External Analysis: Alcoholic Beverage Industry

Melissa BonnBusiness Policy

Table of Contents

Industry Overview 2

Strategic Management Process 2

External Analysis 2

Competitive Factors Framework 3

Derivation of CFF Chart 4

Increasing Mergers and Acquisition Activity 4

Emerging Markets Increase Consumption 4

Increasing Governmental Regulation 5

Increasing Dominance 6

Conclusion 6

Appendices 7

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Industry Overview

The alcoholic beverage industry is divided into three main categories: beer, wine and spirits. Beer consists of lagers and ales, wine is a fruit fermented beverage and spirits are distilled beverages. Beer accounts for almost 50% of global alcoholic beverage consumption, wine 30% and spirits 20%. There is a strong reliance on commodity suppliers in the alcoholic beverage industry. The main inputs of beverage producers include: production, filling, bottling equipment and raw materials such as water, cereal grain, hops, yeast, fruits, etc. The main distribution channels of alcoholic beverages consist of producers, distributors, wholesalers and retailers.i Overall, alcoholic beverages annually generate over $137 billion in sales in the United States alone, for a total consumption of 7.3 billion gallons.ii

Strategic Management Process

The strategic management process is a process through which strategic analysis is conducted in order to gain competitive advantage. The strategic management process involves 1) implementing a mission statement and defining long-term objectives, 2) devising a strategy through strategic analysis, 3) developing and executing a plan in order to achieve competitive advantage, and 4) monitoring and maintaining the company’s and strategies’ performance, as well as making changes when needed. The 1st component is done by senior management and is usually completed through an engagement processes in which various stakeholders are consulted. The 2nd component is most of the research and analytical work. It involves an in-depth analysis of the firm’s external and internal environments, as well as an analysis of potential alternative strategies. The 3rd component is where resource allocation decisions and staffing and organizational changes are planned and implemented and policies and procedures are written and enforced. This component contains organizational issues such as how to motivate and lead change. The 4th component includes how the organization will go about assessing its performance in implementing a strategy, as well as assessing the performance of a specific strategy. The strategic management process is iterative; there is no starting point or ending point. The process is one of constant revision and re-analysis. Most managers implement mission statements in order to provide employees with the organization’s vision and values. In order to define long-term objectives, managers follow a S.M.A.R.T. criteria. This stands for Specific, Measurable, Attainable, Relevant, and Timely. Managers craft a strategy from external analysis (opportunities, threats, trends), internal analysis (core competencies), and strategy formulation. Implementation of a strategy involves various elements including structure (roles and responsibilities), processes and lateral capability (coordinating mechanisms), reward systems (metrics linked to objectives), and people practices (levels of empowerment).iii

External Analysis

“Summary analysis involves bringing together the findings from each of the analytical frameworks applied in the player and trend analyses. This summary provides a means by which to organize discussion about and assessment of the impact of the key opportunities and challenges, issues and threats – collectively termed Critical Success Factors (CSFs) – facing the focal organization and its strategic group. It is, indeed, for the creation of this summary that all of the player and trend analyses are conducted.” iv

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Player and trend analyses can distinguish the analytical frameworks that will be discussed in this paper. The player analyses include: value chain analysis,v value net analysis,vi strategic group mapping analysis,vii strategic canvas analysisviii and the co-opetitive forces analysis.ix The value chain analysis identifies key activities, whereas the value net analysis identifies key relationships. Key rivals are mapped in the strategic group mapping analysis and key dimensions are evaluated using a strategy canvas analysis. Lastly, the co-opetitive forces analysis identifies the key forces influencing an industry.x

An evaluation of the trends, opportunities and threats helps firms understand what factors influence the industry and how it affects them. The trend analyses include: competition trends (industry evolution analysisxi and the alliance evolution analysisxii), technology trends (discontinuous technological life cycles analysisxiii), international trends (international evolution analysisxiv) and political social trends (political social value net analysisxv).

