Essays on Australian Beer Market Case Study

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The paper "Australian Beer Market " is a perfect example of a micro and macroeconomic case study.   The main issue in the Australian beer market is the changing consumer choices that are affecting what products companies can offer. Many people are reducing their consumption of draught beer while increasing that of craft beer and wine. This has resulted in complaints against the biggest brewers who are trying to wade off competition by utilizing anti-competition distribution strategies. The main stakeholders in the issue are the mainstream beer brewers, craft beer brewers, winemakers and retailers who include pubs, clubs and supermarkets.

The impact for mainstream brewers is the need to diversify into craft beer. For the current craft brewers, the main impact has been an opportunity to increase revenue. However, with the big brewers using strategic distribution aimed at reducing competition, the small craft brewers’ existence is threatened. For retailers, it determines the amounts of products they stock and offer to consumers. Economics for Business Introduction The Australian market is currently experiencing a change in drinks preferences where consumers are reducing their consumption on draught beer and increasing on wine and craft beer.

“ The latest figures from the Australian Bureau of Statistics (ABS) show the average person is drinking 44 fewer standard drinks of beer than they were in 2008,” (Herrick 2013). Consumers are becoming more attentive to what they take. Restaurants are now serving food accompanied by craft beer to their customers. This change in consumer preferences has resulted in a heated battle between the main draught beer brewers and the small craft brewers. The big brewers such as CUB and Lion have opted for strategic distribution channels aimed at warding off competition from the small craft beer.

Several economic issues have arisen, with the main ones being consumer choice and game theory. Main Issue One of the main issues in the Australian beer market is changing consumer preference. The media has indicated that consumer preferences are changing from draught to craft beer and wines. The statistics indicate a major shift in the last decade. Recently, beer consumption has hit its lowest in 66 years, leaving the major beer makers concerned given the declining profits (Kruger 2014).

Bibliography

Australian Network News 2013, Distinct Craft Flavours Changing Beer Market, viewed May 02, 2014, at http://www.abc.net.au/news/2013-10-30/an-craft-beer-boom/5058324

Becker, G. S 2011, Economic Theory, New Jersey, N.J: Transaction publishers.

Ferguson, A 2014, Trouble Brewing in Battle over Beer, viewed May 02, 2014, at http://www.smh.com.au/business/comment-and-analysis/trouble-brewing-in-battle-over-beer-20140122-3191i.html

Herrick, R 2013, Drink Choices Shifting from Beer to Wine, viewed May 02, 2014, at http://www.abc.net.au/news/2013-09-18/drink-choice-shifting-from-beer-to-wine/4966018

Kruger, C 2014, Craft Brewers face an Uphill Battle, viewed May 02, 2014, at http://www.smh.com.au/business/craft-brewers-face-an-uphill-battle-20140122-3191n.html

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