Estrella Galicia CEO Ignacio Rivera, at ESADE: "In our internationalisation process, we'll have to choose between the Americas and Asia"
"We’ll have to choose between the Americas and Asia." Discussing his company’s internationalisation strategy at the fourth session of the Desayunos ESADE-Deloitte series on family businesses, Estrella Galicia CEO Ignacio Rivera described how the brewery will have to choose between two of the world’s biggest markets. According to Mr. Rivera, "The decision depends on whether we want to go premium or if we want to compete in price. Estrella Galicia’s strategy has always been the former, so we should know how to export to a premium market."
Founded in 1906, Estrella Galicia is the fourth-largest Spanish brewery, with a 5.5% share of the beer market. "We’re a different sort of family business", commented Mr. Rivera. Since the 1990s, when the fourth generation took control, the company has been committed to premium products and forms of marketing that take advantage of the available resources. Recent examples include Estrella Galicia’s sponsorship of the New Year’s Eve telecast ("It was the first time they didn’t toast with cava") and the Road Racing World Championship Grand Prix. "We’ve always known that we had invest in publicity and spread the Galicia name throughout Spain and the world", Mr. Rivera added.
Estrella Galicia had a turnover of €50 million last year. The keys to the company’s success, according to Mr. Rivera, are as simple as "a love of beer and a clear strategy and objectives. Between 2010 and 2012, the brewery focused on the premium market. From 2013 to 2015, it followed the same strategy and became the leader of its market segment. Now, from 2016 to 2018, it plans to continue with the four main pillars of its current strategy: “the beer business, the water business, distribution and internationalisation".
The breakfast discussion session was hosted by Fernando Ruiz, Chairman of Deloitte; Pedro Navarro, Deputy Executive Chairman of the ESADE Foundation Board of Trustees; and Jaime Castelló, Lecturer in the Department of Marketing Management at ESADE.
