A Global Alcohol Industry

Topics: Drinking culture, Alcoholic beverage, Alcoholism Pages: 16 (5107 words) Published: June 4, 2011


The global alcohol industry: an overview
David H. Jernigan
Department of Health, Behavior and Society, Johns Hopkins Bloomberg School of Public Health, Baltimore, MD, USA

ABSTRACT Aims To describe the globalized sector of the alcoholic beverage industry, including its size, principal actors and activities. Methods Market research firms and business journalism are the primary sources for information about the global alcohol industry, and are used to profile the size and membership of the three main industry sectors of beer, distilled spirits and wine. Findings Branded alcoholic beverages are approximately 38% of recorded alcohol consumption world-wide. Producers of these beverages tend to be large multi-national corporations reliant on marketing for their survival. Marketing activities include traditional advertising as well as numerous other activities, such as new product development, product placement and the creation and promotion of social responsibility programs, messages and organizations. Conclusions The global alcohol industry is highly concentrated and innovative. There is relatively little public health research evaluating the impact of its many marketing activities. Keywords alcohol, advertising, marketing, globalization, multi-nationals, responsibility.

Correspondence to: David H. Jernigan, Department of Health, Behavior and Society, Johns Hopkins Bloomberg School of Public Health, 624 N. Broadway, 2nd Floor, Baltimore, MD 21205-1996, USA. E-mail: djerniga@jhsph.edu Submitted 5 December 2007; initial review completed 25 January 2008; final version accepted 20 October 2008

INTRODUCTION Alcohol can be made from a wide variety of agricultural inputs, and is produced both formally and informally throughout the world. The ‘industry’ producing alcoholic beverages may take many forms, including a single woman or a group of women brewing traditional beer in an African village; a network of industrial breweries created originally by colonial authorities to brew traditional-style beer and then controlled by transnational corporations and/or local governments; national or regional production networks producing beer, spirits or wine and controlled by domestic companies; or complex and globally integrated production, distribution and marketing chains making beer, spirits and/or wine available and coordinated by multi-national corporations [1]. Production, wholesaling and distribution and retailing are all parts of the industry, and no single paper could hope to describe all these disparate activities. This paper will focus on the globalized segment of the alcohol industry, its size, structure, major players and activities.

THE WORLD’S LARGEST ALCOHOL MARKETERS The alcoholic beverage industry includes producers, wholesalers and distributors, point-of-sale operators (whether licensed or not) and hospitality providers such as hotels or cafés that serve alcohol. Its production and distribution arms are allied closely with agriculture, trucking, capital goods manufacturing and packaging industries. Its marketing wing spends heavily in the industries of advertising, sport and entertainment (including films, television and music). Within countries there are varying degrees of vertical integration of alcohol production, distribution and sales, with a general trend towards this fueled by economic liberalization and accompanying regional and global trade agreements. At the same time there are a few cases of national political realities (such as the constitutionally mandated three-tier system in the United States, or the move by South Africa’s principal brewer to spin off its truckers into independent small businesses with the end of apartheid) that occasionally exert pressure in the opposite direction. Addiction, 104 (Suppl. 1), 6–12

© 2009 The Author. Journal compilation © 2009 Society for the Study of Addiction

The global alcohol industry


Table 1 Ten largest...

