2. Opportunity or Threat
Competition/Industry
(Amin/Regi)
● (T) Wine sales increased by 2.9% between 2014-2015 (Beer
Canada, July 2016, pg.1)
○ The Wine Industry is increasing sales is a threat
because consumers are buying wines, coolers and
spirits instead of beer. RIEGIENTHAN
● (T) Alcohol consumption among canadians has decreased
0.2% over the five year period. (IBIS World, 2016, pg.7)
○ This is a threat because if alcohol consumption is on
the decline, Beer one of the leading alcoholic
beverages in Canada will also subsequently decline in
sales. AMIN
● (O) Top Beer Companies sales are down, but Craft Beer sales
are going up (CBC News, 2015, para.4)
○ This is an opportunity because it is giving smaller beer
operations a chance to take on a larger share of the
market as demand for craft beers is at an all time high.
RIEGIENTHAN
● (O) Beer goes on sale at 58 grocery stores across Ontario.
(Global news, Dec 2015, Para. 1)
○ This is an opportunity because it means that Beer
distributors now have another platform to sell their
product. In the past Beer was exclusively sold at The
Beer store and LCBO locations, the recent addition of
grocery stores should increase sales significantly as
products become more accessible. AMIN
3. Opportunity or Threat
Demographic
(Amin)
● (T) Older demographics favour more sophisticated drinks like
wine instead of beer and younger generations are drinking
more wine because of its health benefits. (EuroMonitor, Jun
2016, Para. 1 )
○ This is a threat for the industry as both the older and
younger demographics are slowly moving away from
beer, and going for alcoholic alternatives like wine.
AMIN
● (O) “Of the G7 countries, the United States (15%) and
Canada (16.1%) have the lowest proportions of persons aged
65 years and older.”(Stats Canada, July 2015, Para. 10)
○ This is an opportunity because it means that there is
more young people in North America than the majority
of the g7 Nations. Young people in their late teens and
college years are the largest consumers of beer
making North America an ideal region for beer
manufacturers. AMIN
● (O) US research has found that 50% of 25 to 34 year olds
have tried craft beer at least once while 44% have never tried
a Budweiser. (Astrid Van Den Broek, Apr 2016, Para. 6)
○ The fact that so many young people in Canada are
willing to try craft beers is a huge opportunity for craft
brewers. This means they have a very large
demographic to sell to and can take a larger share of
the market then they have in the past. AMIN
● (O) Molson Canada’s low calorie Molson Canadian 67 beer is
marketed to the more health conscious drinker. These light
beers have grown exponentially in value with an increase of
66% from 2010 to 2011.(Agri-Food Canada, Jan 2015, Para.
25)
○ As the amount of health conscious individuals is
currently rapidly on the rise. Low calorie Beers are a
great opportunity to sell to this demographic of healthy
people which is growing exponentially. AMIN
4. Opportunity or Threat
Socio-cultural
● (T) Drinking is injurious to our health because it is unhealthy
and linked to disease. (Globe and Mail, June 2014, para.1)
○ This is a threat because regular consumption is
serious to health, and it causes cancer, heart disease,
and depression. RIEGIENTHAN
● (T) Drinking tends to be a social activity for all cultures
(sirc.org, “Social and Cultural Aspects of Drinking, para.7)
○ This is a threat because it is the transition from work to
play which is associated with recreation and
irresponsibility, such as drinking and driving and
creates alcohol related problems. RIEGIENTHAN
● (T) 80% of Canadians drink alcohol every day (National Post,
May 2015, para. 1)
○ This is a threat because we are drinking more than we
should. The percentage of Canadians exceeding the
low-risk guidelines was 18.3% compared to 17.3% a
decade earlier. RIEGIENTHAN
● (T) Men between the age from 19-34 are for beer
consumption (Statista, Domestic Beer Consumption by
gender, Chart)
○ This a threat, many people in the age group are
causing car accidents and impaired driving such as
major and minor injuries and serious crashes.
RIEGIENTHAN.
