czech republic beverage industry analysis and future projections

Czech Republic Max Bradshaw, Diego Villasenor, Connor Mulholland, & Alex

Hacikoglu

Agenda

Country Overview

Business Climate

Risk/Opportunity Analysis

Operational Plan

Financial Considerations

Summary

Resources

Country Overview

Located in Central Europe

Czechoslovakia

Soviet Union

1993 - Czech Republic

European Union

Country Overview

Rise in Population

GDP Per Capita

Major Exporter of Beer

Democracy

Business Climate & Cultural Consideration

History of takeovers from foreign

countries

Freedom is still new to Czech people

Differences:

Social interaction

PDA

Religion

Business Climate & Cultural Consideration

Czech people utilize public

transportation

Meeting times are strict

Western culture

Heavy drinkers

Business Climate & Industry Competitive Analysis

Top Down Market Analysis

Big picture

Macroeconomic trends

Understand market size

Narrow focus

Penetrating beer market

Business Climate & Industry Competitive Analysis

Czech Republic Beer Consumption

World leader of beer consumption per

capita

3% increase in beer consumption over

past 5 years

1.5 Billion liters consumed per year

419 bottles consumed per person annually

SWOT Analysis

Strengths

High volume of beer consumption

Embedded in their culture

Opportunities

New drinkers

$100 M investment

Weaknesses

Beer industry is very competitive

Loyal customers

Threats

Competitive pricing

Loss on investment

Looking to the Future

Marketing to the Future

Branding & Expansion

Our product will reflect the focus of our marketing.

The Beer itself will be a lauger. This style of beer is incredibly popular in the US along with many other countries.

This style will allow us to target both locals and western tourists.

Target Capital Structure

Average capital structures of Miller, Busch , United, and Carlsberg:

-50% Debt

-50% Equity

Operating ExpensesInventory:

Marketing:

Equipment:

Research & Development:

General & Administrative:

Financials-Cash Flows

Estimated Cash Flows:

Summary and Future Expansion

Resources http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Retail%20Food%20Sector%20_Prague_Czech%20Republic_5-18-2015.pdf

http://www.statista.com/forecasts/397925/czech-republic-restaurant-and-mobile-food-services-revenue-forecast-nace-i56

http://www.eesc.europa.eu/resources/docs/balach.pdf

http://www.praguepost.com/economy/39259-czechs-spend-billions-on-drugs-alcohol-prostitutes

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/leisure/11237013/Mapped-Beer-sales-around-the-world-who-drinks-the-most.html

http://iom.vse.cz/wp-content/uploads/2008/03/Beer-in-the-Czech-Republic_2006.pdf

http://www.datamonitor.com/store/Product/czech_republic_wine?productid=MLIP1392-0007

http://www.stockspirits.com/index.asp?pageid=281

http://www.ekonomie-management.cz/download/1404726184_33fa/2013_3+Analysis+of+Reasons+for+Beer+Consuption+drop+in+the+Czech+Republic.pdf

http://ec.europa.eu/health/archive/ph_determinants/life_style/alcohol/forum/docs/ev_20081013_co04_en.pdf