Competitive Factors Framework

The competitive factors framework (CFF) summarizes the key player and trend findings to individual organizations within the strategic group. In the CFF, “each organization’s performance with respect to the different critical success factors (CSFs) is rated individually.” xvi The weights indicate the relative importance of the CSFs to the industry/strategic group as a whole. This CFF will examine the strategic group comprised of Anheuser-Busch, SAB Miller, Heineken and Carlsberg. The main CSF’s in focus in this paper include increasing M&A activity, emerging markets increase consumption, increasing governmental regulation and increasing dominance. In the alcoholic beverage industry, there is intense merge and acquisition activity, which firms should take advantage of in order to increase growth. Consumption in emerging markets is trending up, which firms should take advantage of in order to increase revenues. Increasing governmental regulation potentially poses a threat for firms in the industry. These firms need to act in order to mitigate this risk. Lastly, increasing dominance has created a few large firms in the industry that are competing heavily against one other.

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The CFF analysis proves to be a useful way to assess the relative potential of the different firms within the strategic group. One important conclusion the CFF provides is how well a firm is managing their CSFs over other firms.xviii Currently, Anheuser-Busch has received the highest overall performance ratings, followed by SAB Miller and Heineken closely behind, and Carlsberg with the lowest score.

Derivation of CFF Chart

Ten trends affecting the alcoholic beverage industry were analyzed, but only four of the most important trends are analyzed in depth below. See appendix K for the remaining trends.xix

1. Increasing Merger and Acquisition Activity

As seen in the co-opetitive forces analysis,xx there is intense merger and acquisition activity occurring in the alcoholic beverage industry. This has a low impact on strategic group rivalry due to the fact that firms are collaborating with one another to dominate the industry. In order to continue growing, leaders rely on mergers and acquisitions: “Mergers between competitors and targeted acquisitions have been one of the main strategic weapons used by producers in order to boost sales and profits, both in the beer and in the wine/spirit segment.”xxi

Increasing merger and acquisition activity was given an importance weighting of 22% because merging and acquiring competitors has lead to the most growth and profit in the alcoholic beverage industry.xxii As noted in the co-opetitive forces analysis,xxiii the alcoholic beverage industry has large economies of scale, high operating costs and increased bargaining power. Through mergers and acquisitions, firms in the industry can take advantage of the large economies of scale to reduce operating costs, as well as lower cost of goods thanks to increased bargaining power.xxiv Other important outcomes of mergers in the industry include synergies in support functions, extended distribution channels, and extended product and brand portfolio.xxv

The strategic group in focus consists of Anheuser-Busch, SAB Miller, Heineken and Carlsberg.xxvi Based on increasing merger and acquisition activity, Anheuser-Busch received the highest rating of 5 out of 5. Following this, Heineken received a 4, SAB Miller received a 3 and Carlsberg received a 2.xxvii Anheuser-Busch scored the highest because of its well-known consolidation with InBev. InBev acquired Anheuser-Busch after thirty years of merger deals, which created the global market leader in beer. Anheuser-Busch is continuing its acquisition conquests and plans to take over its entire Mexican competitor, Grupo Modelo. Heineken has followed a similar strategy and has acquired FEMSA in order to grow in the South American regions, and has also made agreements and proposed acquisitions in India, Asia and Latin America. Heineken recently partnered with India breweries to control a portion of United breweries. SAB Miller has made smaller attempts at merging which included merging with Bavaria in order to increase revenues internationally. Lastly, Carlsberg has made the least attempt at merging but has acquired Scottish and Newcastle breweries.xxviii

2. Emerging Markets Increase Consumption

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As noted in the international evolution analysis,xxix the alcoholic beverage industry is currently in the initial market entry phase, and local market expansion is limited. Because of this, emerging markets are a viable option for increased growth and revenues. Consumption is currently trending up in emerging markets, which allows firms in the industry to take advantage of this by expanding into developing countries.xxx

Emerging markets increase consumption was given an importance weighting of 20% because emerging markets are a huge source of growth and revenue. "Leading producers are paying more and more attention to low-price, fast-growing consumer markets with a view to increase local production and average prices in order to boost revenues."xxxi Another important aspect emerging markets provides is the ability to offset the decline that is happening in well-established major markets.xxxii As seen in the industry evolution analysis,xxxiii the alcoholic beverage industry is currently in the maturity phase due to its stability and clear boundaries, which is limiting growth in domestic markets. Expanding into emerging markets enables firms to have an additional source of growth and revenues that is lacking in major markets.

