Industry Analysis & Industry Trends
The Beer Manufacturing industry has undergone a shake-up over the past five years. Per capita beer consumption has declined sharply as drinkers have given up traditional brands, such as Victoria Bitter, in favour of premium beers and other beverages like cider and wine. Robust demand for craft beer has resulted in the number of industry craft breweries increasing over the past decade to about 150 in 2014-15.
At the other end of the market, foreign interests have acquired Australia's two largest brewers, Lion and Carlton & United Breweries (CUB). The battle for market share between the two has constrained growth in industry revenue and profitability. Over the five years through 2014-15, industry revenue is expected to increase at an annualised rate of 0.1% to total $4.8 billion... purchase to read more
Industry Report - Industry Investment Chapter
Capital intensity for the industry is high. For every dollar paid as wages, $0.56 is required as capital investment. Wages represent labour costs, and depreciation is used as a proxy for capital. Most of the processes within the industry (i.e. brewing and packaging) are undertaken by highly automated machinery. Therefore, there is relatively little human involvement in the production process. However, labour is required for product research, plant maintenance, sales, marketing and management. Given the highly paid nature of those types of roles, the industry has a high average wage.
New technology requires increased capital, so investment is essential for output expansion and achieving economies of scale... purchase to read more