COVID-19 Impact on Brau

Summary

COVID-19 Impact on Brau July 10th, 2020 based on market analysis and brand diversification by industry and geography

The company is likely to face a major upheaval in its sales during the global pandemic, due to low business diversification and high geographic concentration. However, the company can leverage its strong brand image and adopt defensive strategies to increase its presence in the low impact regions to arrest the decline in sales.

Scope

• Brau Holding International presence only in the beer sector is unlikely to have resilience during the global pandemic
• Brau Holding's brand sales are vulnerable due to the spread of the virus in Western Europe, especially Germany
• The beer and cider sector is set to carry huge losses amid pandemic crisis, with Africa and North America to be the worst-hit regions
• The company's high sales concentration in the hard-hit West European region may restrict growth during the COVID-19 crisis
• Cancellations of beer festivals are liable to hurt the company's sales in 2020

Reasons to Buy

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