Based on the strategic group’s ability to expand into emerging markets, SAB Miller scores the highest with a rating of 4 out of 5. Following this, Anheuser-Busch received a 3.5, Heineken received a 3 and Carlsberg received a 2.xxxiv SAB Miller received the highest rating because emerging markets represents the largest share of its profits. SAB Miller has expanded into Latin America, Africa and Asia, which has gradually increased revenues. Anheuser-Busch has opened its first brewery in Southwest China, and also owns plants in Central, Northern and Southeast China. This expansion into emerging markets has given Anheuser-Busch a competitive advantage over regional players. Heineken has made efforts to grow into South America regions, India, Asia and Latin America to increase their presence in emerging markets. Lastly, Carlsberg as expanded into India as a minor player.xxxv

3. Increasing Governmental Regulation

As noted in the political social value net,xxxvi strong policy makers hinder the alcoholic beverage industry. The increasing role of governmental regulation is a threat to the industry because the government can control what the industry sells and at what cost they sell their products at.xxxvii As the government continues to intervene, the industry is at risk of losing sales and demand.

Increasing governmental regulation was given an importance weighting of 15% because increasing governmental regulation limits sales and decreases overall consumption. The government can impose taxes, which also affects the price and demand of the products. "It is important to keep into consideration the role of excise duties on alcohol consumption as they can have a great effect on retail prices: an increase in excise taxes can modify drinking patterns by reducing demand for alcohol, especially for price-sensitive consumers.”xxxviii

Based on the strategic group’s ability to combat governmental regulation, Anheuser-Busch, SAB Miller and Heineken all received a rating of 4 out of 5, and Carlsberg received a 3.5. Anheuser-Busch, SAB Miller and Heineken have taken direct actions such as to decrease existing or resist new alcohol excise taxes, license and penalty fees.xxxix In support of this, all of these firms are led

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by the National Beer Wholesalers Association, which is urging Congress to lower the federal excise tax on beer.xl

4. Increasing Dominance

As seen in the co-opetitive forces analysisxli, there a few directly competing firms in the alcoholic beverage industry. Large firms that have already established dominance in the alcoholic beverage industry are becoming larger and more diverse with their products.xlii As alliances continue to form in the industry, the largest firms will increase even larger in size and dominate the industry.xliii

Increasing dominance was given a weight of 14% because as firms in the industry continue to become more concentrated, only a few firms are gaining dominance and competing against one other. As larger firms increase their dominance, smaller firms in the industry are closing or being sold to larger national brewers.xliv Overall, this benefits larger firms, threatens smaller firms, and creates an even wider gap between the two.

Based on the strategic group’s increasing dominance, Anheuser-Busch received the highest rating of 5 out of 5. Following this, SAB Miller and Heineken received a 4 and Carlsberg received a 3.xlv “Anheuser-Busch is the number one seller and the world’s largest brewer; in 2003 it had over 50 percent of the domestic U.S. market share. Combined with South African Breweries’ Miller Beer (SAB Miller is the world’s second largest brewer), these two companies account for over 70 percent of all U.S. beer sales. The top 10 beer companies combined now control 95 percent of the beer market.”xlvi Heineken follows these firms as part of the top largest brewers followed by Carlsberg.

Conclusion

Opportunities such as mergers and acquisitions, emerging markets and dominance all benefit the firms within the strategic group, whereas threats such as governmental regulation hinder these firms. After thoroughly analyzing the strategic group within the alcoholic beverage industry, Anheuser-Busch has received the highest overall performance rating of 4.4. This is supported by Anheuser-Busch’ rigorous value chain,xlvii large number of mergers and acquisitions, entrance into emerging markets and its overall global dominance. Following closely behind, SAB Miller and Heineken have a tied score of 3.7. Lastly, Carlsberg has the lowest score of 2.5. Throughout most of the analyses, Anheuser-Busch, Heineken and SAB Miller were all closely related. The major difference was Carlsberg, which fell behind in most of the ratings due to its lack of taking advantage of opportunities and failing to mitigate risks as effectively as the other firms.

