This case tests market entry strategy through quantitative market sizing, competitive analysis, and financial modeling across three entry options. The interviewer expects structured thinking on market attractiveness, followed by detailed NPV analysis to recommend the internal launch option ($1.75B NPV vs. $1.5B for JV and $1B for acquisition). The case emphasizes go-to-market considerations and opportunities for margin expansion beyond the core initiative.
Big Beer Co is a multinational drink and brewing company with $50b in annual sales. Big Beer Co is the industry leader in terms of market share and boasts a portfolio of hundreds of different beer brands. It has seen consistent growth over time, with recent growth stemming from acquisitions of craft beer breweries and mergers with other multinationals. Wary of ever-changing consumer tastes and the need to deliver value to shareholders, the board is concerned about the go forward viability of the current corporate strategy.
Recently, non-alcoholic alternatives, hard kombucha, and alcoholic seltzer have grown in popularity as Millennials and Gen Z come of age, with alcoholic seltzer being the most attractive option. The CEO has brought you in to determine the following: should Big Beer Co enter the alcoholic seltzer market? And how should it enter the market?