Analysis of Ireland Brewing Industry



Analysis of Brewing Industry

This study is intended to analyze the Ireland Brewing industry. This report comprises of in-depth analysis of dynamics and the structure of Ireland Beer Market. Ireland comes under the 3rd largest beer consuming countries of the world. The total beer consumption is around 600 million liters per year. The Irish Brewing industry produces over 800 million liters per year.

The company which we have chosen is the Guinness brewing company. Guinness initiated its operation at 1750 in Dublin, Ireland by Arthur Guinness. It is one of the top three Irish Brewing Companies. Guinness is the best-selling alcoholic beverage in the Ireland.

Guinness Portfolio

Guinness is one of the most popular beer brands in the world. It started its operation from Ireland in 1750s and since then it started to expand in the entire world and it is now brewed in almost 60 countries. Guinness is the unique Irish beer brand which is enjoying global reputation to this extent. However, it is available in more than 100 countries. The portfolio of Guinness includes Nigeria, Indonesia, Ghana, Hong Kong, North America, New Zealand, Himalaya, etc. Guinness has now entered into the Australian brewing market. Now they have started manufacturing their beer in Australia since October 31, 2012. Guinness has ensured that this move will not impact their quality of the products and they will meet the same standard for which they are well-recognized.

Competitors of Guinness

There is a broad range of direct and indirect competitors of Guinness. Indirect competitors include bars, night clubs, pubs and restaurants. Direct competitors are the iconic Irish brands which are as following:

Murphy Brewery

Beamish and Crawford

Heineken Ireland

Erin's Rock

Harps Brewery

Findlater, the wine and spirit group

Irish Distillers

Industry size

The size of the brewing industry is extensively large with the many players that are serving the needs of alcoholic drinks such as beer and wine in the country. Also, there are found to be emerging competitors in the industry as the industry is on the boom.

The Key Market Issues

The Irish Brewing market came across a setback in 2011 due to the declining consumption. The consumption has been declining year on year which has adversely affected the brewers' profits. This decline caused the brewing companies to lower down their prices even for the premium brewing brands. However, it is believed that in the coming year, the economic situation will be stabilized and the sales and exports will start to rise again.

Industry Trends

The increased trends of the brewing industry include the rapid changes in the economy, consumer preferences, innovation in beer and alcoholic drinks, expanding target market such as targeting women, social, and legal conditions. The trends are also seemed to be increasing with the increasing number of players.

Industry profitability

Industry profitability can be analyzed through the porter's five forces that directly impact the sustainable profitability of the industry;

Intensity of rivalry: there is an extensive rivalry in the brewing industry in terms of quality and non-price based factors mainly. This industry primarily competes with the non-price based ...