TO OUR BREWING FRIENDS
THE FINDING
The global beer market is undergoing profound change.
In traditionally beer-consuming countries, alternative drinks are now gaining ground, reducing market share.
On the other hand, on the continents where beer consumption emerged later, the sector is growing, particularly in Africa, South America and Asia.
Another major development, the beer traditionally distributed in cafés, hotels and restaurants is increasingly recruiting its customers in mass distribution, where premium beers are increasing sharply at the expense of standard beers, which are losing ground.
The central purchasing groups of the supermarkets are exerting very strong pressure on prices, which, combined with the proven volatility of raw material prices, is leading to a drastic reduction in margins.
In order to gain a foothold in this market, the strategy of world leaders in the brewing industry, such as AB InBev and Heineken, is based on external growth, aimed at consolidating large brand portfolios through mergers or acquisitions of other companies.
On the one hand, the acquisition of varied portfolios enables them to diversify their sources of profit (having different brands, different beers, in different countries) and to generate new growth levers (acquisition of breweries in countries where the company is not yet established).
On the other hand, large-scale production is necessary to generate margins by strengthening their bargaining power vis-à-vis raw material suppliers and mass distribution.
The brewers' landscape is thus marked by a very high level of concentration, and is regularly reconfigured by vast M&A operations.
93.2 billion of its main competitor SABMiller, AB InBev has consolidated its position as a world leader.
Such a move enabled the brewing giant to benefit from geographical complementarities, in particular by gaining a foothold in emerging markets where SABMiller was present and where it was lagging behind its competitors. The operation also gave it the means to extend and diversify its brand portfolio, bringing together 8 of the 10 world's leading brands.
Today, three major players (ABInBev/SABMiller, Heineken and Carlsberg) now share more than half of the shares in a market still in search of growth. And this race for consolidation is set to intensify further due to the undisguised appetite of the Asians Kirin and Asahi.
THE TESLAQUILA MODEL
As standard beer is produced with low added value, the Genius Brewing Company has chosen to position Teslaquila in the premium segment.
Teslaquila is thus offered in four recipes, targeting only the fast growing market sectors:
Craft : Teslaquila Original Gold
Flavored : Teslaquila Paloma Mix
IPA : Teslaquila Red Sunset
Low alcohol : Teslaquila Law
The Teslaquila brand has been registered and/or filed in nearly 60 countries to give it worldwide visibility.
The Genius Brewing Company has developed an innovative brewing and bottling licensing system, giving craft breweries access to an international brand, which they manufacture as close as possible to the consumer.
Producing at sites relatively close to the place of consumption makes it possible to significantly reduce transport costs and their impact on the environment.
The Genius Brewing Company assists its partners in setting up their production lines and provides them directly with everything that is easily transportable (computer programs, mix, labels and capsules); the other ingredients used in the composition of the beers, as well as the containers (glass bottles, aluminum cans and recyclable plastic kegs) are supplied in a short circuit from the usual suppliers, with whom prices are negotiated in advance.
The network of licenses is regional and allows for exclusive brewing and bottling.
The proposed partnership will enable the partner breweries to retain their core business, if they so wish, while optimising their costs by associating it with a line of premium products with a strong reputation.
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