Figure a10.1 provides a schematic representation of the process of growth of the largest multinationals of alcoholic beverages at the beginning of the twenty-first century. It illustrates how brands influenced that evolution by constantly changing the boundaries of firms in a series of different stages. It is based on the assumption that a standard multinational of alcoholic beverages P1 evolves in several stages corresponding largely to “waves” of international mergers and acquisitions. Penrose's concepts on the growth of the firm, and Johanson and Vahlne's stages model of the internationalization of the firm are used to help explain the internationalization process, despite not directly addressing entry into foreign markets through globalization of brands. The figure shows that the world's largest alcoholic beverages firms first grew through geographical expansion using their existing successful brands, and through international mergers, acquisitions, and alliances. It highlights the increasing importance of marketing knowledge in the development of firms. Figure a10.1 does not, however, suggest that the industry evolved over time into a monopoly, but rather that P1 grew from being the leader in its domestic market to being a globalized multinational firm.

The schematic representation focuses in particular on three types of growth strategies of firms – exports, mergers and acquisitions, and alliances. As in other industries in developed economies, these were the predominant forms of international expansion of alcoholic beverages firms since the 1960s.