5. Opportunity or Threat
Economic ● LCBO to introduce “craft beer zones” at 25 locations.(CBC
News, 2015)
○ (O) This is a great opportunity to increase sales
expanding this market niche by craft brewers due to
exposition. The market of craft beer generated $68
million in sales in 2014-2015. According to Ontario
brewers the new sections could bump sales even
higher.(Rodrigo)
● 10 fascinating facts about beer in Canada (Furdyk, 2016)
○ (O) This is an opportunity because according to the
Conference Board of Canada, by the sale of beer, one
out of every 100 jobs in Canada is supported. For
each dollar spent on beer generating $1.12 for the
nation’s economy. Over 163,200 jobs are supports due
to “beer economy” throughout Canada.(Rodrigo)
○
● Commercial Restaurants – Traffic per Capita by Household
Income
○ (O) According to the stats in this industry review for the
restaurant business (which includes bars). The
household income greatly affect foot traffic in
restaurants and bar. Due to the greater incomes that
are starting to enter households this is an opportunity
for the beer industry as the can capitalize on this by
selling their beers to bars and resteraunts and use
them to get beer outlets for their consumers.
● Historic inflation Canada - CPI inflation
○ (T) The inflation rate around the world is constantly
going up. Due to the higher cost of living that this
creates among Canadian. This is a major threat to the
beer industries and most industries in general as
people won't have the money to buy your beer
because they are spending it on other necessities and
beer is more of a want.
6. Opportunity or Threat
Technological
(Gianni/Rodrigo)
● Niagara in a glass: Craft brewing staying strong (Youdale,
2016)
○ (O) This is an opportunity because the same process
for produce excellent wines have been used for craft
brewers. As a result we have excellent beers. They
are using new technologies and equipment’s to
produce consistent products and special craft beers.
Consequently more wine industries have started to
produce great beers as well.
● The beer industry is going through 4 seismic changes that are
impacting how America drinks: D.I.Y Brews
○ (T) The ability to brew your own beer is becoming
easier and easier as people are selling D.I.Y (do it
yourself) kits on the internet. This would be a threat
because it is a substitute to all beers on the market
and could make you lose more customers in the long
term.
● Pub crawling at scale: tapping Untappd to explore social
drinking
○ (O) Social networking is a huge aspect of today's
society and it can make or break companies and
industries. The Untappd app which allows its users to
post pictures and write reviews of beers they have
tried. And encourages them to try more is a huge
opportunity for people to share what they like about
your beer and promote it among other consumers in
the beer industry
● Heineken: Changing the Game in Beer
○ (T) With Heineken’s new “Brewlock System” it is a
threat to other companies in the industry, because only
Heineken has access to this system of getting the beer
out without coming into contact with CO2 and other
gasses. This however if it were to ever become
available to other companies would be a great
opportunity to release higher quality beer in kegs.
7. Opportunity or Threat
Regulatory
(Gianni/Rodrigo)
● Improved retail access will unlock industry (Canada
NewsWire, 2015)
○ (O) This is an opportunity because will bringing more
convenience by consumers from Ontario due to
initiative by the Premier Kathleen to open up the
province’s beer retailing).
● Beer sold in grocery stores will not face strict limits, Souza
says. (CBC news, 2015)
○ (O) This is an opportunity because according to
Finance Minister Charles Sousa, the government will
not impose "stringent restrictions" on the amount of
beer that Ontario grocery stores will be able to sell.
This way, the profits of Grocery Stores will be huge.
● Legal purchasing age and legal drinking age. (Euromonitor,
2016)
○ (T) This is a threat because according to reports from
the Liquor Control Board of Ontario (LCBO), its
employees refused to sell to more than 439,000
people in 2014/2015, with 88% of these cases being
because of age.
● Beer league Hockey tradition under threat as more arenas
ban dressing room booze. (Zelkovich, 2016)
○ (T) More and more arenas across the country are
saying no to that post-game beer in the dressing
room that has been as much a part of the game as
body checks and slap shots. This way, the
consumption tends to decrease due to policies of
prohibition.
○
8. References
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http://www.euromonitor.com/beer-in-canada/report (Amin)
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http://www.agr.gc.ca/eng/industry-markets-and-trade/statistics-and-market-
information/agriculture-and-food-market-information-by-region/canada/consumer-trends-
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Shum, David. "Beer goes on sale at 58 grocery stores across ontario". Global News. N.p.,
2015.Web. 11 Oct. 2016. Retrieved from http://globalnews.ca/news/2401511/beer-goes-
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Network, Beverage. "Heineken: changing the game in beer". Beveragejournalinc.com.
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"The beer industry is going through 4 seismic changes that are impacting how america
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