References: 1. Jernigan D. H. Applying commodity chain analysis to changing modes of alcohol supply in a developing country. Addiction 2000; 95: 465–75. 2. Barry K. Global wine report: new world order: premiumization, megadeals reshape business. Impact 2007; 37: 1,6–10. 3. Rehm J., Rehn N., Room R., Monteiro M., Gmel G., Jernigan D. et al. The global distribution and average volume of alcohol consumption and patterns of drinking. Eur Addict Res 2003; 9: 147–56. 4. International Center for Alcohol Policies. The Structure of the Beverage Alcohol Industry. Report no. 9. Washington, DC: International Center for Alcohol Policies; 2006. 5. Jernigan D. H. Cultural vessels: alcohol and the evolution of the marketing-driven commodity chain. Diss Abstr Int 2001; 62: 349–50A. 6. Impact Databank. The Global Drinks Market: Impact Databank Review and Forecast, 2006 edn. New York: M. Shanken Communications; 2007. 7. Lopes T. D. S. The growth and survival of multinationals in the global alcoholic beverages industry. Enterprise Society 2003; 4: 592–8. 8. Fortune. Fortune Global 500. Fortune 2007; http://money. cnn.com/magazines/fortune/global500/2007/full_list/ index.html, accessed 27 September 2007. 9. Advertising Age. Advertising age’s 20th annual global marketers. Advert Age 2006; 77: 2–53. 10. Room R., Jernigan D. The ambiguous role of alcohol in economic and social development. Addiction 2000; 95: S523– 35. 11. Mosher J. F., Johnsson D. Flavored alcoholic beverages: an international marketing campaign that targets youth. J Public Health Policy 2005; 26: 326–42. 12. Jernigan D. H. Implications of structural changes in the global alcohol supply. Contemp Drug Probl 2000; 27: 163– 87. 13. Aaker D. A. Building Strong Brands. New York: The Free Press; 1996. 14. Graubert J. D. Federal trade commission: agency information collection activities; proposed collection; comment request. Fed Regist 2006; 71: 62261–6.
Addiction, 104 (Suppl. 1), 6–12
© 2009 The Author. Journal compilation © 2009 Society for the Study of Addiction
David H. Jernigan
15. Snyder L., Milici F., Slater M., Sun H., Strizhakova Y. Effects of alcohol exposure on youth drinking. Arch Pediatr Adolesc Med 2006; 160: 18–24. 16. Stacy A. W., Zogg J. B., Unger J. B., Dent C. W. Exposure to televised alcohol ads and subsequent adolescent alcohol use. Am J Health Behav 2004; 28: 498–509. 17. Collins R. L., Ellickson P. L., McCaffrey D., Hambarsoomians K. Early adolescent exposure to alcohol advertising and its relationship to underage drinking. J Adolesc Health 2007; 40: 527–34. 18. Sargent J. D., Wills T. A., Stoolmiller M., Gibson J., Gibbons F. X. Alcohol use in motion pictures and its relation with early-onset teen drinking. J Stud Alcohol 2006; 67: 54–65. 19. McClure A. C., Dal Cin S., Gibson J., Sargent J. D. Ownership of alcohol-branded merchandise and initiation of teen drinking. Am J Prev Med 2006; 30: 277–83. 20. Hollingsworth W., Ebel B. E., McCarty C. A., Garrison M. M., Christakis D. A., Rivara F. P. Prevention of deaths from harmful drinking in the United States: the potential effects of tax increases and advertising bans on young drinkers. J Stud Alcohol 2006; 67: 300–8. 21. Saffer H., Dave D. Alcohol advertising and alcohol consumption by adolescents. Health Econ 2006; 15: 617–37. 22. Roberts C., Blakey V., Tudor-Smith C. Impact of ‘alcopops’ on regular drinking by young people in Wales. Drugs Educ Prev Policy 1999; 6: 7–15. 23. Johnston L. D., O’Malley P. M., Bachman J. G., Schulenberg J. E. Monitoring the Future National Survey Results on Drug Use, 1975–2006. Vol. I. Secondary School Students. Bethesda, MD: National Institute on Drug Abuse; 2007. 24. Center on Alcohol Marketing and Youth. Still Growing After All These Years: Youth Exposure to Alcohol Advertising on Television, 2001–2005. Washington, DC: Center on Alcohol Marketing and Youth; 2006. 25. Ferreira S. E., de Mello M. T., Pompéia S., de SouzaFormigoni M. L. Effects of energy drink ingestion on alcohol intoxication. Alcohol Clin Exp Res 2006; 30: 598–605. 26. Oteri A., Salvo F., Caputi A. P., Calapai G. Intake of energy drinks in association with alcoholic beverages in a cohort of students of the School of Medicine of the University of Messina. Alcohol Clin Exp Res 2007; 31: 1677–80.
27. Mullman J. Big brewers gut ad spend, sell more beer. Advert Age 2007; http://adage.com/article?article_id=120644, accessed 17 November 2008. 28. Donohue B., Allen D., Maurer A., Ozols J., DeStefano G. A controlled evaluation of two prevention programs in reducing alcohol use among college students and low and high risk for alcohol related problems. J Alcohol Drug Educ 2004; 48: 13–33. 29. Sharmer L. Evaluation of alcohol education programs on attitude, knowledge and self-reported behavior of college students. Eval Health Prof 2001; 24: 336–57. 30. Barnett N. P., Murphy J. G., Colby S. M., Monti P. M. Efficacy of counselor vs. computer-delivered intervention with mandated college students. Addict Behav 2007; 32: 2529– 48. 31. Reis J., Riley W., Lokman L., Baer J. Interactive multimedia preventive alcohol education: a technology application in higher education. J Drug Educ 2000; 30: 399–421. 32. Bowers S. Bars and brewers unite against bingeing. Guardian, 2006, http://www.guardian.co.uk/society/2006/mar/ 13/drugsandalcohol.business, accessed 28 September 2007. 33. Anderson P. The beverage alcohol industry’s social aspects organisations: a public health warning. Globe 2002; 2002: 5–30. 34. Babor T. F., Caetano R., Casswell S., Edwards G., Giesbrecht N., Graham K. et al. Alcohol: No Ordinary Commodity. Oxford: Oxford University Press; 2003. 35. Cavanagh J., Clairmonte F. Alcoholic Beverages: Dimensions of Corporate Power. New York: St Martin’s Press; 1985. 36. Impact Databank. The U.S. Beer Market: Impact Databank Review and Forecast, 2006 edn. New York: M. Shanken Communications; 2007. 37. Impact Databank. The U.S. Spirits Market: Impact Databank Review and Forecast, 2007 edn. New York: M. Shanken Communications; 2007. 38. Impact Databank. The U.S. Wine Market: Impact Databank Review and Forecast, 1998 edn. New York: M. Shanken Communications; 1999. 39. Stuparyk M. South American shakeup. Impact 2005; 35: 26.
© 2009 The Author. Journal compilation © 2009 Society for the Study of Addiction
Addiction, 104 (Suppl. 1), 6–12
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Global Retail Industry IT Spending Market Essay
  • Global Forces and the European Brewing Industry Essay
  • Global Forces and the European Brewing Industry Essay
  • Global Alcohol Detection Breath Analyzers Market Essay
  • Lobbying in Alcohol Industry Essay
  • Essay on Alcohol Industry, External Environments
  • Alcohol Abuse in the Restaurant Industry Essay
  • Alcohol Promotion and the Marketing Industry Essay

Become a StudyMode Member

Sign Up - It's Free