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Appendices

Appendix A – Value Chain

A value chain identifies the many distinct activities that an organization performs. “Every organization can be viewed as the combination of a set of related and unrelated activities performed in pursuit of value creation. It is important to identify the primary and supporting activities in order to complete a value chain analysis. Primary activities involve everything the organization has to do to create its offerings (products or services), market and deliver them to customers, and provide buying and after sale support and service to customers. These include inbound logistics, operations, outbound logistics, marketing and sales and service. Supporting activities are those that allow the primary activities to take place on an ongoing basis. These include organization infrastructure, human resources, technology development and procurement.”xlviii

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From completing a value chain analysis, the key activities of a company or its industry can be concluded. Anheuser-Busch focuses heavily on operations in order to manage its inbound and outbound logistics. Anheuser-Busch also relies on marketing and advertising to generate sales and revenue.

Appendix B – Value Net

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“An economic value net focuses on additional players, along with the organization and its suppliers and customers. The value net is a framework through which a company can map players on the basis of their relative impact on an organization’s value adding activities. The four players include customers, suppliers, competitors and complementors. Customers provide money in exchange for goods and services, suppliers provide goods and services in exchange for money, economic competitors make it harder to obtain customers and supplies and economic complementors make it easier to obtain customers and supplies.”l

From completing a value net analysis, the key relationships in the industry can be concluded. In particular, the relationship between a company’s competitors, customers, suppliers and complementors can be determined.

Appendix C – Strategic Group Mapping Analysis

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“The strategic group mapping analysis helps managers identify the rivals of greatest potential importance to a focal firm based on identification of important dimensions of competition. Strategic groups are traditionally defined to consist of organizations with similar competitive approaches and market positions, or organizations isolated by common mobility barriers.”lii

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Through completion of a strategic group mapping analysis, key rivals in an industry can be concluded. In the alcoholic beverage industry, a strategic group mapping analysis identified that

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Anheuser-Busch, Heineken, SABMiller and Carlsberg are all closely competitive. The firms in the second and third strategic groups also compete heavily amongst each other, respectively.

Appendix D – Strategy Canvas Analysis

“The strategy canvas analysis provides an intuitive graphical approach to allow managers to readily assess the impact of these same dimensions on the strategic options available to competing firms. The strategic group mapping analysis involves identifying dimensions that the firms within an industry invest in and seek to compete on.”lvi

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Through completion of a strategy canvas analysis, key dimensions in an industry can be concluded. In the alcoholic beverage industry, the dimensions of diversification, brand, quality and location are all spread across the strategic groups. Price is the only dimension that is closely related for all of the strategic groups.

Appendix E – Co-Opetitive Forces Analysis

The co-opetitive forces are a set of forces that impacts the degree of rivalry experienced by the respective players. The co-opetitive forces include: (1) direct rivalry among existing organizations, (2) threat of new entry, (3) threat of substitutes, (4) buyer power and (5) supplier power.lix

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Summary: The threat of new entry is low in the alcoholic beverage industry due to the fact that there is strong product differentiation, large economies of scale/high operating costs, expensive capital costs, limited access to distribution channels, large amount of government regulation and difficulty in obtaining technology. Because of these factors, the degree of rivalry is low and reduces the threat of new entry.

Summary: The threat of substitutes is high in the alcoholic beverage industry due to many viable product/offering substitutes, high value of potential substitutes for available price and low price elasticity of demand. Because of these factors, the degree of rivalry is high.

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Summary: Supplier bargaining power is high in the alcoholic beverage industry due to high supplier concentration, purchases by group only, no supply substitutes, many specialized investments by group with suppliers, large threat of forward integration and limited differentiation of supplies. Because of these factors, the degree of rivalry is high and there is increased supplier bargaining power.

Summary: Buyer bargaining power is high in the alcoholic beverage industry due to high buyer concentration, large volume of purchases by buyers, many viable substitutes, many specialized

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investments with buyers, large differentiation of offerings/some price discrimination, all of the buyer's total cost and many transaction-to-transaction negotiations demanded. Because of these factors, rivalry is high and there is increased buyer bargaining power.

Summary: Complementor power is high in the alcoholic beverage industry due to a small degree of differentiation eliminated, very similar motivations, a high degree of integrated ownership/investment and a high stake of participating. Because of these factors, the rivalry is high.

