BeverageStocks.com, a leading investor and industry portal for the food and beverage industry, present a beverage sector overview through, “Inroads into the Growing Global Beverage Marketplace.” As US firms work to take advantage of the $700-billion global beverage marketplace there are many challenges that must be overcome to find success in the growing opportunities within this sector. Proving out successful international strategies are companies such as Starbucks (NASDAQ: SBUX), Nascent Wine Co. Inc. (OTCBB: NCWT), Pepsi Bottling Group, Inc. and Coca-Cola Co. who have learned to overcome the challenges associated with entering international markets through understanding the culture, the environment and by developing key marketing and distribution partners within the global beverage markets.
Corporate giant Starbucks (NASDAQ: SBUX), has been highly successful in entering a growing number of global beverage markets. Starbucks’ international strategy, according to company spokesperson Katherine Cheng, is based on establishing partnerships with companies that share similar corporate values and philosophies, bringing strong knowledge of the local market and a proven track record in the food and retail industry in those respective markets. “Regardless of business structure, our commitment to our business partners worldwide is 100 percent. The opening of Starbucks stores in a country creates jobs in the market where we offer our partners a great work environment and competitive compensation and benefits, in line with our guiding principles of treating our partners with dignity and respect,” explains Cheng.
Among the high growth international targets, Mexico posts the greatest export opportunity for every US beverage company large and small according to Jorge Olson, managing partner of Liquid Brands Management Inc., a beverage consulting firm. “It has all the ingredients of a great customer. It has a great infrastructure including roads and ports to ship truckloads of products, many beverage distributors selling to supermarkets and convenience stores and more than 500,000 stores willing and able to buy new products throughout Mexico. Not only that, but Mexico is one of the largest consumers of beverages in the world per capita and as a country including soda, flavored water, energy drinks and beer, ” states Olson.
Nascent Wine (OTCBB: NCWT), a global beverage and food distributor, understands the necessity of tapping into established networks in international markets and has strengthened their position within Mexico through an acquisition strategy that has allowed them to aggressively grow their distribution base. Nascent’s CEO Sandro Piancone describes, “Every time we make an acquisition, we get sales people, their customer base, unique permits, and exclusivity for certain brands, once we get this, we are positioning ourselves for hyper growth because we now take this product line and spread it throughout our present distribution system. Our management team is constantly looking for exclusive distribution agreements for Mexico, like the one we signed with Ferrarelle Water.”
Coca-Cola and Pepsi have recently been dealing with an international crisis as they fight allegations in India that accuse the companies of having pesticide levels in their soft drinks that exceed proposed Indian safety standards. Despite this controversy, both companies have experienced tremendous growth realizing 52 week high stock prices in August, a testament to the overall strength of beverage markets domestically and abroad.
The growth in the global beverage market is expected to continue across a variety of segments from new and creative drink formulas, to the basic tastes of water. According to Andrea Foote, Editor in Chief for Beverage World, “Sports drinks and energy drinks rank among the fastest growing food and beverage categories across all continents.”
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Source: BeverageStocks.com, Nascent Wine Co. Inc, Starbucks