in the industry. The new giant will be creating one in every three beers around the world and together earned 30.5% of beer sales in the world in 2014. The UK market is not dominated by this Megabrew. The list below shows the market share distribution in the UK in 2014:
- Molson Coors 18.4%
- AB InBev 17.8%
- Heineken 17.1%
- Carlsberg 14.8%
- Diageo 4.8%
- SAB 3.1%
Sales of craft beers have been on the rise by 14-17% every year for the last five years. Craft breweries make up 5% of beer sales in the UK. The larger traditional breweries are beginning to buy craft breweries too. For instance, at the start of 2015, SAB purchased the London-based Meantime brand, and AB InBev has spent more than $200m acquiring craft breweries.
Rumors of more mergers and acquisitions are in the air. The smaller of the traditional breweries are starting to think how to keep up with their colossal competitors. Heineken and Molson Coors may join forces. There are also rumours that Guinness could be sold off to another company.
This graph shows the beer market share of Diageo in the United States in 2012 and 2013, based on shipment value*
Market potential
Industry trends are forming at two sides of a spectrum, huge merging beer conglomerates and small craft and micro breweries. The development of new products like GUINNESS’s Blonde American Lager is also a market trend. Companies are trying to fit products to the demands of the culture where they are distributed. Guinness hope to gain popularity with this All-american brew. Developing craft beers is also an area for potential. Beer has become trendy and the market values low volume and better quality over mass production. The market also shows concern for environmental impacts caused by mass-production practices. There has increased support for locally focussed businesses over multinational companies.