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Summary: The alcoholic beverage industry has few directly competing firms, a small degree of diversity in competing firms' strategies, intense merger and acquisition activity and a small degree of diversity in competing firms' nationalities/cultures. These factors decrease rivalry in the direct/internal strategic group. The alcoholic beverage industry also has similar sized competing firms', strong demand for competing firms' offerings, similar capabilities in competing firms' and significant barriers to exit. These factors increase rivalry in the direct/internal strategic group. Because of these conflicting factors, the rivalry is neutral.

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The co-opetitive forces analysis provides further information through which to understand the evolution of the industry and its strategic groups, and from which a more informed set of strategies may be devised to balance the co-opetitive forces.

Competition Trends:

Appendix F – Industry Evolution Analysis

The industry evolution analysis is helpful in terms of exposing key trends related to industry changes. This industry evolution analysis suggests that industries and markets evolve through the phases of formation, maturation and reconfiguration. As they do, the role and appropriateness of competitive and cooperative strategies also changes. Sine globalization and technological pressures may be driving many mature industries and segments into reconfiguration, the relative utility of each form of strategy is greatly affected.”lxii

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It can be concluded that the alcoholic beverage industry is in the maturity phase of the industry evolution analysis. This is because leading organizations pursue tightly integrated competitive strategies within a stable industry that has clear boundaries, there is vigorous competition because it is necessary to dominate rivals, organizations integrate much of the value chain within the organization, and organizations focus on competitive strategies, customer competitors, and supplier complementors. The next step of the alcoholic beverage industry would be to enter the reconfiguration phase.

Appendix G – Alliance Evolution Analysis

“The alliance evolution analysis identifies why alliances spread through an industry. External drivers of alliance formation include (1) battles to gain first-mover advantages of scale, scope and standards; (2) imitation of rival groups to reduce risk; and (3) efforts to preempt rivals from linking up with attractive partners, while a key internal driver is the pursuit of specialization opportunities. Together, these drivers encourage rivals to quickly respond to an initiator’s alliance activity, thereby creating what may appear to be alliance “fads” despite the soundness of the fast follower logic.”lxiv

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It can be concluded that the alcoholic beverage industry is beginning to spread alliances in the alliance evolution analysis. The industry lies here due to the start of alliance formations, which can minimize risks and reduce uncertainty. After this process, the industry will progress to where constellations and oligopolists dominate and then further to when there are a few viable partners and hidden limits are reached.

Appendix H – Technology Trends

“Technology life cycles, and the industries built around them, can be described by predictable characteristics and patterns of organizational and competitive behavior, marked by a few key milestones. Often, they are initiated by some type of discontinuous technological change...followed by identified stages of evolution leading to the emergence of a dominant design and its eventual displacement by a new discontinuous technological change. The three stages in the evolution of technology include the fluid stage, the transitional stage, and the specific stage.”lxvi

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It can be concluded that the alcoholic beverage industry is in the specific stage of discontinuous technological life cycle analysis. This is because the degree of technical certainty is high, there are many complementary products and R&D is aimed at process innovation. This industry is also in this stage because there are a few dominant competitors, products are commodities and rarely change, and firms internalize R&Cs complementary to innovations.

Appendix I – International Trends

“The international evolution model identifies four phases of strategy evolution in which different triggers, strategic thrusts and sources of leverage become operational. There are three main phases of internationalization, which is the process of entering a foreign market. These phases are initial market entry, local market expansion, and global rationalization.”lxviii

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It can be concluded that the international evolution analysis is suitable to support strategic decision-making. The alcoholic beverage industry is currently in the initial market entry phase of this model because of the saturation of domestic markets, movement overseas of domestic customers, desire to keep abreast of technological changes, advances in communication, technology and market infrastructure, sourcing opportunities, government incentives to export and diversification of risk.

Appendix J – Political Trends

“The political social value net is used to understand who matters to an organization, this time within the political-social context. The political social value net includes: political competitors, policy makers, social actors and political complementors.”lxx

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It can be concluded that there are strong policy makers that hinder the alcoholic beverage industry. Despite this, alcoholic beverage firms attempt to reduce these regulations through a variety of different strategies.

