1. Georg Weiß FFA I Presentation of Topics 06.06.2002

2. Content 2. The Beer Industry in Germany 3. The Crisis and Its Effects 4. Main Reasons for Crisis 5. How Breweries Try to Solve the Problems Georg Weiß - FFA Presentation of Topics - 06.06.2002 Georg Weiß - FFA Presentation of Topics - 06.06.2002 The Crisis of the Beer Industry in Germany 1. 2. 3. 4. 5. 1. 2. 3. 4. 5.

3. Beer Industry in Germany About 370 breweries in Germany with 38,000 employees A few large breweries, but most are small and middle-sized family companies Foreign breweries have no appreciable market share in Germany Georg Weiß - FFA Presentation of Topics - 06.06.2002 Georg Weiß - FFA Presentation of Topics - 06.06.2002 The Crisis of the Beer Industry in Germany 1. 2. 3. 4. 5. 1. 2. 3. 4. 5.

4. The Crisis and Its Effects Breweries must lay-off workers. Number of employees has fallen 22% (10,624) since 1995 to about 37,592 Number of companies has fallen about 18%. In 1995 there were 448 Breweries, in 2000 only 367 Georg Weiß - FFA Presentation of Topics - 06.06.2002 Georg Weiß - FFA Presentation of Topics - 06.06.2002 The Crisis of the Beer Industry in Germany 1. 2. 3. 4. 5. 1. 2. 3. 4. 5.

5. Main Reasons for Crisis Georg Weiß - FFA Presentation of Topics - 06.06.2002 Georg Weiß - FFA Presentation of Topics - 06.06.2002 The Crisis of the Beer Industry in Germany 1. 2. 3. 4. 5. 1. 2. 3. 4. 5. Four areas that contribute to the crisis: - Economic policy - Consumers - Competitors - Retailers and Wholesalers

6. Economic Policy Truck tolls, taxes, driving bans Packing regulations Advertising prohibition (Beer needs TV- advertisement) Georg Weiß - FFA Presentation of Topics - 06.06.2002 Georg Weiß - FFA Presentation of Topics - 06.06.2002 The Crisis of the Beer Industry in Germany 1. 2. 3. 4. 5. 1. 2. 3. 4. 5. Main Reasons for Crisis

7. Consumers Population in Germany is falling Repletion: People are tired of beer Last year was the first time people in Germany drank more wine than beer Georg Weiß - FFA Presentation of Topics - 06.06.2002 Georg Weiß - FFA Presentation of Topics - 06.06.2002 The Crisis of the Beer Industry in Germany 1. 2. 3. 4. 5. 1. 2. 3. 4. 5. Main Reasons for Crisis

8. Competitors Globalisation also in Beer industry: many takeovers and mergers Breweries can only improve their position at the expense of their competitors Georg Weiß - FFA Presentation of Topics - 06.06.2002 Georg Weiß - FFA Presentation of Topics - 06.06.2002 The Crisis of the Beer Industry in Germany 1. 2. 3. 4. 5. 1. 2. 3. 4. 5. Main Reasons for Crisis

9. Retailers and Wholesalers Heavy competition and price pressure in retail sector Not enough money invested in beverage retail, no service, no modernisation, stores closed Georg Weiß - FFA Presentation of Topics - 06.06.2002 Georg Weiß - FFA Presentation of Topics - 06.06.2002 The Crisis of the Beer Industry in Germany 1. 2. 3. 4. 5. 1. 2. 3. 4. 5. Main Reasons for Crisis

10. How Breweries Try to Solve the Problems Breweries try to also offer non-alcoholic drinks (by takeovers or mergers) New beer brands like Diebels “Dimix” or “Mixery” by Karlsberg Alliances and Combinations Georg Weiß - FFA Presentation of Topics - 06.06.2002 Georg Weiß - FFA Presentation of Topics - 06.06.2002 The Crisis of the Beer Industry in Germany 1. 2. 3. 4. 5. 1. 2. 3. 4. 5.

11. How can y yy you solve the problems of Germany’s Breweries? Georg Weiß - FFA Presentation of Topics - 06.06.2002 Georg Weiß - FFA Presentation of Topics - 06.06.2002 The Crisis of the Beer Industry in Germany 1. 2. 3. 4. 5. 1. 2. 3. 4. 5.