Industry Analysis & Industry Trends
During the past five years, consumers have shifted their preferences toward value products as disposable income growth slowed, which has pressured the industry's revenue. In addition, escalating world demand for major commodities like wheat and aluminum will cause the prices of these inputs to rise and dampen profit. Over the next five years, revenue is expected to rise only marginally as a continued strengthening of the loonie contributes to poor trade performance... purchase to read more
Industry Report - Industry Analysis Chapter
Premiumization, or substitution toward top-shelf products, has dragged down industry performance during the past five years. Despite a 1.4% annualized increase in disposable income since 2007, spending on industry products has declined during the past five years. To make matters worse, a strengthening loonie exacerbated import competition and diluted the export market by making Canadian beer a relatively more expensive product. Overall, IBISWorld estimates that the industry's revenue has contracted at a 1.4% annualized five-year rate to $4.86 billion by 2012. This includes a 2.4% anticipated growth rate in 2012 in response to heightened marketing campaigns by major companies.
Like Americans, Canadians felt the impact of the recession in their pocketbooks... purchase to read more