Appendix K – Additional Trends Affecting Alcoholic Beverage Industry

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i Ravina, Alessandro, and Aurélien Duthoit. World Alcoholic Beverage Companies. London: Euromonitor, 1994. 20-23. Xerfi Global. Euromonitor, Dec. 2010. Web. 25 Jan. 2015. <http://bemwsmba.weebly.com/uploads/1/0/4/0/10400307/wine_report.pdf>.ii Yoast, Richard A. “Alcohol Industry 101.” Reducing Underage Drinking Through Coalitions 21.1 (2003): 2. Alcohol Policy MD. American Medical Association. 2004. Web. 26 Feb. 2015. <http://www.alcoholpolicymd.com/pdf/AMA_Final_web_1.pdf>.iii Cummings, J.L., Creating Value Chapter 1 (New York: Ming Press, 2011), p. 11-17. iv Cummings, J.L., Creating Value Chapter 14 (New York: Ming Press, 2011), p. 1. v Bonn, Melissa, “Value Chain Analysis”, MG 402 Business Strategy, Loyola Univ. MD, Spring 2015. (See also Appendix A) vi Bonn, Melissa, “Value Net Analysis”, MG 402 Business Strategy, Loyola Univ. MD, Spring 2015. (See also Appendix B) vii Bonn, Melissa, “Strategic Group Mapping Analysis”, MG 402 Business Strategy, Loyola Univ. MD, Spring 2015. (See also Appendix C)viii Bonn, Melissa, “Strategy Canvas Analysis”, MG 402 Business Strategy, Loyola Univ. MD, Spring 2015. (See also Appendix D)ix Bonn, Melissa, “Co-Opetitive Forces Analysis”, MG 402 Business Strategy, Loyola Univ. MD, Spring 2015. (See also Appendix E)x Cummings, J. L., MG 402 Business Strategy, Loyola Univ. MD, Spring 2015, Lectures. xi Bonn, Melissa, “Industry Evolution Analysis”, MG 402 Business Strategy, Loyola Univ. MD, Spring 2015. (See also Appendix F)xii Bonn, Melissa, “Alliance Evolution Analysis”, MG 402 Business Strategy, Loyola Univ. MD, Spring 2015. (See also Appendix G)xiii Bonn, Melissa, “Discontinuous Technological Life Cycles”, MG 402 Business Strategy, Loyola Univ. MD, Spring 2015. (See also Appendix H)xiv Bonn, Melissa, “International Evolution Analysis”, MG 402 Business Strategy, Loyola Univ. MD, Spring 2015. (See also Appendix I)xv Bonn, Melissa, “Political Social Value Net Analysis”, MG 402 Business Strategy, Loyola Univ. MD, Spring 2015. (See also Appendix J)xvi Cummings, J.L., Creating Value Chapter 14 (New York: Ming Press, 2011), p. 6. xvii Bonn, Melissa, “Competitive Factors Framework”, MG 402 Business Strategy, Loyola Univ. MD, Spring 2015. xviii Cummings, J.L., Creating Value Chapter 14 (New York: Ming Press, 2011), p. 6.xix Bonn, M. N., MG 402 Business Strategy, Loyola Univ. MD, Spring 2015. (See also Appendix K) xx Bonn, Melissa, “Co-Opetitive Forces Analysis”, MG 402 Business Strategy, Loyola Univ. MD, Spring 2015. (See also Appendix E)xxi Ravina, Alessandro, and Aurélien Duthoit. World Alcoholic Beverage Companies. London: Euromonitor, 1994. 51. Xerfi Global. Euromonitor, Dec. 2010. Web. 25 Jan. 2015. <http://bemwsmba.weebly.com/uploads/1/0/4/0/10400307/wine_report.pdf>. xxii Bonn, M. N., MG 402 Business Strategy, Loyola Univ. MD, Spring 2015. xxiii Bonn, Melissa, “Co-Opetitive Forces Analysis”, MG 402 Business Strategy, Loyola Univ. MD, Spring 2015. (See also Appendix E)xxiv Ravina, Alessandro, and Aurélien Duthoit. World Alcoholic Beverage Companies. London: Euromonitor, 1994. 51. Xerfi Global. Euromonitor, Dec. 2010. Web. 25 Jan. 2015. <http://bemwsmba.weebly.com/uploads/1/0/4/0/10400307/wine_report.pdf>. xxv Ravina, Alessandro, and Aurélien Duthoit. World Alcoholic Beverage Companies. London: Euromonitor, 1994. 51. Xerfi Global. Euromonitor, Dec. 2010. Web. 25 Jan. 2015. <http://bemwsmba.weebly.com/uploads/1/0/4/0/10400307/wine_report.pdf>. xxvi Bonn, Melissa, “Strategic Group Mapping Analysis”, MG 402 Business Strategy, Loyola Univ. MD, Spring 2015. (See also Appendix C)

