During the last five years, both of the industry's big two players were acquired by foreign interests
Melbourne, Australia (PRWEB) May 26, 2012
Despite volume growth being flat for the Beer and Malt Manufacturing industry, double-digit growth in premium and low-carbohydrate beer sales drove revenue growth early in the five years to 2011-12. According to IBISWorld industry analyst Steven Connell, “While the big two players have seen sales of their flagship beers affected by consumers shifting from beer to cider, ready-to-drink spirits and an influx of foreign-label beer over the past five years, beer manufacturers have benefited from growing demand for higher value premium beers”. Fosters and Lion Nathan National Foods invested in boutique brands to capitalise on this. Revenue is expected to decline 1.5% in 2011-12 as weak consumer sentiment, colder than average weather and intensifying competition weighs on sales and margins. In the five years leading up to 2011-12, industry revenue is expected to increase by an annualised 1.9% to total $5.13 billion.
IBISWorld expects Fosters and Lion Nathan will continue to lose market share over the five years through 2016-17, as competition intensifies from both within and outside of the industry. “Traditional brands such as VB and XXXX will increasingly be displaced as the market becomes more fragmented”, adds Connell. Premium beers will continue to gain their share of the market, with flavoured beers, international brands and craft beers all benefiting from drinkers' ongoing demand for variety and quality. Declining domestic beer consumption should lead some brewers to target export markets for growth. Imports are forecast to decline as more international brands are brewed under licence in Australia. Rising environmental concerns are expected to drive innovation in products, packaging and branding. In the five years leading up to 2016-17, industry revenue is expected to increase.
The Beer and Malt Manufacturing industry in Australia has a high level of market share concentration. The two major brewers are Foster's (SABMiller) and Lion Nathan (Kirin). However, concentration has fallen during the last five years, with drinkers switching from traditional brands such to premium international and craft beers. The third largest player in the industry, Coopers, has enjoyed robust growth over the five year period. During the last five years, both of the industry's big two players have been acquired by foreign interests. During September 2011, Australia's largest brewer Foster's Group was acquired by Anglo-American giant SABMiller for $10.7 billion. This followed months of courtship and speculation surrounding Foster's future, following the company's decision to separate its beer and wine assets. During 2009, Lion Nathan was acquired by Japanese food and beverage giant Kirin Brewing Company.
For more information, visit IBISWorld’s Beer and Malt Manufacturing report in Australia industry page.
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IBISWorld industry Report Key Topics
The Beer and Malt Manufacturing industry consists of firms that manufacture, bottle and can beer, ale, stout or porter, and manufacture malt. Firms in the industry buy ingredients to process into malt and beer. Malt manufacturers sell malt as a key ingredient to breweries, and dairy product manufacturers and a range of food processors. Beer, ale and stout are packaged for sale to pubs, bars, hotels and wholesale and retail alcoholic beverage distributors.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.