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Brewing Industry Pestle Analysis

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POLITICAL1.Government campaigning against drinking and drivingHard-hitting campaigns and stiffer penalties have helped to reduce the number of roads accidents, deaths, injuries and damage. Campaigns have aimed to raise awareness of the legal situation and the dangers of driving while intoxicated. In most international jurisdictions, anyone who is convicted of injuring or killing someone while under the influence of alcohol or drugs can be heavily fined, as in France, in addition to being given a lengthy prison sentence. Sometimes those campaigns make the brewery industry looking very bad since usually the blame is laid exclusively on them for making alcohol so easily available. Threat, with the government heavily expending money in such …show more content…

These new rules were taken to restrict investment on the real estate, retailing, and shipbuilding, banking and insurance market. Even though these rules have not affected directly the brewery industry in future that could be the case after many small breweries in China have been bought by the large international brewers. Threat, a change of rules restricting foreign investment is never good news for business. ECONOMIC1. Globalization (acquisition/merges/alliances)The integration of economic, political, and cultural systems across the globe. The global pressure for consolidation due to the overcapacity within the brewery industry. The needs to contain costs and benefits of leveraging strong brands through acquisitions, merges, alliances, licensing by the big player while attempting to gain a bigger share or to control the market. Opportunity for fast growing and to exploit new markets. 2. Increase in wages and disposable income from the new members of the EU (Eastern Europe)Jobs and money have flowed into Easter Europe countries since they became part of the EU. With the inclusion of theses countries in the EU the average wage went up and the living conditions have improved. They now are able to afford all the commodities that the rest of Europe has been enjoying for years. It is

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