Issues

This book is concerned with the growth of multinational firms in the global alcoholic beverages industry since 1960. This is a period when the industry underwent several major changes, the most significant of which was a profound concentration as leading local and regional firms made multiple international mergers and acquisitions, becoming large multinationals. This concentration accompanied rapid internationalization, diversification, and ultimately globalization. Until the 1960s, production and consumption were essentially country and culture specific. Each country consumed predominantly one type of alcoholic beverage, usually domestically produced, and this pattern determined the kind of firms that developed faster.

This story of multinational growth within the alcoholic beverages industry highlights the role of brands in the dynamic evolution of firms and industries. The focus in this book is on developing the understanding of the role of brands in the growth strategies of internationally competing firms. Brands can affect the life of firms in many subtle ways: they can enhance total turnover, bulk up the financial statements, and cause changes in organizational structures. Brands allow firms to take advantage of premium prices, obtain efficiencies in distribution, and accumulate marketing knowledge. These income-enhancing attributes led in the 1980s to important changes in accounting practices by firms that started to include brands in their balance sheets. Since financial analysts tend to favor companies with strong brands, firms find their competitive positions strengthened.