Brands and the Evolution of Multinationals in Alcoholic Beverages
Author(s)
Lopes, Teresa da Silva
Abstract
Discusses the critical role that brands have played in the evolution of multinational marketing of alcoholic beverages. Brands have often determined the nature and scope of mergers and acquisitions in this industry and so help explain the successive merger waves that have transformed it since the 1960’s. Firms that became truly global were primarily those that developed a portfolio of successful brands that were recognized in many countries. By acquiring and repositioning such brands, these firms were able to respond to changes in consumption, competition, and regulation. Moreover, their ability to move from familiar to geographically and culturally distant markets helped them achieve continuous growth and long-term survival. While standard accounts of growth and internationalization tend to give primacy to investments in science and technology, this article shows how the marketing knowledge inherent in brand management is fundamental in explaining the evolution of firms in industries where technology has not been a major input.
