Alcohol Beverage Pest

Topics: Alcoholic beverage, Drinking culture, Alcoholism Pages: 4 (1214 words) Published: May 12, 2012
An alcoholic beverage is a drink containing ethanol, commonly known as alcohol. Alcoholic beverages are divided into three general classes: beers, wines, and spirits. [pic]

The above chart shows us the alcohol consumption by different countries. Obviously, Australia has drunk alcohol above 12.5 per capita (liters) and this represents a large consumption population. Drinking alcohol is considered a normative behavior in adolescence, with adolescent drinkers the majority of consumers for some beverages. The often sweet taste of RTD sub-category, combined with attractive packaging, has led critics to charge that the drinks are appealing to underage youth—as well as young drinkers of a legal age who may be prone to consume them in excess. However, in an effort to minimize under‐age binge drinking he Federal government substantially increased the excise tax by 70% on RTD’s in April 2008. This price increase has lead to a significant decline in the sales revenue of the RTD sub‐category as a whole, and this decline is underpinned by the departure of the highly profitable 18‐30 year old ‘aspirational drinker’ adult market segment. So, we need to think out new strategy to get the losing market back.

PEST Analysis:
The alcoholic beverage industry faces political challenges. Specifically, in international markets, we should consider like civil conflict, governmental changes and restrictions concerning the ability to relocate capital. The hot political debate in 2010 revolved around the privatization of alcoholic beverage sales. Every state has a department that sets and enforces the regulations concerning the sale of wine, beer and spirits. Companies, who fail to meet the standards of law, are fined by the local government. Furthermore, we should be able to penetrate emerging and developing markets, that also relies on economic and political conditions, and also their ability to form effectively strategic business alliances with local...
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