Mmmmm African Beer

4/2/2012

Ever thought of brewing your own beer? As it turns out, many do in Africa. This is a market that is untapped though, which means profit opportunities could abound. "Brewers are betting that Africa’s fast-growing middle class will want to trade up." What is the author implicitly saying about beer in the previous statement? At the end of the article it is said that the firm expanding its beer distribution is a "force for good", do you agree?

R00062662

4/3/2012 06:50:19 pm

As income increases demand for inferior goods (homebrew) decreases and the demand for normal goods (commercial brews) increases. For example, when you are at school on mom and dad's "dime", and not working much, you are okay buying keystone or high life. BUT, lets say you get a raise, or you start working more hours. All of a sudden, you have a lot more disposable income, and without affecting the quantity of other necessities you HAVE to buy, you can buy higher quality beers, and the cycle continues (hopefully) until you are drinking Chimay: Special Reserve every day of the week (but not on a school night of course). As for the "force for good" comment: It's a catch 22. Sure, more jobs are available, but so is the tendency for these employees to become alcoholics, which in turn, may cause them to lose the job they thought they had. Alcohol is tricky when it comes to economics. It raises morale and provides utility to those consuming it, but as most of us know, that next morning morale is low and so is motivation.

10412296

4/11/2012 08:53:09 am

In that quote, the author is saying that sorghum and cassava beers (beers that are brewed professionally) are normal goods. I feel like it is not necessarily a "force of good" but it is not necessarily a "force of bad" either. Spreading professionally brewed beer to third world countries was bound to happen sooner or later because eventually those third world countries are going to modernize and industrialize. Also, it says in the article that the Africans brew their own beer, which means that although it doesn't taste as good, they have the capability to get the beer buzz if they wanted it without the sorghum and cassava beers.

10489980 link

4/11/2012 10:17:33 pm

I have been some some countries like these, and technically, it is ass backwards when it comes to normal and inferior goods. Because of how they live and are raised they prefer the home-brew vs. the cassava. So, in reality to them, normal goods would be the home-brew and inferior, the cassava beer. Now, money is what would make it flip over. Money makes people lazy. (leisure) The more money they have individually, the more they are willing to provide less for them selves and depend on other producers.

R10455834

4/11/2012 10:12:52 am

I think as countries outside of europe and north america begin to modernize alcohol use will definitely spike up. This is a natural occurrence as alcohol is most likely consumed during leisure time. I do think that it is also a force for good in these countries as well. In countries where stress and tension are so high there is no doubt that having a drink could help everyone relax

R10358580

4/12/2012 05:05:24 am

I think the consumption of alcohol will definitely increase in the years to come. Especially at the convenience of home brew. Alcohol is prevalent in many cultures, and as the years go by the population increases. The more people there are the more demand for alcohol there will be.

10413789

4/12/2012 07:05:51 am

It sounds like the same concept of marijuana here in the states. It will continue to be distributed and drunk regardless of where it is brewed or what restrictions are placed on it.

10372587

4/13/2012 12:46:46 am

I completely agree. This is exactly like the whole marijuana situation in the US. No one is going to just out of the blue stop drinking beer if thats what they like to do.

R10382294

4/12/2012 07:43:44 am

I agree with what the firm is doing. Not only is it a great business move it in turn helps Africa's economy. In my opinion what the firm is doing sounds like a win win situation for both parties involved.

10469266

4/12/2012 01:20:45 pm

It seems like the beer issue there could eventually change... that being said, at the moment its completely backwards in relation to everything else (as far as normal and inferior goods/services are concerned..) A lot of what make the home-brewed beers more appealing to them makes widely distributed beers less appealing, the cost of making/distributing them as well as the time it takes when making them. Because the home-brewed beers cost more time and probably resources to make, they're considered more of a normal good than the other beers. This COULD shift if home-brewed beers are phased out, but that would probably take quite a bit of time.

10316907

4/12/2012 10:18:21 pm

I agree with what they are doing. I know tensions in countries like Africa are high but it is also one of the poorest continents in the world so anything anyone can do to make a profit I say good for them.

R10363252

4/12/2012 11:51:28 pm

The author is implying that bbeer is a normal good. However, if the home brewing is so available, those will be the products that are bought. If it is easier and more enjoyable to make your own, that will be the route people take.

10375157

4/13/2012 12:14:08 am

If home brewing is a popular thing, the people that are less unfortunate will not be buying the beer. Although the bbeer seems to be a great profit and economic opportunity for the people. If people like the taste of their own beer, they would prefer it over anything else.

R10457271

4/13/2012 12:57:01 am

I think that its going to increase the next couple years no matter what, and that it is definitely not a force for good, it is neither bad but not a true force for good because the more poor countries will eventually start home brewing too.

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