From the HBD Archive
From: Fritz Keinert <keinert@iastate.edu>
Subject: The German Beer Market
Date: 1992-03-09 14:43:00 GMT

Chuck Cox' posting about A-B's activities in Czechoslovakia was very
interesting. In the same vein, here is a brief summary of an article
from "DIE ZEIT", a weekly German newspaper. (I get the overseas
edition).

About a month ago, in the business section, they talked about the
effects of opening the German beer market a few years back.

The fear was that cheaply produced foreign beers would flood the
market and crowd out German beers. In reality, nothing happened for a
long time.

Now, several years later, a foreign beer is taking over a noticeable
share of the market for the first time. The winner is ... Corona.
Apparently, this has nothing to do with flavor, but goes hand in hand
with a current boom in Mexican restaurants and vacations in Mexico.
Corona did not even advertise in Germany.

At the same time, foreign breweries are entering the German market
from an unexpected direction: several large breweries have either
bought or subcontracted with existing German breweries. These German
subsidiaries produce versions of their parent companies' beers
according to the Reinheitsgebot, for sale in Germany. The breweries
mentioned in the article that have done this so far are Foster
(Australia), Carlsberg-Tuborg (Denmark), Grolsch (Holland), and
Guinness (Ireland).

The world's largest two breweries are about to do the same:
Anheuser-Busch (USA) and Heineken (Holland). From what Chuck says, A-B
might be taking the Czechoslovakian road instead, but as big as they
are, I would not be surprised if they also bought a German brewery (or
two or three).

>From what I understand, Bud and other brands vary from state to state
here, too, and between the USA and Canada, so this approach is really
nothing new. Still, a Bud with actual flavor, brewed according to the
Reinheitsgebot...?
- -----------
Fritz Keinert
keinert@iastate.edu

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