xxvii Bonn, Melissa, “Competitive Factors Framework”, MG 402 Business Strategy, Loyola Univ. MD, Spring 2015.xxviii Ravina, Alessandro, and Aurélien Duthoit. World Alcoholic Beverage Companies. London: Euromonitor, 1994. 53-72. Xerfi Global. Euromonitor, Dec. 2010. Web. 25 Jan. 2015. <http://bemwsmba.weebly.com/uploads/1/0/4/0/10400307/wine_report.pdf>. xxix Bonn, Melissa, “International Evolution Analysis”, MG 402 Business Strategy, Loyola Univ. MD, Spring 2015. (See also Appendix I)xxx Ravina, Alessandro, and Aurélien Duthoit. World Alcoholic Beverage Companies. London: Euromonitor, 1994. 20. Xerfi Global. Euromonitor, Dec. 2010. Web. 25 Jan. 2015.xxxi Ravina, Alessandro, and Aurélien Duthoit. World Alcoholic Beverage Companies. London: Euromonitor, 1994. 53. Xerfi Global. Euromonitor, Dec. 2010. Web. 25 Jan. 2015. <http://bemwsmba.weebly.com/uploads/1/0/4/0/10400307/wine_report.pdf>. xxxii Ravina, Alessandro, and Aurélien Duthoit. World Alcoholic Beverage Companies. London: Euromonitor, 1994. 53. Xerfi Global. Euromonitor, Dec. 2010. Web. 25 Jan. 2015. <http://bemwsmba.weebly.com/uploads/1/0/4/0/10400307/wine_report.pdf>. xxxiii Bonn, Melissa, “Industry Evolution Analysis”, MG 402 Business Strategy, Loyola Univ. MD, Spring 2015. (See also Appendix F)xxxiv Bonn, Melissa, “Competitive Factors Framework”, MG 402 Business Strategy, Loyola Univ. MD, Spring 2015.xxxv Ravina, Alessandro, and Aurélien Duthoit. World Alcoholic Beverage Companies. London: Euromonitor, 1994. 53-71. Xerfi Global. Euromonitor, Dec. 2010. Web. 25 Jan. 2015. <http://bemwsmba.weebly.com/uploads/1/0/4/0/10400307/wine_report.pdf>. xxxvi Bonn, Melissa, “Political Social Value Net Analysis”, MG 402 Business Strategy, Loyola Univ. MD, Spring 2015. (See also Appendix J)xxxvii Bonn, M. N., MG 402 Business Strategy, Loyola Univ. MD, Spring 2015. xxxviii Ravina, Alessandro, and Aurélien Duthoit. World Alcoholic Beverage Companies. London: Euromonitor, 1994. 53. Xerfi Global. Euromonitor, Dec. 2010. Web. 25 Jan. 2015. <http://bemwsmba.weebly.com/uploads/1/0/4/0/10400307/wine_report.pdf>. xxxix Bonn, M. N., MG 402 Business Strategy, Loyola Univ. MD, Spring 2015. xl Yoast, Richard A. “Alcohol Industry 101.” Reducing Underage Drinking Through Coalitions 21.1 (2003): 1-32. Alcohol Policy MD. American Medical Association. 2004. Web. 26 Feb. 2015. <http://www.alcoholpolicymd.com/pdf/AMA_Final_web_1.pdf>.xli Bonn, Melissa, “Co-Opetitive Forces Analysis”, MG 402 Business Strategy, Loyola Univ. MD, Spring 2015. (See also Appendix E)xlii Bonn, M. N., MG 402 Business Strategy, Loyola Univ. MD, Spring 2015. xliii Bonn, Melissa, “Alliance Evolution Analysis”, MG 402 Business Strategy, Loyola Univ. MD, Spring 2015. (See also Appendix G)xliv Yoast, Richard A. “Alcohol Industry 101.” Reducing Underage Drinking Through Coalitions 21.1 (2003): 8. Alcohol Policy MD. American Medical Association. 2004. Web. 26 Feb. 2015. <http://www.alcoholpolicymd.com/pdf/AMA_Final_web_1.pdf>. xlv Bonn, Melissa, “Competitive Factors Framework”, MG 402 Business Strategy, Loyola Univ. MD, Spring 2015.xlvi Yoast, Richard A. “Alcohol Industry 101.” Reducing Underage Drinking Through Coalitions 21.1 (2003): 8. Alcohol Policy MD. American Medical Association. 2004. Web. 26 Feb. 2015. <http://www.alcoholpolicymd.com/pdf/AMA_Final_web_1.pdf>. xlvii Bonn, Melissa, “Value Chain Analysis”, MG 402 Business Strategy, Loyola Univ. MD, Spring 2015. (See also Appendix A)xlviii Cummings, J. L., Creating Value Chapter 3 (New York: Ming Press, 2011), p. 2-3.xlix "Our Company | Anheuser-Busch." Anheuser-Busch. Anheuser-Busch Companies, 2015. Web. 29 Jan. 2015. <http://anheuser-busch.com/index.php/our-company/>.

