Adnams Brewery: A Comprehensive Analysis of the Brewery Industry

This report provides an analysis of Adnams Brewery, a well-established company in the brewery industry. The report begins with a brief overview of Adnams, highlighting its history, values, and commitment to quality and sustainability. It then delves into a Porter's Five Forces analysis, examining the bargaining power of buyers and suppliers, the intensity of rivalry, the threat of new entrants, and the threat of substitutes within the brewery industry. The analysis reveals challenges such as high buyer power due to substitute products like soft drinks, and intense competition. The report recommends diversification into soft drinks and fruit juices to address these challenges. Furthermore, it discusses Adnams' strategies, including diversification, expansion, teamwork, and leadership, concluding that Adnams is a well-positioned company in its industry.

Adnams- Reflection Paper

Adnams is a well-established company and is one of the strongest competitors in the brewery
industry. The company had started its business operation in the year 1872 and since then, the
company is growing successfully. The company has received many awards that showcase
that it is one of the best businesses in the brewery industry (Adnams, 2017).The vision and
mission of the company is not explicitly mentioned but, it is reflected in the values of the
company. It is gathered that the major aim of the business is to serve the people by its
efficient business conducts (Bowers, 2008).The company’s mission is to add value to the
environment and society and to safeguard the planet Earth (Adnams, 2018).The company
aims to provide naturally developed products to their customers so that they can enjoy best
quality and taste. The company uses barley, rye, wheat and oats to produce their products. It
is also observed that the organization employs the best techniques and distilleries in order to
produce their products(Adnams, 2018).On the basis of the Porters five force analyses, it has
been found out that the bargaining power of the buyers is very high in the brewery industry.
This is so because they have substitutes available in the market like soft drinks and fruit
juices. This is one of the greatest challenges and issues those are being faced by Adnams and
in order to deal with this, it has been recommended to the company to diversify and start
manufacturing fruit juices as well as soft drinks. The bargaining power of the suppliers in
this industry has reduced because of increased existence of competitors in the market and
increased taxes on such products. For this reason, the supplier’s profit margin is reduced and
along with that the suppliers cannot increase the prices as the existing customers may switch
to other substitutes. The existing rivalry within this industry is very high. This is so because
the profit margin of the existing companies is low and as a result, they impose intense
competition over the new entrants. Barriers to entry are also high in this industry majorly
because of the government regulations and higher taxes on this industry. Moreover, barrier to
new companies is high as the already established companies have captured a great market

share. Availability of substitutes in this industry is high. The close substitutes of beer include
vodka, spirits, gin, rum, etc and the distant substitutes of beer include soft drinks and fruit
juices. In order to deal with the issue of close substitutes, Adnams has already diversified its
product ranges to produce spirits and gin and hence, has ensured a high market share by
offering tough competition to rivalries (Wiki Wealth, 2018). Diversification and expansion
are among the major business strategies of the company. The company believes in team work
and leadership and as a result, has employed experienced as well as new employees in the
team (Adnams, 2018). This will encourage new thinking in the organizational culture and the
business will be handled with expertise of experienced employees (Adnams, 2018).
Considering the industrial position of the company, it can be said that Adnams is one of the
well-established companies in the brewery industry.

References
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Adnams, 2018. Adnams Copper House Distillery. [Online] Available at:
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Adnams, 2018. Meet the board. [Online] Available at: http://adnams.co.uk/about/meet-the-
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Bowers, S., 2008. Bluegrass beer baron with a hi-tech style. [Online] Available at:
https://www.theguardian.com/business/2008/aug/15/fooddrinks [Accessed 23 September
2018].
Wiki Wealth, 2018. Beer industry - Five forces analysis. [Online] Available at:
http://www.wikiwealth.com/five-forces:beer-industry [Accessed 23 September 2018].