Just-Drinks: Brewing giants could force local producers to adapt - study

Source: Just-Drinks

Regional brewers will be forced to adapt to compete with global players, as well as other local producers, as the economic downturn drags on, a new report has warned.

The Rabobank report – entitled 'Battling the Brewing Giants' – urges local brewers to consider initiatives such as joint purchasing or “co-manufacturing”, if global brewers switch tactics to focus more on volumes than profitability. These measures could bring greater economies of scale for local brewers, the report says.

Rabobank analyst Francois Sonneville said: "Despite the considerable M&A activities, the giants have not seen an acceleration in volume growth because their increased economies of scale have not been passed on to consumers."

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