BRL HARDY SUPPLY CHAIN

BRL Hardy — Operations

BRL Hardy supply chain

Part 1

BRL Hardy is one of the world's largest alcoholic drinks companies, leading the global market in flavored alcoholic beverages as well as its flavored alcoholic beverages. The strategic review undertaken in the case study has the potential to alter this state of affairs, and the company may wish to look at possibly extending its presence in the premium New World wine segment, taking on its rivals head on.

BRL Hardy's decision will likely depend upon several factors, with the key factor, likely to support growth in wine, being the growth potential of premium wine, particularly in the light of recent health claims made about the benefits of drinking red wine and dangers of spirits consumption. A merger, or acquisition, may be the best way to achieve a strong presence in the wine sector, as consolidation continues to be strong amongst wine firms The international wine commerce has yet to resolve down from the time span of strong amalgamation and acquisition undertaking seen over the last couple of years. The acquisition of BRL Hardy by Constellation Brands in 2003 was the first foremost salvo, conceiving a natural environment of consolidation which stayed in early 2005, with E&J Gallo obtaining Barefoot Cellars and the integration of Robert Mondovi into Constellation Brands' fine wine partition, not to mention BRL Hardy's own acquisition of Charlene. (BRL Hardy Plc, 2005)

Part 2

External Environment Opportunities and Challenges

An investigation of the external ecological possibilities and trials opposite BRL Hardy's wine enterprise, in some of its foremost markets, is founded mainly on the detail that the company's portfolio is solidly fixed in the still lightweight grape wine sector.

Industry Environment

The wine commerce natural environment, as an entire, is especially susceptible to fluctuations in provide originating from weather-related components that leverage the capacity and value of the yearly grape trample harvest. In 2004, a lack of wine in Western Europe produced in expanded charges, premier to slower capacity development and buyers swapping to lower alcohol-dependent options for example beer. In the preceding year, although, oversupply had initiated the converse result, with a glut of wine capacity going by car down charges and worth in the industry.

Changes in the convention of life in these nations, with consumer's progressively seldom consuming wine at midday serving of food, have directed to dropping utilization per capita of wine.

Part 3

Manufacturers furthermore face ...