Abstract
Internationally, the beer industry has been characterised by a scramble for market dominance by large breweries, including AB-InBev and Heineken who currently operate in Namibia. The beer industry has seen several mergers and acquisitions that exacerbated concentration and barriers to entry in the global beer industry. There are mounting concerns that increasing concentration is elevating barriers to entry for craft breweries. This is one of the reasons why competition authorities worldwide, have paid attention to mergers and acquisitions that have taken place in recent years. In Namibia, the industry is much more concentrated than it is on the global scale, with two of the biggest breweries, making up more than 90% of the market. With such concentration levels, there have been concerns regarding the survival of smaller breweries in the Namibian beer market. This study assesses the competitive dynamics of the brewing industry including barriers to entry and growth, particularly for craft breweries. It is established that mainstream breweries have built wide distribution networks throughout Namibia, as well as in the SADC region. On the other hand, craft breweries have confined their distribution within their place of business to remain competitive. Mainstream breweries have established very high production capacity, resulting in relatively low production costs which give them price advantage and ultimately a competitive edge over craft breweries. In addition, several barriers to entry exist, which present an obstacle for new breweries interested in entering the market while threatening the survival of existing craft breweries.