Question: An article in the Wall Street Journal reported that Western European brewers such as Heineken, Carlsberg, and Anheuser-Busch InBev are increasing their production and marketing
An article in the Wall Street Journal reported that Western European brewers such as Heineken, Carlsberg, and Anheuser-Busch InBev are increasing their production and marketing of nonalcoholic beer. The article quotes a Carlsberg executive for new-product development as saying:
Nonalcoholic beer is a largely unexploited opportunity for big brewers. It is quite a natural move when you see that the overall beer market [in Western Europe is] going down. So, of course, we're battling for market share.
The article further states that "brewers are hoping to capitalize on health consciousness" and that "recent brewing advances are helping improve the taste of nonalcoholic beers."
a. In what sense is nonalcoholic beer an "unexploited opportunity" for big brewers?
b. Are the brewers responding to consumer desires, or are brewers exploiting consumers? Briefly explain.
c. How will the "recent brewing advances" that improve taste affect the market for nonalcoholic beer?
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a Apparently there are not many competitors in the nonalcoholic beer ma... View full answer
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