Industry Analysis
Guinness competes in an industry characterized by intense competition, significant government regulation, intense pressure from buyers (rival brewers with tied house estates and supermarket chains), and an overall steady decline in on-trade sales. Even though on trade sales are declining, they still account for almost 70% of beer sales in the UK (See Exhibit 1). Fortunately, deregulation and continued pressure from the European Union Anti-competition Committee, as well as the good ties that Guinness maintains with both on-trade and off-trade distributors, enable Guinness to expand information flow from suppliers to consumers to more accurately gauge sales forecasts, lead times, and increased margins available, as well
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