l Cummings, J. L., Creating Value Chapter 3 (New York: Ming Press, 2011), p. 7-8. li "Beer Brewing Industry Analysis." Nku.edu. Northern Kentucky University, n.d. Web. 29 Jan. 2015. <http://www.nku.edu/~fordmw/mgt490projectbeer.pdf>.lii Cummings, J. L., Creating Value Chapter 4 (New York: Ming Press, 2011), p. 1-2.liii Bonn, Melissa, “Strategic Group Mapping Analysis”, MG 402 Business Strategy, Loyola Univ. MD, Spring 2015.liv Bonn, Melissa, “Strategic Group Mapping Analysis”, MG 402 Business Strategy, Loyola Univ. MD, Spring 2015.lv Bonn, Melissa, “Strategic Group Mapping Analysis”, MG 402 Business Strategy, Loyola Univ. MD, Spring 2015.lvi Cummings, J. L., Creating Value Chapter 4 (New York: Ming Press, 2011), p. 1-10.lvii Bonn, Melissa, “Strategy Canvas Analysis”, MG 402 Business Strategy, Loyola Univ. MD, Spring 2015.lviii “Alcoholic Beverage Manufacturing.” Hoover’s Online. 2015. Web. 19 Jan. 2015.lix Cummings, J. L., Creating Value Chapter 5 (New York: Ming Press, 2011), p. 2. lx Ravina, Alessandro, and Aurélien Duthoit. World Alcoholic Beverage Companies. London: Euromonitor, 1994. Xerfi Global. Euromonitor, Dec. 2010. Web. 25 Jan. 2015.lxi "Beer Brewing Industry Analysis." Nku.edu. Northern Kentucky University, n.d. Web. 29 Jan. 2015. <http://www.nku.edu/~fordmw/mgt490projectbeer.pdf>.lxii Cummings, J. L., Creating Value Chapter 9 (New York: Ming Press, 2011), p. 2.lxiii Bonn, M. N., MG 402 Business Strategy, Loyola Univ. MD, Spring 2015. lxiv Cummings, J. L., Creating Value Chapter 9 (New York: Ming Press, 2011), p. 5.lxv Bonn, M. N., MG 402 Business Strategy, Loyola Univ. MD, Spring 2015. lxvi Cummings, J. L., Creating Value Chapter 10 (New York: Ming Press, 2011), p. 4.lxvii Bonn, M. N., MG 402 Business Strategy, Loyola Univ. MD, Spring 2015. lxviii Cummings, J. L., Creating Value Chapter 11 (New York: Ming Press, 2011), p. 6.lxix Bonn, M. N., MG 402 Business Strategy, Loyola Univ. MD, Spring 2015. lxx Cummings, J. L., Creating Value Chapter 12 (New York: Ming Press, 2011), p. 9.lxxi Bonn, M. N., MG 402 Business Strategy, Loyola Univ. MD, Spring 2015.