Apply PESTEL analysis to the European Brewing Industry identifying key opportunities and threats in 2010.

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European Brewing Industry

Q) Apply PESTEL analysis to the European Brewing Industry identifying key opportunities and threats in 2010.

PESTEL analysis:

Political factors:

  • The government is campaigning strongly against drunk-driving, which is affecting the tendency to drink beer in restaurants, pubs and bars
  • The Government has the power to set potential fines for the industries that do not meet there standard law requirements
  • Decline in traditional key markets such as the United Kingdom is due to the fact that there is growing hostility towards ‘binge drinking’
  • Restrictions on packaging, such as; the usage of cans in Denmark
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Economical factors:

  • Low growth in consumption of beers
  • In the European industry where beer growth is historically high, there is a decline in the demand for beer, whilst in the developing economies such as; China and Brazil, the consumption of beer is steadily growing
  • Growing trend towards cross-border mergers
  • A recession creates increased activity at the lower ends of product price ranges, therefore the rate of interest will increase depressing business and causing lower spending levels along the way

Social factors:

  • Growing concerns about health and fitness
  • Growing concerns about drunk-driving
  • Underage drinking levels increasing
  • Binge-drinking ...

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