Product details

Allied-Lyons plc is one of the six largest competitors in the UK brewing industry. An industry which is dominated by six competitors that hold 80 per cent of the market share. It is an industry which has historically developed by companies merging, and growing by vertical integration so that they control the production, distribution and retailing of their products through tied public houses. This amount of control is unknown in many industries. Despite the Monopolies and Mergers Commission Report, this situation has changed very little. Since the growth within the industry has reduced, the brewers have had to seek expansion elsewhere and have diversified into numerous areas, eg hotels, food, leisure etc. This case deals with the strategies pursued by Allied-Lyons over a seven year period, 1984 to 1991, and its attempts to deal with the diversity of problems. Broadly, Allied-Lyons have tried to develop from a national brewing company into a multi-national brewing, wines, spirits and food organisation. The case is presented in a chronological format with events factually reported, which are enhanced with quotes from the company and leading UK newspapers and journals. The author offers no analysis within the case study, but has produced a teaching note.