The world is currently awash in porters, lagers, and ales, many produced by small brewery companies, which are attaining an ever growing market share. Such breweries include Brooklyn Brewery, Sierra Nevada Brewing Company and Boston Beer Company. Currently, Brooklyn Brewery is engaging in brisk business since it plans to construct another brewery in 2017, on Staten Island. Small companies such as Brooklyn managed to sell 11 percent of the alcoholic drinks Americans consumed in 2014. Managing to get consumers is not enough, but small brewers have to worry about the mergers that are happening between the industry’s giants. The mergers can make it difficult for small companies to sell and distribute their products because they will control large beer distributors, retail stores, and bars across the country.
Customers can find Brooklyn lager in Stockholm, but they cannot find the same lager in various states such as California. That is because the distribution of beer is mainly done through wholesalers who are mostly acquired by huge beer corporations such as Anheuser-Busch InBev. When giant breweries buy an autonomously-owned distributor they will evaluate every brand and not retain all of them because most of their attention will be on their internal brands. In essence, when giant companies merge they tend to hurt the small brewers mainly in the distribution sector. For example, Brooklyn cannot sell its beer in various Western states and California because it lacks strong ties with various supermarket chains such as Safeway. Other barriers include high shipping expenses, and lack of autonomous distribution. InBev owned wholesalers do not have any interest in marketing or distributing alcoholic beverages from competing corporations. Even if the giant companies merge, they will not defeat the small brewers in producing beer that has the taste that consumers need. Large brewers are focused on making money but small brewers concentrate on making beer.
Coca-Cola Company plans to produce a premium milk beverage known as “Fairlife”. The milk-based beverage will cost double the value of pints vended at grocery stores. The milk which will be used to make the drink will be sourced from 92 maintainable, family-owned farms. The company further says that the milk drink will have high calcium and protein as well as low sugar. Coca-Cola aims to pursue the utmost standards of agricultural sustainability, animal comfort and milk quality. Basically, Coca-Cola is trying to exploit the weak market of milk by producing its nutritious milk-based beverage. The milk drink will taste better than the normal milk because it is lactose-free, and it will go through an exclusive milk-filtering procedure and high-care processes.
On the other hand, many consumers are questioning the sincerity of Coca-Cola to produce a healthy milk beverage because the company is known for producing unhealthy, sugary, and carbonated soft drinks. Equally, the company has been criticized for its use of racy advertisements while promoting Fairlife. Coca-Cola’s ads have been viewed as sexist because they feature many photos depicting brunette, blonde and skinny women wearing only a squelch of milk. The advertisements tend to encourage customers to drink what the women are wearing. Hence, the advertisements are appallingly gross and they objectify women’s image in a negative way. Already, the company’s new product has started on a rough path but time will determine whether consumers will embrace it with all the unethical practices associated with it.
Bajaj, Vikas. Craft Beer is Booming, but Some Brewers Worry about the Future. Web.2Feb.2016. http://www.nytimes.com/2015/10/22/opinion/craft-beer-is-booming-but-some-brewers-worry-about-the-future.html?_r=1
Wilson, Julie. Coke to Launch Double-Priced Milk Beverage with Extra Protein and Calcium. Web.2Feb.2016. http://www.naturalnews.com/047929_milk_beverage_Coca-Cola_sexist_advertising.html