Recollecting from the previous blog post of the overall health of the big beer industry analysis and data have shown the ups and downs of the current state of the industry. When it comes to subjects like trends, millennials, competition, and obstacles confronting the beer industry they must look at past examples of differentiation and success to improve and progress forward. The question that lies among industry elites is “What can we do to stay at the top?”
What is deemed a viable action for beer companies to take would be the concept of premiumization. Premiumization is an action that has been widely adopted in european markets. Premiumization in Europe has lead to the prices of beers to be increased which in a consumers point of view would be seen as monstrous. But what companies nowadays are doing is adding value and prestige to their beverage. The future of the industry will involve premiumization as such foreign beers like Heineken and Dos Equis have done with their marketing and social awareness programs.
With declines of 2% in sales and .5% increase in value in 2010 the European beer market decided a new strategy to be implemented due to incompetent results, thus premiumization was take hold. Now US beer sales are plummeting to competitors such as craft beer and imported beers. It seems that US companies will begin to adopt premiumization to add new life and value to current US brands with dwindling sales.
By, Bertin Jacobo
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