INVC NEWS
Economic Environment of West Europe
Europe is one of the wealthiest and largest regions in the world with home to 731million people, about 11% of world’s population, in 48 different countries. The wealth of different European countries’ varies; however, being one among the most developed regions of the world, even the poorest country in Europe has GDP and living standards well above the poorest countries of other continents. Most European countries have GDP per capita exceeding the global average. In 2010, Europe had a GDP of 19.920 trillion USD, which was about one-third of the global economy and GDP per capita (PPP) of 18.140 trillion USD.
Biggest European economies comprises of west European countries. Hence West Europe is the key region driving growth of the whole Europe. In terms of global nominal GDP, Germany ranks fourth with fifth rank in GDP (PPP), followed by UK ranking fifth, Followed by France ranking sixth, followed by Italy ranking seventh and Spain ranking thirteenth. Historically, rapid growth based on industrialization, technology transfers and trade liberalization has raised the level of west European countries leading to very high average living standard.
The most flourishing sector i.e. manufacturing sector is concentrated in Western Europe with countries such as England, France, Switzerland, Germany, and Italy being hub for most of the production activities. However, due to high real wages and hence production cost Europe is facing deindustrialization. Also, on account recession after 2008, many West European economies like Portugal, Spain, Greece are facing economic failure leading to financial market failure, high unemployment, high debt to GDP ratio etc. The growth trends in rest of Western Europe is expected to gain momentum on account of promising prospects of manufacturing sector, automobile sector, improvement in private consumption as well as exports, investor’s confidence and competitive reforms.
Major Players in the West European Flavoured Alcoholic Drinks Market
With changing consumer tastes, inclination towards low-alcohol content drinks among drinkers and extreme popularity among young population, along with positive outlook of West European economy has attracted international and domestic companies’ involved in manufacturing of other alcoholic drinks to increasingly enter the West European FABs market expanding their production activities as well as product portfolio by including the FABs. Some of the major market players are: Brau-Union Osterreich in Austria, Anheuser-Bush InBev NV in Belgium, Sinebrychoff, Hartwall, Olvi and Altia in Finland, Heineken Entreprise and Brasseries Kronenbourg in France, Radeberger, Anheuser-Busch and Warsteiner in Germany, Athenian and Mythos in Greece, Unicer – Bebidas de Portugal SA in Portugal, state-owned retailing monopoly, Vinmonopolet in Norway, Heineken, Feldschloesschen, Diageo and Diwisa in Switzerland, Diageo Plc in UK.
Fierce competition among manufacturing companies has led them strategize their business activities in a careful manner. Hence they focus on proper competitive pricing as well as invest huge amounts in advertising through campaign and print media so as to eye-catch the consumers especially targeting the young drinkers.
